Why People Are Choosing to Live and Retire in Costa Rica

Costa Rica is a place of stunning scenery,5,000M2 of land and fully furnished it for less than
sunshine and smiles with spring-like weather allUS$140,000
year round, no income taxes on foreign earnedBuilding your own home is not for the faint of
income, no capital gains taxes, excellentheart anywhere in the world but if you are
world-class medical facilities, affordable medicalcomfortable with the idea then you'll be delighted
plans and populated by the 'Ticos' who are anto know that your labor costs in are low.
amiable and very attractive people.Affordable Cost of Living: Only 1% of US
Who Is Moving to Costa Rica? There arehouseholds headed by folks aged 62-72 have $1
estimated to be 77 million 'baby boomers' in themillion or more in assets other than their home.
USA who began retiring in 2008 and it seemsNow that might sound like a lot of money but
there's quite a few thinking about a Costa Rica$1M today lasts less than 20 years assuming a
retirement. So too are Canadians and numerousrate of return of 7%, inflation of 3% and
Europeans who are looking for that perfectinflation-adjusted annual withdrawals of $75K.
climate and a more affordable place to live.People understand that their money will last a lot
Wealthier people from all over Central and Latinlonger with a Costa Rica retirement.
America are also visiting Costa Rica because ofHaving said that, demographically speaking,
political and financial instability in their ownforty-six percent of the baby boomers are still in
countries.their 40s so there are plenty of baby-boomers
When you fear for the lives of your own childrenthat haven't really started to think about their
because they may be kidnapped in Mexico,retirement. The more negative the political and
Guatemala or Honduras or, you have justeconomic environment becomes in the USA, the
witnessed the value of your home slashed in halfmore receptive they will be to the idea of living
as some of our Venezuelan friends have recently,and retiring abroad.
your future can look downright terrifying.How Much Is The Food? To give you a real idea
Politically Stable Country: Unlike most nations inabout food costs, in one of Jo Stuart's recent
Central and Latin America, Costa Rica has been anewspaper columns, she compared the exact
stable and democratic country since it'scost of a basket of fruits and vegetables
independence in 1948. It has no army, and itspurchased here in to the exact items purchased in
citizens enjoy one of the highest life expectancya California farmer's market. She spent US$8.75
levels in the Western hemisphere and higher livinghere and the same items in California cost
standards than their war-torn neighbors.US$29.47
Costa Rica's perfect climate, laid back lifestyle,The bottom line is if you eat a healthy diet full of
financial and political stability makes this 'rich coast'fresh fruit, fresh vegetables, a little fish, chicken
look like paradise on earth to many people.or beef, you and your family will be healthier and
Business Opportunities: It's not just people seekingyou'll enjoy significant savings on food living in
retirement that are visiting Costa Rica. We areCosta Rica.
seeing young entrepreneurs coming to Costa RicaBut, if you prefer to eat highly-processed,
with dreams of establishing their business here.imported food, you are going to pay through the
This is an admirable goal however; we shouldnose for it and you are not going to be healthy.
remember that having a working knowledge ofHeating Costs: Who needs heating? Unless you
Spanish will only take you half way. We mustare living at fairly high altitudes, you would not
remember that we are guests in their country,even think about heating... In over seven years of
doing business here can be challenging becauseliving here, I have only ever been in one home
inefficient bureaucracies, redundancies andthat had an in-floor heating system installed.
duplications are part of everyday business.Water: Thankfully Costa Rica gets plenty of
Affordable Costa Rica Real Estate: In comparisonwater. In some of the Northern Guanacaste areas
with Europe and many metropolitan areas in thethere is certainly a water management problem
USA, real estate in Costa Rica is very affordable.primarily due to over development and a lack of
Foreigners can easily buy their own homes and ainfrastructure but we do have plenty of water.
few people have decided to build their ownElectricity: A significant amount of Costa Rica's
homes.electrical energy needs are renewable, met by
According to the Global Property Guide, thegeothermal (volcanic) and hydro-electric power.
cheapest city in Europe is Bucharest where youThus, it is fairly well insulated against oil price
would pay US$3,085 per square meter for afluctuations and is able to maintain relatively cheap
120M2 apartment (1,291.2 square feet). So mostelectricity price levels that are almost the lowest
Costa Rica real estate is 40-50% less than thein the Americas. Telephone costs are also very
cheapest city in Europe.low.
You can certainly find luxury condos in Costa RicaObviously if you live at the beach where it is
for $2,200 per square meter but you can alsomuch hotter then air conditioning is essential for
easily buy a modern, brand new, verymany people. This would increase your basic costs
comfortable home anywhere near the business,however, in and around the Central Valley area,
cultural and entertainment centre of San Jose, theyou do not need heating and hardly anybody ever
capital of Costa Rica for US$1,500 - $1,750 peruses air conditioning.
square meter. I know this because I have boughtCars in Costa Rica Are Expensive: If you don't
a few homes here.purchase a house (at least immediately), buying a
As an example, in 2007 I bought a new, twovehicle will be your biggest outlay - new cars can
story 300M2 (3,228 square feet) luxury homebe over a third more in price compared to prices
(350M lot - 3,766 square feet) in a secure gatedin the U.S.
condo community in a great location in Santa Ana,Life Enriching Experience: Learning a new language
built by one of the best builders we have comeis a rewarding and enriching experience and helps
across priced at US$1,033 per square meter.keep you and your brain alive. Becoming familiar
Property Taxes: When buying a home in Costawith the culture and customs of a new people
Rica, property taxes must be considered butcan be exhilarating and we've come across
thankfully there is little to worry about becausedozens of people who came here single and are
basic property taxes are only 0.25% and even ifnow very happily married.
your home is ultra-luxurious and the luxuryI personally believe Costa Rica has the most
property tax also applies, it all adds up to veryperfect climate for the human body and I love
little..the people - the 'Ticos.' They are still people with
According to the Miami Dade County website, onthe same hopes and fears as you and I and there
a US$275K property in Miami, you would payare good ones and bad ones....
about US$6,875 per year in property taxes. WithFor me to enjoy the same kind of extremely
a luxury apartment in , the property taxes for acomfortable lifestyle that I love in Costa Rica in
home of the same value would be less thanany major US or European city, I would (and I am
$1,000 per year so you would save about USNOT exaggerating) need to earn at least five
$490 per month just in property taxes.times more than I am earning today...
And for my 3,228 square feet luxury home inLiving in Costa Rica is not for everyone, the
Costa Rica? I paid about $230 per month for bothpeople may be a little too 'laid back' for you but
monthly maintenance (swimming pool, landscaping,after living in ten countries and traveling to many
security etc) as well as property taxes.others, I honestly believe they are amongst the
Building Your Own Home:nicest people I've come across and certainly
In late July 2009 we finished building our 1,797amongst the most physically attractive people in
square feet retirement home (plus 462.68 squarethe world...
feet for the garage area, pila and bodega) on