Many people have been asking me about Costa Rica for a long time. It is a gorgeous country with every quality an expat can dream of, and some of my clients already live there, giving me great feedback on the ground. If you have been following me, you know I talk about Panama, Paraguay, Brazil, and Colombia a lot, but rarely about Costa Rica. That is not because I did not find it worth mentioning. On the contrary, I have only ever been amazed by my many visits to the country, and from now on, you will find me talking about it a lot for the next weeks, years, and even decades.
Costa Rica is a small Central American country with roughly 6 million people. It may look like other countries in the isthmus from the outside, but it is an exception in many ways. Its exceptionalism is driven by its history, nature, and geographic position. Costa Rica broke its cycle of military rule as early as 1948 by abolishing its standing army after a short civil war, and it has been a stable democracy ever since.
Costa Rica has built its economy aggressively around foreign direct investment and eco-tourism. Its nature has played a central role in this strategy, as the country hosts 5% of the world's biodiversity. Costa Rica's "Pura Vida" lifestyle, which literally means "pure life," greatly helps attract visitors looking to experience a more meaningful life, as it promotes a connection to nature, a mindful pace of life, gratitude, and stronger community ties.
Costa Rica's openness is a conscious choice, and its free market economy reflects this in economic freedom indexes. Rounding out these structural advantages, Costa Rica applies a territorial tax system that leaves foreign income untaxed. With straightforward, varied visa programs that make residency easy, relocating becomes a relatively quick process for many expats seeking a lifestyle destination in particular.
In this article, I will walk you through what you need to know about Costa Rica as a Plan-B destination: expat neighbourhoods, the healthcare system, the cost of living, taxes, safety, visa routes, and the right-wing shift shaping the region, including Costa Rica.
Beach living in Costa Rica ranges from well-developed coastal hubs to peaceful surf towns that embrace the Pura Vida way of life
Costa Rica breaks into distinct regions, each with a different climate, cost of living, and expat culture. The right choice depends on whether someone wants city infrastructure, beach life, or something quieter. Here is a region-by-region breakdown.
The Central Valley is the elevated plateau around San José. About 70% of Costa Ricans live there, and it is where most expat families land first. The mild, dry highland climate means comfortable living year-round without heating or air conditioning, and the region has the country's best concentration of international schools, hospitals, and amenities. It is also the most affordable region for a comfortable standard of living.
Within the Central Valley, Escazú and Santa Ana stand out as the most upscale options. Escazú is even called Costa Rica's Beverly Hills, and it is the most established expat community in the country as well as its most American-influenced town.
Cartago, Costa Rica's former capital, is an alternative destination for expats. This place is greener, cooler, and much more authentically Costa Rican than the more foreign-heavy towns. It is still a developed city, but it suits people who want nature and authentic local life over an expat bubble better.
If you are looking for a developed beach region, Guanacaste, on the northwest Pacific coast, serves you best. Towns such as Tamarindo and Playa Flamingo are among the most popular ones. This region is for those who want beachfront living, modern infrastructure, and established expat communities. Climate is also a major draw, with sunny, dry weather year-round. Guanacaste is known as the Gold Coast and is easily accessible via Liberia's international airport.
Surfers, wellness-focused retirees, and remote workers looking for a slower pace of life usually prefer the Nicoya Peninsula, home to Nosara and Santa Teresa. The region is sparsely populated and harder to reach than the country's major cities. It is also known as one of the world's original "blue zones," where it is common to meet people close to or older than 100. Nicoya is the embodiment of the Pura Vida philosophy.
Those looking for a more eclectic expat experience usually land on Puerto Viejo on the Caribbean coast, with its Afro-Caribbean cultural identity, its intensely humid climate, and its slower rhythm of life. However, this coast has a smaller expat population than Guanacaste or the Central Valley.
Many expats choose Costa Rica for its high-quality private healthcare, short waiting times, and English-speaking doctors
Costa Rica has a two-tiered healthcare system. CAJA is the public system, and everyone legally residing in the country is required to enroll in it. The private healthcare network is particularly established in San José, but accessible in many other cities.
Most expats prefer private hospitals because of English-speaking doctors, concierge services, short waiting times, and modern equipment. Expats usually buy local private insurance, which is relatively affordable, costing about $115 USD a month. However, if you prefer more comprehensive international insurance, you can expect premiums ranging from $150 USD to $400 USD a month.
Costa Rica is also a destination foreigners travel to for treatment. Convenient flights from North America have helped make it one of the region's most established destinations for cosmetic surgery, dental work, and wellness recovery. San José is a leading dental tourism destination, and about 95% of medical tourists come from North America. Patients often save 70% or more on dental implants, crowns, and full-mouth restorations compared to North American prices.
Costa Rica is not the cheapest option in Latin America because of its popularity and its strong local currency. However, the savings can still be substantial when weighed against the quality of life and level of service available in the country.
A single person spends around $960 USD a month on average, excluding rent. A family of four spends roughly $3,550 USD a month, excluding rent. Compared to the U.S., the cost of living runs about 19% lower on average, and rent runs about 43% lower. That rent gap is the real driver of savings, but the quality of life the country offers is worth factoring in too.
A one-bedroom apartment in the city center costs around $885 USD a month on average, dropping to $642 USD outside the center. A three-bedroom in the city center averages $1,750 USD, or $1,190 USD outside the center. The ranges are wide, though, reflecting the gap between Central Valley cities and premium beach towns.
For families with children, international primary schools are affordable compared to those in the U.S., averaging around $12,770 USD a year per child, and private full-day preschool averages $740 USD a month.
The income earned outside of Costa Rica is not subject to local taxation under the territorial tax system. Regardless of residency status, business income, pension payments, and investment income earned from foreign countries are fully exempt.
Income earned from a local job or business in Costa Rica is subject to progressive tax. Local income is taxed at a 0% rate up to about $12,400 USD. Rates increase in 10%, 15%, 20%, and 25% brackets. The property tax rate is 0.25%, which is at a low level by international standards.
However, U.S. persons must still file tax returns annually because Washington taxes worldwide income regardless of residence. You should also be aware that there is no U.S.-Costa Rica tax treaty.
Costa Rica is one of the safest countries in Central America, but its reputation is getting more complicated because of the rising organized crime rates in recent years.
On Numbeo's index, the country carries a Crime Index of 54.24, which places it in the middle of the global range. The 2025 Global Peace Index ranks Costa Rica 54th of 163 nations for overall safety. That ranking is significantly better than the U.S. at 128th.
However, the homicide rate rose from 11.2 in 2019 to 17 per 100,000 people in 2025. This is a sharp increase. This increase is not due to random street crimes. Seven out of ten homicides are linked to the drug trade, and because Costa Rica has coastlines on both the Pacific and the Caribbean, it has evolved from being primarily a transit corridor into a logistics hub for Colombian and Mexican cartels.
Violence affects those involved in this trade rather than being common among the general population. Homicides are related to specific urban neighbourhoods and regions linked to drug trafficking routes and port activities. That is why expats living in suburban, rural, or coastal areas generally have very little exposure to these environments.
Homicide makes up only about 2.1% of the overall crime statistics. For most expats, the real day-to-day concern is opportunistic property crime. Atenas is the safest of the popular expat towns, carrying a Crime Index of 40.5 and a Safety Index of 59.5, with most incidents involving opportunistic theft rather than violence. It is ideal for families seeking a calm environment and sits about 35 minutes from San José.
Arenal and La Fortuna rank as low-crime destinations. Heredia works well for families near the capital. Escazú and Santa Ana, the upscale San José suburbs, are the safest neighbourhoods near the capital. Their gated communities, modern infrastructure, and lower exposure to street crime make them among the safest places to live, compared with central San José. Tamarindo on the Pacific coast and quieter cities like Nosara, Grecia, and Monteverde are all known for their safety.
However, there are neighbourhoods you should be careful about. In San José, the districts of Los Guido, Desamparados, Pavas, La Carpio, and León XIII have higher crime rates. Pickpocketing and opportunistic theft are tied to high density and lower-income conditions. Outside the capital, the El Carmen neighbourhood in Cartago and the El Infiernillo sector in Alajuela have more frequent petty theft and are considered higher-risk at night.
Most expats lead a comfortable life by choosing a town with a low crime rate, securing their homes and vehicles, and not displaying their valuables in public. Although the murder statistics making headlines may seem alarming, they reflect a problem concentrated in specific neighbourhoods and linked to a criminal underworld that foreigners have no reason to get involved with. For someone living in Atenas, Escazú, or Arenal, the daily risk profile consists of petty thefts that can be managed with the same common sense you would use in any mid-sized city.
Related content: Safety Tips For Expats: The Only Guide You'll Ever Need
A qualifying investment in Costa Rica can lead to temporary residency, permanent residency, and eventually citizenship
Costa Rica's investor visa is its residency-by-investment route that a qualifying investment leads to temporary residency first, then permanent residency, and citizenship later on.
The investment threshold for this visa was $150,000 USD. But the deadline for that reduced rate expired on July 14, 2026. Applications filed after that date are subject to a minimum $200,000 USD investment. However, the qualifying categories are unchanged. Real estate, an active business, company shares, securities, venture capital, or tourism projects are all included in Investor Visa. If you opt for approved forestry or reforestation projects, the threshold is $100,000 USD.
The property must be registered directly under your personal name in Costa Rica's National Registry, not through a corporation, although corporate-held investments are not entirely excluded if they meet strict conditions. The investment also has to be formally recorded. It must be registered with the Central Bank of Costa Rica as a foreign direct investment to qualify for the immigration benefit. Family members can be included: a spouse and children under 25, or older children with disabilities, may be added to the application.
After you are granted a two-year temporary residence permit, you can renew it as long as you hold the investment. You become eligible for permanent residence after three years and citizenship after seven years.
There are other visa programs for different needs and preferences. The Pensionado category requires $1,000 USD a month in guaranteed pension income with no investment. The Rentista category requires $2,500 a month in passive income for at least two years. You can apply for these visa programs abroad, and both grant a two-year renewable temporary residency.
Costa Rica is part of a broader political shift in Latin America toward pro-market and security-focused governments
Latin America has been experiencing a great transformation, with countries electing right-wing presidents who have been promising an effective fight against organized crime and market-friendly reforms to achieve economic growth. Argentina, El Salvador, Colombia, Bolivia, Chile, Ecuador, and Peru all replaced their socialist governments in pursuit of a better future.
Once Panama, Paraguay, and Costa Rica are added, which are already governed by pro-liberty and pro-market presidents, the picture becomes clear that Latin America is in a structural change that will lead the region toward better-functioning governments and economies.
Costa Rica has been ruled by pro-market governments for decades, and lately Costa Ricans elected pro-security, right-wing leader Laura Fernández Delgado, who promised hard security policies to dismantle organized crime in the country.
It is also important to mention that Costa Rica has also become a member of the Shield of the Americas, an organization led by President Donald Trump to coordinate a coalition fighting against the cartels in Latin America. This is great news for the region, and I am quite hopeful about the future of Costa Rica.
Costa Rica combines stability, opportunity, and an exceptional quality of life, making it one of the world's leading Plan-B destinations
Costa Rica offers everything needed to build a solid Plan-B. Political stability, a growing economy, an established territorial tax system, real estate investment that leads to residency, JCI-accredited private hospitals, affordable luxury by U.S. standards, and various regions that serve different needs are all part of what makes Costa Rica work as a Plan-B destination.
What sets it apart is that it is easy and joyful to live in Costa Rica. Established expat communities in Escazú, Santa Ana, Atenas, Tamarindo, and the Arenal area mean you arrive somewhere with English-speaking doctors, international schools, and people who have already done the paperwork.
Additionally, you get the nature Costa Rica is known for, the beaches, rainforest, and volcanoes, without giving up modern amenities. You can live surrounded by jungle and still be twenty minutes from a JCI-accredited hospital, a good supermarket, and reliable internet. On top of all these advantages, you get the Pura Vida lifestyle, which makes you feel like you are living in the moment instead of catching up on a stressful schedule.
That combination is rare, and it is the real reason Costa Rica belongs on any serious Plan-B shortlist. If you don’t know how to start building your Plan-B, download our free special report on Plan-B Residencies & Instant Citizenships.