How to move to Costa Rica from the US: A complete guide for expats

With its breathtaking beaches, lush rainforests, and the popular "pura vida" lifestyle, Costa Rica has become an increasingly attractive destination for Americans seeking a change of pace.

Whether you're a retiree looking for a peaceful haven, a digital nomad seeking adventure, or a family wanting a different cultural experience, moving to Costa Rica from the US can be a rewarding journey.

This comprehensive guide will walk you through everything you need to know about relocating to Costa Rica and establishing your new life in this beautiful Central American paradise.

What are the residency options?

When moving to Costa Rica, understanding your residency options is essential. US citizens have several pathways to legally reside in this tropical paradise:

Pensionado (Retiree) Program

This popular option requires proof of a lifetime pension or retirement income of at least $1,000 per month. As a pensionado, you'll enjoy various benefits, including import tax exemptions on household goods and a personal vehicle.

Rentista (Income-based)

If you're not retired but have a stable income, the Rentista program might be suitable. You'll need to demonstrate a guaranteed monthly income of at least $2,500 for two years or make a deposit of $60,000 in a Costa Rican bank.

Inversionista (Investor)

For those with capital to invest, this category requires a minimum investment of $150,000 in a Costa Rican business, real estate, or government-approved projects. The investment must benefit the country economically.

Digital Nomad Visa

Costa Rica offers a specific visa for remote workers and digital entrepreneurs. This visa allows you to live in Costa Rica for up to two years while working for employers or clients outside the country. You'll need to prove a stable monthly income of at least $3,000 (or $4,000 for families).

Permanent vs. Temporary Residency

Most expats start with temporary residency, which must be renewed every two years. After three years of temporary residency, you can apply for permanent status, which offers more stability and fewer renewal requirements.

Visa and legal requirements

Relocating is an exciting adventure, but it’s essential to understand the legal and immigration processes before moving to Costa Rica from the USA to ensure a smooth transition.

Entry requirements for US citizens

As a US citizen, you can enter Costa Rica as a tourist for up to 180 days with just your valid passport. No tourist visa is required in advance. However, you must have proof of onward travel (a return ticket) and sufficient funds (at least $100 per month) for your stay.

Residency pathways

Costa Rica offers several residency categories:

Application process for residency

To apply for residency, you'll typically follow these steps:

1. Initial research: Determine which residency category best fits your situation
2. Document preparation: Gather and authenticate all required documents
3. Application submission: File your application with the Costa Rican immigration office (DGME)
4. Temporary approval: Receive your temporary residency card (DIMEX)
5. Permanency: Apply for permanent residency after maintaining temporary status for three years

Required documentation and translations

Remember, all documents must be apostilled by the US Department of State and translated into Spanish by an official Costa Rican translator. Here are the documents you'll need:

• valid passport
• birth certificate
• police/criminal background check from the FBI
• marriage certificate (if applicable)
• proof of income or pension
• application forms and photos

Timeline and costs

The residency process can take anywhere from 3 - 12 months, depending on your application type and current processing times. Budget approximately $1,5004,000 for the entire process, including:

• Application Fees: $50 - 400
• DIMEX Card: $98 - 123
• Guarantee Deposit: About $361 (refundable)
• Document Authentication: $100 - 300
• Translations: $40 - 500
• Attorney Fees: $1,000 - 2,000 (optional, but recommended)
• Renewal: Around $150 every two years

You can ensure this good smoothly by keeping all documents, apostilles, and translations together. We also recommend practicing your Spanish (even if just for pleasantries) and opening a local account to make things much more efficient.

It sounds obvious, but don’t overstay your tourist visa while your residency is processed. We suggest you consider consulting an immigration expert to ensure full compliance with Costa Rican law.

Deciding on a place to live

Finding your ideal home is one of the most important steps in successfully resettling in Costa Rica. The country offers an impressive variety of living environments, from bustling urban centers to tranquil mountain villages and sun-drenched beach towns. Each area has its own unique character, amenities, and lifestyle, making it essential to consider your personal preferences and priorities before making a decision.

Best areas for expats

Costa Rica’s diverse geography means there’s truly something for everyone. Here’s a closer look at some of the most popular regions for expats:

San José and the Central Valley

The capital city of San José and its surrounding Central Valley are favorites among expats who want access to modern urban amenities, excellent healthcare, and a cosmopolitan lifestyle. The higher elevation also means milder temperatures year-round. Within this region, several communities stand out.

• Escazú – Known for its upscale vibe, international schools, modern shopping malls, and a wide selection of restaurants. It’s a top choice for families and professionals.
• Santa Ana – Offers a pleasant climate, contemporary conveniences, and a quieter, more suburban feel while still being close to the city.
• Heredia – A charming university town with a strong cultural scene, lush greenery, and a welcoming atmosphere.

Pacific Coast

If you dream of living by the ocean, Costa Rica’s Pacific Coast is a paradise for beach lovers and those seeking a more laid-back lifestyle.

• Tamarindo – A lively beach town with a significant expat population, vibrant nightlife, and excellent surfing.
• Jacó – Famous for its active nightlife, surfing community, and convenient access to the capital.
• Manuel Antonio – Renowned for its breathtaking natural beauty, wildlife, and proximity to the famous national park.

Caribbean Coast

For a more off-the-beaten-path experience, the Caribbean Coast offers unique cultural experiences and a slower pace of life.

• Puerto Viejo – Known for its Afro-Caribbean influence, relaxed atmosphere, and stunning beaches. It’s a favorite among creative types and those seeking a bohemian lifestyle.

Central Highlands

If you prefer cooler temperatures and mountain views, the Central Highlands are ideal.

• Atenas – Often touted as having the best climate in the world, Atenas is a peaceful town popular with retirees.
• Grecia – An agricultural community with beautiful mountain scenery and a friendly, small-town feel.

Renting vs. buying property

For most newcomers, renting is the smartest choice, at least initially. Renting allows you to:

• Get to know different areas before making a long-term commitment.
• Learn about local property laws, customs, and neighborhoods.
• Avoid potential pitfalls that can arise from buying property as a foreigner.

If you eventually decide to buy, it’s important to know that Americans have the same property rights as Costa Ricans (with some restrictions in coastal and maritime zones). However, the purchasing process differs from the US in several ways:

• Property is often held in the name of a corporation rather than an individual.
• Title insurance is highly recommended due to the risk of land disputes.
• Working with a reputable real estate attorney is essential to ensure a smooth transaction and a clear title.

What to expect in housing costs

Housing costs in Costa Rica vary widely depending on location, property type, and amenities. Here’s a general overview:

 

Costa Rican healthcare systems

Costa Rica boasts one of Latin America's best healthcare systems, offering both public and private options that provide quality care at a fraction of US costs.

Public vs. private healthcare

Public healthcare (Caja) – The Caja Costarricense de Seguro Social (CCSS), commonly called "Caja," is Costa Rica's universal healthcare system. As a legal resident, you're required to contribute to this system based on your income.

It provides a nationwide network of clinics, comprehensive coverage, including preventive care, surgeries, and medications. There are no pre-existing condition exclusions. However, expect limitations like wait times for non-emergency procedures, possible language barriers, and a limited choice of physicians.

Private healthcare – Many expats combine Caja with private healthcare, offering shorter wait times, English-speaking providers, greater doctor choice, and modern facilities and technology.

Private care costs remain significantly lower than in the US, with a typical doctor's visit ranging from $50 - 80 and most major surgeries costing 50 - 70% less than US prices.

How to enroll in the national healthcare system (Caja)

Enrolling in Costa Rica's Caja healthcare system requires a completed residency status with a DIMEX card. The process involves submitting documentation at your local EBAIS clinic, including your residency card, passport, proof of address, and marriage certificate (if applicable).

You must complete application forms and declare your income, which determines your monthly contribution (7 - 11% of declared income). After paying your initial premium, you'll receive your Caja healthcare card within 1 - 2 weeks.

It’s easy to access healthcare without additional payments once enrolled. Monthly contributions are automatically withdrawn from your Costa Rican bank account, but the process itself can be hard for first-timers, but worth it.

Health insurance options for expats

While enrolled in Caja, many US citizens living in Costa Rica also maintain:

• international health insurance plans
• travel medical insurance (for new arrivals)
• private Costa Rican insurance (INS)

Find a job in Costa Rica

Legal requirements for employment

To work legally in Costa Rica as a foreigner, you need all of the following:

1. Legal residency status that permits work: Not all types of residency allow you to work. For example, pensionado and rentista residencies generally don’t permit employment as an employee, but may allow you to own a business.
2. A work permit: This must be obtained from the immigration authorities (Dirección General de Migración y Extranjería) after you have legal residency status. The work permit is specific to your job and employer.
3. Local sponsorship (an employer): Typically, your employer in Costa Rica must sponsor your application. They must prove that the job could not be filled by a Costa Rican citizen or resident and provide documentation supporting your application.

Job opportunities for expats

Common employment options for expats moving to Costa Rica include:

• Teaching English – language schools, international schools, and universities
• Tourism industry – hotels, tour operations, and hospitality
• Remote work – digital nomads working for overseas employers
• Entrepreneurship – opening restaurants, tour companies, or other businesses

Job search resources

Try looking for jobs on ExpatExchange.com and LinkedIn. Also, networking with expat communities and local English-language publications like The Tico Times.

Costa Rican cost of living

Understanding the financial aspects of your move to Costa Rica is essential for proper planning and budgeting.

Monthly expenses comparison

Factors affecting your budget

Several elements will influence your personal cost of living when moving to Costa Rica:

• Location – urban areas like San José are generally more expensive than rural regions
• Lifestyle choices – importing American products versus embracing local options
• Housing preferences – luxury accommodations versus modest dwellings
• Transportation – owning a car (expensive due to import taxes) versus using public transport
• Entertainment – tourist activities versus local experiences

Most expats report living comfortably on $2,000 - 3,000 per month for a couple, including housing, food, transportation, healthcare, and entertainment. However, it's possible to live on less in rural areas or spend significantly more with a luxury lifestyle.

Finances and banking info

Opening a bank account

As a US citizen, you can open a Costa Rican bank account, but the process is more complex than in the United States.

Documentation requirements:

• passport
• proof of legal residency (or evidence of residency application in process)
• proof of address (utility bill)
• reference letters (usually required)

The most often recommended banks for expats are Banco Nacional, BAC San José, and Scotiabank.

Managing currency exchange

Costa Rica's currency is the colón (CRC), but US dollars are widely accepted. To manage currency effectively, it's a good idea to maintain accounts in both currencies.

Stay away from hotels or tourist areas for exchanging your money, use bank or currency exchange services, and try to monitor exchange rates (apps like XE Currency will help), that way you can time larger currency exchanges when rates are favorable.

Money transfers and digital options

When moving funds between countries:

• Wire transfers – traditional but often expensive
• Online services – wise and similar platforms offer competitive rates
• ATM withdrawals – convenient, but watch for fees
• Digital wallets – PayPal and Revolut are increasingly popular

Banking practices differ significantly from those in the US, with paper checks rarely used and many transactions still requiring in-person visits despite growing digital options.

For day-to-day spending, credit cards are widely accepted in urban and tourist areas, but carrying cash is essential in rural regions.

Understanding taxes

Tax obligations are perhaps the most critical consideration for any American citizen moving to Costa Rica, as US citizens maintain tax responsibilities regardless of where they live. You can find everything you need on tax preparation for Costa Rica on our blog.

US tax obligations

As a US citizen, you must continue filing US tax returns regardless of your residency status abroad. The United States taxes its citizens on worldwide income, meaning you must report all income, including that earned in Costa Rica, and you remain subject to the same filing deadlines (typically April 15, with automatic extensions for overseas residents).

FBAR filing (Foreign Bank Account Report) is required if your foreign accounts exceed $10,000 at any point during the year.

However, several provisions help prevent double taxation:

• Foreign Earned Income Exclusion (FEIE): You may exclude up to $130,000 (2025 amount, adjusted annually) of foreign earnings.
• Foreign Tax Credit (FTC): Receive credits for taxes paid to Costa Rica.
• Foreign Housing Exclusion: Deduct qualified housing expenses.

Costa Rican tax system

Costa Rica employs a territorial tax system, meaning:

• You're only taxed on income sourced within Costa Rica.
• Foreign-source income (US pensions, investments, or remote work for US companies) is generally not taxed.
• Income tax rates range from 0% to 25% depending on income.
• Property taxes are relatively low (approximately 0.25% of registered value).

How to stay compliant

To properly manage your tax obligations when moving to Costa Rica from the United States, working with tax professionals experienced in expatriate taxation will keep you ahead of your reporting requirements and ensure you remain compliant.

Need expert help with expat taxes when moving to Costa Rica? Our specialists at Taxes for Expats can ensure you meet all requirements while maximizing your tax advantages.

Cultural adaptation

Language considerations

Many Costa Ricans in tourist areas speak English, but learning basic Spanish is essential for daily interactions, especially outside expat communities.

Local Spanish contains unique expressions ("Tico Spanish") that differ from textbook Spanish, so practice with locals. Language apps like Duolingo, community classes, and language exchanges are also valuable resources.

Community integration

For any expat moving to a new country, it is essential to respect local customs. "Tico time" is more relaxed than the American approach to punctuality. Embrace "pura vida" or "pure life" – a philosophy of appreciation and relaxation.

You may be struggling to find ways to interact with locals, try to use some of your free time to volunteer for community projects or worthy causes – giving back helps build meaningful connections. You’ll find many more community-focused events like festivals, farmers' markets, and local celebrations.

Practical adjustments

One small but endearing change is the addressing system – locations are often described relative to landmarks rather than street addresses. Imagine being in Seattle and telling people, Yeah, it’s the place next door to Starbucks.

Driving conditions are an important consideration. Roads can be challenging, especially during the rainy season. Even though it's the same side of the road and the wheel is on the same side, make sure you’re confident in different conditions.

Something that should be a welcome shift is grocery shopping. Fresh markets often offer better produce than supermarkets.

Customer service (as with most of the world that doesn’t rely so heavily on tips) operates at a different pace than in the US.

Pros and cons of living in Costa Rica

Living in Costa Rica as an American offers numerous benefits alongside certain challenges. Understanding both sides helps set realistic expectations.

Need help navigating taxes when moving to Costa Rica?

Relocating internationally involves complex tax considerations that can impact your financial well-being. Our team of experienced tax professionals specializes in helping US citizens living abroad maintain compliance while optimizing their tax situation.

Whether you're planning your move or already enjoying the pura vida lifestyle, we'll ensure you understand both your US and Costa Rican tax obligations. Our experts will help you avoid costly mistakes and take advantage of all available deductions and credits.