Retirement In Costa Rica
Costa Rica has been over the past few decades one of the preferred chosen countries for retirees, as well as for having a second home. There are plenty of reasons and motivations for this, the great health insurance the country offers, the safety, a stable government, a growing economy, a beautiful country, and the growing value in property and real estate.
Retirement in Costa Rica can be a great idea, and finding the right retirement home for sale is key. Knowing where to buy and live, understanding the safer, better and nicer areas of the country can help you live a much better life, or even get a larger revenue from a rental property if that’s what you prefer to have.
However, it’s understanding that you may have questions or doubts, so let’s take a look at what it means to move to Costa Rica.
What Part Of Costa Rica Is Better To Retire?
There are quite a few different towns, places and even cities that expats or foreigners move to in Costa Rica. According to stats from the Ministry of Immigration, most expats, which includes retirees, move either to the Central Valley (where San José, the capital city is located), or Guanacaste, where you have multiple beach towns to choose from.
That said, it’s important to understand the differences and advantages of each. We will break them down into two: Central Valley (which includes San José, parts of Heredia and Alajuela), and coastal regions.
San José
Most Costa Ricans, over 3 million people to be precise, live in the Central Valley. That’s more than three fifths of the entire population, which should let you understand that most services, such as hospitals, airports, schools, supermarkets, so on and so forth, are located there.
The province of San José has some great neighborhoods to choose from, with the ones with the highest quality of living and a higher socioeconomic environment being:
- Escazú
- Santa Ana
- Curridabat
- Rohrmoser
In any of these you are close to some of the best hospitals in the country as well as the entire Latin American region, yes, you read that right, Costa Rica is the home to some of the best healthcare facilities and professionals in all of Latin America. On top of that, you get both public hospitals (which are still great), and private hospitals with state of the art facilities.
Plenty of international private schools are located in these neighborhoods and districts, with over 10 of them, with top tier education present there. Add to that the biggest shopping mall (Multi Plaza) in the country located in Escazú, as well as many excellent restaurants, gated communities, apartment complexes, and just a lively vibe.
San José has thus become one of the top choices for retirement in Costa Rica.
Guanacaste & Coastal Regions
The coastal regions in Costa Rica are in three provinces: Limon, Puntarenas and Guanacaste. All of them have multiple beautiful beach towns with great weather, waves, beaches, nature and a slow paced lifestyle. You will find gated communities, nice houses to appeal all socioeconomic backgrounds, and safe enough to live.
However, not all of them are as close to hospitals, airports, schools or other important services as you might think. Living in a coastal town such as Manuel Antonio, Dominical or Santa Teresa comes with a trade-off: patience. You will need to drive a bit more than usual, deal with traffic, and some minor struggles such as having basic services far away.
Guanacaste kind of offers you a better solution than Puntarenas and certainly Limon. In Guanacaste you have the Liberia International Airport just around 1 hour drive away from most beach towns. Towns such as Tamarindo, Playa Negra, Conchal, Playas Del Coco and a few others are close to premium private hospitals and great international schools.
You are still right next to the ocean, live a slow paced life, but you get to feel safer, more comfortable and with all you need.
On top of it all, you get a bonus from living in a coastal region, especially in Guanacaste: the value of your real estate is likelier to increase than in the Central Valley. As a matter of fact, tourism in the region has been steadily growing at a 7% rate over the past two years, with rental yields as high as 8%.
Add to that the fact that you get a Blue Zone in Nicoya, one of the main districts in the province of Guanacaste, and you already know that your quality of life, and the value of your home or property are likely to go up. This makes Guanacaste the best part in Costa Rica to either retire or own a second home or make a real estate investment.
Cost To Retire In Costa Rica
The cost to retire in Costa Rica will depend on a few factors, so we will first go over some of the bureaucratic costs involved, and then just some of the basic living costs given to you by an actual Costa Rican!
Visa Costs To Become A Resident In Costa Rica
If you plan to just buy property in Costa Rica, you do not need a resident visa or permit, you actually get what’s called an “Inversionista Visa” which essentially requires you to make an investment of $200,000 or more in either property or a business project.
As a result of this investment, you immediately get a 2 year resident permit, which can be extended after the two years.
Therefore, if you are looking for retirement homes in Costa Rica for sale, look for homes or property that costs $200,000 or more and qualify immediately to get your resident permit.
If you don’t want to buy property just yet, you can get two more types of visa, with the first one being a “Pensionado” visa, which needs you to show proof that you have a pension or monthly income of at least $1,000 a month for the rest of your life. To prove it, you might need to show what your pension is from your country, or that you have a guaranteed income stream of at least the $1,000.
This visa is valid for two years, and can be renewed after. Once three years have gone by, you can apply to become a legal full time resident.
Finally, we have the “Rentista” visa, which allows you to get two years (and can also be renewed) if you can prove you have a monthly income of at least $2,500 a month. This one can be a bit tricky, as it also requires you to make a deposit of $60,000 to a Costa Rican bank, which will then give you a commitment letter showing you will have these $2,500 available each month.
To apply for any visa, you need:
- Valid and up to date passport
- 2 Passport photos
- Birth certificate
- Criminal background check (clean)
- Marriage certificate (if applicable)
- Proof of monthly pension or funds
- Proof of consular registration issued by local consulate
- Fingerprint registration issued by the Costa Rican Ministry Of Safety
- Completed Application Form
- Letter explaining why you are applying for the permit/visa
The fees for applying are around $55.
Costs Of Living As An Expat In Costa Rica
Costa Rica tends to be a country that’s around 30 to 40% cheaper than USA, and around 20% cheaper than some European countries. It’s not the most affordable or cheap country in Latin America, and you will find some things that are more expensive than what you thought, especially if you are living in areas catered for tourists.
However, the trade-off is great safety, healthcare, a stable government and democracy, and an increasing value of the property you buy. Add to that the fact that if you are smart, live in areas that aren’t as touristy, or know where to go grocery shopping, you’ll see life isn’t expensive.
Central Valley costs per month:
- Rent 1 bed room apartment: $450-$700
- Rent 2 bed room apartment: $700-$1000
- Rent 3 bed room apartment: $900-$1600
- Power Bill: $50-$150 (depending on how many people, etc)
- Internet Bill: $40-$50
- Water Bill: $20
- Gyms: $30-$60
- Full Tank Of Petrol: $50-$120
- Meal At A Mid Range Restaurant: $25 per person
- Meal At A Local Restaurant: $10 per person
Groceries:
- $5 gallon of milk
- $3 dozen of eggs
- $2 loaf of bread
- $6 pound of beef
- $1.5 per beer
Coastal living costs per month:
- Rent 1 bed room apartment: $550-$800
- Rent 2 bed room apartment: $800-$1100
- Rent 3 bed room apartment: $1100-$1800
- Power Bill: $50-$150 (depending on how many people, etc)
- Internet Bill: $40-$50
- Water Bill: $20
- Gyms: $50-75
- Full Tank Of Petrol: $50-$120
- Meal At A Mid Range Restaurant: $30 per person
- Meal At A Local Restaurant: $8 per person
Groceries:
- $6 gallon of milk
- $3 dozen of eggs
- $2 loaf of bread
- $6 pound of beef
- $1.7 per beer
Health Insurance In Costa Rica
Health insurance in Costa Rica is free and public. Once you become a resident, or choose to retire there, you will have access to the free health care, as long as you make a contribution each month to enjoy this health care.
The contribution ranges from 8% to 13% depending on your income. After which, you will be treated, even for surgeries in the public health care system.
The hospitals in the Central Valley are the best ones by far, with great doctors and professionals. There might be waiting lists that can take a few months, it’s a tough reality, but the system works very well.
As to appointments, you can get appointments pretty much anywhere in the country without waiting much. You can have them at local clinics, and you can even get meds for free at the local EBAIS, which is a sort of small clinic that can be found in all districts of the country.
As to getting a private health insurance, it’s also recommended since it’s a good way to feel safer and get faster attention if needed. The plan you choose will depend on what you need, but in Costa Rica you really have state of the art private hospitals where you can get even the most complex treatments and surgeries. The country is known for the great doctors, and gets thousands of people coming in each year for medical treatment.
Retirement Communities In Costa Rica
There are many different retirement communities in Costa Rica, here we will mention the most common retirement towns in the country.
Escazú
One of the top choices, if not the preferred choice in the Central Valley. This is a great small city, where you have the country’s biggest mall, best private schools, the best private hospital, fantastic restaurants, and a lot of apartment buildings and gated communities to choose from.
The cost of living is higher, as this is the top socio-economic level, but in return you get great safety and all the needed amenities, as well as a thriving expat community.
Tamarindo
Located in Guanacaste, Tamarindo has become the most popular town in the region. It has it all, from hospitals, to schools, a great beach to surf, being close to other beach towns, and a lively night life.
The cost of living is high, since it has become a sought-after location for expats and most importantly for tourists. What you gain from the beach, the nature and the waves, you have to pay it back in a busy town, a lot of tourism, and perhaps not the best roads to drive on.
Buying property here is expensive, but the value of the land holds up and even goes up.
Playas Del Coco
Another great beach town, one of the first ones to properly develop in Guanacaste. The cost of living is a bit high, although not as high as Tamarindo. You don’t get the surf, the beach isn’t as beautiful, but it’s better transportation wise, it has the same amenities such as hospital, schools, and so on, and you do have access to plenty of other beaches in the region.
Again, it is quite touristy, which can be great if you’re looking to buy a second home and rent it our when you aren’t there. The area is also beautiful in nature and has a lively night life.
Nosara
A surfer’s town with luxurious restaurants, hotels and property. It has a very hipster vibe to it, and one of Costa Rica’s best surfing beaches. It’s further away from a hospital and a good supermarket, but it has a nice community and great schools.
It’s more expensive to buy a home here, as it’s considered one of the premium real estate locations in the world.
Santa Teresa
You might know this beach town in Puntarenas as the place where Tom Brady and Jack Dorsey own a house. It’s one of the most expensive towns in Costa Rica, but the best surf town out there. The beaches are simply breathtaking, out of this world.
However, you will have to overpay in meals, grocery shopping and moving around can be complex and time consuming. That said, to invest and rent out, this might be the best location.
Playa Negra
An up and coming surf town, not far from Tamarindo, right next to Playa Avellanas, and close to great international schools, a hospital, a great supermarket, and pretty much anything you need.
What’s great about Negra is that it is what Tamarindo was 20 years ago: laid back, safe, great for surfing, not as many tourists, great restaurants, affordable land and rent, and a fantastic opportunity for investment.
The community is welcoming, more locals than expats, yet you will find nice families living in the area. This is perhaps the best place to buy a retirement home in Costa Rica. It will be a better investment overall, less money to buy the house, and an increasing property value through the years. If you’re looking to buy a retirement property in Costa Rica, Playa Negra is the best place to do it.
Luxury Retirement Homes In Costa Rica For Sale
There are plenty of luxury retirement homes in Costa Rica for sale, mostly inside gated communities. These can be expensive, up to over $2 million for a home.
Some of the most popular luxury homes for sale can be found in:
- Hacienda Pinilla
- Ventanas Playa Grande
- Playa Uvita
- Zapotal
- Las Catalinas
However, if you’re looking for a luxury retirement home for sale, that you can also maximize the value of it with rentals, or even better, an increasing land value, you want to check out the Kalma Playa Negra homes, which are boutique luxury homes located in the heart of Playa Negra in Guanacaste.
