Costs of Retiring in Costa Rica: How Much Do You Need to Retire here in 2025? 

My wife and I have lived in Costa Rica for around 20 years. The first eleven years were in San Jose, where we raised our children. Later, we found ourselves wanting to return in retirement because our hearts were still here. Now, we live in the town of Jaco on the Central Pacific coast.

It’s one of the best decisions we’ve made in our lives. It’s not just that we can maintain a good lifestyle and live on our retirement incomes easily—we also have other investment income available for activities and adventures.

While the cost of living in Costa Rica has been increasing over the years, in my opinion, you can still have a great life here, and it’s still affordable.

In this article, I will give you a good idea of the cost of retiring in Costa Rica. I’ll talk about the costs of housing, healthcare, groceries/dining, transportation, visa/immigration, lifestyle choices (rural vs. city vs. tourist areas), and unexpected expenses. You will also see how much I spend on each one.

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Is It Cheap to Retire in Costa Rica?

Many people mistakenly believe that prices are dirt-cheap in Costa Rica. Unfortunately, that just isn’t true. While many things are indeed less expensive than in the U.S. or Canada, some things are more expensive. Your choices regarding lifestyle and location will be major factors in determining your retirement costs in Costa Rica.

For a rough idea, a budget-conscious single person can live on $2,000–$2,500 per month. A like-minded couple can live on $2,500–$3,500 per month.

In our case, my wife and I spend $3,000–$3,500 per month combined on living expenses. This is for a basic, simple lifestyle with no frills such as extensive travel, frequent dining out, or buying many imported U.S. grocery items.

Are there individuals and couples who live on less? Yes, but their options are limited. More cash beyond these ranges will give you more options for entertainment, dining out, travel, and other activities that may contribute to the lifestyle you’re looking for.

It is also important to realize that every person or couple has their own lifestyle, priorities, and ideas of what makes for a good life. There is no “one size fits all” when it comes to determining the cost of retirement in any location, including Costa Rica.

My Personal Cost of Retiring in Costa Rica

As an example of the cost of living in Costa Rica for retirees, I’m sharing our monthly budget as a retired couple living in Costa Rica. This is based on our pensions and U.S. Social Security income.

Note: Housing costs will vary. Rent is usually higher than what we pay for our housing, so for many people, that will need to be adjusted. Other items will also vary. See notes below.

Category	Cost	Notes
Housing/Electricity/Water	$925	Expect higher rent
Gas/Car Repairs/Cleaning	$200	Not applicable if you don’t own a car
Car Insurance	$100	Not applicable if you don’t own a car
Car License	$50	Not applicable if you don’t own a car
Groceries and Dining Out	$600
Property Taxes	$75	Not applicable if you rent
Caja Payment (Public Health Program)	$125
Household (Supplies, Repairs, etc.)	$50
Domestic Help	$50	Intermittent cleaning
Clothing	$50
Dental (Private Dental Maintenance)	$50
Entertainment	$50
US Taxes	$200	Applicable to all U.S. citizens
Savings	$250	Varies by person/couple
Medicare	$250	Applicable if you keep Medicare
Generosity	$300	Varies by person/couple
Miscellaneous	$175	Will vary
Total	$3,500

Lifestyle Choices

Asking yourself some basic questions about how you prefer to live helps clarify some of your living costs.

• Do you plan to cook most of your meals, or do you plan to eat out most of the time? (We cook at home most of the time.)

• Do you want domestic help? (We have a domestic helper for cleaning twice a month. We pay about $7 per hour.)

• Are you planning to purchase a vehicle or use public transportation? (We have a car.)

• Are you planning to purchase property or rent? (We purchased a condo.)

• Do you want to live in a metro area?

• Do you want to live in a tourist area? (We live in a small tourist town with a population of 12,000.)

• Do you want to live in a rural area?

When shopping, are imported products from the U.S. important to you? (I admit we have certain U.S. products that we seek out, but we also purchase local products.)

Do you prefer a hot climate, or do you want a place that is cooler? (80–100°F or 60–80°F—this affects costs because air conditioning can be expensive.) (We live in a hot area.)

As we work through various categories of costs, we will touch on the core themes of these questions.

Housing

As is often said in the real estate world, “Location, Location, Location” holds true in Costa Rica. Real estate prices and rental costs are greatly influenced by whether you’re looking in the San Jose metro area, the Pacific Coast tourist areas, rural regions, mid-size cities, sparsely populated areas, or the Caribbean coast.

Rental Costs

We have two friends who rent 2-bedroom, 2-bath condos in a gated community in Jaco with a pool, yard care, etc., for $1,300 and $1,350 monthly.

Another friend just rented out her 2-bedroom, 2-bath house in a family-oriented, gated residential community in Jaco for $1,500 a month. There are many rentals on the market above these prices for those seeking luxury accommodations.

Here are some sample rental costs for selected communities:

These costs represent apartments, condos, and houses.

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Buying Property

When it comes to purchasing real estate, the same mantra about location applies. Development in Costa Rica is at an all-time high, and property prices have risen considerably in the last few years, especially after the 2020–2022 pandemic.

For example, a 2-bedroom, 2-bath, fully furnished, beachfront, ocean-view condo in a gated, secure complex in Jaco (a Pacific Coast beach community), within walking distance of all amenities, sold for $250,000 in 2018. Today, that same condo is on the market for $375,000–$425,000. This kind of increase is common in many parts of the country.

That said, it is still very possible to find affordable housing to purchase.

• Nice homes in many parts of the country sell for between $125,000 and $225,000.
• We know of a 3-bedroom, 2-bath mountain cabin on more than an acre of lush, scenic property that sold for $129,000 in 2020. That property could now hit the market at $175,000–$200,000.
• More spacious and luxurious homes are available at prices ranging from $250,000 to several million.
• Again, all price ranges are available.

Utilities

Be sure to ask about utilities when looking for a house.

• Our water bill at the condo is about $8 per month.
• Our electricity bill runs about $50–$75 per month, with only occasional air conditioning use. With air conditioning running every day during the daytime, our bill would be over $300.
• In comparison, the mountain cabin’s water bill is about $5 per month, and the electricity bill is about $7 with occasional use (4–10 days per month). Heating and furnaces are generally not needed in the Central Valley and non-coastal regions of the country.
• Internet costs about $40 per month, and cable TV is about $50.

Healthcare

This is one of the most common determining factors for retirees living in Costa Rica. There are both public and private healthcare systems available to retirees.

Public Healthcare

The public system, CAJA, is open to legal residents (not tourists). Once you become a legal resident (see Visa/Immigration below), a monthly charge is assessed for healthcare services. Whatever care is provided is then free at the time of service. This includes general doctor visits, prescriptions, lab work, emergency care, as well as specialist care such as orthodontia, dermatology, urology, prenatal and obstetric care, gynecology, etc. There are clinics and hospitals throughout the country.

Many retirees become legal residents and use this system, including me. My wife and I pay $120 per month (total for both). The cost is determined by the type of residency and the amount of retirement income declared when applying for a retirement visa.

Private Healthcare

Private healthcare generally costs 25-35% of what it does in the United States. I had carpal tunnel surgery at Hospital Metropolitana in 2023 for about $2,200—¼ the cost of the surgery in the United States.

Private care in Costa Rica is excellent, with hospitals aligned with top medical facilities in the United States. CIMA Hospital, Hospital Clínica Bíblica, and Hospital Metropolitana are three outstanding hospitals. All are in the greater San Jose area. In addition, many communities, especially those in tourist areas, have private clinics with doctors who speak English.

Medi-Smart

One program that many retirees subscribe to is Medi-Smart. It is a discount program for healthcare costs—not insurance. Any doctor or provider in the Medi-Smart network offers services at discounted rates to members (20-70% discounts).

For example, our dermatologist is in the Medi-Smart network. I pay $50 per doctor visit compared to her regular private practice cost of $100. The annual Medi-Smart cost for my wife and me combined is about $300. Savings can be considerable if you have regular appointments or ongoing conditions. You can learn more about this at www.medismart.net.

It is also possible to purchase private medical insurance from companies aligned with well-known insurers such as GeoBlue. These policies generally cost about $7,000 per person annually for people of retirement age.

Overall, medical care in Costa Rica is outstanding and less costly than in the United States. Regular private doctor visits range from $40 to $100, depending on the doctor or specialty. In addition, there is a public service perspective among caregivers that is appreciated by many. There seems to be an attitude that medical care is less of a business and more of a service.

Transportation

The cost of transportation depends on whether you have a car or not. In my case, it’s necessary for me to have one since I need to drive regularly, and my cabin is located in the mountains where it’s inconvenient to take public transportation.

On the other hand, if you mainly live in a city, you may not need a car. I’ll show you the costs for both options.

Private Cars

Cars are expensive in Costa Rica due to high import duties. As anywhere, car prices vary by size, type, and age. You should expect to spend between $11,000 and $30,000 for a used sedan or small SUV. Models 10 years or older may, of course, cost less.

Most retirees pay cash for cars; securing loans here as foreigners can be challenging.

In addition, there are three additional costs when you own a car:

1. Marchamo: An annual “marchamo,” which is your yearly permission to be on the road, along with required liability insurance. For my 2019 Toyota RAV4, I paid about $650 for my 2025 marchamo.
2. Car Insurance: Collision/accident insurance for my car runs about $1,250 per year. Insurance is available through the national insurance company (INS). (Just a word—we have had outstanding service from INS: easy, efficient, and thorough.)
3. Gas: Gasoline and diesel prices are standardized throughout the country and regulated by the government. In January 2025, gas prices were $1.35 per liter (approximately $5.40 per gallon). Diesel prices were $1.11 per liter (approximately $4.44 per gallon).
4. Repairs: Car repair labor costs about $15–$25 per hour, or some mechanics simply charge by the job. Parts can be expensive, especially if imported.

How much you spend on gas depends, of course, on the type of car you drive and how many kilometers or miles you drive.

Public Transportation

If you choose to forego purchasing a car and instead use public transportation, you will likely save a considerable amount of money. However, the level of convenience will depend on where you live, the availability of taxis, how often buses run, etc. Most taxi drivers accept only cash; a few in San Jose will accept credit cards. Taxi rates in January 2025 were as follows:

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• Base rate (the rate at which the meter starts) = $1.32
• Rate per kilometer = $1.37
• For example, a 5 km (3 mile) trip will cost you about $8.

Generally, short bus trips within the city or between small, nearby towns cost between $0.30 and $1.00. Buses usually only accept cash in Costa Rican currency. The fare is often posted in the front window of the bus.

For longer trips between cities or cross-country, prices generally range from $1 to $10. For example, I often take the bus from Jaco on the Pacific Coast to San Jose airport for about $6 one way. The trip takes about two hours.

Currently, the only other public transportation option is a limited commuter train system within the San Jose metro area, priced at $0.70 one way.

Uber also operates in Costa Rica, with rates usually a bit lower than taxi rates.

Grocery and Dining

Grocery items and meals tend to be more expensive in cities and high-tourist areas such as Guanacaste, Jaco, Arenal, Manuel Antonio, etc.

Prices are generally lower in rural areas, small towns, and local markets and eateries. In addition to shopping at grocery stores, my wife and I go to the local “feria” (farmers market) once a week. Prices are usually comparable to grocery stores, but we appreciate the additional freshness as well as the social and cultural experience.

The following price chart provides a general idea of prices in two specific areas of the country. Keep in mind that this is a very limited list of items and that prices will vary not only by region but also by store. I personally gathered these prices in January 2025 by visiting the mentioned stores.

Local sodas (typical Costa Rican restaurants) are where the average Costa Rican eats breakfast or lunch. Dishes like casado or arroz con pollo are available for $5–$8 per meal. (Casado is a plate that includes rice, beans, vegetables, salad, and a meat option. Vegetarian options are also offered. Arroz con pollo is a popular dish of rice and chicken with local spices and flavors.) We have our local Jaco favorite—Soda Rustico. You can’t go wrong for about $6–$7 per meal.

• Casual dining restaurants offer meals for $6–$15, with appetizers costing around $5–$9.

• Mid-range restaurants offer a mix of local and international cuisine, usually costing between $10–$30 per person.

• Fine dining restaurants offer gourmet meals for $40–$100+ per person.

• Drinks: Beer can cost around $3–$8, depending on whether it’s a craft or imported beer. A cocktail at a typical Costa Rican bar costs around $5–$9.

For groceries and dining out, we spend about $600 per month. We eat out quite often but mainly at local restaurants.

VISA/Immigration Costs

Many retirees choose to remain perpetual tourists. They enter the country for 180 days free of charge, which can be renewed by leaving the country and re-entering. This “perpetual tourist” lifestyle costs nothing except for the trips every 180 days. There are retirees who have been living this way for many years.

If you desire to become a legal resident rather than a tourist, there are three main options:

1. Retiree – You qualify for legal residency if you have an established monthly pension or Social Security income of at least $1,000.

2. Investor – You qualify for legal residency if you have invested $150,000 or more in Costa Rica. This can include property, business ventures, the Costa Rican stock market, etc.

3. Fixed Income – You qualify for legal residency if you have a guaranteed monthly income of $2,500.

There are three related costs when it comes to obtaining a visa:

• Legal Costs: The actual legal costs to the government for obtaining residency are pretty much the same for all categories—about $200–$300.
• Document Preparation: This does not include the costs for preparing documents, such as obtaining, translating, and apostilling them. This process is very cumbersome, even if you speak Spanish.
• Immigration Lawyer: Most retirees hire an immigration lawyer to help process the application and finalize everything, as they know the ins and outs of the process and how to handle things seamlessly. Lawyer fees for this service range from $2,000 to $4,000 per person, depending on the lawyer and the services they provide.

I highly recommend using a lawyer, especially if you do not speak Spanish. I can’t imagine going through the laborious process on my own as a newcomer to the country.

I was very happy to pay a lawyer to handle the details. You can read my guide on a retirement visa in Costa Rica to find out more.

Other Expenses

Many additional expenses will arise depending on your lifestyle and living circumstances.

For instance:

• Home Purchase: If you purchase a home, you will need to pay property taxes each year. The property tax rate in Costa Rica is 0.25% of the purchase price or the price registered at the national registry. If you pay $200,000 for a home, your annual taxes would be $500.
• Repairs: Household, appliance, and car repairs are unpredictable. In general, house calls by repairmen cost a minimum of $30. I recently had a repair done on my refrigerator ice maker as well as an adjustment of the refrigerator doors. The total cost for several hours of work was $75. These costs vary by location.

Urban Living vs. Rural Living

In general, prices are higher in San Jose, Cartago, and Alajuela, as well as in smaller tourist communities. On the flip side, you have more goods and services available in these larger areas. Tourist areas often have more imported goods due to the consumer demands of expat communities.

While living in rural communities tends to be a bit less expensive, you need to consider the fact that you may not be able to get everything you want or need in a rural area.

• Things such as quality furniture may be in short supply.
• You will not find as many imported grocery items.
• Clothing selection will be limited.
• Medical services may be limited to the public clinic, with the nearest hospital an hour or more away.

We are fortunate to live in a small tourist town that has many amenities other towns of similar size do not have. We still find that we must go to San Jose (1.5 hours by car) for some things, including visits to a private hospital. Some retirees live in smaller, even more remote towns, where it’s a fact of life that you need to drive 3-4 hours if you want specific items or services.

They have weighed their desired lifestyle against the availability of goods and services. For them, the trips are worth it to live where and how they want. For others, the convenience of availability is more important. You will know what works best for you. Each choice comes with its own savings and costs.

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Living Like a Tourist vs. Living Among Locals

Living in tourist areas presents unique challenges and benefits.

Larger expat communities are generally found in the capital and tourist areas. This not only brings more availability of goods but also social benefits for those who desire expat friends and activities. For example, in our town, there’s an English Christian church with 400-500 attendees that continually draws U.S., Canadian, and other expats to the community.

On the flip side, prices are higher in tourist areas, and some retirees feel that these areas become too “expat-oriented.” They prefer to live in more authentically Costa Rican communities. Some American retirees find that living in areas with a lot of expats makes it more difficult to integrate and connect with the local people and community.

Living in areas with fewer expats tends to help people learn Spanish since they are forced to function without many English-speaking people around. Many retirees also feel that they can appreciate and understand the culture better if they are more immersed in a Costa Rican community.

Planning for the Unexpected

It’s a fact of life that when you move to a new place, Costa Rica included, you will encounter the unexpected—especially when it comes to expenses. For example, a 13^th month of wages is paid each December to workers, known as “Aguinaldo.” Whatever their average monthly wages during the year, that is the amount paid to them by their employer.

If you have a gardener, a domestic worker, or a property guard, this “Aguinaldo” is expected. This took us by surprise, so we apologized for our ignorance and paid what was due.

You may also face unexpected travel to the U.S. or surprise medical expenses. While it’s impossible to predict every potential expense, you can prepare by budgeting for these unexpected costs. Be as generous with this amount as you can.

For a budget of $3,500 per month, I would allocate $300–$350 per month for unexpected expenses—and let it build, adding to it when possible. Once you have more experience living here, you can better gauge what amount works for you.

Now, on to You

There are currently more than 120,000 U.S. expats living in Costa Rica (as of 2025). Many of these are retirees. Good research and planning, as well as a willingness to embrace a new lifestyle, culture, and budget, will benefit Americans retiring in Costa Rica. Making sure your decision is based on financial facts rather than hearsay will help reduce surprises and allow you to get the most out of all the wonderful things Costa Rica has to offer.