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Hoping to Retire in Costa Rica? Living in the Land of Pura Vida

By Victor C. Krumm


Recently, the San Francisco Chronicle published an article about the top three overseas retirement destinations for Americans.

As you might expect, it reported that many Americans and Canadians and Europeans have decided to retire to Costa Rica.

Here are some reasons why more and more people are doing so:

Relaxed Democracy Close to Home

Only a few hours from the United States, Costa Rica is the longest enduring democracy in Central America and, by its Constitution, has no military. And, while almost all of its residents speak Spanish, it's a land that truly likes Americans, Canadians, and Europeans!

Cost of Living

The cost of living in San Jose, Costa Rica Rica's biggest city, is about 50% less expensive than NY City, with the greatest savings being seen in food, housing, real-estate taxes, and entertainment.

Now, restaurants catering to foreign visitors are not always inexpensive but , for people that live in the Land of Pura Vida permanently, staplesâ€"-including most vegetables and fruitsâ€"-are less costly, partlicularly for those that buy fresh produce at weekly farmers' markets across the country.

Day to day living costs can go down significantly if you venture outside of the capital city of Costa Rica and into some of the smaller beach communities, like those in Guanacaste, or mountains.

Of course, some things are more expensive: automobiles, gas, items imported from the U.S. However, people can frequently find good housingâ€"-three or four bedroom unitsâ€"-far less expensive than in the U.S. The climate is so mild in most of the country that neither air conditioning nor heating is required and real estate taxes are commonly less than $400 a year, not $400+ a month.

Health Care

In several parts of the country, especially around San Jose and the north Pacific coast of Guanacaste, medical and dental care is on a par with that in the U. S. or other Western nations, but at a fraction of the cost.

For permanent residents (usually foreigners who have Social Security or pension benefits of at least $1000/month), medical care is just about free (retirees pay a tiny percentage of their benefits into the medical care system) at publicly operated hospitals.

And, for those preferring private hospitals, Costa Rica has a number of world renowned hospitals and clinics with leading-edge equipment in and around San Jose and along the north Pacific coast , too. While the standard of care is essentially equivalent to some of the best American hospitals, the prices are dramatically less.

But. . .

However Costa Rica isn't for every retiree. Some say half the folks that retire there return home in a year or thereabouts. Some simply get homesick for their friends and family. Others never adapt to living in a new country.

No matter what the reason, the moral is this: don't jump in and purchase a home until living in Costa Rica for six months or a year. It's easy to purchase a home and usually very tricky to sell it quickly (plan on 2 years).

Our recommendation: keep your options open while experiencing a change in your way of living.

And, remember, while some retirees leave, thousands and thousands love the Land of Pura Vida!








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