90 North Church Street, 4th Floor P.O.Box CEC - 220, Grand Cayman Cayman Islands KY1-9012
logo_jhG-01

Costa Rica for expats – Discover a slice of pura vida

Costa Rica, a beautiful country located in Central America, is a popular destination for expats seeking a comfortable lifestyle, a slower pace of life, and a connection to nature.

With its beautiful landscape, affordable prices, and high quality of life, it’s no wonder that many North American and European expats have decided to call this tropical country home.

Costa Rica for expats - A vibrant community

One of the draws for expats moving to Costa Rica is the strong expat community that exists throughout the country. Popular towns like San Jose, Santa Ana, and beach destinations like Manuel Antonio and Puerto Viejo offer a vibrant mix of locals and expats, creating a welcoming environment for newcomers.

With a literacy rate of over 97%, Costa Ricans are well-educated, warm, and friendly people who are always willing to engage with expats and share their « pura vida » philosophy.

Cost of living and lifestyle

The cost of living in Costa Rica is generally lower than in North America and many European countries. While the price range varies depending on the area and lifestyle choices, a comfortable lifestyle can be achieved on a moderate budget.

For example, a single person living in a town like Arenal can expect a monthly cost of around $1,500, while a family of four might need about $2,500 to cover their baseline starting costs. In popular tourist destinations or beach towns, the cost can be higher, but there are always affordable communities and budget bungalow houses to be found.

Higher net worth individuals can also enjoy tax advantages through the banking system.r newcomers.

With a literacy rate of over 97%, Costa Ricans are well-educated, warm, and friendly people who are always willing to engage with expats and share their « pura vida » philosophy.

Healthcare in Costa Rica

One of the main benefits of living in Costa Rica is its high-quality and affordable healthcare system. The Caja Costarricense de Seguro Social (CCSS) provides public healthcare services to all residents, including expats with permanent residency.

Additionally, private health insurance is available through International Citizens Insurance and the National Insurance Institute (INS). These insurance plans cover pre-existing conditions and provide access to modern medical facilities and top-tier hospitals.

Visa and residency

For those seeking to make Costa Rica their home, there are several visa and residency options available. The most common types of residency include the retirement visa, which requires proof of a minimum monthly income, and the digital nomad visa, which allows remote workers to live and work in the country for up to a year. Tourists can also stay in the country for up to 90 days on a tourist visa.

Education

For families with children, Costa Rica offers a range of educational options, including public schools, bilingual schools, and private international schools. Public schools are free and provide a good education, but many expats opt for private schools due to their smaller class sizes and English-language curriculums. for up to a year. Tourists can also stay in the country for up to 90 days on a tourist visa.

Natural beauty and outdoor activities

From the Caribbean coast to the Central Valley and the Pacific’s Gold Coast, Costa Rica’s natural beauty is truly unmatched. Expats can enjoy the breathtaking Arenal Volcano, the picturesque Lake Arenal, and the lush rainforests of Manuel Antonio. The country’s national parks, hot springs, and sandy beaches provide endless opportunities for outdoor activities and adventure seekers. curriculums. for up to a year. Tourists can also stay in the country for up to 90 days on a tourist visa.

Retiring in Costa Rica

Many retirees choose Costa Rica as a destination to enjoy their golden years.

Here are some reasons why you may want to retire in Costa Rica as an expat.

Relatively affordable cost of living

When compared to other developed countries, Costa Rica is relatively affordable and might be attractive to persons living on a fixed income.

High quality of life

Costa Rica often makes the ranking for one of the countries with the best quality of life. People in the country are well education and there is an emphasis on preserving the environment and providing quality healthcare.

Nature

Costa Rica is considered one of the most beautiful countries in the world. The country is known for its natural beauty, gorgeous beaches, lush vegetation and mountains that will simply take your breath away.

Top-notch healthcare

Many people will travel to Costa Rica for medical procedures as Costa Rica offers high quality health care with well-trained doctors and there are a variety of modern medical facilities throughout the country. The cost of accessing healthcare is much lower compared to other countries.

Stable political environment

Costa Rica has a stable democracy and maintains political stability.

Friendly people

Often referred to as Ticos, Costa Ricans are friendly and open people who are easily talking to you. While most people speak Spanish many people also speak English.

Growing expat community

There are more people choosing to relocate to Costa Rica and it is easy to connect with people who are more like you and can help you settle into life in Costa Rica.

Costa Rica for expats as digital nomads​

Many digital nomads have chosen to relocate to Costa Rica. Costa Rica has reliable internet, is a naturally diverse country, the cost of living is relatively affordable and the country is known to be a safe destination. There are options for co-working spaces and a variety of activities to do in your leisure time which include; surfing, hiking, swimming amongst other activities.

Most citizens can enter Costa Rica without a visa and stay for a period of 90 days (it depends what citizenship you have). However, if you wish to stay longer you will need to apply for a different type of visa or in some instances extend your tourist visa.

Frequently asked questions about Costa Rica for expats

In general, Costa Rica is a safe country. However, you should take precautions and be aware of what is going on around you.

December to April is known as the dry season and is often the best time to travel to Costa Rica. Note that most tourists come during this time period and therefore some areas may be crowded and prices may be higher compared to the low season.

There are many things to do and see in Costa Rica. Here are some things you can do: Visit Manuel Antonio National Park: this park has beautiful beaches, wildlife and lush rainforest. Arenal Volcano is also a nice place to visit with hot springs, zip lining and outdoor adventure activities available.

Other things to visit may include visiting Monteverde Cloud Forest Reserve, Manuel Antonio National Park, Tortuguero National Park, Corcovado National Park, visit to San Jose, La Fortuna Waterfall, Puerto Viejo de Talamanca, amongst other places to visit.

Costa Rica’s own currency is the colon ($1 is about 535 Costa Rican colones as of writing), but many places accepts US dollars. It would be wise to carry some local currency in the event someone does not have the exact change.

You can use buses, taxis, and rental cards to get around the country. Some areas may be more challenging to easily get transported compared to others.

The climate is tropical and the weather is hot and typical of Central America. The weather will depend on where you are located within the country and the time of year. The beaches can be very hot during the summer time. Temperatures range from approximately Fahrenheit 70 to 80 (21 C to 34C)

Costa Rican cuisine is a delicious mix of indigenous, Spanish, and African influences. While it may not be as famous as some other Latin American cuisines, it offers a delightful array of flavors that are sure to satisfy any palate.

It depends what current citizenship you have. Travelers from Canada or the US can visit for up to 90 days. It would be important to check the most up to date entry requirements prior to traveling to the country.

While it is possible for expats to find jobs in Costa Rica, the process can be challenging due to various factors, such as competition, language requirements, and work permit regulations.

Costa Rica’s tax system is based on the territorial principle, meaning that residents and non-residents are only taxed on income generated within the country. For expats, understanding the tax implications is crucial when living and working in Costa Rica.

H6: Here’s an overview of the Costa Rica taxes for expats

  • Income tax: Expats who earn income from a Costa Rican source, such as employment or rental income, are subject to the country’s progressive income tax rates. As of 2021, these rates range from 0% to 25%, depending on the amount of income earned. It is important to note that only income earned within Costa Rica is taxable; foreign-source income is not subject to taxation.

  • Tax residency: An individual is considered a tax resident in Costa Rica if they reside in the country for more than 183 days during a fiscal year (which runs from October 1 to September 30). Tax residents are required to pay income tax on their Costa Rican-sourced income and file an annual tax return.

  • Social security contributions: Employees and employers in Costa Rica are required to contribute to the Caja Costarricense de Seguro Social (CCSS), which covers healthcare, pensions, and other social benefits. Expats working in Costa Rica must contribute a percentage of their salary to the CCSS, while employers also contribute a portion on behalf of their employees.

  • Value-added tax (VAT): In 2019, Costa Rica introduced a 13% VAT on most goods and services, including utilities, telecommunications, and professional services. Expats living in Costa Rica will encounter this tax on their day-to-day expenses.

  • Property taxes: Expats who own property in Costa Rica are subject to an annual property tax, which is typically around 0.25% of the property’s registered value. Additionally, luxury properties may be subject to the Solidarity Tax, which is an additional tax levied on properties above a certain value.

  • Capital gains tax: As of 2021, capital gains from the sale of assets such as real estate or securities are subject to a 15% tax rate. However, an exemption applies if the property sold is the seller’s primary residence and has been owned for more than three years.

  • Double taxation agreements: Costa Rica has signed double taxation agreements (DTAs) with several countries to avoid the double taxation of income for residents with international tax obligations. Expats should consult the tax treaty between Costa Rica and their home country to determine if any tax relief provisions apply.

Tax filing: Expats earning income in Costa Rica are required to file an annual tax return by December 15 for the previous fiscal year. It is advisable to consult with a local tax professional to ensure compliance with Costa Rican tax laws and regulations.

Some beaches you may wish to visit include Playa Manuel Antonio, Playa Santa Teresa, Playa Flamingo, Jaco Beach amongst others. At some beaches you can surf and it is always best to ask the locals for their advice on whether or not it is safe to surf at any beach.

This will really depend on your personal budget and travel style. Some people can travel on US$50-US$150 a day while others may wish to spend more.

The cost of living in Costa Rica can vary greatly depending on various factors. These factors include lifestyle and where you are living within the country. While Costa Rica has a slightly lower cost of living compared to developed countries, it can still be quite expensive to live in Costa Rica.

A one bedroom apartment may cost US$500 to US$1,000 or more. Groceries may be around US$200 – US$500 per month. A doctors visit can cost anywhere from US$30 – US$100. A monthly bus pass in San Jose costs around US$50.

Purchasing property in Costa Rica can be an exciting and rewarding experience. The process is relatively straightforward, but it’s important to follow the proper steps to ensure a smooth transaction.

H5: Here’s a step-by-step guide to help you navigate the process of buying property in Costa Rica for expats

  1. Research and choose a location: Costa Rica offers a diverse range of properties, from beachfront homes and mountain retreats to city apartments. Research the different regions, climates, and local amenities to determine which area best suits your lifestyle and budget.

  2. Determine your budget: Before starting your property search, establish a clear budget. Consider additional costs such as property taxes, maintenance, and utilities, as well as legal fees and closing costs.

  3. Find a reputable real estate agent: A local, experienced real estate agent can be invaluable in helping you find the right property and guiding you through the purchasing process. Look for agents with a strong track record and positive client reviews. Ensure they are registered with the Costa Rican Chamber of Real Estate (CCCBR).

  4. Property search: With your agent’s assistance, begin your property search based on your preferences, budget, and location. Be prepared to view multiple properties and weigh the pros and cons of each option.

  5. Legal due diligence: Once you’ve found a property you’re interested in, engage a reputable attorney with experience in Costa Rican real estate transactions to conduct a thorough title search and review of the property. This should include verifying property ownership, checking for liens or encumbrances, and ensuring the property is free of any legal issues.

  6. Make an offer: If the property passes the legal due diligence process, work with your agent to make an offer. This may involve negotiating the purchase price and terms with the seller. It’s important to make the offer contingent on the satisfactory completion of all legal and technical due diligence.

  7. Draft a sales agreement: Once the offer is accepted, your attorney will draft a sales agreement (known as the « Option to Purchase » or « Promise to Purchase » agreement) outlining the terms and conditions of the sale. Both parties will review and sign the agreement.

  8. Escrow account: Open an escrow account with a licensed escrow company in Costa Rica. This will hold the funds for the transaction until the closing process is complete. Deposit the agreed-upon funds into the account, as stipulated in the sales agreement.

  9. Technical due diligence: Arrange for a professional inspection of the property to identify any potential issues, such as structural problems or pests. Depending on the property type, you may also need to check zoning regulations, access rights, or environmental restrictions.

  10. Finalize the transaction: If the technical due diligence is satisfactory, your attorney will prepare the final transfer deed, which will be signed by both parties in the presence of a Costa Rican notary public. The notary will then register the property transfer at the National Registry (Registro Nacional).

  11. Closing costs and fees: The buyer and seller will typically share the closing costs, including the notary fees, transfer taxes, and registration fees. Ensure that all outstanding costs are settled as part of the closing process.

Utilities and insurance: Once the property is officially yours, transfer the utilities (water, electricity, and telephone) into your name and arrange for property insurance.

The business environment in Costa Rica for expats is considered stable. There are several factors that make relocating to Costa Rica or doing business within the country an attractive option. The country has political stability with a stable democracy.

The main industries in Costa Rica include agriculture, manufacturing, technology and tourism. One of the greatest advantages of Costa Rica is that it has a highly skilled worker with a high literacy rate of over 97%. Costa Rica has favourable tax incentives for foreign investors which may include exemptions on capital gains taxes and import duties.

Costa Rica has good infrastructure with maintained roads and airports facilitating transportation and trade. The country is supportive of entrepreneurship with several favourable programs and funding available for startups.

While there are many pros to doing business in Costa Rica there are also challenges. One great challenge is that there is a high level of bureaucracy and in certain instances, regulations which may be complex and in certain industries there may be a shortage of workers. Corruption is also a factor which should be considered and it is therefore important to do due diligence when doing business in Costa Rica.

Companies such as Intel Corporation, Procter & Gamble, Hewlett-Packard, Amazon, Cargill, Boston Scientific, IBM amongst others are free zone companies that are established in Costa Rica. Factors for choosing Costa Rica include, favourable business environment & tax incentives, highly skilled workforce amongst other factors.

Prior to moving to Costa Rica you may want to assess your personal situation and consider factors such as; cost of living, visa requirements, language differences, cultural differences, climate, employment opportunities.