Retiring in Costa Rica

*Updated for 2025
Are you ready for a new lifestyle? Then look no further than Costa Rica, where you’ll enjoy simple things that truly make a happy life. 

Beautiful mountains,
Sunny beaches,
Excellent seafood,
Charming villages,
Pristine nature,
All at a reasonable cost. These are reasons why Costa Rica was positioned on the top list by International Living’s annual Global Retirement Index again in 2024 (taking the #1 spot) and placed third in the brand-new 2025 edition, after ranking third in 2020 and second in 2019.

It would be a fair estimate to say approximately $1,600 – $2,500 a month will be enough to live a comfortable life even in the biggest cities of Costa Rica like San José, Puerto Limón, or Alajuela.

Retiring in Costa Rica: Applying for a Residence

It is quite easy to retire in Costa Rica. According to the U.S. Department of State, about 120,000 expatriates live in this Central American country, and many of them are retirees. Bright!Tax Expat Tax Services

There are three popular residence options:

• Pensionado Program. To qualify, you need to show proof of at least $1,000 a month from a Social Security or retirement plan that covers the rest of your life. Under this pathway, you won’t be able to work in Costa Rica. However, if you own a business, you are allowed to receive payment from it. Remote or freelancer work outside the country is also possible. If you are moving with a spouse, one of you will be the principal applicant and the other a dependent.
• The Rentista Program is intended for people ineligible for the Pensionado program but who can demonstrate evidence of $2,500 monthly income for two years or a $60,000 deposit on a Costa Rican bank account confirmed by immigration policies. 
• Investment Program. Foreigners who can invest at least $150,000 in Costa Rica (reduced from the previous $200,000 threshold) can easily become residents. This rule applies only to investors and not their family members. Nomad Capitalist

After three years of residence, you can apply for permanent residency. 

Retirement Taxes in Costa Rica 

Costa Rican tax laws are very appealing to foreigners. For example, you won’t need to pay tax on your Social Security income, pension, or investment income. And if you work online for a company abroad, own a business, or rent property in the U.S., you won’t have to pay income tax. However, as a U.S. citizen, you will have to pay taxes on your worldwide income. Therefore, it’s better to consult a tax expert on both ends (in the U.S. and Costa Rica) to be aware of the income tax regulations. 

Moving Retirement Funds 

It is straightforward for U.S. citizens to transfer their contributions from any country in Costa Rica. Once you have a local bank account, your money will be exchanged into local currency. Then you can withdraw them at any time. 

Healthcare for Retirees in Costa Rica

The country’s health-care system, Caja, offers universal coverage for visits, medicines, surgeries, and more. We’ve heard back from some of our clients holding permanent-resident status in Costa Rica, and they say that they pay about $110 per month to participate in the healthcare system. Residents usually pay a monthly fee based on their income, and in 2025 most expats report contributions below ₡57,000 (≈ US $100)—roughly 7 % – 11 % of declared income. Overall, the medical service is very good, yet the quality of care depends on where you get it.

Inheritance Law for Retirees in Costa Rica

The good news is that Costa Rica doesn’t apply tax on inheritance real estate property. The inheritance process will only involve some minor administrative fees. 

If a foreigner dies in Costa Rica, his foreign Will will still be valid. However, to avoid a lengthy recognition process, it is advisable that a person obtains a Costa Rican Will at a Notario Publico. In case of no will in place, it will be divided among family members. 

Retiring in Costa Rica: Cost of Living and Housing

The cost of living in Costa Rica is about 22.7 % lower than that of the U.S. (excluding rent), according to Numbeo’s 2025 comparison. Numbeo

A couple can live comfortably for $2,200–$2,800 a month. Roughly 35 % of this budget would go toward accommodation costs. According to March 2025 Numbeo data, the average living cost without rent equals about $890 a month for one person. SmartAsset This covers basic groceries, water and electricity, internet, phone and cable TV, and basic leisure like eating out twice a week.

Monthly rents now range from $600 to $1,300 for small homes or city-center one-bedroom apartments, and $1,300 to $3,500 for larger houses with a spacious yard. WiseMagnolia Real Estate Costa Rica

But as in any market, the cost of a home or apartment depends on its location, type, and size. So whether you rent or buy property, a home in San José will undoubtedly cost more than a home in a suburban area.

Food in Costa Rica 

Each country boasts its cuisine, and Costa Rica is no exception. Costa Rican food is known for its fresh ingredients, like fruits and vegetables but doesn’t confuse it with Latin American food. 

Meals in Costa Rica have rice, and black beans often flavored with locally grown exotic fruits. Apart from this, local gastronomy also offers some exciting desserts. Arroz con Leche, rice mixed with milk or Flan, is another sweet treat that tastes like home, no matter where you are from. 

Lunch and Dinner Costs in Costa Rica

Dinner in a local restaurant, if you order a “casado” meal, now runs about $10 (≈ ₡6,000) per person. A dinner such as steak or fresh fish with a couple of sides is around $15 on average. Restaurants geared toward tourists will cost more. The average lunch with a sandwich, fries, and a drink is about $9–$10. European-style dinners may be between $20 and $25, with prices climbing further in high-end venues.

Wine, Beer, and Coffee 

A bottle of mid-range Costa Rican wine averages ₡8,000 (≈ US $15). Domestic beer or rum brands like Imperial and Cacique Guaro cost about ₡1,160 (≈ $2.15) for a 0.5-liter bottle, while an imported beer is roughly ₡2,240 (≈ $2.60) for a 0.33-liter bottle. Numbeo

Coffee is still king: a basic café-style cup starts at roughly ₡1,000–₡1,500 (about $2–$3), while limited-edition “prime” brews at specialty shops can top $15 a cup. Numbeo

Internet Access 

A high-speed 60 Mbps (or faster) connection is widely available, and fiber-optic service has reached most sizable towns by 2025. The typical monthly cost is about ₡27,300 (≈ US $51), with 5G mobile data also covering the main population centers. Service quality can still vary in very remote areas, though nearly all restaurants, cafés, and hotels offer free Wi-Fi.

Entertainment 

Movie theaters in Costa Rica often play English-language films with Spanish subtitles. A movie ticket typically is around $8.90 for adults, and for a 3-D experience you will pay about $12. Numbeo

Netflix is also available in Costa Rica, giving you plenty of at-home options. Its plans now range from $7.99 per month (ad-supported) to $17.99 for the premium tier. Netflix

If you are into nightlife or clubbing, expect to pay $8 – $18 per cocktail, depending on the venue.

Gym membership is generally about ₡35,800 (≈ US $65) per month in 2025.

Transportation in Costa Rica 

San José is the main transportation hub in Costa Rica. The most affordable way to get around is the public bus. Short city fares now average 300 – 350 colones (≈ $0.55), while cross-country routes like San José to Tamarindo (258 km) cost about ₡5,635 (≈ $10). MytanFeet

Taxis are also affordable. The 2025 metered rate starts at ₡670 (≈ $1.20) plus about ₡700 per kilometre (≈ $1.25). gobytaxi.com Use only licensed cabs and be sure the driver turns on the meter (“la maría”). For long trips, agree on a flat fare first. Tipping is uncommon but always welcome.

Shared, air-conditioned shuttles remain another popular option; they still pick up at your door and drop off at many major hotels country-wide. 

Owning a Car in Costa Rica

If you plan to settle in the Central Valley, convenient public transport often makes driving unnecessary. In rural areas or on the coast, however, a vehicle can be handy. You can buy locally, rent, or ship a car from the USA.

Fuel costs: Regular gasoline averages $1.36 per liter as of May 2025. GlobalPetrolPrices.com Diesel is a bit cheaper.

Rental rates: Expect to pay about $36 per day for an economy car, $49 for a standard sedan, and $80 – $90 for a five-passenger minivan. roadtripcar.com

Hourly parking in downtown San José is still roughly ₡1,100 – ₡1,300 (≈ $2).

If you can afford shipping fees, we can arrange to bring your U.S. vehicle down—but selling it at home and buying locally is usually simpler and cheaper.

Retiring in Costa Rica: Best Places 

Costa Rica’s regions and cities are diverse, and each has its own charm. So what are the top five retirement destinations in Costa Rica?

Retire in Montezuma 

Montezuma, situated on Costa Rica’s Pacific coast at the southern tip of the Nicoya Peninsula, offers privacy, off the beaten tracks in dense jungles and long miles of sunny and sandy beaches. It is home to the country’s Cabo Blanco Absolute Natural Reserve with lots of unique animals to see. Retiring on this coast means many fun activities like diving, snorkeling, and fishing. Besides, it doesn’t lack restaurants, cafes, and supermarkets. 

Retire in Santa Teresa and Mal Pais

These two cities connected by a stretch are also nested on the Nicoya Peninsula. Retiring in this part of Costa Rica is very advantageous as about $1,900 to $2,300 per month is more than enough to live a comfortable life for two persons.

Retire in the Guanacaste Coast 

You can find everything in Guanacaste Province – mountain ranges, rain forests, jungles, top beaches, restaurants, and bars. Retirees love this region because of trekking, deep-sea excursions, and luxury coastal neighborhoods. It also has an excellent infrastructure and international airport, contributing to the broad domestic and international access. 

Retire in Monteverde 

This town is located in northwestern Costa Rica. Its cool climate and elevation above the sea (4,662 feet) have created a unique ecosystem with hundreds of bird and mammal species, including 2,500 plants. It is one of the top agricultural regions in Costa Rica that produces dairy and cheese products, garlic, coffee, etc. If you are looking into retiring in a quiet place in Costa Rica, Monteverde is your bet. 

Retire in Puerto Viejo

Isolated until 1979, Puerto Viejo today remains a community where life is very slow-paced. The primary transportation mode is the bicycle. As a retiree, you will enjoy the peacefulness and Jamaican origin music known as reggae often heard from beach bars and homes. Expats took a fancy to this place by starting building homes and opening businesses accommodating the needs of their fellows. 

SDC International Tips for Retiring in Costa Rica 

• If you can afford to move abroad, take the time to fine-tune the details of relocation. The most important aspects are sorting out finances and taxes.
• You can comfortably retire in Costa Rica with an income between $1,600 and $2,500 per month. For most retirees, an average Social Security benefit of about $1,976 a month in 2025 covers a large share of that budget. International LivingSocial Security
• Come and spend time in Costa Rica before making the permanent move.