What is the cost of living in Costa Rica? A comprehensive guide

Summary

How much does it cost to live in Costa Rica?

According to International Living, a publishing company helping people find the best places to live, travel, and retire, a single person can live on between $1,600 and $2,000 a month.

Western Union, the financial services company, puts this even lower, stating that the average monthly cost of living in Costa Rica is $1,073.

Which number you are closer to will depend on your lifestyle. However, it’s clear that Costa Rica offers a considerably lower cost of living than the US, where it can be in the thousands. Most statistics put the cost of living in Costa Rica around 30% lower than in the US.

Costa Rica is becoming increasingly popular with those seeking a new lifestyle and lower living costs. It’s not hard to see why.

Living there gives you the freedom to spend almost as little or as much as you want because although things are generally less expensive, certain North American luxuries can quickly add up.

Costa Rica vs US: the cost of living

Costa Rica is a very attractive and very affordable place to live, especially when compared to the US.

Let’s look at a breakdown of some key expenses to see how the two countries stack up:

How much does it cost to retire in Costa Rica?

According to International Living magazine, a single person can comfortably spend $1,600 to $2,000 a month, with couples spending between $2,500 and $3,000. This amount includes general expenses such as housing, utilities, transportation, food, and medical care.

In total, the cost of living for retirees is significantly lower in Costa Rica than in the US, making it a popular retirement destination.

You can learn more about retiring in Costa Rica in our guide here.

How much does housing cost in Costa Rica?

Rentals for an apartment or modest house are between $300 and $700 per month, depending on your location. For this budget, you would expect good furnishings and decent amenities.

For example, a one-bedroom apartment near a city in Costa Rica would cost you approximately $550 per month.

However, if you want a more prestigious home with a high-quality kitchen, jacuzzi, and other luxury trappings, you will pay more. However, the price is still well below that of a US counterpart.

According to International Citizen, compared to the US, rent in Costa Rica is about 71% lower.

For comparison, a three-bed, two-bathroom house will cost between $500 and $1,200 in Costa Rica but between $1,000 and $3,000 in the United States.

How much is an average utility bill in Costa Rica?

Utility costs are much lower in Costa Rica than in the United States, particularly for electricity, water, and internet.

The average monthly electricity bill in Costa Rica is about $30; in the United States, it’s $120. However, there are exceptions. Gas prices are significantly higher in Costa Rica than in the United States.

The table below shows the monthly amount a couple could expect to pay:  a selection of average utility costs for comparison between Costa Rica and the United States.

What will I spend on groceries and food costs in Costa Rica?

Grocery prices are, on average, 28.5% lower in Costa Rica compared to the US.

However, this is mainly for local produce. You will pay a premium when buying imported goods, such as meat and alcohol.

For a monthly grocery shop between two people, including alcohol, you can expect to pay $400. This is significantly lower than in the US, where those shopping on a “moderate” budget could expect to pay $600+ a month, according to American Express.

How much does transportation cost in Costa Rica?

When it comes to transportation, how much you will pay depends on your method of transport.

Costa Rica has a regional bus network. Fares vary between $2 and $20, depending on how far you’re travelling.

You can also choose to purchase your own car; however, this can often be quite expensive due to import taxes. Some estimates put car prices up to three times higher than in the US.

International Living puts the cost of owning a car at around $130 a month for a couple.

Gas prices are also high in Costa Rica, so you will need to factor that in when choosing how you get around.

What are the different healthcare costs in Costa Rica?

Costa Rica has a high-quality healthcare system that is also great value for money.

There are 30 state hospitals and 250 clinics, plus some world-class private hospitals. Expats can avail of both public and private healthcare, so as a resident, you have three options:

Private insurance can cost between $60 and $130 per month per person with the National Insurance Institute.

Through the public service, insurance for a family of two adults and their under-18 dependents costs between $30 and $50 per month, and all legal residents must pay membership to this scheme.

Private healthcare is, on average, better value in Costa Rica, as the figures show:

How much tax will I pay in Costa Rica?

As a permanent Costa Rican resident, you benefit from a relatively low income tax rate on a scale from 0% (exemption) to 25%.

Your income tax is levied on local income irrespective of nationality and resident status, this ranges from 0% to 20% is is broken down as follows:

However, there are different tax rates for income gained from profitable activities, which range from exempt to 25%. They are broken down as follows:

Get expert financial advice

Overall, Costa Rica is a very affordable country to live in compared with the United States.

If you’re considering relocating to Costa Rica, it is wise to get your finances in order beforehand.

Talking to a financial advisor is the best first step.

Unbiased will find the right professional support for you and match you with a qualified financial advisor.