Costa Rica may sound like a paradise, but don’t let that fool you. Here’s the dark side of living in Costa Rica you should know about.
February 28, 2025
By: Bobby Casey, Managing Director GWP
Before the 2020 pandemic, over 3 million people would visit Costa Rica every year. The numbers are slowly but surely rising again, and for good reason.
Costa Rica is known for its stunning natural landscapes, vast wildlife, fantastic weather, and laid-back lifestyle. So it’s no wonder why people are clamoring to live in the country after visiting just once.
However, not everything’s all sunshine and rainbows, and there’s definitely the dark side of living in Costa Rica. If you’re considering a move to this country, then keep reading.
Here are the important things you should keep in mind before relocating.
The Cost of Living Is Higher Than You’d Expect
Living in a tropical paradise doesn’t come cheap, and that’s certainly true of Costa Rica. While the cost of living in Costa Rica vs USA and Europe is lower, it’s not the “cheap paradise” you’d expect. Of course, your lifestyle, location, and spending habits will greatly impact how much you pay, but here’s a general breakdown of common monthly expenses:
- Rent for a 1-bedroom apartment in San José: $600 – $1,500+
- Rent in beach areas: $1,200 – $3,000+
- Electricity (A/C use): $100 – $250+
- Groceries: $300 – $700 (depending on if you buy local vs imported)
- Internet with decent speed: $50 – $100
- Private health insurance: $100 – $400 per person
Not only that, but there are some hidden costs that can catch you off-guard. For example, imported goods are extremely pricey, with electronics, cars, and imported food costing 30-100% more than they would in the US.
On that note, not only do you have to pay much more for a vehicle, but you have to tack on import taxes too. Maintenance is also more expensive than many expect.
In addition, you might experience businesses overcharging you since you’re a foreigner. If you want lower prices, be prepared to negotiate.
There’s Bureaucracy and Legal Hassles
If there are two things Costa Rica’s government is known for, it’s for being slow and confusing. Needless to say, be prepared for delays, lots of paperwork, and mind-blowing frustration.
To start, even if you have all your paperwork in order, expect months of waiting to have official residency. And if you want to open a local bank account, don’t be surprised when the bank asks for extensive documentation.
Those who drive must get their driver’s licenses regularly renewed. You may even have to retake your driving tests.
What’s most concerning is that there are property ownership issues. Some expats are scammed into buying land that they can’t legally own, so be wary when trying to buy a home. You should also hire a reliable local lawyer for anything related to residency, real estate, and banking.
Crime and Safety Concerns
Is Costa Rica Safe? How safe is Costa Rica to live, really?
The good news is that this nation is safer than most of Central America, but it’s definitely far from being crime-free. And worse yet, expats are often common targets for criminals.
The most common crimes aren’t violent in nature:
- Theft and pickpocketing
- Home break-ins
- Car break-ins
- Scams (real estate, fake tour operators, ATM skimming)
As you’d expect, crime hotspots are in tourist areas, like Jaco, Tamarindo, and Puerto Viejo. But rural areas have high crime rates too, as some have limited police presence. You should also watch out for certain districts in San José, like San Sebastián, Los Guidos, and La Carpio.
In general, you should be conscious of what you’re wearing and showing off in public, and don’t flaunt wealth. Plus, install reinforced locks and security cameras in your home.
Poor Infrastructure and Bad Roads
Costa Rica’s infrastructure is developing, which is good. However, it’s still lagging behind many Western countries.
When driving, there are potholes everywhere, and some roads are barely drivable. In addition, the roads flood easily, and landslides are common during the rainy season. A four-wheel-drive vehicle is a must, especially if you live outside the main cities.
And if you want to take public transport, the buses are slow, the taxis overcharge, and Uber is only semi-legal. No matter how you commute, it’ll probably take twice as long as expected.
Unpredictable Weather and Natural Disasters
While Costa Rica has amazing weather most of the time, it doesn’t always feel like paradise.
In the above section, we mentioned the rainy season, which spans from May to November. You’ll get daily downpours that sometimes last all day, and flooding can cut off roads and towns. Also, the resulting humidity can ruin your electronics and furniture.
On the other hand, there’s also the dry season, which runs from December to April. It can be extremely hot in areas like Guanacaste. Water shortages can happen too.
As for natural disasters, minor earthquakes are common, and stronger ones do happen. And while hurricanes are rare, they’re definitely possible. The Caribbean coast gets hit more often.
Culture Shock and Language Barriers
Living a laid-back tropical island life may sound outstanding, but it can become frustrating after residing in Costa Rica for a while. For instance, Costa Ricans avoid confrontation and have indirect communication, so they might agree to something and never follow through. Plus, being 30 minutes late (or more!) is normal for both social and business meetings, so you’ll have lots of down time waiting.
Speaking of waiting, customer service is slow too. Don’t expect quick responses from businesses and even government offices.
If you don’t speak Spanish, you’ll also run into language barriers. Outside of tourist areas, most people don’t speak English, and Spanish is essential for dealing with government offices, landlords, and service providers.
Limited Job Opportunities for Expats
Unless you work remotely or run your own business, job opportunities may be slim. For one, many jobs require fluent Spanish, and work permits are hard to get as well.
Even if you’re lucky and land a job, you must be prepared to accept a low salary. Most jobs pay far less than in the US or Canada, although the lower cost of living does make up for it a bit.
A Complex Tax System
Costa Rica’s tax system can be confusing, and if you fail to comply, it can lead to hefty fines.
The country follows a territorial tax system, which means that only income earned within its borders is taxable. Foreign income isn’t taxed, and this includes US Social Security benefits, foreign pensions, and income from remote work (if you’re paid by a foreign company).
To be considered a tax resident though, you must spend over 183 days in Costa Rica within a calendar year. Also, your main economic interests have to be in Costa Rica.
Getting Citizenship Isn’t Easy
Whether you’re considering retiring in Costa Rica or just want to live there permanently, you may be thinking of getting citizenship in the nation. If so, then you should be aware that there’s a long residency requirement. You must legally reside in Costa Rica for at least seven years before applying; this decreases to five yeras if you’re a citizen of Spanish-speaking Latin American countries and Spain.
You must have permanent residency before applying too. This means holding temporary residency for at least three years, and then upgrading to permanent residency and maintaining it for at least four more years.
The issue is that not all residency types allow an upgrade to permanent status. For example, rentista (fixed income) and pensionado (retirees) visa holders have to switch to a different category before they can apply for permanent residency.
Even after you live in Costa Rica for at least seven years, you’re not in the clear yet. To become a citizen, you must prove that you’ve integrated into local society. To do so, you have to pass a Spanish language test (spoken and written) and a civic test as well (history, culture, and government).
You should also be aware that Costa Rica doesn’t allow dual citizenship except in certain cases. If you’re from a country that also recognizes dual nationality (such as the US, Canada, and most EU countries), then you’re good. Otherwise, you have to renounce your original nationality to become a Costa Rican citizen.
Be Aware of the Dark Side of Living in Costa Rica
Don’t get us wrong; Costa Rica is an excellent country to relocate to. However, many people jump into things with rose-tinted glasses, and when the disadvantages appear, they’re hugely disappointed, and it taints their experience.
By knowing the dark side of living in Costa Rica ahead of time, you can prepare yourself for the worst. And as a result, you’ll have a better overall time in this beautiful country.
Contact us today if you want to learn more about the tax system in Costa Rica and want to protect your assets. Global Wealth Protection is backed by over 20 years of experience.
