Retirement in Costa Rica

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Climate, proximity to the United States, biodiversity, and cost of living are some of the attractions that draw people to retire in Costa Rica. Most find that their pension money affords them a higher standard of living in Costa Rica, where full-time housekeeping services, dentistry and medical treatment are generally a fraction of the North American or European costs.

Retirement in Costa Rica is particularly advantageous for those who love their old life, but wish to enhance it. The country's geographical location and growing infrastructure attracts a growing number of direct flights to North America and Europe, so friends and family are always within reach. A trend towards trade opening means that familiar products and services are increasingly available. With more than 20,000 North Americans and Europeans settled permanently through out the country, the foreign community is large, but isolated enclaves are easily avoided. New residents who retire in Costa Rica are able to embrace a new tropical lifestyle and become engaged in the friendly Costa Rican communities within a context where familiar and exotic exist side-by-side.

Most foreign residents who retire in Costa Rica are able to gain residency in Costa Rica under one of three categories. The pensionado (retired) status requires a minimum of $600 a month from a permanent pension source or retirement fund. The rentista status requires a minimum income of $1,000 a month for at least five years. In both cases, cards have to be renewed every two years at an expense of $100. Under either category, residents may own a business but cannot work as an employee. Foreign residents, regardless of their status, will not be taxed on income that's earned outside of the country. In the third category, inversionista, applicants must invest a minimum of US$50,000 with an approved organization in a field such as tourism or export businesses; US$100,000 in a reforestation project; or US$200,000 in another type of business.

Costa Rica's myriad activities (see Activities) ensure that residents who retire in Costa Rica can optimize their leisure time. Many communities offer English-speaking clubs and organizations, and those in San José are easily accessible regardless of where you have settled. These include two American Legion posts, the Birding Club, bridge clubs, Central Valley Golf Association, a square-dance club, English-speaking community theater (such as one in Dominical), resident associations, political associations and more.

Several forums connect visitors thinking of or currently living in Costa Rica. The Association of Residents of Costa Rica (www.arcr.net) is an excellent resource, and assists with residency applications.