During our trip to Costa Rica<\/a> we met many travelers or retirees who have decided to move to the Caribbean coast on a permanent basis. In this article we will look at what it takes to live in Costa Rica<\/strong> and what the main factors are before making a decision that would change your life in any case. Going to live in a foreign country is not difficult: you just have to decide it.<\/strong> A trip to Costa Rica!<\/strong> You got it right, if you have never been there, it is appropriate to plan a reconnaissance trip of at least three weeks<\/strong> and try to experience Costa Rican life. Travel and note. These are things we will look at specifically in later chapters, but you need to analyze precisely how many schools<\/strong> there are (if you have children), hospitals<\/strong>, medical centers<\/strong>, police headquarters<\/strong>, supermarkets<\/strong>, and even the tides<\/strong> if your intent is to get a beach house. It would be very easy to go to Google and look up what the real estate market situation is like to move to Costa Rica<\/strong>. The supply varies from area to area, but we will take Puerto Viejo<\/strong> (Caribbean Coast) as an example, because it has various types of housing: from villas to building plots.<\/p>\n A building plot of land of about 1000sqm<\/strong> can cost about $45,000, to which, of course, construction costs<\/strong>, utility<\/strong> connections and many other costs will have to be added. An already built house of 170 square meters<\/strong>, on a plot of 700<\/strong>, can cost around $350,000.<\/strong> These costs clearly come down if you opt for a less touristy area. Compared to buying and selling, rents in Costa Rica<\/strong> are higher and more or less in line with the European market, although slightly lower. Defining how much a business costs to live in Costa Rica<\/strong> is not a simple matter. Cost of business registration<\/strong> – Registering a business with the National Registry can cost between $100<\/strong> and $500<\/strong>, depending on the complexity of the business structure and legal services used.<\/p>\n Notary Cost<\/strong>: Drafting legal documents such as corporate bylaws<\/strong> requires the services of a notary public. Licenses vary depending on the type of business and the municipality. Rent<\/strong>: The rent for a commercial space will depend heavily on the location and size of the space. Purchase<\/strong>: Buying real estate can require a substantial investment, depending on the location and size of the property.<\/p>\n Opening a business bank account often requires an initial deposit that varies depending on the bank. These may include the purchase of equipment<\/strong>,furnishing<\/strong> the business premises, and initial expenses for marketing<\/strong> and promotion<\/strong>.<\/p>\n They include employee salaries<\/strong>, utilities such as electricity<\/strong> and water<\/strong>, internet<\/strong>, maintenance<\/strong> and other recurring expenses.<\/p>\n You have to consider the cost of corporate taxation<\/strong> and employee social security contributions, which in Costa Rica are significant and include several expense items.<\/p>\n The best advice we can give you, however, when you go to Costa Rica, is to reach out to a local entity that can guide you in opening a business. Make contact with locals<\/strong>.<\/p>\n You cannot think of going to live in Costa Rica<\/strong> without considering aspects such as cost of living,education<\/strong> (if you are moving with children) andhealth care<\/strong>. As a tourist, the cost of living is certainly not the lowest, but by going to live in Costa Rica you can certainly find places where a tomato does not cost nearly two dollars. You need to make a distinction right away, because the cost of living in Costa Rica will undoubtedly vary based on your needs and, more importantly, the area will affect you greatly. If we take an average<\/strong> Costa Rican salary<\/strong> (about 900 euros) as an example, we can imagine right away that we are not talking about a Third World state, far from it. As you can see, the expenses of living in Costa Rica<\/strong> do not differ much from those in the United States or Western Europe. Personal income taxes in Costa Rica are levied on local income, regardless of nationality or state of residence. For persons domiciled in Costa Rica, any income earned within Costa Rican borders is considered Costa Rican source income and is subject to taxation. Non-residents are subject only to relevant withholding taxes (WHT), depending on the nature of local income.<\/p>\n Personal Income Tax Rates.<\/strong><\/p>\n Self-employed<\/strong> Workers The tax rates for self-employed workers for the 2019 tax year, based on annual taxable income, are as follows:<\/p>\n Annual income brackets<\/strong> 0 to $7984.84: Employees<\/strong> The tax rates for employees, based on monthly salary, are as follows. Monthly income brackets<\/strong><\/p>\n 0 to $1797.12: Keep in mind that income tax brackets for the self-employed and employees are updated annually.<\/p>\n Interest: No province or municipality imposes income taxes on individuals within their jurisdiction.<\/p>\n The data oneducation in Costa Rica<\/strong> speak for themselves; in fact, the Central American state enjoys a literacy rate of close to 93 percent<\/strong>, with all due consideration given to the facilities per se. Mind you, there is a school in every corner of the country<\/strong>, but what most implanted citizens have noticed is the poor preparation of teachers. Although public education is free<\/strong>, it still carries some cost as in Italy, however, there is also a wide choice of private schools in Costa Rica<\/strong>. Health is one of the focal points the government has been fighting for since 1948<\/strong>. Costa Rica<\/strong> ‘s health care system<\/strong> is thus directed to the community in all respects, and during the Covid period, the activities of the Ataps<\/strong> were of paramount importance. To benefit from the national health care system<\/strong> when you go to live in Costa Rica, you must necessarily be a Costa Rican resident, except in emergencies where anyone can go to local emergency rooms.<\/p>\n One of the most complicated (and also most tedious) aspects of a permanent move abroad is definitely the rather lengthy process of obtaining residency.
\nThis is because the opportunities are many and because, contrary to what you might think, living in Costa Rica is quite safe<\/strong>.<\/p>\n
\nIt is important, for example, to take into consideration quite different factors than when visiting Costa Rica as a tourist<\/strong>, as aspects such aseducation<\/strong>, health care<\/strong>, taxes<\/strong> and much more come into play.
\nRead on if that is exactly what you want to know.<\/p>\nLiving in Costa Rica: premises<\/h2>\n
\nWhat remains difficult, however, is to make the right assessments from miles away, because without experiencing the territory, you run the risk of running into quite a few problems.
\nSo what is the first piece of advice we feel like giving you?<\/strong><\/p>\n
\nThis is the first step to take, because it is unthinkable to believe that you will buy a house in Costa Rica<\/strong> if you have not first evaluated hundreds of aspects.
\nYou could also opt for a 14-day itinerary<\/a> if you do not have three weeks to spare, perhaps for business reasons.<\/p>\n
\nJot down anything<\/strong> that might catch your eye, not just house prices or food expenses.
\nDouble-check business hours<\/strong>, local customs<\/strong>, and the displacement of necessary services.
\nFor example, it is not desirable to live in Costa Rica<\/strong> without having a vehicle, although you may well decide to reside in the same village all the time with a very convenient bicycle<\/strong>.
\nHowever, Costa Rica’s population centers are far apart and sometimes have no small amount of sloping and uneven roads.<\/p>\n
\nYou’ll also need to figure out what might bother the locals and what might not, what kind of wildlife<\/strong> you might encounter, and what dangers you might face.
\nMosquitoes in Costa Rica are not the same as you might encounter in Italy or France-there is a lot to know before taking such an important step.
\nNow, however, let’s go into detail.<\/p>\nLiving in Costa Rica: how much does the housing market cost<\/h2>\n
![\"The](\"https:\/\/www.triparoundcostarica.com\/wp-content\/uploads\/2024\/07\/Casa-Costa-Rica.webp\")
\nOn the other hand, if you’re here it’s really because of Google, probably.
\nHowever, the Costa Rican market can vary from one moment to the next as far as brick is concerned, and we, fortunately, can give you an idea of what we saw during our stay.
\nDon’t think it hasn’t popped into our heads to buy a house in Costa Rica<\/strong>.<\/p>\n
\nIn any case, this option has been chosen by many foreigners who have decided to open businesses such as rentals on Airbnb<\/strong>, Booking<\/strong> and whatnot.<\/p>\n
\nCompared to the costs of the European real estate market undoubtedly we are facing affordable solutions, considering that we are talking about tourist areas and practically beachfront<\/strong>.<\/p>\n
\nIn any case, we can estimate that the cost per square meter for a building plot is between $50<\/strong> and $100<\/strong> square meters .<\/strong>
\nAs far as existing buildings are concerned, if we assume a purchase in Playa Negra<\/strong> we can estimate around $1,000<\/strong> per square meter, taking into consideration that almost all houses have ample surrounding land.<\/p>\n
\nAgain, the area will make a difference, but in general a house with 2 bedrooms<\/strong>, kitchen<\/strong> and 2 bathrooms<\/strong> can cost about $1200<\/strong> per month, including the garden.<\/p>\nLiving in Costa Rica: how much does it cost to open a business<\/h2>\n
\nIn fact, many cost items are quite variable, but what we can do is to point you to whom you can turn for the possible opening of a business, as well as the known fixed costs.<\/p>\nCompany registration and incorporation costs<\/h3>\n
\nThese costs can vary significantly, but generally hover around $400-$1000.<\/strong><\/p>\nBusiness licenses<\/h3>\n
\nSome specific permits<\/strong> may be required, the costs of which can range from a few hundred<\/strong> to thousands of<\/strong> dollars.<\/p>\nCost of venue<\/h3>\n
\nRents in tourist areas or major urban centers can be quite high.
\nLet’s say a 70-square-meter<\/strong> store can cost $1,000 per month<\/strong>.<\/p>\nBanking costs<\/h3>\n
\nSome administrative costs may also be associated with managing the account.<\/p>\nStart-up costs<\/h3>\n
Monthly operating costs<\/h3>\n
Taxes and social security contributions<\/h3>\n
Living in Costa Rica: cost of living, taxes, services, education and health care<\/h2>\n
![\"Cost](\"https:\/\/www.triparoundcostarica.com\/wp-content\/uploads\/2024\/07\/Mercato-di-San-Jose.webp\")
<\/p>\n
\nWell, these last two items in the last century have been particularly boosted by the government, precisely because of theabolition of the esericito<\/strong>, whose funds were diverted to health care and education.<\/p>\n
\nIn the less inflated areas, it cannot be said that food expenses are high, it is true that if your intention is to relocate you will presumably opt for a tourist location<\/strong>, which is at least beautiful and, consequently, more expensive.
\nLet’s go into more detail.<\/p>\nCost of living in Costa Rica<\/h3>\n
\nAs we mentioned in our guide to Costa Rica<\/a>, the cost of food is at least in line with European prices, if not higher.
\nConsidering that this is just one of the cost items to keep in mind when moving to this fantastic country, an accurate calculation is a must: avoid jumping through hoops.<\/p>\n
\nThe costs of a family to be taken into account are at least to be attributed to these items:<\/p>\n\n
\nA kilo of bread<\/strong> in Costa Rica costs about $5<\/strong>, while 1L of<\/strong> milk stands at about $1.90<\/strong> and 6 eggs<\/strong> are priced at about $1.60.<\/strong>
\nThe amounts then are not that far from what you can find in Italy<\/strong>, or Europe<\/strong>, so consider a food budget roughly similar to what you employ in Italy or other similar countries.
\nIf, on the other hand, we consider restaurant meals or take-out, for an inexpensive meal we do not go below $10<\/strong> per person: the argument does not change if we refer to fast food such as McDonalds<\/strong> and the like.<\/li>\n
\nAgain clearly, the further out of the area you are, the less expensive the monthly rent will be: prices are slightly lower than in Europe, but much will depend on your needs.<\/li>\n
\nOther expenses such as electricity<\/strong> and water<\/strong> supply<\/strong>, on the other hand, are lower and, counting for a 90 sq. m<\/strong> .<\/strong> house, should not exceed $80 monthly<\/strong> (including garbage and gas).
\nMobile phone<\/strong> prices are around $20 to $25 per month<\/strong> with unlimited data plans and calls.<\/li>\n
\nPasses for public buses are higher than in Rome<\/strong> for example, costing $45<\/strong> (as opposed to $35<\/strong> in Rome), however cabs are much cheaper and gasoline<\/strong> is significantly cheaper: 1L<\/strong> of super comes in at $1.47.<\/strong>
\nDesigner clothing does not differ from our prices, then of course in the outlets you can find anything at bargain prices, while for entertainment we go from $7<\/strong> for a movie<\/strong> ticket to 56 euros<\/strong> for a gym membership.<\/li>\n<\/ul>\n
\nIf you are moving with family, it will be appropriate for you to consider other expenses as well, such as the purchase of a car or the cost of raising any children.<\/p>\nTaxation in Costa Rica<\/h3>\n
\nThis, too, is a must if you really intend to go and live in Costa Rica; it doesn’t even need to be stressed.<\/p>\n
\nCosta Rican origin income includes any income derived from goods used, goods located or services rendered in Costa Rican territory.<\/p>\n
\n0%<\/strong> From $7984.84 to $11924.75:
\n10%<\/strong> From $11924.75 to $19888.58:
\n15%<\/strong> From $19888.58 to $39861.20:
\n20%<\/strong> Over $39861.20: 25%<\/strong><\/p>\n
\nIndividuals who are both self-employed and employees are not eligible for the full deduction of CRC 3,723,000.
\nInstead, they will only be eligible for the apportionment of this amount and the amounts resulting from the exempt brackets of income derived from employee services.<\/p>\n
\n0%<\/strong> From $1797.12 to $2637.42:
\n10%<\/strong> From $2637.42 to $4627.43:
\n15%<\/strong> From $4627.43 to $9252.95:
\n20%<\/strong> Over $9252.95: 25%<\/strong><\/p>\n
\n15%<\/strong> Dividends
\n15%<\/strong> Directors’ fees and the like:
\n15%<\/strong> Salaries to non-residents:
\n10%<\/strong> Professional fees:
\n25%<\/strong> Other: from
\n5.5%<\/strong> to 30%<\/strong><\/p>\nEducation in Costa Rica<\/h3>\n
![\"Education](\"https:\/\/www.triparoundcostarica.com\/wp-content\/uploads\/2024\/07\/Educazione-in-Costa-Rica-.webp\")
<\/p>\n
\nOn the one hand,compulsory education<\/strong> (since 1896) has made great strides in literacy, but on the other hand the facilities for it do not enjoy a great reputation.<\/p>\n
\nHowever, at the recreational level, preschools provide numerous occupations, although there is a scarcity of after-school employment as we are used to in Europe.
\nLet us go into a little more detail and briefly look at how the school system<\/strong> works in Costa Rica, which is divided into four cycles:<\/p>\n\n
\nBasically, basic notions are taught and music<\/strong> and art subjects<\/strong> are included from an early age.<\/li>\n
\nIt is basically the cycle that precedes what is commonly called high school in Italy.<\/li>\n
\nDuring the latter cycle, pupils can choose whether to head for the academic<\/strong>, technical<\/strong> or artistic<\/strong> division.
\nVocational<\/strong> or hotel<\/strong> technical schools<\/strong> are also included in this stage.<\/li>\n
\nGenerally, private institutions charge an annual fee of between $400<\/strong> .00<\/strong> and $500.00<\/strong>, in addition to a monthly tuition of the same amount.
\nPrivate schools guarantee (at least usually) interdisciplinary<\/strong> and extracurricular<\/strong> activities.<\/p>\nHealth care in Costa Rica<\/h3>\n
\nHealth care in Costa Rica<\/strong> is free, and to date life expectancy for citizens stands at 81 years<\/strong>, much to the credit of the 2006 Salas reform.<\/strong>
\nThe measure calls for the employment of figures called Atap<\/strong>, who are effectively equivalent to itinerant doctors (although they are technical assistants), able to move quickly throughout the country.
\nIn addition to more-than-decent public hospitals<\/strong> then, citizens can enjoy home medical care<\/strong> based on health conditions, and even those in good health are entitled to at least one<\/strong> home visit.<\/strong><\/p>\n
\nThere is no shortage of private facilities<\/strong>, however, which, as obvious, have rather steep costs.
\nDuring our trip to Costa Rica<\/strong> we pleasantly noticed medical centers<\/strong> and clinics<\/strong> even in the most remote areas, so in that respect you can find guarantees.<\/p>\nHow to obtain residency in Costa Rica<\/h2>\n
\nIn this section we will try to briefly explain how to obtain residency in Costa Rica<\/a><\/strong>, whether you are a retiree or a so-called digital nomad.<\/p>\n