Retirement living in the tropics. What could be more affordable and easy than expat living in Costa Rica? There are certainly bargain homes in Costa Rica, if you know where to look for them. But before you plan your budget, consider some of the following factors:
Owning Property in Costa Rica
Foreigners are not allowed to own property outright in Costa Rica. The strategy for home ownership, then, involves forming a corporation in which a foreigner holds office and a tico (the term Costa Ricans call themselves) partner also holds shares. To sell property, shares are transferred, but the tico partner must remain. Of course a lawyer is required to make this transaction. There are no regulations governing realtors in Costa Rica. Lawyers are licensed, but property acquisition is a "buyer beware" undertaking; be certain you are dealing with reputable people before you proceed.
Maritime rules in Costa Rica are designed to prevent the loss of public land near waterways. When buying beach or river front properties these additional regulations will come to bear on the transaction. Restrictions on use and building will apply.
Squatters rights are protected in Costa Rica. If the property for sale has "caretakers," a misleading term used in realty ads, they may be squatters who cannot be legally evicted.
Costa Rican Utilities
Electricity and telephone services, which includes internet at the present time, are public. That means only residents may apply to recieve them. Again, the corporation formation is the key to getting what you need. Your utilities will be in the corporation's name. They are generally inexpensive because they are publicly owned and run. However, your monthly bill will depend on use.
Basic telephone service may run around $5 a month. Calls are not designated as long distance. Instead, they are charged by the pulse. Longer phone calls cost more money. If you make frequent international calls, your phone bill could easily approach $100 a month.
Basic electricity may run around $20 a month. But in the tropics, most people do not use air conditioning or automatic clothes dryers. If you run those appliances electric bills can soar. Hot water heaters are also seldom installed in homes. Typically, hot water is provided by a "suicide shower," a device that has a heating element for water to pass over when it comes out of the faucet. Despite the name, they are safe. Kitchen and bathroom sinks usually only have cold water.
Propane gas is used for cooking, especially in remote areas. A good alternative for electricity is to go solar. Solar powered systems can heat water, provide lights, and run a refrigerator. The cost and installation of such systems is comparable to prices in the United States, except that labor is generally cheaper in Costa Rica.
Hired Help
Part of living in Central America is contributing to the local economy. If however, you have employees such as landscapers and housekeepers for more than three months, you are required to pay into their medical and social security funds, known as the Caja (Spanish for "box."). There are stiff penalties for not doing so. A standard wage for workers is $5 an hour.
Costa Rican Food and Other Items
Groceries can be as expensive in Costa Rica as they are in the United States and there is much less variety. It is not unusual to see single units, for instance microwave popcorn, for sale. A case of popcorn is nowhere in sight, only individual packages at higher prices.
Produce is grown locally in most cases and the quality can be very high. Again, however, there is not as much variety as in the supermarkets back home.
Costa Rica's main industry is tourism. Manufactured goods are mostly imported from China, sometimes from the United States, but prices and quality reflect an items origin. The problem of having to buy items per each comes up again, for instance when needing to purchase finger-size adhesive bandages, you will probably be asked how many you want!
Transportation in Costa Rica
Owning a motor vehicle in Costa Rica can be a hassle. Registration is expensive and time-consuming. There are annual safety inspections and infrequent gas stations. The roads are all but impassable in many areas, so four-wheel-drive is practical. Good alternatives include using local taxi services and buses, both very cheap. Water taxis are a fun option in areas most easily accessed by water. And regional flights carry passengers to strategically placed small airports in no time. It is really not necessary to own a car in Costa Rica.
Don't forget the cost of airline tickets for frequent travel back home. Especially if you have family, you should be able to return when you long to, for births, weddings, graduations, and holidays. The happiest retirees have the best of both worlds in their budget.
The Best Advice is to travel Costa Rica several times to get a feel for the culture and cost of living. Learn to speak Spanish in order to have the best understanding and interaction. Find community, there are plenty of other expats who will welcome you. Costa Rica truly is a tropical paradise if you know what to expect.
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