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Thinking about moving to Costa Rica? Zach from StartAbroad shares his personal experience, including where to live, residency options, healthcare, cost of living, safety, culture shock, and what life is really like as an American expat.
I remember standing in the kitchen of our rental in Nuevo Arenal, about three months after we’d moved, holding a cup of coffee and watching the morning mist burn off Lake Arenal. Volcán Arenal was visible in the distance. A howler monkey was losing its mind somewhere in the trees. And I thought: how did we end up here?
The honest answer is: a little bit of planning, a lot of improvisation, and one small bean-shaped street dog who decided we belonged to her.
My name is Zach. My wife Anna and I co-founded StartAbroad, a relocation services company that helps Americans, Canadians, and Brits move to Costa Rica, Portugal, Spain, and Panama. But before we were helping other people move, we were figuring it out ourselves — overwhelmed, occasionally lost, and completely in love with this country.
Key Takeaways
- Costa Rica can be a great place for Americans who want a better quality of life, good healthcare, natural beauty, and a more relaxed lifestyle.
- Where you live matters a lot. Beach towns, the Central Valley, and smaller places like Nuevo Arenal all offer very different lifestyles.
- A scouting trip is highly recommended before moving, so you can compare each area and see what daily life really feels like.
- Americans have several residency options in Costa Rica, including the digital nomad visa, Rentista visa, Pensionado visa, and family-based residency.
- The residency process can take time, so it’s best to prepare important documents before you move.
- Costa Rica is not as cheap as it used to be, but healthcare, childcare, domestic help, and local food can still be much more affordable than in the US.
- You don’t need perfect Spanish to live in Costa Rica, but learning some will make daily life and integration much easier.
- Moving to Costa Rica takes patience, especially with paperwork, rentals, banking, culture shock, and daily adjustments, but for many expats, the lifestyle is worth it.
Why Americans Are Moving to Costa Rica in 2026
Costa Rica consistently ranks as one of the top destinations for American expats, and it’s not hard to understand why. The climate in the highlands is extraordinary — temperate, green, and almost perpetually spring-like. The country is genuinely stable, politically and economically. Healthcare is strong, the natural beauty is almost absurd, and although it’s not a cheap country, the quality of life you can find for the cost remains significantly better than in most American cities.
For us, we also needed to be on US timezones for our business. We also were planning on starting a family, and we wanted to be relatively close to home to make visiting family and family visiting us practical. At the same time, we were looking for a place we could afford in terms of owning a home and childcare, that still provided the safety and decent access to amenities we were hoping to find.
Best Places to Live in Costa Rica for American Expats
One of the most common questions we hear from people considering the move is: where should I actually live? The answer depends entirely on your priorities — climate, cost, community size, proximity to services — and the only way to really answer it is to go and look.
Before we committed, we took a five-week scouting trip and spent roughly a week in each region we were seriously considering. The idea was to “take off the vacation glasses” and get a real sense of what it might like to live in a place. We thought we’d end up near a beach. We were wrong.
Uvita and the Southern Pacific Zone
Uvita is genuinely stunning. The Whale’s Tail beach formation, the jungle pressing right up to the water, the laid-back pace — it’s my favorite beach in the country. But the heat was relentless, and it is just far from things. Maybe a 4.5-5 hour drive from the Central Valley. For a long-term base, it didn’t make the most sense for us.
Guanacaste and the Pacific Coast (Playa Hermosa, Tamarindo, Nosara)
The Guanacaste coast is popular with American expats for obvious reasons: beautiful beaches, strong expat infrastructure, reliable flights into Liberia International Airport. But it’s also the hottest part of the country, and the more developed beach towns don’t feel as local as we were hoping to find. The average cost of living in places like Tamarindo is more expensive than other parts of the country, and as new business owners, cost of living was something we were taking very seriously.
Sámara
Sámara charmed us in ways we didn’t expect. It’s smaller and quieter than Tamarindo, with a genuine community feel that the more developed beach towns have sacrificed for tourism revenue. If you want beach life in Costa Rica without the crowd, Sámara deserves serious consideration. But — again — the heat.
Atenas and the Central Valley
Atenas sits in the Central Valley at an elevation that produces what’s been called one of the best climates in the world — mid-70s most days, dry and breezy, surrounded by coffee farms and mountain views. It’s a 45-minute drive to San José, well-developed, and popular with American retirees for good reason. We seriously considered it. If proximity to the capital, reliable infrastructure, and a large established expat community are priorities, the Central Valley — including Atenas, Escazú, and Santa Ana — is hard to beat.
Nuevo Arenal: Where We Ended Up
Nuevo Arenal stopped us in our tracks, and it’s where we live today. It’s small, but the setting is extraordinary. Lake Arenal stretches for miles with Volcán Arenal rising in the background. The weather is cooler and wetter than the beach towns (bring a light jacket in the evenings), the community is tight-knit, and the pace of life felt like exactly what we’d come for. Rental prices are still reasonable compared to beach and Central Valley expat communities.
It’s not for everyone. If you want quick access to international airports, a large expat social scene, or a wide range of restaurants and services, Nuevo Arenal will feel remote. For us, that was the point.
If you’re doing your own scouting trip — and I strongly recommend you do — give each place at least five or six nights. If you’ll be working after the move, work during your trip. Run errands, cook from home. And then decide your nice to haves vs. need to haves.
Costa Rica Residency Options for Americans: What You Need to Know
Understanding your residency options is essential before you move to Costa Rica as an American. Here are the main pathways available in 2026:
Digital Nomad Visa: Costa Rica launched its digital nomad visa in 2021, allowing remote workers to live legally in the country for one year, renewable once for a second year (two years maximum). It does not lead to permanent residency; after that you leave or switch to Rentista, Pensionado, or Inversionista. You’ll need to demonstrate monthly income of at least US$3,000 from foreign sources (US$4,000 if you’re bringing dependents). This is the fastest and most accessible route for most working-age Americans.
Rentista Visa: For those with passive income — investments, rental income, pensions — the Rentista requires demonstrating at least US$2,500 per month in stable passive income. It leads to temporary residency and, eventually, permanent residency.
Pensionado Visa: Designed for retirees, this requires a minimum monthly pension income of US$1,000. Costa Rica’s Pensionado program is one of the most generous in the world, coming with a range of discounts on healthcare, entertainment, and more.
Temporary Residency via Child Birth: If you have a child born in Costa Rica, that child receives automatic Costa Rican citizenship — and you, as a parent, become eligible to apply for permanent residency through that birth. This is the route we took.
We initially spoke with immigration lawyers about standard temporary residency. When we mentioned we were planning to have a child, the conversation shifted entirely. Our lawyer explained the parentage pathway — more direct in some ways than income-based applications — and it was a natural fit given our plans. Our daughter was born in Costa Rica, holds dual citizenship, and opened a residency door for us that we hadn’t originally considered.
The Residency Timeline: What to Expect
Regardless of which route you take, the Costa Rica residency process requires patience. You’ll need authenticated and apostilled documents — birth certificates, background checks, proof of income or status, sometimes a certified income statement from a Costa Rican accountant. The timeline from application to approval typically runs between six months and over a year.
My most important advice: start gathering your documents before you move. The apostille process alone takes time, and starting from the US is far easier than scrambling after you’ve arrived. Keep in mind, though, that these documents expire, typically within six months of issuance.
It was partly this experience of watching people get ripped off by unreliable providers, navigating a complex process with no real guide, ultimately is what eventually led Anna and me to start StartAbroad. No one was doing this well for regular people moving abroad on their own (not with a company relocation package). We wanted to change that.
The Relocation Process: Opening Bank Accounts, Finding Rentals, and More
Getting your life operational in a new country is its own project, distinct from and in some ways harder than the visa process.
Opening a bank account in Costa Rica is one of the more frustrating early steps for new residents. Requirements vary by bank and can feel arbitrary — you’ll typically need your residency document or visa stamp, proof of income, and sometimes a certified income letter in Spanish, notarized by a Costa Rican accountant. Budget time and patience for multiple visits, and don’t be surprised if the requirements shift.
Finding a rental is very difficult in Costa Rica. The rental market is the wild west. There’s no such thing as an MLS system, so the market is very informal and there simply isn’t much medium to long-term inventory. This is especially true during high-season, which runs from about the end of October through Easter.
This is why most expats arrive on a short-term rental and line up something longer term once they are on the ground, working Facebook groups, local notice boards, and word of mouth. Trying to lock in a year-long lease from abroad usually means overpaying for an expat-priced listing.
Moving to Costa Rica with pets requires advance planning. You’ll need an official health certificate from a USDA-accredited veterinarian, issued within a specific window before travel, along with up-to-date vaccination records. Airlines layer their own requirements on top. Start the process at least six to eight weeks before your move date.
Finding schools for children depends heavily on your location. Bilingual private schools are widely available in the Central Valley and larger towns, with quality generally strong. Expect tuition in the range of US$8,000–US$15,000 per year for established international schools. In smaller communities, options narrow quickly.
Driving in Costa Rica: License Rules and Importing a Car
You can drive on your US license for the length of your authorized stay, up to 180 days, under Costa Rica’s 2024 reform to its traffic law. Once you have legal residency, or an application in process, you’re expected to convert it to a Costa Rican license through a process called homologación, handled by COSEVI’s Educación Vial division.
The good news is that no written or driving test is required for a standard license. Only the C2 public transport category requires a course. The process is in-person only, by appointment, and costs roughly ₡5,000 plus a small bank commission. Bring your passport, your residency document (or proof your application is filed), and your valid US license. The resulting Costa Rican license is valid for three years.
Bringing or Buying a Car
Importing a vehicle into Costa Rica is expensive. Depending on the car’s age, import duties alone can run roughly 52% of its assessed value for cars under three years old, climbing toward 79% for cars over six years old, on top of a 13% VAT and a separate selective consumption tax. In August 2026, Costa Rica’s Ministry of Hacienda tightened enforcement further under a new executive decree. Importers now pay tax on whichever figure is higher, the invoice value or the Ministry’s own reference value in its Autovalor database, and non-dealers are limited to importing one vehicle per year.
Because of this, most expats find it cheaper and far less of a headache to buy a used car locally after they’ve arrived rather than ship one down. If you do want to import, check the Autovalor tool on Hacienda’s website before you commit to a shipping quote. The tax bill is often bigger than the sticker price of the car.
Having a Baby in Costa Rica: Our Experience
Our daughter was born at a private hospital in Costa Rica, and we had a wonderful experience.
We had excellent doctors — specialists who communicated clearly, took our questions seriously, and brought genuine care to every appointment. The private hospital was modern and well-equipped. We also worked with doulas who were extraordinary — they guided Anna through the entire process in a way that made her feel supported and prepared at every step.
What we didn’t fully anticipate was the paperwork that followed. A child born in Costa Rica to American parents acquires Costa Rican citizenship automatically — which is a genuine gift — but the process of registering that birth with the US Embassy, obtaining a US passport, and navigating dual-citizenship documentation – all with a baby! – takes time and careful attention. Build that into your planning.
The cost of private hospital childbirth in Costa Rica is a fraction of what the same experience would cost in the United States. That wasn’t our primary motivator, but it was a nice bonus.
Healthcare in Costa Rica: Private vs. Public (Caja)
Costa Rica’s healthcare system operates on two tracks. The public system — known as the Caja, or CCSS — is available to legal residents and provides comprehensive care at low or no cost. The quality of the Caja varies significantly by location and specialty; for routine care, it’s adequate; for specialists and procedures, wait times can be long.
The private system is where most American expats spend their healthcare dollars. Private hospitals like CIMA in San José and Clínica Bíblica are modern, well-staffed, and genuinely excellent. Private health insurance for expats in Costa Rica is affordable by American standards — comprehensive plans often run US$200–US$400 per month for a healthy adult.
I needed knee surgery about a year into our time here. I’d been putting it off in the US, partly because of cost and partly because of the hassle. I found an orthopedic specialist highly recommended within the expat community, had a smooth consultation in English, and scheduled the procedure within weeks. The surgery went well, the recovery support was attentive, and the total cost — at a private facility — was a fraction of what I would have paid in the States.
Costa Rica’s private healthcare is not a compromise. It’s the real thing.
Mandatory Caja Enrollment: What Residents Actually Pay
A lot of new residents are surprised to learn this. Enrolling in the Caja (CCSS) is not optional once you have legal residency, even if you plan to rely entirely on private insurance. Immigration authorities require proof of active CCSS enrollment and current payments at every DIMEX (residency card) renewal, so letting it lapse can complicate your ability to renew.
Your monthly contribution isn’t a flat fee. A CCSS inspector calculates it based on the income you declared during your residency application, converted to colones at the official exchange rate. Between the health insurance portion (SEM) and the pension portion (IVM), most expats end up paying somewhere in the range of 7% to 11% of their declared monthly income, though the exact bracket depends on where your income falls on CCSS’s contribution scale.
It’s not money down the drain, either. Caja enrollment gives you access to the public healthcare system as a backstop even if you never plan to use it beyond a routine visit, and staying current on it is a legal requirement for keeping your residency in good standing, not a nice-to-have.
Cost of Living in Costa Rica vs. the United States
Costa Rica is not as cheap as it was a decade ago. But compared to most American cities, it remains significantly more affordable — particularly when you factor in healthcare, domestic help, and fresh food.
A comfortable monthly budget for a couple living in a mid-sized Costa Rican town looks something like this:
- Rent (2-bedroom, furnished): US$1,000–US$2,000 depending on location
- Groceries and local market shopping: US$500-US$800
- Utilities (electric, water, internet): US$150–US$250
- Dining out (local restaurants): US$200–US$400
- Private health insurance: US$400–US$800 for a couple
- Transportation: US$200–US$400
Where the cost of living is a real improvement is with help. Our full time nanny is about a fifth as expensive as my brother’s daycare in Colorado on a monthly basis. We also have help cleaning the home twice a week for about US$100 per month.
Where costs have risen: imported goods, quality rentals in desirable beach and expat areas, and any service specifically marketed to the expat market. Go local wherever you can — it’s better for your budget and better for your integration.
US Taxes for Americans Living in Costa Rica
Moving to Costa Rica doesn’t end your relationship with the IRS. The US taxes citizens on worldwide income no matter where they live, so you still file a US tax return every year, even if every colón you earn stays in Costa Rica.
The main tool that keeps most expats from paying US tax twice is the Foreign Earned Income Exclusion (FEIE). For the 2025 tax year, the exclusion covers up to US$130,000 of foreign earned income; it rises to US$132,900 for 2026 income. To qualify, you need to pass either the Physical Presence Test (330 full days outside the US in any 12-month period) or the Bona Fide Residence Test (an uninterrupted full tax year of established residence abroad). The FEIE only shelters earned income, meaning wages, salary, and self-employment income; it does not cover passive income like dividends, rental income, or pension payments.
Separately, if the combined balance across your Costa Rican bank accounts tops US$10,000 at any point during the year, you’re required to file an FBAR (FinCEN Form 114). This isn’t part of your tax return; it’s filed directly with the Treasury’s Financial Crimes Enforcement Network. It’s due April 15, with an automatic extension to October 15 for people living abroad (no request needed). Penalties for skipping it are steep, so it’s not a form to overlook.
A few things worth knowing before you move:
- Costa Rica generally doesn’t tax foreign-sourced income for residents, which is why most expats’ Costa Rican tax bill is minimal even though their US filing obligation continues in full.
- Holding Costa Rican residency doesn’t exempt you from US filing; the two systems are separate.
- Digital nomad visa holders are exempt from Costa Rican income tax on income earned from foreign sources, but that exemption applies to Costa Rica, not to the IRS.
- If your situation involves a business, rental property, or foreign retirement account, talk to an accountant who specifically handles US expat taxes before you file. Rules around foreign corporations and foreign trusts carry harsh penalties for getting the paperwork wrong.
For a fuller breakdown of what applies to your situation, see our guide to Costa Rica taxes for US expats.
Safety in Costa Rica: The Day-to-Day Reality
Costa Rica is not the dangerous country that some American news coverage implies. Day-to-day life — going to the market, hiking, driving, socializing — feels safe in a way recognizable to anyone from a mid-sized American city.
There is petty theft. Don’t leave valuables visible in a parked car. Be more cautious in central San José at night than you would be in a small town. Use common sense.
The more rural your location, the safer your day-to-day experience tends to be. In Nuevo Arenal, safety is simply not something we think about the way we did in certain US cities. That’s not naivety — it reflects the reality of living in a small, tight-knit community where neighbors know each other.
For context: Costa Rica’s homicide rate is higher than the US average nationally, but violent crime involving American expats in residential communities is rare. It’s often a result of criminals fighting other criminals.
Settling Into Life in Costa Rica: Culture, Language, and the Emotional Reality
Here is the part nobody puts in the brochure.
The first six months of living in a new country are an emotional rollercoaster. Not the exciting, adventure-movie kind — the real kind. Days where everything feels like an obstacle, where the simplest errand takes two hours and three wrong turns, where you miss your friends and routines in a way that catches you off guard.
This is normal. It has a name — adjustment culture shock — and it follows a predictable arc: initial excitement, frustration, gradual adaptation, and eventually something that starts to feel like belonging. The key is knowing it’s coming so you don’t mistake it for a mistake.
How Much Spanish Do You Need to Live in Costa Rica?
You don’t need much Spanish at all. In fact, many of our clients speak very little.
In tourist areas and major cities, English gets you far. In smaller communities like Nuevo Arenal, the willingness to try Spanish matters more than technical proficiency. Costa Ricans appreciate the effort enormously, and even a limited vocabulary builds genuine relationships in a way that English-only communication cannot.
Anna and I both came in with modest Spanish and have improved significantly through daily life — at the market, with neighbors, navigating bureaucracy. If you want to accelerate, Italki is excellent for affordable online tutors, and Costa Rica has immersion schools throughout the country for structured learning. If you later pursue Costa Rican citizenship, the naturalization process includes a Spanish and civics exam, so starting to learn early is worth it.
Tico Culture and What Takes Adjustment
“Tico time” is real. Appointments, deliveries, and social commitments operate on a looser schedule than most North Americans are used to. This stops being frustrating once you stop fighting it.
Bureaucracy moves slowly. What should take one visit takes three. What should require two documents requires five. Patience is the primary skill required for expat life in Costa Rica — more than Spanish, more than any logistical preparation.
The expat community is warm and generous, and occasionally creates a bubble that insulates people from actual Costa Rican culture. Seek out Tico friendships actively. Your life here will be better for it.
Pura Vida is more than a phrase. It’s a genuine orientation toward life — unhurried, appreciative, present. It takes getting used to if you’ve spent your career in a culture that treats productivity as a moral virtue. And then, slowly, it starts to make more sense than the alternative.
Things You Might Not Love About Living in Costa Rica
In the interest of honesty:
The roads are an adjustment. Rural roads in Costa Rica range from acceptable to genuinely rough, and some routes become difficult or impassable in rainy season. A 4WD vehicle is a practical necessity in many areas, not a luxury.
Import costs are high. Anything brought into Costa Rica is taxed, sometimes heavily. Electronics, certain appliances, and American food brands cost more here than at home.
Internet reliability varies. In San José and major towns, connectivity is generally good. In rural areas like Nuevo Arenal, it’s improved but can be inconsistent. This matters if you’re working remotely.
The rainy season (May through November) is real. Nuevo Arenal is particularly wet — it’s one of the rainiest inhabited areas in Costa Rica. We love it. It’s also genuinely not for everyone.
Frita: The Part We Didn’t Plan
I can’t close this without talking about Frita.
About four months after we arrived, we were at a local restaurant when a small, bean-shaped dog appeared at our feet. She was clearly a street dog — a little rough around the edges, with enormous, confident energy for something so small. She let Anna pick her up. She ate everything we offered. And when we left, she followed us home.
We named her Frijolita — Little Bean — and then shortened it to Frita. She became the unexpected anchor of our Costa Rican life, the creature who made our house feel like a home in a way that square footage and furniture never could. After Frita moved in, she introduced us to her best street dog friend. Scrappy soon became our second dog.
If you’re moving to Costa Rica, be open to the thing you didn’t plan for. It’s usually the best part.
Would We Do It Again?
Without hesitation.
The move was hard. The adjustment was real. There were days in year one when we questioned everything. And we would do it again without changing a thing, because what we built here — the life, the community, the business that grew out of our own experience trying to figure this out without a guide — is better than what we left.
If you’re on the fence: the fence is the most uncomfortable place to stand. The logistics are manageable. The paperwork is survivable. The adjustment is temporary. What waits on the other side is a life that is genuinely, meaningfully different — and for the overwhelming majority of people I’ve watched make this move, completely worth it.
And if you have questions about your situation, please reach out to us!
Pura vida.
Frequently Asked Questions: Living in Costa Rica as an American
Can Americans live permanently in Costa Rica?
Yes. Americans can obtain temporary residency through several pathways — income-based visas, the digital nomad visa, or family-based routes — and can eventually apply for permanent residency after three years of temporary residency.
What is the cost of living in Costa Rica compared to the US?
Generally, 30–50% lower than most major US cities, depending heavily on location and lifestyle. Beach towns and Central Valley expat communities are more expensive than smaller inland towns.
Is Costa Rica safe for American expats?
Costa Rica is the most peaceful country in Central America. Violent crime against expats is rare. Petty theft and property crime are the primary concerns and are manageable with standard precautions.
Do I need to speak Spanish to live in Costa Rica?
Basic Spanish is strongly recommended. English is widely spoken in tourist areas and among professionals, but meaningful community integration requires at least conversational Spanish.
What is the best visa for Americans moving to Costa Rica?
It depends on your situation. The digital nomad visa is the most accessible for remote workers. The Pensionado visa suits retirees. Income-based temporary residency works for those with passive income. Family-based routes exist for those with Costa Rican family members or children born in the country.
What are the best places to live in Costa Rica for American expats?
The most popular areas include the Central Valley (Atenas, Escazú, Santa Ana), Guanacaste coast (Tamarindo, Nosara), the Southern Pacific Zone (Uvita, Ojochal), and lake/volcano regions like Nuevo Arenal. The best fit depends entirely on your lifestyle preferences.
Do Americans still have to pay US taxes while living in Costa Rica?
Yes. The US taxes citizens on worldwide income regardless of where they live. Most expats avoid double taxation using the Foreign Earned Income Exclusion, which shelters up to US$130,000 of foreign earned income for the 2025 tax year (US$132,900 for 2026), but a US return is still required every year.
What is the FBAR, and do I need to file one?
If the combined balance of your Costa Rican bank accounts exceeds US$10,000 at any point during the year, you must file an FBAR (FinCEN Form 114) with the US Treasury. It’s separate from your tax return, due April 15, with an automatic extension to October 15 for people living abroad.
Can I drive in Costa Rica on my US driver’s license?
Yes, for up to 180 days as a visitor. Once you have legal residency, you’re expected to convert your license to a Costa Rican one through the homologación process at COSEVI. No driving test is required for a standard license.
Is joining the Caja (CCSS) mandatory for residents?
Yes. Legal residents must enroll and keep contributions current, even if they carry private health insurance, because proof of active CCSS status is required at every residency card renewal. Contributions are calculated on your declared income and typically run 7% to 11% of it.
How much does it cost to import a car into Costa Rica?
Import duties alone typically run 52% to 79% of the vehicle’s assessed value depending on its age, plus 13% VAT and a selective consumption tax. As of an August 2026 decree, Costa Rica also taxes on whichever is higher, the invoice value or the government’s own reference value, and limits non-dealers to one imported vehicle per year. Most expats find it cheaper to buy a used car locally instead.
Can I still collect Social Security while living in Costa Rica?
Yes. Costa Rica is not on the Social Security Administration’s list of restricted countries, so US retirement, survivor, or disability benefits can generally continue to be paid while you live there.
Sources Cited
- IRS: Foreign Earned Income Exclusion
- FinCEN: Report of Foreign Bank and Financial Accounts (FBAR)
- Social Security Administration: Payments Outside the United States, Country List
- Ministerio de Hacienda de Costa Rica: Documentos de Interés (vehicle import valuation rules)
- MOPT / Educación Vial (COSEVI): Foreign license homologation notice
- Dirección General de Migración y Extranjería de Costa Rica
