Costa Rica cost of living for retirees: how to budget

This guide lays out the Costa Rica cost of living for the foreign retiree who is planning a move: which expense weighs most each month, how health care is paid for, what utilities involve and which taxes a buyer takes on. It is meant to build a realistic budget before signing a lease or a deed, with the rents Anuntico publishes today in the table of the first section.

What weighs more each month: renting or owning?

For most foreign retirees who arrive in Costa Rica, housing is the item that defines the budget. Everything else, from food to utilities, adjusts with habits; rent or the costs of an owned home are committed for months or years and cannot be corrected overnight. The table in this section shows the prices being asked this month for houses and apartments for rent across the country. To see the actual listings, with photos and location, the starting point is the homes for rent in Costa Rica published on Anuntico.

Typical rent varies widely by area. In the Central Valley, cantons such as Curridabat, Escazú or Santa Ana concentrate apartments and houses in gated communities that are often listed in dollars and tend to ask more; in Pérez Zeledón, San Ramón or Grecia, the same money often stretches to a house with a yard. On the beaches of Guanacaste and the central Pacific, high season makes short leases more expensive. If your income is a fixed pension, it makes sense to look first at the cheap homes for rent in Costa Rica and move up a range later, not the other way around.

Buying changes the math: rent disappears, but the down payment, transfer costs, maintenance and municipal taxes appear. For a retiree, the advantage of owning is stability; the drawback is that it ties up savings you may need for health care. Before deciding, compare what is being asked for a house similar to the one you would rent; home prices in Costa Rica by province and canton help you see whether buying makes sense versus renting a few more years. Our recommendation is to rent first and buy after getting to know the area in both the dry and the rainy season.

How much goes to utilities, internet and transport?

Basic utilities in Costa Rica tend to feel moderate for someone coming from North America or Europe, but they vary with the climate. In the Central Valley almost nobody needs air conditioning or heating, so the electricity bill depends mainly on the stove, the refrigerator and the water heater. In Guanacaste, Puntarenas or Limón, air conditioning can turn electricity into one of the highest expenses of the month. Water is billed by AyA, the municipality or an ASADA, depending on the community; ask the owner who provides the service and whether the rent includes it.

Fiber-optic internet reaches much of the Central Valley and many canton seats, but in rural or mountain areas the connection may depend on antennas or mobile data. If you work remotely or make video calls with your family, check coverage at the exact address before signing. Mobile phones run on prepaid or postpaid plans; some carriers ask for a residence document for postpaid, so during the first months many foreigners use prepaid with their passport.

Transport is the most flexible item. Someone who lives near a bus route and a town center with a supermarket, pharmacy and clinic can do without a car: the bus covers many trips, and red taxis and ride-hailing apps handle the rest. A car owner must add the annual marchamo, the vehicle technical inspection, insurance, fuel and maintenance, plus the wear caused by gravel roads in rural areas. Choosing a home for its proximity to services is, in practice, a budget decision.

How is health care paid for: the Caja contribution or private insurance?

Health care is the main concern for anyone retiring in Costa Rica, and it comes with a clear rule. Under articles 7, 80 and 86 of the Ley General de Migración y Extranjería (Law 8764) and articles 31 and 210 of the Reglamento de Extranjería (Executive Decree 37112-GOB), as a temporary resident you must be insured with the CCSS from the day residence is granted and without interruption, because the immigration authority checks it before each renewal and the extension requires that insurance. It is not an optional expense: it is a condition for keeping your immigration status.

The Caja contribution is calculated on the income you declare and is paid every month. It gives you access to EBAIS clinics, public clinics and hospitals, with the medicines the system prescribes. The exact amount depends on each case, so ask for an estimate at the CCSS branch in your canton or from your immigration lawyer before closing the budget. It should be recorded as a fixed expense, like rent, and not as an item that can be cut in a difficult month.

Many retirees add private health insurance to be seen with shorter waits in private hospitals and practices. That insurance does not replace the Caja before the immigration authority; it is an additional expense. When getting a quote, check the age limit for enrolling, exclusions for pre-existing conditions and whether it covers long-term medication. Our reading: budget both items from the first month and do not count on suspending the Caja to save money, because that puts the residence renewal at risk.

Does shopping at the farmers market or the supermarket change the budget?

Food is where a retiree has the most room to adjust. Farmers markets set up every week in almost every canton, between Friday and Sunday depending on the place, and sell fruit, vegetables, eggs, cheese and herbs from local growers. Buying there, with what is in season, lets you eat well without overspending. Rice, beans, chicken and local coffee are also reasonably priced in any supermarket or neighborhood pulpería.

Imported goods cost more. European cheeses, foreign-brand cereals and sauces, wine and certain personal care products arrive with freight and taxes, and their price can surprise someone who keeps the habits of their home country. The same happens with appliances and clothing. Someone who replaces part of those purchases with local equivalents notices the difference at the end of the month, without giving up a product from home on special occasions.

Pharmacies deserve their own line in the budget, even if you are insured with the Caja: many people buy there what they do not want to wait for at the clinic. If you take long-term medication, check before moving whether it is available in Costa Rica with the same active ingredient and ask its price at a couple of pharmacies in the area where you plan to live.

Which taxes does a homeowner pay?

The tenant does not pay the taxes on the property; the owner does, although a residential rent above the exempt ceiling of the value added tax law does carry that tax, as the frequently asked questions explain. The main one is the property tax: under articles 3, 22 and 23 of the Property Tax Law (Law 7509), it is annual and equals 0.25% nationwide of the property value recorded by the Tax Administration; the municipality administers and collects it, and it is paid in one, two or four instalments as each municipality decides. Municipal fees for garbage collection and other services are added to that tax and usually appear on the same statement.

The second is the solidarity tax, which reaches higher-value homes. Under article 6 of the Solidarity Tax for Housing Programmes Law (Law 8683) and article 1 of Executive Decree 45358-H, for the 2026 tax period a residential property is exempt if the fiscal value of its construction, including fixed and permanent installations, is ₡143,000,000 or less, an amount the Executive updates every December according to the change in the consumer price index. If your home might exceed that threshold, consult an accountant before buying.

These taxes are the recurring part. A purchase also brings one-time costs, such as notary fees, stamps, the transfer tax and registration with the Registry. They are explained in the guide on what buying a house costs on top of the price, worth reading before comparing the cost of buying with the cost of renting.

How do you build the budget before moving?

The budget is built from fixed to variable items, using your real income in the currency you receive it in. If your pension arrives in dollars and you pay much of your expenses in colones, every move in the exchange rate changes your month; leave a margin for it from the start.

1. 1
   Choose two or three cantons by climate, altitude and proximity to a hospital.
2. 2
   Review the rents being asked in those cantons and note the houses you would actually accept.
3. 3
   Ask which utilities each rent includes, whether the price already includes VAT when it applies, and estimate electricity, water, internet and phone.
4. 4
   Add the Caja contribution, which is mandatory with residence, and a private insurance premium if you want one.
5. 5
   Estimate food based on farmers market shopping and set aside a separate item for imported goods and pharmacy.
6. 6
   Decide whether you will have a car and, if so, add the marchamo, insurance, fuel and maintenance.
7. 7
   If you plan to buy, set aside the property tax and the municipal fees for each year.
8. 8
   Add a margin for the exchange rate and for the unexpected, and test the budget by renting before buying.

Do this exercise with the numbers from your own search and not with forum averages: the cost of living for a retiree in Costa Rica changes a great deal from one canton to another and from one lifestyle to another. The same income can be comfortable in a house near the farmers market and the bus, and fall short in a beach condominium with air conditioning and a car.

What we would do

• Rent first through one dry and one rainy season, then compare with the homes for sale in Costa Rica in the chosen area.
• Budget the Caja and private insurance as fixed expenses from the day residence is granted.
• Choose the home for its proximity to the bus, the farmers market, the pharmacy and the clinic, so as not to depend on a car.
• If the plan is to buy with limited savings, start with the cheap homes for sale in Costa Rica and set aside the property tax every year.
• Leave a monthly margin for the exchange rate if the pension arrives in another currency.

Frequently asked questions

Can rent be paid in dollars?

Yes, it is common. Many residential leases in Costa Rica are set in dollars, especially in areas with foreign demand, and others in colones. For a retiree whose pension arrives in dollars, rent in the same currency removes exchange-rate risk from the largest item of the month. If the lease is in colones, the fixed amount works in your favor when the dollar rises and against you when it falls. Read the lease carefully and, if in doubt, consult a lawyer before signing.

Does the tenant pay the property tax?

No. The municipality collects the property tax from the owner. The solidarity tax, when it applies, is also paid by the owner, but to the Tax Administration of the Ministry of Finance, not to the municipality. The tenant pays the agreed rent and, depending on the lease, the utilities they use, such as electricity, water and internet. If the rent exceeds the exempt ceiling that the value added tax law sets for housing, the landlord must also charge you that tax on the whole rent; ask whether the listed price already includes it. If the owner wants to pass a municipal fee on to you, it must be written into the lease; review that clause before signing and ask for clarification of any charge you do not understand.

Is it wise to buy during the first year?

It depends on how well you know the area. Many retirees realize after a few months that they prefer another climate, being closer to a hospital or living in a town with more services. Buying too early can tie your savings to a house that is hard to sell. Renting the first year lets you test the neighborhood, the distance to the clinic and the real cost of utilities. Once you are clear about where you want to stay, the purchase is decided with better information.

This guide summarizes practice in Costa Rica for the foreign retiree as of November 2026 and does not replace the advice of a lawyer, a notary or an accountant. Immigration, CCSS and tax rules can change; confirm your particular case before moving or signing.