Americans Living in Costa Rica

Costa Rica is synonymous with “living the dream” for many Americans. You can trade hustle, bustle, and snowy winters in the US for a slower pace of life, lush tropical scenery, and warm year-round weather. Plus, it doesn’t have to cost a fortune. You can actually save money while living in paradise thanks to the lower average cost of living.

Still, it’s not all sunshine and rainbows in the land of pura vida. If you’re thinking about making the move, it’s important to understand all the logistics of relocating abroad and what day-to-day life really looks like. In this guide for Americans living in Costa Rica, we’ll break it all down to help you decide if the country is right for you—whether you’re preparing for a year abroad or a more permanent move.

Key takeaways

• Costa Rica’s average cost of living is about 23% lower than in the US.
• US citizens can choose from several residency options, including Pensionado, Rentista, Inversionista, Student, and Digital Nomad visas.
• Healthcare is high-quality and accessible through both public and private systems.
• Finding community can be easy, thanks to a large expat population, friendly locals, and active local Facebook groups.
• Life in Costa Rica is simpler and slower, but it requires adapting to a new language, pace, and climate.

Cost of living in Costa Rica vs. US

The average cost of living in Costa Rica is about 23% lower than in the United States, according to Numbeo. In terms of costs per month, average monthly expenses range from $902 for a single person to $3,349 for a family of four.

However, everything isn’t cheaper in Costa Rica. While some items do cost much less, others cost more. For example, rent is estimated to be about 53% lower than in the US, and healthcare services cost roughly a third of what they do stateside. On the other hand, new mid-size cars are about 38% more expensive in Costa Rica, largely due to high import taxes. You’ll also pay more for specialty imported foods, electronics, gasoline, certain household appliances, and video games.

Ultimately, your cost of living in Costa Rica will depend on your lifestyle and spending habits. Those who live like locals in more rural areas and avoid heavily taxed imports can often spend less than they did in the US. On the other hand, those who choose popular tourist hotspots and maintain more lavish lifestyles will likely end up with costs comparable to what they paid back home.

Moving to Costa Rica

Moving to Costa Rica requires working out a few logistics, from securing a visa and housing to accessing your money and making friends.

Visa and residence pathways

Americans living in Costa Rica long-term need a visa. Here are the main options available.

Temporary residency visas

If you don’t qualify for citizenship through marriage or birthright, you’ll need to start with a visa that grants temporary residence. The main options include:

• Pensionado visa (for retirees): A two-year, renewable visa available if you can prove a lifetime income of at least $1,000 per month from sources such as retirement accounts, annuities, pensions, and Social Security.
• Rentista visa (for expats with independent means): A two-year, renewable visa available if you can prove a stable, permanent income of at least $2,500 per month, or if you make a one-time deposit of $60,000 into a Costa Rican bank.
• Inversionista visa (for investors): A two-year, renewable visa available if you invest $150,000 into Costa Rican real estate, shares of an operational Costa Rican corporation, or the Costa Rican stock market.
• Digital nomad visa: A one-year, renewable visa available if you have international health insurance and make a minimum of $3,000 in net income per month from a foreign source.
• Student visa (for students): A one-year, renewable visa available if you’re going to attend school in Costa Rica and can support yourself financially throughout your stay without working.

To apply for a visa that grants you temporary residency, you must visit a Costa Rican consulate in the US. Once it’s approved, you can head to Costa Rica within the allotted timeframe to complete the process.

Note: If you don’t qualify for one of the above visas, you can enter Costa Rica on a 180-day tourist visa. When it expires, you must leave the country for at least a day but can then usually return. Quick trips to the neighboring countries of Panama or Nicaragua are common among “perpetual tourist” expats. However, there is the risk that a border official will deny your re-entry or give you a new term shorter than 180 days.

Permanent residency and citizenship

To become a permanent resident, you must complete three years of temporary residency, which you can do through a Rentista, Inversionista, or Pensionado visa. Time spent in Costa Rica on a Tourist or Digital Nomad visa won’t count towards the three-year requirement. Once you’ve been a permanent resident for seven years, you can apply for citizenship.

Note: Certain circumstances, such as marriage to a Costa Rican citizen, having a child born in Costa Rica, or being under 25 and born abroad to Costa Rican parents, may qualify you for an expedited path to citizenship.

Finding housing

Once you decide where you want to call home while living in Costa Rica, you can begin looking for houses to buy or rent. Start by researching online to find reputable real estate or property management companies in the area. Read reviews from past clients and browse their inventories to see what’s available. Then, get in touch to share your situation and see how they can help you.

Additionally, most areas have local Facebook groups where housing listings are posted by community members, real estate agents, and property management companies. To find them, head to Facebook and search for the “Costa Rican city + rentals and real estate.” You should also join general community Facebook groups for the area.

Tip: You can find great deals through local connections once you arrive and get settled. You may want to book a short-term place and then look for a long-term solution once you move, meet people, and confirm you like the area.

Healthcare and insurance

Costa Rica has both a universal and a private healthcare system. The universal system is called the Caja Costarricense de Seguro Social (CCSS), commonly referred to as the Caja. If you become a Costa Rican citizen or resident, you’re required to pay 6% to 11% of your income into the Caja each month. In return, you get access to unlimited care. That requirement applies to Americans living in Costa Rica on Rentista, Pensionado, or Inversionista visas.

Unlimited coverage through the public system is a great benefit, and Costa Rica’s hospitals and clinics generally provide reliable care. However, wait times for non-emergency appointments can stretch to several months. Additionally, the waiting rooms are often crowded, and the staff (aside from doctors) generally don’t speak much English.

For those who prefer quicker access, modern amenities, and more English-speaking staff, Costa Rica’s private healthcare system is a great alternative. You’ll find several top-tier hospitals across the country, such as the CIMA hospital in Escazu and Clinica Biblica in San Jose. While the costs won’t be covered by the Caja, they can be offset by a Costa Rican or international private health insurance plan.

Finding community as an expat

Costa Rica is an enticing destination for expats from all around the world. No matter where you decide to settle down within the country, you’ll likely spot other foreigners around town. But how can you get into the community and start meeting expats and locals? Most communities host regular events from farmers’ markets and concerts to holiday celebrations and Zumba in the park.

You can stay in the loop about the latest community events through the area’s community Facebook pages. Expats and Costa Ricans tend to be very friendly and welcoming, so it often won’t take long to get into the fold. If you don’t speak Spanish yet, learning can help you converse and integrate into your new home more quickly.

Banking, taxes, and money transfers for expats

Once you’re living in Costa Rica, you’ll need to access your money. The easiest solution for the short term is to keep your US bank account and use your US debit and credit cards in Costa Rica. It’s best to bring cards on the Visa or MasterCard network that don’t charge foreign transaction fees.

Long-term, opening a bank account in Costa Rica is often better. It allows you to send automatic payments to local merchants, avoid currency exchanges, and speak to a bank teller in person when needed. Generally, Costa Rican banks only allow you to open a standard checking account if you’re a legal resident with a DIMEX ID. However, some banks offer simplified accounts with $1,000 balance limits to non-residents. Once set up, you can send money from your US bank account to your Costa Rican bank account through an international money transfer service like Western Union.

As for taxes, foreign residents don’t have to pay Costa Rican income tax on revenue earned from foreign sources. While you’ll still owe taxes to the US for income earned anywhere in the world, you can look into the foreign income tax exclusion and foreign housing deduction. It’s also important to note that Costa Rica reports the banking activities of US citizens to the Internal Revenue Service (IRS).

Benefits and challenges of living in Costa Rica

Living in Costa Rica comes with many wonderful benefits, but also a few potential challenges. Below, find key pros and cons to consider before moving:

Benefits

• Stable democracy: Costa Rica has a long history of democratic stability and regular rotations of power through elections, along with no standing military since 1949.
• Welcoming expat community: You’ll find large, supportive expat hubs—especially in the Central Valley and coastal regions—making it easier to connect and settle in.
• Friendly locals: Costa Ricans (or “Ticos”) are known for their warmth, politeness, and hospitality.
• Tropical climate: Enjoy year-round warmth, typically in the 70s to 80s °F in the Central Valley and 80s to 90s°F along the beaches.
• Lower cost of living: Everyday expenses like rent, produce, utilities, and domestic travel can be more affordable than in the US.
• Stunning natural beauty: You’ll find stunning natural features like lush rainforests, volcanoes, waterfalls, and beaches with warm ocean water.
• Interesting fauna: Encounter a plethora of interesting creatures, like monkeys, sloths, macaws, toucans, and sea turtles.
• Variety of microclimates: With 12 major climatic zones in the country, you can choose the climate you like best, from misty rainforests to dry, breezy coastlines.
• “Pura vida” lifestyle: Locals embrace a relaxed, optimistic way of life centered around simple pleasures and gratitude.
• Good healthcare: Both the public and private healthcare systems offer quality care at reasonable prices.

Challenges

• Language barrier: Spanish is the national language, and while English is common in tourist areas, you’ll often need some Spanish for daily life.
• Slower bureaucracy: Administrative and government processes tend to move at a leisurely pace, which can lead to delays and inconveniences.
• Different communication and time styles: Expect a more relaxed approach to punctuality and less directness than in the US.
• Distance from loved ones: Living away from family and friends in the US can feel isolating at times, especially during holidays and family events.
• Adapting to the climate: The heat, humidity, and rainy seasons can take adjustment depending on where you live.
• Limited product availability: Certain US brands or specialty items can be hard to find or much more expensive. Vehicles and some home appliances, in particular, are subject to high import taxes.
• Driving conditions: Roads can be narrow, winding, unpaved, or washed out, and driving customs may differ from what you’re used to.

Is Costa Rica right for you?

Costa Rica is a one-of-a-kind country with unmatched natural beauty, warm weather, friendly communities, and all the amenities you need for daily life. It can be a great fit if you’re looking for a slower, more relaxed pace of life.

But living in Costa Rica won’t be right for everyone. It can be helpful to take a trip first to experience the pros and cons firsthand. Additionally, you may want to compare it to other similar expat destinations, like Panama, Belize, and the Riviera Maya in Mexico, to see which is the best fit for your situation.

Tip: If you’re moving abroad, whether to Costa Rica or somewhere else, you can use the Western Union app to send money from your US bank account to your destination country in minutes. Send money now!