Retiring in Costa Rica
Like so many others, if you are getting ready for retirement you should consider Retiring in Costa Rica. More and more North Americans are seeing Costa Rica as a good option for their golden years, and for very good reasons.
Costa Rica is a small country of 4.6 million people located between Nicaragua to the north, Panama to the south. Costa Rica has the Pacific Ocean to the west, and the Caribbean Sea to the east – you can drive from one side to the other in about six hours.
Costa Rica has a climate for everyone, from hot tropical weather to fresh cool mountain climates. As well, Costa Rica has a lifestyle for everyone’s taste with modern cities, Pacific and Caribbean coastlines, rain forests, lush valleys, and rural mountainous regions.
Costa Rica has one of the highest standards of living in Central America, with a growing, stable economy, excellent health care and modern telecommunications. In addition to its stunning natural beauty, friendly culture, and close proximity to North America, Costa Rica has been attracting many foreign retirees because of its comparatively lower cost of living and relaxed pace of life.
Many retirees choose to live on Costa Rica’s Central Pacific coast, which is only a little more than hour from the capital city of San Jose and its international airport. The most popular area on the Central pacific is from Jaco to Quepos, because of its stunning beaches and many expat communities, and fully developed infrastructures.
For those planning a retirement in Costa Rica, you should consider applying for a pensioner residency status. Those seeking a pensionado visa must demonstrate a permanent fixed income from a pension or similar retirement income of at least US$1,000 per month from a qualified pension or retirement account or from Social Security. ( For more information visit http://www.costaricalaw.com/Immigration-and-Residency/residency-general-information-and-summary.html)
Fear is a Factor in Driving Rising Expat Numbers
Apart from Costa Rica’s growth potential which has been attracting investors, expats and retirees, fear has become also a motivating factor – and a BIG one! Consider that roughly 10,000 Baby Boomers will turn 65 today and further, an American is turning 50 every 7 seconds—that’s more than 12,500 people every day (U.S. Census). What is the fear all about? As these new retirees start collecting their retirement benefits, the US economic system is further burdened. Add this to the USA’s massive national debt problem, $17.7 Trillion+, as of September 2014, and a daily addition of $2.36 Billion, the so called ‘fear factor’ is certainly very real, especially after the last near economic meltdown, which caused home values in the USA to drastically devalue.
The ‘fear factor’ is also evident in the significant increase in investment dollars going into regions throughout Latin America. Investors see more security investing in emerging economies and currencies, and so do retirees.
How much does it Cost to Retire in Costa Rica?
While Costa Rica is the most expensive country in Central America, Costa Rica does have a high standard of living while the cost of living is still far below that of U.S., Canada, and Europe. Of course the costs do depend on your lifestyle, but on the lower end in many of the rural communities for example, $1,600 a month provides you with a comfortable lifestyle.
Rents can range from $500 to $1,500 per month for a large house with a large yard, depending on location, and of course you can find places for much higher. Rural areas are cheaper, and ocean and Central Valley properties, around San Jose are generally more.
You will find meat products are about the same as the U.S. and Canada, but vegetables and fruits are far less expensive. If you are on the coast where humidity and temperatures are much higher you will pay for it in electricity, but mountainous regions you can expect to pay from $50 to $80 a month on the electric bill. Internet packages that include cable TV, internet and VOIP phone cost around $80 a month.
Going out for dinner, again depending on where you go, you can get a nice steak dinner for two, with wine and dessert for under $50. Beer in the bars average about $2 and liquor drinks around $4.
What about the Costa Rica Health Care System?
This is a common question of people looking at retiring in Costa Rica. The short answer is; good.
By almost any international standard, Costa Rica is ranked as the best health care in all Latin America. Costa Rica is constantly upgrading its technology, hospitals, equipment, and staff training in both the public and private health systems.
Despite the advancements, costs are low in comparison to those in the U.S. and even some European countries. Health care costs are about a third to a fifth of what you’d pay in the U.S., depending on the treatment Doctors, for instance, rarely charge more than $60 a visit, even for house calls. Many doctors, especially in private practice, speak English and have received training in Europe, Canada, or the U.S. Drugs are also much less expensive.
Costa Rica’s Government-Run Health Care System
The government sponsored health care network has more than 30 hospitals and over 250 clinics throughout the country, the Caja Costarricense de Seguro Social (CCSS) is the governing body responsibility for providing low-cost health care services to the peoples of Costa Rica. The public health care system has been operating for over 65 years. The largest drawback to this system is that it is frequently overburdened.
The CCSS public health care system provides affordable medical services to both Costa Ricansand to any foreign resident or visitor. Foreigners living in Costa Rica can join the CCSS by paying a small monthly and/or they can also purchase health insurance from the Instituto de Seguro Nacional (INS), which is affiliated with over 200 doctors, hospitals, labs, and pharmacies in the private health care sector.
Costa Rica’s Private Health Care System
Private health care is also affordable and high standard and quality. There are three main large, private hospitals that most foreigners use; Clinica Biblica in San Jose, CIMA hospital in Escazu, and Hospital La Católica in San Jose-Guadalupe.
As mentioned in the intro to this section these private health care institution are of international standards, with the latest technologies and highly qualified doctors and staff. Let’s take a look at cost comparisons to the USA on the most common medical and dental procedures.
Note: All costs comparisons are approximated.
| Medical Procedures | USA | Costa Rica | Average Savings |
| Heart Bypass | Up to $130,000 | $24,000 | 70-80% |
| Heart Valve Replacement | Up to $160,000 | $15,000 | 80-90% |
| Angioplasty | Up to $57,000 | $9,000 | 70-80% |
| Hip Replacement | Up to $43,000 | $12,000 | 60-70% |
| Hysterectomy | Up to $20,000 | $4,000 | 70-80% |
| Knee Replacement | Up to $40,000 | $11,000 | 60-70% |
| Spinal Fusion | Up to $62,000 | $25,000 | 50-60% |
| Plastic and Reconstructive Surgery | |||
| Facelift | $7,000-$9,000 | $4,600 – $5,000 | 30-40% |
| Rhinoplasty | $8,000-$12,000 | $3,500 – $3,900 | 50-65% |
| Breast Lift | $5,000-$8,000 | $3,000 – $3,400 | 40-55% |
| Breast Augmentation | $5,000-$8,000 | $2,700 – $2,900 | 50-65% |
| Blepharoplasty (Eyelid Surgery) | $4,000-$5,500 | $2,000 – $2,200 | 50-60% |
| Brazilian Butt Surgery | Up to $10,000 | $3,000 – $3,300 | 55-65% |
| Tummy Tuck | $6,000-$8,500 | $3,900 – $4,200 | 45-50% |
| Facelift | $7,000-$9,000 | $4,600 – $5,000 | 35-45% |
| Male Breast Reduction | Up to $6,000 | $2000 – $2600 | 50-60% |
| Bariatric Surgery | |||
| Laparoscopic Gastroplasty | Up to $30,000 | $10,500 | 55-65% |
| Laparoscopic Roux-en-Y | Up to $35,000 | $14,000 | 50-60% |
| General and Cosmetic Dentistry | |||
| Bridges | $1,000+ per tooth | $250 – $400 per tooth | 60-70% |
| Crowns | $1,000+ per tooth | $250 – $400 per tooth | 60-70% |
| Implants | $3,500+ per tooth | $700 – $900 per tooth | 70-80% |
| Porcelain Veneers | $1,500+ per tooth | $300 – $500 per tooth | 65-80% |
| Root canal | Up to $800 | $315 | 55-60% |
| Teeth whitening | Up to $700 | $250 | 55-65% |
<H2>What about Costa Rica Real Estate?
This is another important question for those that are considering retiring in Costa Rica. In terms purchasing a home or lot, Costa Rica Real Estate prices are much lower than comparative places in North America without sacrificing standards. Consider that on Costa Rica’s Central Pacific you can find Titled beachfront bungalows for under$180,000 USD, you would be hard pressed to find something comparable in the U.S.A. You can find 15,000 sq. ft. lots in residential community developments for under $50,000 with ocean access only a few minute away.
Further, these properties are well positioned not only in a grown region, but in a country that has a growing economy. The potential room for growth is much higher in emerging economies like Costa Rica, compared to North America. Recently in July 2014, CBC reported that in Canada, the National average price for residential property is $413,215 CDN, so one has to ask, how much room for growth is left in that economy?
Apart from real estate growth potential emerging economies like Costa Rica offer, retirees also see more security for their investment in growing economies compared to the volatility of North American housing markets and stock markets. In light of the economic downturn brought on in large by the house bubble collapse in 2008, many emerging countries like Costa Rica took steps to further buffer themselves in the future by creating stronger trade and economic ties to other foreign countries like Mexico, growing countries in South America and China, in other words countries like Costa Rica diversified their portfolio’s as a further protective measure.
<H2>Are there many retirement communities in Costa Rica?
There are large numbers of retirement communities throughout Costa Rica but they tend to congregate in the four primary regions; Guanacaste coast, Central Pacific coast South Pacific coast and Central Valley.
The Central Pacific was the first region to develop as an expat and retirement region because of the close proximity to San Jose International Airport (Juan Santamaria), its climate, natural beauty and rich bio-diversity.
Some of the excellent communities on the Central Pacific are: Los Suenos, Hermosa Palms, Hermosa Bungalows, Opera Salvaje Hermosa, and Punta Leona. These centers all offer unique features and environments as well as prices points on the real estate options to suite different budgets.
Retirement communities provide full service, safe and secure environments and so are a very popular with retirees and baby boomers. Many communities offer vacation rental management as a way for owners to make residual income for those that are part time residence. These communities can offer many other perks and benefits such as pools, club house, private bio reserves, marinas, schools, golf courses, horse stables, golf carts available for in-community transportation, and small convenience stores to name a few.
How or where do I start if I want to retire abroad in Costa Rica?
Many seniors with a sense of adventure and an updated passport, the ideal retirement destination lies outside the U.S. Attracted by a lower cost of living, high-quality health care and an exotic locale, retirees are putting down roots across the border and around the globe. Overseas Americans refers to the population of United States citizens who relocate, temporarily or permanently, to foreign countries. There are no reliable figures on how many Americans live abroad, but a State Department estimate indicate that the number may be between 3 million and 6 million
If you’re convinced the expat lifestyle in Costa Rica is for you, consult the experts before you venture outside the U.S. Another option is to become a part-time expat. A popular first step apart from rental living for a trial period alternative is popular with retirees who aren’t comfortable living year-round in a foreign country but want to take advantage of better weather and a lower cost of living for at least part of the year. If you can easily save money living in a country like Costa Rica full-time, you can also save money living abroad part-time as well.
Recommendations
Speak with an expert! First, find an expat that has livered for many years, if this person has experience in the different regions all the better, and further if this person has experience in the real estate market that is even better.
Jeff Fisher is a 22 year Costa Rica resident with over 15 years selling real estate. Jeff lives in the small beach village of Playa Hermosa, just 5 minutes south of Jaco Beach. If you looking for advise on relocating and retiring to Costa Rica or if you need experienced help finding you perfect piece of Costa Rica real estate, you can talk directly Mr. Fisher though the contact information below.
