Cost of Living in Costa Rica

How much does it cost to live in Costa Rica
by Christopher Howard M.A.
Author of The New Golden Door to Retirement and Living in Costa Rica

Much has been written about the high cost of living in Costa Rica. Really the country is very affordable. The amount of money you spend really depends on your lifestyle. If you are accustomed to expensive goods from the states, being a shopaholic, eating out and bar-hopping every night, living "high on the hog" like a tourist or having a late-model car and luxurious home, then you will spend almost as much or in some cases even more money than you do in the States. However, if you learn to live like the locals and watch your spending habits, you can live very well.

I have a wife and son, a car, a home, a part-time maid, and my son goes to one of the best private schools in the country. We eat out a few times a week and indulge in other forms of entertainment. The three of us enjoy a comfortable lifestyle on about $2,500 monthly. We even save enough to spend a week at the beach at Easter and go to the States at Christmas.

You truly can get more for your money in Costa Rica. This seems to be the primary concern and determining factor when contemplating making the move to another country. In Costa Rica, a favorable exchange rate and lack of mega-inflation enable you to stretch your dollars. The cost of medical care, food, utilities and entertainment are substantially lower than in the states. A phone call to any place in the country costs the same. Housing in most areas is a fraction of what you are accustomed to paying.

We just purchased a new three-bedroom, two-bath home with financing and are paying less than we did for rent here. The cost of our home was about $62,000. We pay $452.00 monthly including insurance and have a 15-year mortgage in dollars. Property taxes are rock-bottom and there is no capital gains tax if you sell your home. Hired help is also inexpensive. A full-time maid may even be hired for for as little as $200 monthly—a luxury reserved for only the wealthy back home.

Some of the neighboring countries like Nicaragua, Belize, Honduras and Guatemala are less expensive, but the quality of life and lack of infrastructure leave a lot to desire. Safety is another concern. Gunslingers and paramilitary police abound in both Honduras and Guatemala and violent crime is rampant. Belize City is said to be extremely dangerous. So, you really get what you pay for in these countries—a lower quality of life.

In Costa Rica there are a myriad of business opportunities awaiting creative hard-working individuals. It is relatively easy to run a global business from abroad taking advantage of easy Internet access, fax machines, cell phones and other improved means of communication. Small-time entrepreneurs are enamored with the prospect of being able to start a business on a shoestring. They could never dream of doing this back home. There are even tax breaks for U.S. citizens residing in foreign countries. While living outside of the United States, those people with proof of permanent residency status are permitted by law to make almost $80,000 tax free. Passive investors can find higher yielding C.D.'s, second mortages and other lucrative investments that don't exist in the U.S. or Canada. We know of several investments which pay 25-30% in dollars annually. No bull! One company has a 25-year track record.

Source:

Christopher Howard M.A. is the author of "The New Golden Door Door to Retirement and Living in Costa Rica," He is also a paid consultant for National Geographic in Costa Rica. For more information call 800-365-2342, access: www.costaricabooks.com or www.publishingonline.com to directly download his books from the Internet.

Mr. Howard also conducts monthly one-of-a-kind exploratory trips for those wanting to live in Costa Rica please call toll-free 800-493-8426, e-mail: crbooks@racsa.co.cr or tico@gate.net. Contact them to see how your can win a FREE round-trip ticket to Costa Rica on one of their tours. Mr. Howard also works as a paid consultant for newcomers and those thinking of investing or going into business. For a listing of his services see: www. liveincostarica.com. Anyone needing assistance may contact him directly at: crbooks@racsa.co.cr.