Should I Retire to Costa Rica?


Should I Retire To Costa Rica?

Should I retire to Costa Rica?  The best place to retire is one of the major factors that should be considered when planning your retirement. One of the countries that expatriates consider as an option for retirement is Costa Rica. 

Topping the Happy Planet Index ranking, Costa Rica has been a consistent competitor for the happiest country spot alongside Mexico and Colombia. Their success can be attributed to a higher well being compared to other larger and richer nations, longer life span due to well-funded healthcare and the pension system.

Should I Retire to Costa Rica? Basic Information Of The Country

Should I retire to costa rica?

Costa Rica, which literally means “Rich Coast”, is a Central American country that is bordered to the north by Nicaragua, to the northeast by the Caribbean Sea, to the southeast by Panama, to the southwest by the Pacific Ocean and to the south by Ecuador.  It has a total land area of 19,714 square miles (51,060 square kilometers) and a total coastline of 800 miles (1,290 kilometers), where 132 miles (212 kilometers) of the coastline is from the Caribbean Coast, and 631 miles (1,016 kilometers) belongs to the Pacific coast.

Population

The population of this country reached 4,857,274 as of the 2016 estimate with a population density of 220 per square miles. It is estimated that the GDP of Costa Rica will reach over $60 billion this 2019 with a per capita of $11,895. The currency used in this country is the Costa Rican colón (plural is colones) with an ISO 4217 code of CRC. The exchange rate from USD to CRC is, 1 USD is equivalent to 587.01 CRC.

Major Cities

The largest cities in this country are San José (capital) with a population of 333,980 as of 2015, Puerto Limón with a population of 55, 667 and Alajuela with a population of 42,889. San José is the largest and can be divided into two areas, the Metro and the City plus Municipality. The Metro has an area of 789 square miles (2,044 square kilometers) and a combined total area of 17.23 square miles (44.62 square kilometers) for the City and Municipality.

Puerto Limón or more commonly referred to as just Limón (Spanish for “lemon”), is the main city, hub, and capital of the Limón Province. With a total land area of 23.09 square miles (59.79 square kilometers). The second largest city in Costa Rica and is the home of the Afro-Costa Rican community.

The third largest city is Alajuela, with an area of 3.43 square miles (8.88 square kilometers) with a tropical climate that is very typical to the Costa Rican Central Valley region. It is where the Costa Rican national hero, Juan Santamaria was born. 

Language

The primary spoken language in this country is Spanish, but with a linguistically diverse population, other spoken languages are expected. There are native languages from the pre-Columbian people that are still being spoken in certain areas of Costa Rica. Among these native languages are Maléku, Cabécar, Bribri, Guaymi, and Buglere.

Climate/Weather

Beach lovers flock this destination because of the year-round tropical climate. There are, however, microclimates within the country that expats would need to know in order to decide if this is the perfect retirement destination for you.

Seasons in Costa Rica is based on the amount of rainfall during a particular period, which translates into two different seasons; the dry or summer (verano) and the wet season or winter (invierno). Summer season starts in December and lasts until April, while the winter season starts in May and lasts until November.

Some areas receive more rain than others, specifically the Caribbean Slopes in the Cordillera Central mountain region. The humidity level in the Caribbean coastal region is higher than on the Pacific coast. Coastal lowlands have an average temp of  27 °C (81 °F) while the more populated areas of the Cordillera region has a colder temp of 20 °C (68 °F). You’ll experience an even colder temp of 10 °C and below when if you plan to hike the summits of the highest mountains in this country.

Should I Retire to Costa Rica? Cost Of Living

Retiring in Costa Rica can be a great bargain for many expats, but this will greatly depend on the type of lifestyle you want to live. There are reports that say a budget of between $2,000 to $3,000 would allow you to have a very comfortable lifestyle. This is one of the many reasons why retirees flock to this country. The low cost of living, coupled with the high standards of living rate attracts even non-retirees to this place every year.

As with any type of retirement decision, you will need to have a sound reason why you chose a place to become your retirement haven. Here in Costa Rica, you can have a trial period by opting to rent a property out first to get a feel of the place. Rent can range from $300 to $600 per month for a small condo unit or a small home and around $1,200 to $2,000 per month for larger houses in prime areas. 

Public buses are often the cheapest way to get around the country. A bus ride price range from $0.90 up to $18 depending on how far you will travel. It is also the fastest and most convenient way to travel within the country. A word of caution though, buses are typically not air conditioned but are modern and comfortable enough for you to ride on.

But if you are planning to travel to remote areas for some adventure, then an SUV might be your best bet of transportation. There are also areas that can only be accessed via air or water travel. Renting a car can set you back $20 a day for a four-wheel drive SUV according to one travel blog I read. The information was published back on June 27, 2018, so the price will likely have changed in the past year. The same blogger also said that it was cheap which turned they’re supposed to be one-day car rental into a two weeks tour of the country.

Staple foods that are in the usual American diet (fish, eggs, rice, bread, and chicken) are quite cheaper here. Imported items, on the other hand, are available in certain areas but at almost always pricey. For a more budget-friendly meal, you can opt to cook your meals at home. Although a typical meal in an inexpensive restaurant only costs $7.65 per person only. Having the luxury of cooking your own food is very much still recommended if you want to cut back on expenses. In addition, a meal for two in a mid-range restaurant will cost about $35.69 for a three-course meal and your very typical McMeals or any similar combo meals will cost $6.80 only.

Should I Retire to Costa Rica? Infrastructure and Internet 

Compared to other Latin American countries, Costa Rica is a small country (the size of Taiwan). Infrastructure in this country is facing some trouble and this is apparent if you compare it with its neighboring countries in the ranking (Panama is 40th while Chile is in the 45th place and Costa Rica is ranked 71st). Also, the country is ranked 115th in road infrastructure, 109th in port infrastructure, 95th in railway transportation, and 60th in air transportation. The country is placed in the 103rd in the overall infrastructure rating.

Water supply system in this country has seen many advancements. As of 2015, an estimated 98% of the population already experiences an improved water supply. In the same year, 99% of the urban areas of Costa Rica experienced better water supply and access. The rural water supply has also undergone major improvement in the past decade and 95% of the 1.7 million population now has access to this improved water supply. With the recent developments, many areas now enjoy access to better water supply and the advancement will continue in the future.

Costa Rica has telecommunication infrastructures that can be considered as relatively modern compared to other Latin American countries. It is actually ranked as the second in terms of internet coverage. A group ICE, alongside its subsidiary RACSA, which is a state-owned group, monopolizes the internet traffic in this country. RACSA offers free internet access through a wireless connection in key places and popular spots like airports, malls, and hotels.

Should I Retire to Costa Rica? Possible Places To Live

Should I retire to Costa rica

Costa Rica is a country teeming with nature and wildlife. This is another major reason why they welcome thousands of tourists and expats into their land every year. Among the places that really stood out, we picked seven that we think would really showcase what Costa Rica has to offer.

Tamarindo

This gained the tourist’s attention because of the beautiful beaches it offers coupled with surfer waves. The coastline gradually drops, which allows for many to play in the shallow waters and take a quick dip to satisfy their saltwater addiction without really swimming into the ocean. Expats in this area suggest renting a body or boogie board to make the most of the shallow waters.

Dominical

A perfect place to settle in if you are one of those people who prefer to be in close proximity to everything. Hundreds of restaurants are in this place with 20 large supermarkets, 8 gas stations, a hospital, private clinics, banks, soccer stadium, and 15 building supply store. Two bus lines can be seen running in this area every hour like clockwork. An expat stated that there are 3 taxi companies that operate in the town. We suggest that you find properties that are about 10 mins away outside the city center to cut back on the rental cost. 

Ojochal

This is a place where the mountain and ocean air mingle in the atmosphere, where the weather is not as humid as in other southern Pacific region towns. Life here is simple, slow and relaxing with culturally diverse neighbors that are friendly and welcoming. In fact, many expats prefer a slower paced life than the hustle and bustle of city life which is why Ojochal is a great place to settle in. It has jungles and forests that you can explore but is close enough to civilization for all the services you need.

Escazu

Perfect for expats that have children with them because it is close to school and San Jose. It is a more upscale town and expats flock this area to be away from the capital city but are still close enough for comfortable living. It has shopping malls and entertainment centers that most family-oriented expats would find very convenient. However, since this is an upscale town with an ever-growing expat community, you will see that it has become more Americanized and therefore, property prices here are much higher. This is the main reason why we recommend renting out in this place first to get a feel of the community and to assess whether this is the most reasonable place for you to retire.

Atenas

National Geographic considers this place as the place to experience a perfect climate worldwide. It has a rainy season that is not too wet, dry season that is not too dry and temperate climates that is perfect for those who are looking for areas that are not too hot or too cold. You can expect a small town feel in this place because it is literally a small town, you will often bump into familiar faces every time you go out. Expect very little nightlife in this town and no wine shops also. Another best feature of this town is that many expats feel that this is a safe place to spend some time in. We recommend getting a place in a higher elevation than that of the mainland because the temperature there is more or less 10 degrees cooler.

Grecia

This is a place where expats can live and breathe the Costa Rican way of life. Retirees in this area can join several expat groups to help you get settled in the town. There is a hospital in town that can cater to your medical needs but since it is a community hospital, you will probably need to be there early in the morning and wait in line like the other locals. But if you prefer a more convenient way, then you can opt to visit private doctors in the area. This place can be considered as a countryside town and is perfect for those who would like to be away from the chaos of the city. It is 45 minutes away from San Jose, which means that it is far away enough that properties here are way more cheaper and people are friendlier. 

Should I Retire to Costa Rica? Is it Safe?

Costa Rica suffers from the same problems most Latin American countries have like poverty, economic problems, and drug trafficking. But even if these problems are plaguing the country, Costa Rican remains to be relatively safe for travel. Many expats and backpackers warn others that the country’s security system is still developing and therefore you can expect some pickpocketing, especially in tourist areas and on public transport. Also, if you are in San Jose, staying in a gated community, good hostel or lodge is highly recommended because most gang-related crimes happen in this town.

A recent data has shown that since 2015, the murder rate in this country has risen and the overall criminal offense has also risen in the last several years. This does not stop tourists from visiting this country though, a record-breaking record of more than 2 million tourists entered the country just last 2015. Tourists who travel alone should not fear to visit Costa Rica and many backpackers swear that traveling alone is the best way to enjoy what the country offers. 

Should I Retire to Costa Rica? Visa Process 

There are definitely ways on how you can retire in Costa Rica. In this country, there are three programs that you can take advantage of. 

Pensionado Program

Designed to cater to the retirees that want to settle in the country for extended periods. What this program requires is a monthly income amounting to $1,000 per month in either pension funds or retirement fund. You will then need to open an account in a local bank where you will transfer your monthly pension or your full retirement fund in. From there, your money will then be converted into the local currency and is then able to access and withdraw the money as you see fit.

In this program, you are required to stay in Costa Rica for at least one day per year. An option to claim your spouse and any dependents under 18 years old are also included in this program. You also have the chance to own a company for this program. However, as a pensionado, you are not allowed to work as an employee of the country. You can apply for this program for a fee of $1,250 and an additional fee for your spouse amounting to $750 while a fee of $375 per dependent.

Rentista Program

This is another program designed to cater to retirees but the difference is that this is for retirees that don’t have a fixed retirement income. What this program requires is for you to provide a bank guarantee that states a $2,500 per month income for the last two years or you can either show at least $60,000 cash balance in your bank. This cash requirement also needs to be provided during the application process. 

In this program, you will also be required to stay at least one day in a year in the country. You also can claim your spouse and dependents under 18 years of age under this program. Owning a company is also allowed in this program but you are not allowed to work as an employee. It would set you back $1,500 to apply and an additional of $750 for your spouse and fee of $375 for each dependent.

Inversionista Program

Now, this is for investors who are willing to immediately invest at least $200,000 to a pre-approved property or business in the country. You can claim your spouse and any dependent under the age of 18 in this program as well. Same additional cost applies for both the spouse and dependent you are planning to claim. And the requirement of at least one day per year applies to this program too. You can also own a company and receive income from it in this program as well.

Should I Retire to Costa Rica? Homes and Real Estate

Costa Rica is a country known for its tourist spots and also for a possible retirement destination. Which is why knowing the properties that are available in the market is something that many retirees should look at before making a decision. And because this country is a tropical nation, many expats and tourists flock to this area for the beach and for the ecotourism it offers. In this section of the article, we will be talking about the types of properties you can rent or buy, where the best destinations are, and a rough estimate of how much it would cost you.

Central Valley, which includes the provinces of Alajuela, Heredia, San Jose, and Cartago; is where most tourists go to experience the Costa Rican life. It is where most of the shopping centers and entertainment facilities such as movie theaters are located. This is also the region where private schools and excellent medical facilities can be found. In this region, the types of properties consist of private homes and condo units. A 1,900 square foot home with three bedrooms and two bathrooms located in a city named Grecia is priced at $150,000. Another property in Heredia boasts a 2,000 square foot area with three bedrooms, two bathrooms, and a two car garage is priced at $185,000. 

Now, a more modern loft style condo unit with an area of 1,100 square foot, features a one bedroom, two bathrooms, and a garage property right at the heart of the capital city; San Jose. It is priced at $145,000 with other amenities such as community parks and a tennis court for you to take advantage of.

A condo unit in the center of Tamarindo is priced at $265,000 with a total area of 1,237 square foot feature two bedrooms, two bathrooms and all the condo amenities such as a pool. It is a short walk to the beach, which is great for beach lovers and is close enough to shops and restaurants in the area. Homes in the Pacific coast vary in prices from anywhere between $80,000 up to $300,000 depending on the location.

There are other Caribbean coast provinces you can also look at like Tortuguero, which is very popular for its ecotourism activities. There is abundant wildlife to be enjoyed, like sea turtles and sharks. It is not a place for beach lover though because the riptides are very strong here and the waves are large. Another place is Puerto Viejo, where the waves are perfect for surfing and the underwater wildlife perfect for diving. It is a less touristy destination compared to the Pacific side of Costa Rica. Other places worth mentioning are Cahuita and Punta Uva.

Renting cost for an apartment in this country vary between $400 up to $3,000 per month depending on the floor area and the location. Houses for rent can be rented for as low as $800 per month to as high as $4,000 a month depending on the size of the house and of course the location.

Should I retire to Costa rica

Should I Retire to Costa Rica? Healthcare 

Costa Rica is a country where you will find outstanding healthcare facilities in Central America. Both the private and public sectors are being developed and upgraded continually. Expect to find hospitals with modern facilities and constructions of new clinics as well as improvements to the old clinics, and better-trained staff when you visit or retire to this country. 

All kinds of emergency care are provided for free to all residents of the country by the government. This includes residents holding temporary residency status like retirees and other expats in the country. A couple will pay around $75 to $150 per month to get access to free services such as medical tests, prescriptions, and even surgeries. However, as with any public healthcare system, you will need to wait in queue for you to be served.

For those who dread the long lines and waiting, private healthcare is also available. A visitor appointment with a private doctor can cost anywhere between $50 to $80 for regular check-ups and about $100 if you’re visiting a specialist. Which is considerably still cheaper than what an average visit to a doctor costs in the United States.

Most expats visit three private hospitals in the country. They are the CIMA hospital in Escazu, Clinica Biblica in San Jose and Hospital La Catolica in Guadalupe – San Jose. These three hospitals accept both cash and insurance policies to cover your stay. You’ll find that it is still far cheaper compared to how much hospital bills you’ll incur if you are back in the States. Most expats would combine both the public and private healthcare facilities within the country to tailor fit their healthcare system to their personal needs.

Costa Rica offers healthcare system to both the pensionado and rentista expats for a small monthly fee. You’ll be able to enjoy medical services for free. However, there are also private insurance companies that offer a more comprehensive insurance plan for expats. You have the option to choose the extent of coverage if you decide to go private insurance. However, this will set you back a few thousand dollars in your budget, but it is still better to be safe than sorry.

Should I Retire to Costa Rica? People, Culture and Entertainment 

People in this country commonly referred to as “Ticos” has been consistent in their top spot for the happiest people on the planet according to the Happy Planet Index. They are very welcoming and accommodating towards foreigners. You can always see Ticos smiling, laughing and being helpful. They are generally, kind and friendly which is why it is no wonder why tourists love to come back to this place, time and time again.

Christianity is the main religion of Ticos, comprising 52% of the population. Protestantism is the next religion which comprises about 25% of the population. About 17% of the population belongs to the irreligion section, which means that these people are not part or does not believe in religion. There is a small number of Buddhist in Costa Rica, only 2.1% of the population and the remaining 1% of the population belong to other types of religion found in the country.

As you travel the country, you will often hear a phrase used widely by the Ticos, this phrase is “pura vida”. The phrase literally translates to pure life in English, but this has become an essential belief of the whole country. It is not just an idiom used by the Ticos, but it is a way of life. If you stay in the country long enough, you’ll slowly realize that this phrase can be translated into many meanings such as “That’s life” or “I’m doing well” but the best translation for this is “Life is good!”.

What pura vida lifestyle teaches most expats that settle in the country is that living a good life is possible. All you have to do is enjoy and be thankful for the simple pleasures life offers, spend quality time with your loved ones and a slow or relaxed life doesn’t necessarily mean a step back from progress.

The country has a literacy rate of 97%, and you will see that the English language is very much spoken mainly because Costa Rica is a country that is very dependent on tourism. The wonderful thing about the education system in this country is that primary education is an obligation while both the high school and preschool fees are shouldered by the government.

The cuisine in this country is a melding of Spanish, African, Native American, and other food origins. You will definitely find corn-based traditional food here due to the Spanish influence. The African aspect of the food can be found in areas near the Caribbean coast. Every influencer left some trace of their stay into the country through the cuisine that Costa Rica now has. 

Football is the number one sport in Costa Rica, it is also the most popular one. You’ll often see the influence of this sport through the clothes people wear. The national team of this country has played in the FIFA World Cup tournaments. You’ll often see Ticos express their support to their team during tournament season via the number of people you’ll see glued in front of the television whenever the national team is playing.

Should I retire to Costa rica

Should I Retire to Costa Rica? Attractions and Tourist Destinations

Costa Rica is a tropical country rich in wildlife and one destination to enjoy this is Manuel Antonio National Park. This park is very famous for its beautiful sandy beaches and wildlife. You can enjoy a guided walk tour in the park or surfing lessons on the beach. The Arenal Volcano National Park can be among the tourist spots you can visit. This volcano is dormant since 1500 AD, but plumes of smoke and red lava flow can still be seen coming from the summit of the volcano.

There is a Cloud Forest located near Monteverde that has gained popularity as an ecotourism destination. This is a perfect place for those who are looking to spend time in nature. You will be able to see very unique plant species in this cloud covered forest. It is also home to jaguars, monkeys, and amphibians. Surfers, on the other hand, would love to visit both Dominical, Mal Pais and Santa Teresa. These surfer havens are areas where accommodations are cheap, and restaurants are your traditional open-air types. Many who visits this place end up staying for extended periods than planned.

Those who are looking for a more off the beaten path kind of destination can visit Tortuguero National Park on the Caribbean Coast. You can turtle watch on this beach because it is an important breeding ground for sea turtles.

There are also off the beach destinations for you to see in Costa Rica and one of them is The National Theater in San Jose. This impressive piece of architecture completed in 1897 has a classic renaissance appearance and structure. The theater can seat 1,040 people, and regular shows can be enjoyed as well as art gallery features from local artists located in a separate chamber. 

While you are in San Jose, you might as well head over to the Pre-Columbian Gold Museum that showcases one of the most extensive collections of gold pieces in America. There are more than 20,000 pre-Columbian troy ounces of gold, and about 2,000 items can be viewed here.

Should I Retire to Costa Rica? Overall Thoughts?

Costa Rica is a country where you can enjoy a slow-paced lifestyle. You have the chance to pick where you want to retire in this place. Stay close to the cities for better access to their outstanding healthcare facilities, schools, and stores or you can choose one of the numerous provinces that are less crowded and commercialized. Enjoy the pura vida lifestyle and the friendly Ticos that inhabit the land. Learn to surf or just enjoy the environment as nature intended it to be as you tour the tropical areas of the land. In this country, you will surely learn how to appreciate the small pleasures that life offers and to spend your time with the people closest to your heart.

As always, if you like this post or the blog please share it.

As always, if you like this post or the blog please share it.

My goal is to create a retirement community where everyone can share their experiences of either being retired (we want to learn from you), preparing to save for retirement or making more money for retirement we want to hear from you.

If you are at all interested in creating your own blog (I have so much fun with it!) I highly recommend Alex and Lauren’s courses at Create and Go. They have tried it all and now offer these courses on how to set up your own blog and avoid the mistakes they made.

They explain everything in a way that is easy for anyone no matter what age you are to create your own blog.

You can make money Blogging, by the way, Alex and Lauren made $150K last month, so they know what they are talking about. It is an affiliate link, but I have purchased all their courses and love them and there is no extra cost for you. They are by far the experts in this area and genuinely want you to be successful.

My review of their Launch your Blog Biz Course is here.

My review of their Pinterest Avalanche Course is here.

All the resources I recommend can be found on the Resources Page. I wouldn’t recommend them if I didn’t use them myself.

If you have any questions don’t hesitate to drop me a line at theteam@wickedretirement.com I’ll always respond.

As always, if you like this post or the blog please share it.

My goal is to create a retirement community where everyone can share their experiences of either being retired (we want to learn from you), preparing to save for retirement or making more money for retirement we want to hear from you.

If you are at all interested in creating your own blog (I have so much fun with it!) I highly recommend Alex and Lauren’s courses at Create and Go. They have tried it all and now offer these courses on how to set up your own blog and avoid the mistakes they made.

They explain everything in a way that is easy for anyone no matter what age you are to create your own blog.

You can make money Blogging, by the way, Alex and Lauren made $150K last month, so they know what they are talking about. It is an affiliate link, but I have purchased all their courses and love them and there is no extra cost for you. They are by far the experts in this area and genuinely want you to be successful.

My review of their Launch your Blog Biz Course is here.

My review of their Pinterest Avalanche Course is here.

All the resources I recommend can be found on the Resources Page. I wouldn’t recommend them if I didn’t use them myself.

If you have any questions don’t hesitate to drop me a line at theteam@wickedretirement.com I’ll always respond.

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