I moved to Costa Rica in early 2011 to Playas del Coco in Guanacaste. Before leaving Canada, I rented a monthly basement apartment in Toronto for CAD 1,200 ($900). You could call my apartment a two-bedroom, one-bath, but that would be a stretch. There were two “rooms,” but they were very cramped and small. The living room/kitchen area was smaller than most modern bedrooms and had one small counter area with enough space to fit a stove and fridge. I had a single couch, no TV, and a small round table where you could fit four people. It was a simple dwelling for a young family who preferred to focus on the liveliness of the neighborhood and quality of amenities over the home itself since it was the city culture we enjoyed the most.
Fast forward 14 years of living in Costa Rica, we’re now a family of six. Our home is in a gated community in the Central Valley (GAM Greater Metropolitan Area) that surrounds an 18-hole golf course and country club. We rent a four-bedroom, 2.5-bathroom home with high, lofty ceilings, a full kitchen, a laundry room, storage, two secluded yards, and an enclosed garage for $1,300.
It’s difficult for me to compare life then and now since it’s been so long since I last traveled out of Costa Rica. During my 2016 trip to Paris, I recall buying a simple gin and tonic for 27 euros! Yikes! I can compare some aspects of my former life, like rent, telecommunications, and school. I pay much less in rent and less for my phone, which used to cost me nearly CAD 300/month. However, I am paying more for education since, in Canada, I could quite comfortably rely on the public school system. All four of my children are in a Costa Rican International private school. (read more about schools in Costa Rica HERE).
The Canadian average cost of living varies significantly by city. For instance, in Toronto, a single person can expect to spend around CAD 3,770 ($2,830) per month, including rent, while a family of 4 might spend approximately CAD 8,174 ($6,140) monthly. Vancouver is similarly expensive, with costs for a single person and a family of four being CAD 3,749 ($2,810) and CAD 7,985 ($6,000) respectively. Other cities like Calgary and Montreal have relatively lower costs, with Calgary at CAD 2,922 ($2,190) for a single person and CAD 6,956 ($5,220) for a family, and Montreal at CAD 2,594 ($1,950) and CAD 6,118 ($4,590) respectively. These are statistics from NUMBEO which I feel are on the low side but work for a simple comparison showing that Costa Rica is far less expensive for my family of six with our monthly cost of living at approximately $5,300.
In the USA, the cost of living also varies widely. For example, in New York City, the monthly cost for a single person is around $4,044, while in Los Angeles it is about $3,165. The costs are slightly lower in cities like Chicago and Houston, with Chicago at $2,613 and Houston at $2,221/month for a single person.
Understanding these figures can help investors and newcomers appreciate the relative affordability of living and operating a business in Costa Rica compared to these countries. Lower living costs can translate to higher disposable income and potentially more profitable investments, as well as a better quality of life for individuals or families considering relocation. Moreover, the favorable economic environment and the diverse property opportunities available in Costa Rica—from beachfront properties to mountain retreats—make it an attractive destination for investment.
What newcomers must also consider is that the average income in Costa Rica is lower compared to Canada and the U.S., which can affect the overall cost of living and lifestyle. For remote workers, the situation can be more favorable. With a stable income from abroad, they often find they can live more comfortably than many local Costa Ricans. Expenses like rent and amenities purchased in dollars have increased due to the higher value of the colón. Recent years have seen an increase in the cost of living globally, and Costa Rica is no exception. Global inflation has been a significant factor, with the dollar's buying power decreasing notably in the last few years, affecting families like ours who live and work in the country. Despite Costa Rica experiencing deflationary periods, the rising value of the Costa Rican colón has impacted costs, especially for expats reliant on foreign currencies.
Costa Rica’s cost of living ranks significantly lower on statistical websites. Overall, the cost of living in Costa Rica is approximately 27.3% lower than in the United States, and when including rent, it’s about 38.7% lower. However, like many expats will tell you, it often depends on how and where you live that determines if Costa Rica will be an affordable location for your family. Some people aren’t equipped to learn Spanish or integrate, or choose touristy and expensive expat locations. When coaching newcomers, I always recommend that they consider why they are moving to Costa Rica in the first place, because running away from something, trying to fix a failing marriage, leaving for political reasons, hoping to make more money, or searching for better weather are not reasons to move here. I moved here for the Central American community and culture, and the opportunity to raise my family in a peaceful family-orientated environment, but the nice weather is certainly a plus.
Costa Rican Rental Rates
Looking at the Costa Rica side of things in terms of rental costs, you can find a wide range of options depending on your location and preference. For instance, renting a small, two-bedroom apartment in popular areas like Jaco can cost around CRC 277,000 ($500) per month, while luxury apartments can range up to CRC 1,385,000 ($2,500) per month and beyond. Traditional houses range from CRC 444,000 to CRC 1,110,000 ($800 to $2,000) per month, while condos and apartments vary between CRC 277,000 and CRC 1,662,000 ($500 and $3,000) depending on the amenities and location. As mentioned above, my monthly rent in a nice city neighborhood is $1,300, and luxury 6-bedroom homes in my area are typically around $3000 per month.
The Cost of Food in Costa Rica
Grocery prices in Costa Rica are about 27.1% lower than in the United States unless you’re buying imported products like Lays potato chips! Buying local fresh foods and products can save you a lot of money. High Import taxes contribute to higher prices on imported products.
Eating out is also more affordable; a meal at an inexpensive restaurant costs around CRC 5,174 ($9.34), and a mid-range three-course meal for two people costs about CRC 31,040 ($56.06).
Utilities Fees in Costa Rica
When it comes to utilities and other living expenses, Costa Rica offers good value. Most urban areas have reliable high-speed internet, ranging from 45 Mbps in Tamarindo to 100 Mbps in San José. While some rural areas may have less connectivity, urban centers are well-equipped with modern infrastructure. We pay approximately $45/month for our home phone and fiber optic internet.
It's fair to say that goods cost more in Costa Rica, while services cost less but vary depending on your location. For example, in the Central Valley, there isn’t a need for heating or cooling, and water is abundant, which keeps monthly living costs lower than in some beach developments that pay a premium for water and electricity through their property management companies or require air conditioning most of the day. The Guanacaste region is often hotter and drier than other provinces, leading to higher water prices.
Utility costs in the U.S. also add up, with the average monthly cost for basic utilities (electricity, heating, cooling, water, garbage) for a 915 sq ft apartment being around $160. Our electricity and water costs are about the same but for a home over twice the size and with more inhabitants.
Taxes and Goods
Costa Rica's import taxes and tariffs significantly affect the cost of living, with general tariffs at 13% and higher rates for items like automobiles (up to 50%) and alcohol (up to 79%). The 13% Value Added Tax (VAT) further increases costs, especially for luxury items and electronics. However, Free Trade Agreements (FTAs) with countries such as the United States (CAFTA-DR), the European Union, Canada, and Mexico help reduce or eliminate tariffs on specific goods, making agricultural products, textiles, machinery, and pharmaceuticals more affordable. This means while some items like cars and electronics may be significantly more expensive due to high import taxes, others benefit from reduced costs thanks to these FTAs, balancing the overall cost of living in Costa Rica.
Revealing Our Monthly Budget
All details aside, what newcomers want to know, and why they so often ask these questions repeatedly on Costa Rican expat social media pages, is “What will it cost for me?” The best way to answer this is to lay bare my monthly spending. I would say that we live a somewhat modest life in Costa Rica. We’re a family that eats healthy; I make a home-cooked meal every night, and we’re a no-screen, no-TV family. Therefore, our “art table” is frequented more than expensive gadgets, and Lego every afternoon is the norm. I also prefer driving an electric scooter in the city. Not only do I work in real estate, but I am also a grade 2 teacher. I have a consulting service for teachers, and I offer both yoga and dance lessons. I need to get around the city quickly, and with traffic, a car just doesn’t cut it. Suit me up in a raincoat, and I’m good in any season.
An average breakdown of our family’s monthly spending is $5,306.67. Many months are close to $4,500; however, months with extra travel, birthday parties, and larger purchases like a new stove brought the monthly average slightly higher than our typical spending. That being said, when we were at a less expensive private school ($340/month per student) much closer to our home, and lived in a smaller condo, our monthly spending was as low as $2,700. Currently, we are living more lavishly than we have in the past. For example, our rent in Coco, in a Tico-style home, ranged between $375 and $600. We now have more extras, such as renting cars and paying for the country club with private tennis and golf lessons. What you don’t see in our monthly budget is health insurance. Our family benefits from Caja coverage due to our employment. Similarly, in Canada, health insurance would not be an additional expense, but in the U.S., it would be considerably higher for a family of six.
In conclusion, while Costa Rica is not a cheap place to live, it still offers a comfortable living experience with added security for our family. The unique benefits of living in Costa Rica, such as its beautiful environment and laid-back lifestyle, continue to outweigh the increased costs for us. Despite the economic challenges, the overall quality of life here remains high, making it a worthwhile investment for those considering relocation.
Contact Make Costa Rica Home directly for personalized consultations. We recommend proper coaching before moving or purchasing in Costa Rica.
Click HERE for a simple Costa Rican lifestyle calculator.
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