Whenever I meet someone and the subject of Costa Rica comes up, I generally hear about how cheap it is to live in Costa Rica. Well, let's examine this for one second. Some people still classify Costa Rica as a third world country. The fact is that the United Nations some years ago took them off of that list. I guess they fall into the second world these days.

I normally respond to this question: How do you want to live?If one wanted to retire on  $1,200 a month in Costa Rica you probably could survive and live a better lifestyle than you would have in the States. One could rent a decent one bedroom apartment in the San Jose area for about $400 a month. Outside of San Jose, about an hour from the city, maybe $200. I know of places where you can rent for half that amount but I'm trying to keep the same level that you would get in the States. Where you really come out ahead is water and electric. The government of Costa Rica owns the telephone and electric companies. Your phone land line would run about twenty dollars. (It may take you three months to get one.) Your monthly utility bill would be about twenty dollars a month as well. Cable is much cheaper also, about forty dollars a month. 

One would also enjoy savings in medical insurance. Costa Rica has socialized medicine. Believe it or not, the public hospitals are not that bad. Private insurance is what you want if you decide to live there part-time or full-time. Hands down the best hospitalin the country is called Cima, which is right out side San Jose. For one year you would pay $1,000. That's right folks not a month, a year. I broke my ankle in Costa Rica four years ago and had emergency surgery at Cima. I have to say, this was the best hospital I have ever seen in my life. They even let me stay an extra day for FREE! Here in Ft Lauderdale I pay for both my son and I: $800 month for medical.

Gas is more expensive in Costa Rica. They sell it in liters. Maybe $4.50 a gallon. When it comes to cars you have two ways to go. You can transport a car from the States to Costa Rica for about $600 (leaving from Port of Miami) You can drive the car for about six months before you have to pay a tax. Get ready, it can be as high as 80% on the value. Buying a car in Costa Rica will be expensive depending on the vehicle. A buddy of mine payed $10,000 for a 96 SUV with high mileage.

 Entertainment:  Well, everyone has to eat and maybe sometime drink as well. Dining out is generally cheaper, but you can spend the same if you frequent high-end restaurants. Food in supermarkets is definitely more expensive. Beer and wine however are much cheaper. A beer in a bar us about $1.50. If you decide to buy for reasons besides the price of the home, look for that discussion in another blog. Overall, buying is much cheaper. Taxes on real estate in Costa Rica is 0.25%, so on a $500,000 home you pay $1,250. In Ft. Lauderdale you pay 2.5%. Homeowners insurance: the government owns the insurance company, also you pay very little. There are no hurricanes in Costa Rica, therefore, there are no windstorms. For my home in Ft Lauderdale, I pay $20,000 a year between taxes, windstorm, and homeowners insurance. Not including monthly maintenance. I could go on and on!

Is Costa Rica cheaper? I guess it all depends on your expenses here in the States. We live in a global economy if you can figure a way to earn a living from Costa Rica, I think you might be ahead of the game.