Living & Retiring in Costa Rica
Thinking Of Relocating To Costa Rica?
By Staff
Mar 2, 2006, 09:01

It’s a good idea if your considering moving to Costa Rica, to first come here as a tourist. The longer you can stay the better. It is important that in addition to knowing the logistics of establishing residency and making the move, you get a little taste of what life will be like. What’s seems like paradise while on vacation can quickly change from day-to-day living.

Most tourists can remain in Costa Rica with a tourist visa for up to three months. With a driver's license from your home country and your passport, you can legally drive. During your visit get into the a realistic feel of what life would be like day-in day-out. Learn first-hand that a different culture means different responses to given situations. In the long run, your ability to adapt and approach life with a relaxed attitude will probably govern your degree of happiness and satisfaction with Costa Rican life.

What is it like to live here? Only your own experience can answer that, since it is different for every person. But some basic information may help you in your investigation. At the present time, if you own a house and car and have no debts, you can live very well on US $1,500 per month, including maid and gardener services. Comfortably on $1000 per month or less depending on your lifestyle. Foreign residents or tourists can buy or rent homes, condos, and property in Costa Rica.

Property taxes are generally lower in Costa Rica than in North America and many other countries. For example a $50,000 house in San Jose (worth triple or more in the US) will cost you $250 per year. As a foreign resident, you will not pay income taxes on foreign pensions or income generated outside of Costa Rica, but you may have to pay taxes on income generated in Costa Rica. Business income, after expenses, is taxed, and there is a 13% sales tax on goods and services, including restaurants, hotels, entertainment, and so on. Bank interest is non-taxable to the client, therefore if you are told you will receive 6%, this is net.

For those considering retirement in Costa Rica, it may be unwise to expect to earn a living, or to supplement your income. Pensionados and Rentistas are allowed to own and operate a business but are not permitted to work for wages for someone else.

Driving? Gasoline can be expensive, but having a vehicle allows you to realy see the country. Most of the roads are poorly maintained with an ample supply of potholes, though the current government has done a lot of work to improve this.