The Cost of Living in Costa Rica: The Ultimate Guide
July 9, 2024
Consistently topping the charts for the best retirement destinations in the world, Costa Rica is known for its low cost of living, quality and affordable healthcare and famous ‘Pura Vida’ (pure life) lifestyle.
Investors and entrepreneurs are drawn to Costa Rica for its friendly tax regime and privacy protection laws.
The country is also popular among digital nomads due to its sizeable expat community, breathtaking landscape and the Costa Rican digital nomad visa.
Still, you can’t let Costa Rica’s many attractions blind you to hard facts. Whether you’re visiting Costa Rica for a few days or moving there long-term, you need to know how far your dollar will go, so that you can plan your expenses accordingly.
Costa Rica is among the most tax-friendly options and works exceptionally well for investors and entrepreneurs, but will it work for you?
That’s where we come in. Nomad Capitalist has helped over 1,500 clients move to multiple tax-friendly jurisdictions from Central America to Western Europe and further afield. Apply to become a client today, and our team will assess your personal and corporate vision and portfolio to determine the best solutions to help you retain and grow wealth, pay fewer taxes legally and acquire greater individual freedom.
Costa Rica – Country Overview
Costa Rica lies in the Central American region of North America, bordered by Nicaragua to the north, the Caribbean Sea to the northeast, Panama to the southeast and the Pacific Ocean to the southwest.
Costa Rica has a population of just over five million. San Jose is the capital and largest city. Over 70% of the nation lives in Costa Rica’s Central Valley, which comprises San Jose and the surrounding towns of Heredia, Alajuela and Cartago.
Costa Rica translates to Rich Coast, and the country certainly is rich in natural beauty, stunning landscape and biodiversity. Costa Rica contains nearly 6% of the world’s biodiversity. To give you an idea of how surreal that is, Costa Rica isn’t even 1% of the size of the US. An impressive 26% of the country is dedicated to national parks, natural reserves and protected areas.
What is the Cost of Living in Costa Rica?
The cost of living anywhere depends primarily on your lifestyle, but North American and European citizens generally find Costa Rica far more affordable than back home.
The monthly cost for a single person living in Costa Rica is between US$2,000 and US$3,000 and can be up to US$4,000 for a family.
The figure mentioned above includes all living costs, such as housing, transportation, healthcare, utilities and food costs. Whether you rent or buy a home, Costa Rica is far more affordable than North America and Europe. The country is also pretty diverse – so whether you want a luxury city condo or a small beach house, you’ll have no difficulty finding it.
Housing Costs in Costa Rica
Whether you rent or buy, the prices will vary depending on the location, size of the property, amenities and proximity to shops.
If you decide to live in San Jose, you’ll have a bigger pool of housing and rentals to choose from. The farther you go, the fewer options you’ll get. However, rental prices will be lower.
You can expect to pay around US$1,200 per month for a furnished apartment in the city and around US$600 further from the centre and a studio will cost about US$800 per month.
If you want to buy a house, the average price per square foot of an apartment in a Costa Rican urban area is nearly US$179.20.
In Costa Rica, real estate prices in tourist spots and Central Valley, either to buy or rent, are typically more expensive than in standard residential areas.
Healthcare Costs in Costa Rica
Costa Rica’s healthcare costs are very low compared to those of North American and European countries, and it boasts one of the best healthcare systems in Latin America.
Like most countries, Costa Rica has two healthcare systems: a government-run universal system and private healthcare. Costa Rican residents must become members of Caja, the universal system.
Whether you go for public or private health insurance, you’ll receive quality medical treatment at a fraction of the price that you’d pay in the US or Western European countries.
Most Costa Rican doctors speak English and are highly qualified and trained by reputable institutes.
Transportation Costs
Several methods of transportation are available in Costa Rica. Most locals use buses, and bus fares range between US$1 and US$20, depending on whether it’s a return trip. The most common forms of transportation in Costa Rica include shuttles, buses and taxis.
Food Costs
One of the best things about Costa Rica is the abundance of fresh food. A farmers’ market is held weekly in almost every Costa Rican town and village, making the country an excellent location for people who want a simple, healthier lifestyle.
Want to dine out? Costa Rican restaurants offer delicious and affordable food. At a local mid-range restaurant, you can enjoy a large meal for around US$7. There are also plenty of vegan options.
Now that we’ve discussed the cost of living in Costa Rica let’s see how you can move there.
How to Move to Costa Rica in 2024
Citizens of most Western countries, including the US, UK and many other European countries, can enter and stay visa-free in Costa Rica for ninety days. If you want to stay longer, you must get a residence permit.
The following are the most popular Costa Rican residence programs.
Pensionado Visa
These are the most significant things to keep in mind when applying for the Pensionado visa (retirement visa):
- Proof of monthly income over US$1,000 (for life)
- No age limit for applicants
- It’s a renewable visa issued for two years
- For visa renewal, you must stay for four months per year.
Rentista Visa
The following are the most significant requirements when applying for the Rentista visa (rental visa):
- Proof of monthly income of at least US$2,500 (for two years)
- US$60,000 in a Costa Rican bank
- For visa renewal, you must have lived in Costa Rica for four months per year and receive your monthly income there.
Inversionista Visa
The following are the most significant things to keep in mind when applying for the Inversionista visa (investment visa):
- Inversionista visa grants temporary residency to foreign investors who invest at least US$150,000 in Costa Rica
- You can invest in active business, real estate, stocks, forest plantations or securities
- You’ll need to submit detailed descriptions of the investment route you chose
- It’s a renewable visa issued for two years
- For visa renewal, you must prove that you’ve lived in Costa Rica for six months per year.
All the visas mentioned above allow you to include a spouse and children under 25 years as dependents.
None offer the right to work as a Costa Rican employee. However, you can work independently, start a business or receive income from your investment.
You may be eligible for permanent residence after three years of legal residency in Costa Rica. As a Costa Rican permanent resident, you’ll need to renew your permit every five years and visit Costa Rica once every year for a minimum stay of 72 hours.
Costa Rican permanent residents can work as employees for Costa Rican employers.
For more details, read our articles on How to Get Costa Rica Residence and Lower Your Taxes by Moving to Costa Rica.
What is the Cost of Living in Costa Rica in 2024: FAQs
The Global Peace Index ranks Costa Rica 58th out of 163 jurisdictions in its latest index. Moreover, the World Economic Forum has named Costa Rica one of the safest countries to retire as an expat. Costa Rica’s stable political climate also makes it one of the safest countries in Central and South America.
In 2021, Costa Rica announced its digital nomad visa, allowing location-independent professionals to stay in the country for a year as long as they work remotely and can demonstrate the required monthly income of US$3,000 or US$4,000 for a family.
On average, private health insurance in Costa Rica costs around US$60 to US$250 per month, depending on your medical needs. In comparison, a private international health insurance plan can go up to US$1,000 per month.
Costa Rica is home to over half a million expats. The Latin American country is among CNBC’s top ten countries where expats are the happiest with work, life and the cost of living. All this clearly indicates how friendly Costa Rica is toward foreigners.
A single person can live comfortably in Costa Rica with a monthly budget ranging from US$1,400 to US$2,000. Retired couples can also live well with a monthly budget of around US$2,500, which allows them to enjoy essential amenities and recreational activities.
As of 2024, the average monthly salary in Costa Rica is between CRC500,000/US$1,000 and CRC1,500,000/ US$3,000, depending on factors such as education, experience and industry.
Should You Move to Costa Rica?
Whether you should move to Costa Rica depends on your personal preferences, corporate needs and, of course, budget. If your goal is to save money while living in a tropical destination with tons of natural beauty, tax incentives and business-friendly regulations, then Costa Rica might just win your heart.
The country has a generous immigration policy, versatile residence permits and a digital nomad visa, giving you plenty of options. Not to mention lucrative tax advantages and privacy incentives, especially for investors and entrepreneurs.
Whatever your motives for going to Costa Rica, moving there requires proper offshore and tax planning by a team that has done it a thousand times before – that’s where Nomad Capitalist’s team comes in.
From billionaires and celebrities to everyday investors and entrepreneurs, we’ve helped over 1,500 successful clients create their holistic Plan B, grow their wealth and give them peace of mind. We can do the same for you. All you have to do is reach out.
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