COSTA RICA - Amazon S3Rica.pdf · Latin America and a variety of climates to suit all tastes, Costa Rica is the perfect retirement destination. Costa Rica, slightly smaller than West

An International Living report • www.InternationalLiving.com

COSTA RICA

Find the Perfect RETIREMENT LOCATION

in…

Find the Perfect Retirement Location in…Costa Rica

An International Living report

Designer: Lorie Drozdenko

Cover photo: ©Fotolia.com/Kara-Kotsya

©IL/Jason Holland

© Copyright 2014. International Living Publishing Ltd., Elysium House, Ballytruckle, Waterford, Ireland. All rights reserved. No part of this report may be reproduced by any means without the express written consent of the publisher. The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. Registered in Ireland No. 285214.

1Find the Perfect Retirement Location in…Costa Rica

WELCOME TO COSTA RICA

It’s not surprising that expats, especially Americans and Canadians, are attracted to Costa Rica. With one of the highest standards of living in Latin America and a variety of climates to suit all tastes, Costa Rica is

the perfect retirement destination.

Costa Rica, slightly smaller than West Virginia, is located between Nicaragua and Panama and has a population of just 4.7 million. The large number of expats living in Costa Rica means there are many well-established expat communities. Spanish is the official language, but many Ticos (a term that Costa Ricans use for themselves) speak English.

Long stretches of deserted and undeveloped beaches, on the Caribbean and Pacific Coasts…dense jungles teeming with exotic wildlife…towering volcanoes, lush green valleys, and hundreds of crystal-clear lakes, rivers, streams, and waterfalls…mesmerizing sunrises, sunsets, and star-filled evening skies…all these things, and much more, are drawing people to Costa Rica.

©IL/Erica Mills

2 Find the Perfect Retirement Location in…Costa Rica

Whether they live in this beautiful country full- or part-time, they relish the climate, neighborly atmosphere, low cost of living, excellent health care, stable democracy, and countless ways to have fun. Bustling beach towns or quieter, away-from-it-all life, Costa Rica has it all. The Central Valley has gorgeous landscapes, a good climate, and established expat communities; the two beautiful coasts have gorgeous beaches and seaside villages, and Lake Arenal is perfect for those looking for beauty and adventure.

With its slower pace of living, warm, welcoming climate, healthy, fresh foods, and reputation as one of the “greenest, cleanest” countries in the world it’s no wonder Costa Ricans are considered among the “happiest people on the planet.”

An estimated 20,000 North Americans call it home today (more if you count part-timers and “snowbirds” who come for North American winters). And it continues to be a favorite of retirees for the same reasons it always has been: low cost of living; ideal climate; natural beauty; a stable government; friendly locals; safety; easy residence requirements; and bargain real estate.

Thanks to the country’s long history of welcoming expats, it’s easy to make the transition to a new life in Costa Rica.

Our favorite locations in Costa RicaCosta Rica has been on the list of nearly everyone interested in a home in

the sun. Get to know the locals and find out firsthand whether the area offers the type of friends, lifestyle, climate, and activities you’re looking for.

Grecia in the Central ValleyIt’s hard to beat the Central Valley when you’re looking for a beautiful,

friendly, and relatively inexpensive place to live. Nestled among forests, mountains, and farms are villages where expats have been living side by side with Costa Ricans for many decades.

Grecia is a real deal Costa Rican town—not set up (or priced) for tourists. You can get a $5 lunch of the Tico specialty casado (rice, beans, plantains, salad, with chicken, fish, or beef) and a fridge full of produce is $35. Grecia (pop. 16,000) has a lively center with department stores, bakeries, cafés,

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cheap but high-quality restaurants, and a weekly farmer’s market—with low-priced fruits and veggies.

In Grecia, the pace of life is slow and there’s plenty of time to stop and smell the coffee…literally. At an elevation of just over 3,000 feet, the hills above Grecia are lush with coffee plantations. And should you want some sugar in your coffee, you’ll be happy to know that sugar cane also grows here. This perfect combination of altitude and latitude makes for temperate weather conditions, too. The days are warm and mild…and the nights are mild, too. Overall, daily temperatures range from 65 to 85 degrees Fahrenheit.

It’s also not far from the airport (Juan Santamaría International Airport in the capital city of San José is just a 30-minute drive away) so getting home to see family and friends is convenient; it’s small and easy to get around by bus; and it feels very authentic and non-touristy.

Real estate examples in Grecia:

• A new, three-bedroom, one-bathroom house of 1,130 square feet. It also has a living room, a laundry area, a small green area, and a place that could be used to build a small garage. Price: $71,000.

Grecia’s famous metal church is just one of the many attractions of this buzzing little town

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• A home, located on one of the most popular ridges in Grecia, with two bedrooms and two bathrooms in 1,000 square feet of living space. There’s also a kitchen with granite counter tops, a living room with a sliding glass door from the living room opens to the gardens and the outdoor patio perfect. It also has a garage, new plumbing and water drainage, and a garage. Price: $137,000.

Lake ArenalLake Arenal is Costa Rica’s biggest lake and it’s hard not to let the

beauty distract you. Blue morpho butterflies flit across the road, troops of raccoon-like coatis scamper on the shoulder, howler monkeys lounge in the high branches, and bright tropical birds wing it from tree to tree. There are stunning views of the 33-square-mile Lake Arenal—about 18-and-a-half miles long but only three miles at its widest. People are drawn to Arenal because of its great weather (not humid, just warm and breezy), low cost of living, and affordable real estate. It’s laid-back and peaceful.

Lake Arenal is distractingly beautiful and surrounded by lush green forest©IL/Jason Holland


There’s plenty to do here, especially in the outdoors. Hiking in the rain forest surrounding Volcàn Arenal, at the east end of the lake, you can see more than 200 species of birds, as well as monkeys, coatis, and other picture-perfect wildlife. The lake itself is a water-sports paradise, and you’ll often have it to yourself. There are hardly ever more than a dozen or so craft on the water on even the busiest days. Fishing, boating, and kayaking—they’re all here…and Arenal has now become a haven for wind- and kite-surfing.

Real estate examples in Arenal:

• A two-bedroom, one-bathroom home in the San Luis area of Arenal. Located above a stream and overlooking hills with both woods and pasture, the home is close to the public bus service. The marina and the Arenal Country Club are just a few minutes away. Price: $48,000.

• A two-bedroom, two-bathroom, 1,200-square-foot home at Nuevo Arenal. The home features a large laundry room, wrap around veranda, locking carport, and is bordered by a half-acre of land planted with a variety of native trees. Price: $89,000.

• A two-bedroom, two-bathroom, lake view home in Nuevo Arenal. The property comes fully furnished and includes built-in closets and shelving, a kitchen, wet bar, laundry room, and security system. Price: $130,000.

JacóJacó has long been a favorite of vacationers and expats. This lively beach

town features several large resorts, as well as many options for longer-term residents, like condos, gated communities, and lots for building. The wide range of housing options in all price ranges, from budget to luxury, as well as many amenities and comforts of home, make living in Jacó a great choice for lifestyle and retirement overseas.

Thanks to tourism, there is a “main drag” filled with bars, restaurants, and nightclubs, as well as plenty of unique shops and art galleries. Thanks to the tourist trade, many speak English. Jacó is well-known for its 2.5 mile-long beach. You can relax on the sand or surf some of the best waves in the country.


Real estate examples in Jacó:

• A two-bedroom, one-bathroom, 600-square-foot, fully furnished condo in the center of Jacó Beach. It’s in a gated community located just a couple of blocks from the beach. Price: $89,000.

• A two-bedroom, three-bathroom, 1,400-square-foot condo on the southern end of Jacó Beach. This condo is located in the Macaws development and is a ground-floor, fully furnished property. Large terraces allow for plenty of outdoor living. Price: $190,000.

The property buying process in Costa RicaThere are two important rules when buying property in Costa Rica:

• No matter how much research you do, never buy real estate unless you’ve actually seen it in person.

• Once you find property that you want to own, don’t delay in making an offer.

Jacó is a lively beach town with a 2.5 mile-long beach©iStockPhoto.com/hemeroskopion


In Costa Rica property is transferred from seller to buyer by executing a property transfer deed (escritura) before a notary public. The notary public must be an attorney and they may draft and interpret legal documents, as well as authenticate and certify their authenticity. In order to close on a property the notary must draft the transfer deed and register the sale in an office known as the National Registry.

The general custom is for the buyer and seller to share equally in the closing costs. Closing costs involve three things: government transfer taxes and registration fees, notary and legal fees, and mortgage costs if any.

In most cases, beachfront property in Costa Rica is untitled because the ownership and possession of the shoreline are governed by the Maritime Zone Law. It restricts the possession and ownership of beachfront property. The first 656 feet of beachfront, starting at the high tide markers, is owned by the government. The first 164 feet of this area are deemed public zones, and nobody may possess or control that area. On the remaining 492 feet, referred to as the Restricted Zone, the government will lease the land to private individuals or corporate entities.

Visas and residenceMany expats live for years in Costa Rica without residence. Every three

months they simply leave and re-enter the country to renew their tourist visa after taking long weekends elsewhere, but upon returning to Costa Rica, you must have a ticket out of Costa Rica within 90 days or you won’t be allowed in. The “border run” trick is not reliable for long-term living. There are many options for those wanting to stay in Costa Rica long-term.

Pensionado Program:

The Pensionado Program requires proof that you have at least $1,000 a month in income from Social Security, disability, a pension, or other retirement plan. You won’t be able to work as an employee in Costa Rica, but you can own a company and receive dividends from it. As a pensionado, you must remain in the country at least four months each year, and the program includes a spouse and dependents under 18 years of age.

Rentista Program:

The Rentista Program is for people without a fixed retirement income. It requires proof of $2,500 monthly in unearned income for at least two


years or a $60,000 deposit in a Costa Rican bank approved by immigration authorities.

The Permanent Residency Program:

The Permanent Residency Program is designed primarily for spouses of Costa Rican citizens. A new law addresses a problem created by foreigners who married Costa Ricans solely for the purpose of citizenship. Now temporary immigration status will be granted for one year and renewable for additional one year periods so long as the immigration authorities do not determine that the marriage is a sham. After three years with temporary residence status, the spouse may apply for permanent residence.

Cost of livingMost America, Canadian, and European expats in Costa Rica spend much

less money on day-to-day expenses than they do in their home countries. A single person can live on between $1,400 and $1,700 a month. Some single people scrape by on considerably less, and others spend hundreds of dollars more, depending on what one is accustomed to. A couple can live on $2,000 per month, and live even better on $2,500 to $3,000. It basically depends on a person’s lifestyle.

Sample monthly budgetHousing, rental of a furnished, two-bedroom apartment $500

Utilities including phone, electric, water, Internet, and cable TV $150

Maid, twice a week $40

Groceries $300

Maintenance and fuel for one car $140

Clothing $70

Entertainment, two people dining out eight times a month at top restaurants or other entertainment $250

Total per month $1,483


Health careCosta Rica has some of the best health care in Latin America. The

country’s public and private health systems are constantly being upgraded but despite these advancements, costs are low in comparison to those in the U.S. and even in some European countries. Health care costs are about a third of what you would have to pay in the U.S. Private doctors rarely charge more than $60 a visit, even for house calls. Specialists run $80 to $100 per visit.

Drugs are less expensive and you can easily buy many medications in pharmacies that would require a prior visit to the doctor in the U.S. Some big exceptions are drugs that could become addictive and antibiotics. Pharmacies are allowed to prescribe medicines, including on-the-spot injections.

The Caja Costarricense de Seguro Social, known as La Caja, is the government agency that operates nearly three dozen public hospitals and more than 200 clinics. Legal residents living in Costa Rica can join the CCSS and get unlimited treatment by paying a small monthly fee based on income. Tourists and visitors can use Caja facilities only in emergencies. It is mandatory for those applying for residence to become member of La Caja. The fee, paid monthly, is based on income, with the average price generally less than $50 a month per person.

The consensus among expats it that public hospitals and clinics generally provide adequate care, but they’re often put off by crowded waiting rooms, modest furnishings, and, although the doctors speak English, staff generally speak little.

It’s difficult to find an expat who doesn’t think that Costa Rica’s private hospitals are as good as those back home. The three general hospitals with a full range of services typical to those you’ll find at home are: CIMA Hospital, Clínica Bíblica, and Hospital La Católica.

The Instituto Nacional de Seguros (INS) provides low-cost health insurance that entitles citizens and foreigners access to doctors, private hospitals, laboratories, and medical facilities. INS is a government-owned insurance company.

As in nearly every other country, you can buy an international health insurance policy that covers medical expenses overseas. Many international


policies also pay the cost of evacuation to the U.S. in the case of an emergency, but this feature isn’t often needed in Costa Rica. Premiums for international health insurance vary widely. A family of four living in Costa Rica—parents in their early 50s and two children in their mid-20s—typically pays $480 a month for a policy with a $1,000 deductible. The biggest factors in determining premiums are the amount of the deductible and age. Premiums rise with age and some companies don’t write policies for anyone 65 or older.

Most doctors in Costa Rica have been trained in North America or Europe and a high percentage of doctors at the private hospitals have a knowledge of English. However, those practicing in public institutions, particularly those facilities outside the Central Valley, may have very little. Medical tourism has become big business in Costa Rica as people realize the benefits of the country’s high-quality, low-cost medical services. The World Health Organization ranks Costa Rica’s health care system slightly above that of the U.S.

TaxesIn Costa Rica, the taxation of individuals is based on the principle of

territoriality, meaning that all personal income which has a foreign source, is tax exempt. Only revenue earned by an individual within Costa Rica is subject to an assessment by the tax authorities. Any income you earned from working remotely with a U.S company, for example, would not be taxed by Costa Rica. Costa Rica does not discriminate between the taxes payable by residents and non-residents. The main taxes affecting an individual are income tax, employee social insurance, withholding taxes, capital transfer tax, and sales tax.

Income tax is levied on both employment source income and non-employment source income. Employment income includes the gross value of a salary, wage, pension, commissions, bonuses, expense allowances, and any benefits in kind. There are different ways of assessing income tax. Personal income taxes includes people whose income consists of a fixed salary or other remuneration and people with profit generating activities.

Persons whose income consists of a fixed salary includes every employed individual. They must pay a monthly withholding tax that is based on their salary. Incomes up to 685,000 CRC are exempt, up to 1,028,000 CRC are taxed at 10%, and in excess of 1,028,000 CRC are taxed at 15%. Individuals


with profit generating activities are for those who are self-employed. The following rates are currently applied to taxable annual profits: profits up to 2,890,000 CRC are exempt; up to 4,316,000 CRC is taxed at 10%; up to 7,199,000 CRC is taxed at 15%; up to 14,427,000 CRC is taxed at 20%; and in excess of 14,427,000 CRC is taxed at 25%.

For social security taxes the employer pays a contribution of up to 26% of gross salary and the employee pays a contribution of 9% of their gross salary. Self-employed individuals are required to contribute to this fund.

A property transfer tax of 1.5% is payable by the purchaser on the value of real estate purchased. In addition there is a National Registry recording fee of 0.05% and a documentary stamps fee of 0.035%.

Accessibility to North AmericaFlying to Costa Rica has become easier in recent years, thanks to

improvements in its airports and a growing number of airlines that serve them. Major airlines that fly from the U.S. to Costa Rica include Aeroméxico, American Airlines, Copa, Delta, Frontier Airlines, jetBlue, Spirit Airlines, Sun Country Airlines, United Airlines, and U.S. Airways.

Fares vary widely, depending on such factors as the day of the week and time of the year and how far in advance you make reservations. It takes about five hours to fly from New York to San José, three hours from Miami, and four hours from Houston.

Having fun in Costa RicaNational parks are everywhere in Costa Rica. There are 161 parks and

wildlife refuges committed to preserving the country’s natural beauty. In fact, there are more parks and wildlife refuges in Costa Rica than in any other country of a similar size.

Watch exotic birds and rare monkeys, see some of the world’s most beautiful orchids, and experience wonders like volcanoes, hot springs, cloud forests, waterfalls, mangroves, and coral reefs. The parks offer a glimpse into an exotic natural world and they also provide opportunities for hiking, swimming, diving, fishing, surfing, and enjoying breathtaking rides on aerial trams.


You don’t often see Costa Rica described as a playground, but that’s exactly what it is—a country where it’s easy to have fun. The Central Valley offers the perfect climate for tennis, golf, cycling, baseball, jogging, softball, cricket, hiking, soccer, horseback riding, and even polo. Scuba divers regularly get a close-up look at schools of giant barracuda in Costa Rica, where coasts are tailor-made for swimming, fishing, sailing, diving, water-skiing, snorkeling, surfing, canoeing, and kayaking. There are also humpback whales, manta rays, octopus, sea turtles, and trumpet fish, to name just a few.

White-water rafting is a big sport in Costa Rica. There are also less-demanding sports, such as badminton, darts, Frisbee, judo, karate, and tai chi chuan. Spas and gyms are easy to find throughout the Central Valley and along the Pacific Coast.

Amateur baseball teams regularly play at Sabana Park in San José. Ask a knowledgeable expat for the nearest country club to play basketball or soccer. The national sport of Costa Rica is fútbol, or soccer, as most Americans call it. Ticos follow the national professional league, international leagues in Europe and South America, and the World Cup action. Just about every town and village has a soccer field for local citizens to play in amateur games.

Almost everyone who lives in Costa Rica enjoys outdoor activities, whether it’s bicycling, diving, rafting, or dozens of other sports. Sport fishing is very popular in Costa Rica. The most popular spots are off the Pacific Coast—Flamingo, Tamarindo, Quepos, and the Osa Peninsula. Depending on the weather and the sea conditions, the waters can be teeming with malin, sailfish, roosterfish, dorado, tuna, snapper, wahoo, and grouper. The Caribbean Coast is gaining popularity among fishermen who enjoy the challenge of tarpon, snook, barracuda, and kingfish. Freshwater fishing is also popular around the small inlets where rivers empty into the sea.


COSTA RICA CONTACTS

IL contactsFor more coverage on Costa Rica, make sure you take a look at our website:

www.InternationalLiving.com where you’ll find a wealth of information, contacts, and news from around the world.

We also have a Costa Rica-specific Facebook page: www.facebook.com/internationalliving.costarica. This is a great place to meet other like-minded, Costa Rica-bound expats and get advice.

International Living’s Community website is the place to get answers to all your live-overseas questions. The International Living Community goal is to give you up-to-date, informative, and first-hand answers to your living, retiring, and working overseas questions. Simply register at Community.InternationalLiving.com using your email address or log in through your Facebook account to begin. Once registered, you can begin to engage with our editors and with other users.

Whatever you want to do in Costa Rica, you’ll find something to interest you on our International Living Classified Ads website. This is the best way to reach your fellow readers, like-minded individuals, and the thousands of people who visit Internationalliving.com every day. If you want to sell or buy a property overseas, offer an expat service or are seeking one, want to promote a blog, or post a “want” ad…check out http://classifieds.internationalliving.com. And as a buyer of this Blueprint, you’ll get a special reduced rate when placing an ad. Just quote this promotional code, ILVPRO15, and you’ll get 15% off the regular price of an ad.

Escape to Costa Rica: Everything You Need to Know to Retire Better, Invest Well, and Enjoy the Good Life for Less contains more than 200 pages of maps, property listings, details on cost of living, health care, banking, taxes, and residence requirements...plus contacts to help

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you buy, rent, start a business, retire, and travel in this glorious country. If you’re seriously interested in Costa Rica, you’ll want to read this book to help prepare and guide you through the move. We think you’ll enjoy finding out more; our latest edition is a completely revamped, up-to-date manual with detailed info on changes in residence programs and tax regimes. For more details on Escape to Costa Rica: Everything You Need to Know to Retire Better, Invest Well, and Enjoy the Good Life for Less, please visit https://secure.internationalliving.com/120SCREML14/W120Q7A3.

Attorneys• Roger A. Petersen, Petersen & Philips, Apartado 634, Centro Colón,,

San José 1007; tel. +506 2288-6228; email: [email protected]; website: www.plawcr.com.

• Glenda Burke, Burke & Burke, P.O. Box 3-3015, San Rafael de Heredia; tel. +506 2267-6645; email: [email protected]; website: www.burkecr.com.

Embassies• American Embassy in Costa Rica, Calle 98 Via 104, Pavas, San

José; tel. +506 2519-2000; website: http://costarica.usembassy.gov.

• Costa Rican Embassy in the U.S., 2112 S Street NW, Washington, DC 20008; tel. (202) 480-2991; email: [email protected]; website: www.costarica-embassy.org.

• Canadian Embassy in Costa Rica, Oficentro Executive complex, Building 5, third floor, Sabana Sur, San José; (postal address) P.O. Box: 351-1007, Centro Colón, San José, Costa Rica; tel. +506 2242-4400; email: [email protected]; website: www.canadainternational.gc.ca/costa_rica.

• Costa Rican Embassy in Canada, 350 Sparks Street, Suite 701, Ottawa, Ontario K1R 7S8; tel. (613) 562-2855; website: www.costaricaembassy.com/.


Expat resources• Women’s Club of Costa Rica, email: [email protected];

website: www.wccr.org.

• Veterans of Foreign Wars, website: www.myvfw.org/latinamericacaribbean.

Real estate agents• For information on real estate developments in Costa Rica, contact

International Living’s preferred real estate advertiser: Pathfinder International, email: [email protected]; website: www.pathfinderinternational.net.

• American-European Real Estate Group, tel. +506 2289-5125 and +506 8834-4515; website: www.american-european.net. A network of nearly three dozen brokers and agents representing property throughout Costa Rica.


MAP OF COSTA RICA

Documents

COSTA RICA - Amazon S3Rica.pdf · Latin America and a variety of climates to suit all tastes, Costa Rica is the perfect retirement destination. Costa Rica, slightly smaller than West