Estimated reading time: 11 Minutes
I’m sure you already know that, like everywhere else, there are advantages and disadvantages to living in Costa Rica. My lifestyle differs totally from my neighbor’s, so what can be an advantage for my neighbor is probably not for me. My neighbor thinks the world turns around him, and we never agree on anything. That doesn’t necessarily mean that my opinions are similar to others. I’ve lived in Costa Rica for 45 years; my neighbor is a Tico.
I have created a story to make it simple for you. It is about an adventurous expat who plans to move to Costa Rica because he’s heard that our country is fantastic and he’d love to live here. This story is about an email that Johnny, an expat from Puriscal, wrote to his long-time buddy George in Plano, Texas. George is interested in moving to Costa Rica soon, but wants to visit his friend first, who offered to assist by giving him his opinion on a few topics. George wants to check out the city of Puriscal and buy a house there, because he has heard wonderful things about it.
Hey buddy,
I finally received the engine part you sent. It got stuck in customs here for two months. I was stupid to bring that car; I should have bought one here. But well, I must not have been clear when we talked about the order. I need the driver’s side motor mount that is bolted or riveted to the frame. The part that you sent is the part that attaches to the motor and then attaches to what I need. I am calling it the motor mount. Can you remove one of these from a frame and send it to my Plano address? I want to straighten this out because I need my car back on the road. I’ll attach a picture of the part. Thanks for all your help with that.
About Puriscal
Puriscal is a small town in the Central Valley about an hour’s drive from the San Jose airport. It’s located in a coffee-growing region and is known for its unique climate. I’ll connect you with a local realtor named Rick Williams.
Rick is a Canadian who lives in Pursical and knows everybody there. He can show you properties; when you purchase, he’ll be around for anything you need. He is the best resource I know of and is as honest as the day is long. You can take that to the bank!
Advantage: Easy-going lifestyle with a rural feel
Disadvantage: I’m an hour away from a private hospital (even though I go to the Ebais and the Centro de Atención Integral para la Salud that belong to the CAJA when I have an emergency or something simple like my medication).
Costa Rica crime
Crime has found Costa Rica, like in most Latin American countries. We don’t have welfare or unemployment benefits here, and there are still quite a few poor people here. And drug problems are much worse than they were a few years ago. For example, you don’t want to walk in San Jose at night. There are addicts and homeless people, and it is not safe. Puriscal is relatively safe at night and relatively crime-free. We have had some issues in the past from ‘out-of-towners’ dropping in to make a quick buck. Lately, nothing…… but you need to lock your car, don’t leave anything expensive in view, and just be vigilant.
Advantage: There is no advantage to having any crime. But, you’re probably good to go if you choose the right neighborhood to live in.
Disadvantage: Leaving home for several weeks means finding someone who takes care of the house in the meantime, unless you live in a gated community.
Changes everywhere
Costa Rica has changed over the past ten years, as have all countries. More things are available, and with that, prices have all risen as well. We are having some issues here in CR because of the US dollar exchange rate for Colones. We’ve lost about 25% of our purchasing power in the last two years. But you know, I don’t really need all that much anymore. The weather is always good here, you don’t need A/C, no winter clothing, and I have learned how to shop.
Many people complain about something as simple as opening a bank account, but Rick will assist you, and you’ll find it easy. Many future expats don’t realize that this is not the 51st US state but another country. People speak Spanish, and their mindset is very different from ours. It’s all a matter of accepting how things are done here, and keeping an open mind.
Advantage: The weather is great year-round, even when it rains.
Disadvantage: You might end up with a few wind-blown umbrellas if you’re not careful
Costa Rica food cost
Food costs are OK when you purchase local products. I now understand Spanish much better and can read the labels in the store. I’m saving myself a ton of money by buying Spanish-label products. If you have to have that US brand, expect to pay more than in the States. Not a lot, but it will be more. One glaring exception is the local beer. The local brand is called Imperial, and it’s pretty good. The thing is, I can purchase Costa Rican Imperial beer in San Diego for 20% less than the average price in the local market………… go figure?? I make sure to buy my whisky and wine in the duty-free store at the airport when I arrive (yes, they allow you up to 12 bottles pp).
Advantage: Fruits and vegetables are really good here, and cheap.
Disadvantage: A six-pack of 16-oz Budweiser costs $10,12 at HEB in Plano, and a six-pack of 12-oz Budweiser costs $9,07 at Automercado here.
Costa Rica taxes
Our property tax situation has changed somewhat, but it is still a bargain compared to what I used to pay in Plano. Sales Tax is high, 13%, but we have no income tax on our money from the States. Uncle Sam will still tax you for whatever you earn in the states, and will tax you for what you earn here. However, you may qualify to exclude your foreign earnings from income up to an amount that is adjusted annually for inflation ($120,000 for 2023). In addition, you can exclude or deduct certain foreign housing amounts.
Here, you only pay capital gains tax if you sell an investment property; selling your residence is exempt. You won’t be paying hardly any taxes here, except for the 13% VAT on almost everything. It’s only 4% of healthcare. If you eat only rice and beans, plantain, meat, and drink milk, you won’t be paying more than 1% VAT.
Advantage: You live almost tax-free here, because you already pay in back home
Disadvantage: Some things are extremely expensive here, like cars
Rent first
I would plan to rent for a time while you look for your ranch (Finca….. I think that’s how it’s spelled). It will be easy to meet other ‘gringos’ or other foreigners. We sort of flock together. Your best bet is to do all you can to meet local Ticos and make friends in the country. Oh, and the locals are beautiful, so divorce before you come down, or when you plan to bring your wife/husband, you better behave.
Advantage: You can move around every few years.
Disadvantage: You can’t grow pot in your garden.
Health Care
We have private and public health care. Please do your homework on it, especially about your insurance coverage. Once you’re a resident, you’ll have to pay into the social security system (CAJA), but you’ll get free healthcare.
Advantage: Private and public healthcare is on a very high level here
Disadvantage: Using public healthcare might mean you stand in line all day and get on a waiting list to get operated on for a long time, unless it’s an emergency.
Import a car or buy in CR
You should also know that anything related to owning a car is more expensive here in Costa Rica. Most Costa Ricans now have cars because financing a car is cheaper than buying a house.. The government places an unbelievably high tax on all cars and trucks imported into the country. This tax then raises the base value. So a car that you can purchase in Texas for, let’s say, $10,000 will be like something over $15,000 here.
This always raises the question of whether I should purchase locally or import my vehicle. I preferred the import route because you end up with a car, you know what it has been through. But now that I’m having the problem with the motormount, I’m not sure I’d do it again. You can usually save a little by bringing a car, but you must also go through the import process. You must pay the import tax as soon as your car clears customs.
Many used car dealerships are on the road to Grecia, but I’m not so crazy about them. I prefer looking for used cars with the various dealerships, as they take trades when selling a new car. They have plenty of choices, and they’ll offer you free maintenance and other advantages. You can also shop around and use WheelsCR services. I’ve known them for years.
Advantage: Mechanics charge much less than they do at home
Disadvantage: They might not have the spare part you need in stock. So they’ll put you on a waiting list
Costa Rica gasoline
The government imports all the gas, and the price is fixed throughout the country at any gas station. This raises the cost of living in Costa Rica a bit. The gas costs about $5.07 a gallon here, while you’re paying $2.93 at Valero. The difference is that you don’t drive as far as you do there. The country does have an extensive bus system, and bus prices are relatively low, so that is also an option for getting around.
Advantage: drive electric, although I’m not ready for it.
Disadvantage: it’s expensive when you drive a lot. So get organized and try to drive less.
Property values and construction
Property values have stabilized somewhat. Don’t invest in Costa Rica property in the Central Valley if you expect to double your money. Because of the earthquakes, local construction is done using concrete blocks.
The construction cost for a finished house (not including the land cost) with ‘gringo’ finishes is going for about $85 to 100 dollars a square foot. Rick Williams can give you more information, as he is the local expert and is on top of these issues.
Advantage: Property maintains value well
Disadvantage: Property doesn’t triple in value in a few years.
Housekeeper and Gardener
Household help is very reasonable. I have a housekeeper who does everything one day a week (dust, cleans floors, windows, laundry, bathrooms, and even scrubs the patio). I pay her $30 for a morning of work once a week. It would be a little cheaper than that if I had her stay for more hours (and did not have to pay more bus fare). The same goes for my gardener; he works a day every two weeks, and I pay him $50 every time he comes. They each do an excellent job, and I trust them, and they have never let me down. They do receive Aguinaldo in December.
Advantage: You can hire them for longer or shorter periods and ask them to stay in your home when you travel.
Disadvantage: Keep them on a short leash. You give ’em an inch and they’ll take a mile, it might bite you in the butt eventually.
Is Costa Rica a Paradise?
In my opinion, Costa Rica is still a paradise to retire to. I totally love it here. Remember, no place is perfect, and living in Costa Rica is far from it. We all have warts and all. I have made a home in Atenas and have no regrets. Some things piss me off at times, but some things did the same in Plano. The average Tico (Costa Rican) is honest and hardworking and values his family above all other things. They are very poor drivers, but you learn to live with that. The local people speak Spanish and really like it if you try to speak it. At a minimum, TRY and you will see that most will help you learn. Take some classes before you come down, and they will pay off big time.
Advantage: If you adjust to their lifestyle, life’s good in the tropics.
Disadvantage: If you don’t adjust, you’ll suffer like you’ve never had to.
Living in Costa Rica
Well, George, I hope you still consider living in Costa Rica, specifically the Puriscal area, as your retirement home. It’s a great place, mostly very good people and the best weather in the world (that’s what the realtors say). I don’t have a heater or an air conditioner in my house. I spend most of my day on the patio by the pool. It’s just a great place to be at this time in my life. Talk to Rick, and see what they have to offer.
Used in main image: Image by prostooleh on Freepik
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