Before Moving in, Check Why They Move out
Costa Rica has long been regarded as a premier destination for expats seeking a tropical paradise. With its stunning natural beauty, stable democratic government, and reputation for being the "Switzerland of Central America," it's easy to understand the country's attractions.
Many people come on vacation and find themselves yearning for a permanent move, a permanent change of pace. But despite Costa Rica's well-established appeal, a significant number of expats find themselves departing within a year or two of arriving. Let’s explore why expats leave, shedding light on the challenges and realities that often clash with the idyllic expectations of life in Costa Rica.
Economic Factors
One of the main reasons for expats leaving Costa Rica is the high cost of living, which can be a significant surprise for many. Put simply, a lot of immigrants just fail to factor in just how expensive Costa Rica can be to live in. Costa Rica is by far the most expensive country in Central America, with living expenses often comparable to or surpassing those of many USA cities. For many expats, especially retirees on a budget of $1,000 per month (the minimum pension required for pensionado residency), this can be a shock. It’s no real stretch of the imagination to understand that a lot of expats on lower incomes look at neighboring countries like Nicaragua and see far more bang for the buck.
Why Is Costa Rica so Expensive?
It's worth taking some time to look at why Costa Rica is so expensive. Bottom line is that Costa Rica's status as a popular tourist destination has fueled the growth of an economy geared towards catering to international visitors. From accommodations and transportation to dining and activities, a significant portion of the country's infrastructure and services are priced with foreign incomes in mind. This is especially true in tourist areas, which is where many expats want to move to.
Compounding this is Costa Rica's heavy reliance on imported goods, which are subject to substantial import taxes and fees. With limited domestic production alternatives, consumers are left with few choices but to pay the inflated prices for many items. While it’s true that other Central American countries also rely on imported goods, other factors like stringent labor laws and bureaucratic obstacles make it challenging for local companies to compete, resulting in limited market options and higher prices.
The impact of inflation and currency exchange rates further exacerbates the challenges for residents. Costa Rica's inflation rate has consistently outpaced that of the United States and other developed nations, eroding the purchasing power of fixed incomes or savings. Additionally, the fluctuating exchange rate between the Costa Rican colón and major currencies like the USA dollar can create financial uncertainty and strain household budgets.
Residency and Administration
One of the most contentious points among expat circles in Costa Rica is the question of residency. You’ll find people arguing about the pros and cons of getting legal residency rather than living in-country as a tourist. Truth be told is that, nowadays, residency by investment is cheaper than it ever was, while digital nomad visas and longer permitted stays for tourists make much of the old arguments moot. You can now stay in Costa Rica six months at a time, making residency not the essential status it used to be.
Getting residency can take a while, though. Sometimes it takes years, and some expats just don’t have the patience for that, even if they don’t really need it. Oftentimes they end up leaving Costa Rica for any of the other reasons we’ve mentioned in this article before their residency comes through. That all said, here are a couple of residency-based reasons why people leave Costa Rica.
One of the requirements of legal residency in Costa Rica is monthly payment to the Caja —Costa Rica’s social security system. This is mandatory for all foreign residents regardless of whether they have their own private health insurance or pension. In recent years, the amount of money required each month for the Caja has risen, making this cost prohibitive for some. In these cases, immigrants can simply renounce their residency and either leave Costa Rica or go back to living as tourists.
Living as a tourist, however, has drawbacks. It’s difficult, for example, for non-residents to open a bank account in Costa Rica. The paperwork is long and the requirements many. It’s not impossible, but not easy either. This in turn can complicate the way they live and work in Costa Rica. For some people, these are situations that make them reconsider staying in the country.
Working in Costa Rica (or Lack Thereof)
Limited job opportunities also contribute to the economic hurdles faced by expats in Costa Rica. While the tourism industry offers some prospects, securing meaningful employment outside of this sector can be extremely difficult, especially for those without legal residency (which can take years) or without fluent Spanish. A lot of expats show up thinking they can simply get a job and find out they can’t. The rise in remote work has helped in many regards, as people can work from Costa Rica for companies in their home countries, but there are still many people who don’t even consider this, especially those with trades.
Starting or Buying a Business
Starting or buying an existing business can be an alternative path for expats seeking income, but the business environment in Costa Rica presents its own set of obstacles. Navigating the bureaucratic red tape, regulatory hurdles, and high operational costs can be daunting, especially for those unfamiliar with the local business culture and practices.
Quality of Life Issues
These are the major concerns.
Crime
Beyond economic considerations, residents in Costa Rica often encounter other issues that can impact their overall experience and satisfaction. Rising crime rates and personal security concerns are a growing problem, particularly in urban areas and popular tourist destinations. Many Costa Ricans themselves are concerned about crime, and expats are no different. Living in Costa Rica means you’ll see things on TV or hear about them on social media that you might miss as a tourist. While violent crime statistics remain relatively low outside of gang-related incidents, and Costa Rica is generally safe, it’s still possible for many expats to feel uneasy and anxious.
Healthcare
The healthcare system in Costa Rica is another area that can be a source of frustration for expats. While the public healthcare system is generally accessible and affordable, it often suffers from long wait times, staffing shortages, and limited resources. Private healthcare facilities offer more expedient service and higher standards, but the costs can be prohibitively expensive, especially for those on fixed incomes or without comprehensive health insurance.
Infrastructure
Infrastructure challenges can also detract from the quality of life in Costa Rica. Transportation systems, particularly in rural areas, can be unreliable and poorly maintained, making travel and commuting difficult. Utility services, such as electricity and water, are prone to frequent disruptions, and internet connectivity can be frustratingly slow or intermittent, hampering remote work and online activities.
Education System
For immigrant families with children, the quality and affordability of education options in Costa Rica can be a significant concern. While the public school system is free, it is often criticized for overcrowding, underfunding, and a lack of resources. The curriculum is also taught entirely in Spanish, which can pose challenges for non-Spanish-speaking children and families.
Private schools offer an alternative, but they can be costly. These schools typically provide a higher standard of education, smaller class sizes, and instruction in English or a bilingual curriculum. However, the high costs can strain the budgets of many expat families, forcing difficult choices between quality education and financial constraints. International schools, catering specifically to the expat community, are also available but are not cheap. While these schools offer a familiar educational experience and an international curriculum in both city areas and the coast, their costs are simply out of reach for many expat families.
Oftentimes, expats might live in Costa Rica before they have kids, and while their children are young. But when they reach school age, they may find it prudent to head back home for these educational reasons.
Cultural and Social Integration
Not everyone mingles as much as they'd want to.
Language Concerns
For many expats, the language barrier in Costa Rica can be a significant hurdle to overcome. While English is widely spoken in tourist areas, Costa Rica is primarily a Spanish-speaking country, and many people speak no other language. Navigating daily life, engaging with local communities, and accessing essential services can be challenging without a proficient command of Spanish. Learning a new language as an adult requires a substantial time commitment and effort, which can be daunting and frustrating for some expats.
Cultural Differences
Cultural differences can also contribute to a sense of disconnect and isolation for expats in Costa Rica. The laid-back, relaxed pace of life, and more indirect communication styles can clash with the expectations and norms of expats from more fast-paced, direct cultures. Also, bureaucracy in Costa Rica can be frustratingly inefficient and complex, leading to feelings of exasperation and alienation. Following the Costa Rican culture way of life can be a drawback for some.
Lack of Integration
Despite the warm and welcoming nature of most Costa Ricans, many expats struggle to fully integrate into the local community and feel a sense of true belonging. They find themselves only communicating with other expats, or spending their lives on social media. Cultural barriers, language difficulties, and a perceived lack of shared experiences can create feelings of isolation and a yearning for the familiarity of their home cultures.
Finding common ground with the Costa Ricans in their neighborhood can be helpful in reducing these bridges. For example, most church groups, avid gardeners, or soccer fans will gladly share their interests with expats even if they aren’t proficient in each other’s languages. Seeking out people with similar passions will always give immigrants more of a chance to integrate into their communities.
Missing Home
For expats who have left behind close family members, like children and grandchildren, the distance can become increasingly difficult to bear over time. The initial excitement of a new adventure and tropical lifestyle can eventually give way to a deep longing for the familiar connections and relationships back home. Missed birthdays, holidays, and other significant milestones can be emotionally challenging, leading some expats to reconsider their decision to reside abroad.
Many expats also find that despite best intentions, their friends and family members do not end up visiting them as often as they had hoped. The logistics, costs, and time commitments associated with international travel can be prohibitive, leaving expats feeling disconnected from their support networks and cherished relationships back home.
Aside from family and friends, oftentimes expats miss other aspects of home, like seasons (there’s no winter, spring, or fall in Costa Rica), or even restaurants or cuisine styles that can’t be found here.
Things to Consider before Making a Move to Costa Rica
While Costa Rica possesses a unique charm and natural beauty that keeps many immigrants here their entire lives, the realities of daily life can often clash with idealized expectations. The challenges outlined in this article highlight the importance of conducting thorough research and maintaining realistic expectations before making the decision to relocate.
Economic considerations like the high cost of living, limited job opportunities, and entrepreneurial obstacles can strain financial resources and diminish the affordability of the expat lifestyle in Costa Rica. Crime rates, healthcare accessibility challenges, and infrastructure deficiencies can also significantly impact an expat's quality of life and sense of security.
For families with children, the quality and affordability of education options in Costa Rica can be a major concern, with public schools often lacking resources and private institutions carrying hefty price tags. Navigating cultural differences, language barriers, and social integration can also contribute to feelings of isolation and a yearning for the familiarity of one's home country.
Despite these challenges, many expats find that Costa Rica's beauty, great weather, friendly people, and relaxed pace of life outweigh the potential drawbacks. But to find true happiness in Costa Rica—or any new country, for that matter—it’s crucial to relocate with open eyes and a realistic understanding of the sacrifices and adjustments that may be required.
For those considering alternative destinations, countries like Belize, Barbados, or Jamaica may offer a more familiar environment for English speakers. Panama, Nicaragua, and Mexico can provide more affordable living costs while still offering proximity to the tropical Latin lifestyle of Costa Rica. Alternatively, European countries like Spain and Portugal may appeal to expats seeking a higher standard of living, better infrastructure, and increased personal safety, albeit with a different cultural experience.
Ultimately, the decision to relocate as an expat is a deeply personal one, influenced by individual priorities, preferences, and circumstances. By carefully weighing the pros and cons and maintaining realistic expectations, expats can increase their chances of finding a fulfilling and sustainable expatriate experience, whether in Costa Rica or elsewhere. And if you feel like you’d like more personalized advice or a helping hand while you relocate, give us a shout. We’ll gladly help.
