Many people dream of move to Costa Rica to enjoy a slower pace of life, warm weather, and incredible natural beauty. Having personally moved from the United States to Costa Rica and lived there for five continuous years, I can share firsthand advice about what to expect, the pitfalls to avoid, and how to make your retirement in Costa Rica successful, comfortable, and enjoyable. Though I returned to the U.S. for business reasons, I continue to spend several months each year in Costa Rica, fully immersed in local culture. Living there allows one to experience life among Costa Ricans rather than only the expat community, learn Spanish, and become part of a local family or neighborhood.
Start with Renting Before Buying
The first and most important step for anyone considering retiring in Costa Rica is to rent a house or apartment first. This allows you to experience daily life, understand local culture, and evaluate neighborhoods before committing to a permanent investment.
Rental prices vary widely depending on location:
- Upscale neighborhoods: A one-bedroom apartment or condo in a desirable area can cost up to $1,000 per month.
- Middle-class areas: In more typical Costa Rican neighborhoods, you can find a secure, comfortable apartment for around $500 per month.
Security is an essential consideration. Petty theft is relatively common, so it’s wise to choose gated communities or secure apartments. Hiring a local expert, like Nina (my recommendation), can help guide you through the good and bad areas, giving you peace of mind when selecting your first rental.
Tip: Avoid rushing into purchasing property. Renting first allows you to explore multiple locations and figure out which fits your lifestyle best.
Furniture and Vehicles
Don’t ship your furniture to Costa Rica immediately. Wait until you are certain this is the place for you. Costa Rica has plenty of furniture for sale, often at reasonable prices, and the style suits local homes well.
If you have a vehicle you love, be aware that import taxes are extremely high, sometimes up to 100% of the car’s blue book value. A better approach is to buy a used vehicle locally, which allows you to try out driving in Costa Rica and later resell it if needed. This is far more cost-effective than importing your U.S. car.
Learn Spanish
Learning Spanish is essential for full integration and enjoyment of your Costa Rican life. While many locals in popular expat areas speak some English, knowing Spanish allows you to:
- Communicate comfortably with neighbors and service providers
- Navigate government offices
- Understand cultural nuances and social etiquette
Online Spanish programs, like “Visual Spanish,” are excellent starting points. Practice with neighbors and in local shops to improve your fluency and gain confidence.
Legal Considerations and Residency
To stay long-term or gain residency, you will need a lawyer. Always select a reputable attorney who speaks fluent English. Fees should be discussed upfront. Residency paperwork in Costa Rica can cost anywhere from $500 to $3,000, depending on your visa type and legal assistance.
Key points:
- You can stay legally for 90 days without residency, then must leave for a brief period (most people cross into Panama for a few hours).
- Wait at least one month in Costa Rica before applying for residency. This gives you time to decide if living there permanently is right for you.
Banking in Costa Rica
Opening a bank account is straightforward but requires:
- A passport
- Proof of income or source of funds
Remember: If you maintain a U.S. bank account, you must report foreign bank accounts on your U.S. tax return. Consult your accountant to stay compliant.
Housing and Neighborhoods
Buying property in Costa Rica should come long after renting. Renting allows flexibility—if you don’t like your first neighborhood, you can relocate without the hassle of selling property.
Where to live: One of the most recommended towns is Grecia, about 30 minutes from the San Jose International Airport in Alajuela:
- Climate: Cool and breezy, 70–75°F year-round
- Community: Large expat presence, friendly locals, and a welcoming environment
- Amenities: Grocery stores, weekend farmers’ markets, hospitals, medical clinics, shopping, and a beautiful central park with a red metal church
Living in Grecia allows you to participate in the local community and easily access both modern conveniences and Costa Rican culture.
Monthly Costs of Living
Monthly expenses depend on your lifestyle, but here are some typical figures for a couple living comfortably:
- Housing (rented apartment or home): $500–$1,000
- Groceries: $200–$400 (shopping at local markets keeps costs low)
- Utilities: Electricity can be high if you use AC, but generally affordable without it
- House cleaning: $3 per hour, recommended once a week
- Gardener: $3 per hour
- Gasoline: Approx. $5.50 per gallon
- Medical insurance: Around $100 per person for the government socialized plan; private insurance is optional
Tips for cost control:
- Buy fruits and vegetables at weekend farmers’ markets
- Limit imported or pre-packaged foods, cheese, and meat
- Avoid hiring a full-time maid; part-time cleaning is sufficient
Healthcare in Costa Rica
Costa Rica has an excellent healthcare system. Options include:
- Socialized medicine (Caja): Affordable, income-based coverage with access to local clinics and hospitals
- Private care: Private hospitals and doctors offer faster service at competitive rates. For example:
- General practitioner: ~$60 per visit
- Dentistry: Significantly cheaper than U.S., often taught by University of Costa Rica instructors
Making Friends and Social Life
Costa Rica is a sociable country, and integrating into local life is straightforward. Options for meeting people include:
- Joining English-speaking clubs
- Participating in community activities
- Attending local festivals or parties
Costa Ricans are welcoming and enjoy sharing meals, dancing, and community events with newcomers.
Final Advice
After spending about one month in Costa Rica, you should have a good sense of whether this lifestyle fits you. Start with renting, learning the language, and immersing yourself in the culture. Only consider buying property after you have explored neighborhoods and experienced daily life firsthand.
Costa Rica offers a high quality of life, beautiful natural surroundings, and a slower pace that many retirees seek. With proper planning, realistic budgeting, and a willingness to embrace local customs, retiring in Costa Rica can be one of the most rewarding life decisions you’ll ever make.
If you would like more information, guidance, or a personalized plan, contact me, Nina, to answer questions and help you plan your retirement adventure in Costa Rica.