If you’ve ever daydreamed about swapping rush hour traffic for toucans and monkeys, you’re not alone. Americans living in Costa Rica are discovering that the country’s famous pura vida philosophy isn’t just a slogan—it’s a lifestyle. Think year-round sunshine, beaches on both coasts, misty rainforests, and a daily pace that moves about as fast as a hammock swaying in the breeze.

Costa Rica has become a magnet for U.S. expats, offering a rare combo: relatively low cost of living, high quality of life, and a welcoming community where English is increasingly common. For many, it’s not just a move abroad—it’s a reset button.

Visa and residency requirements for U.S. Citizens

When it comes to visas, Costa Rica isn’t a one-size-fits-all kind of place. Americans living in Costa Rica have a menu of options depending on whether you’re a retiree, remote worker, or big spender with dreams of palm trees and property.

• Digital Nomad Visa: Perfect for remote workers who want to code, write, or Zoom from Tamarindo’s beautiful beaches instead of a cubicle. Costa Rica’s digital nomad visa requires proof of steady monthly income.
• Pensionado (Retiree): If you collect Social Security or another pension, this is your golden ticket. Costa Rica welcomes retirees with reliable income and offers access to the public healthcare system.
• Rentista: For those with investment income or savings who want to show they can support themselves.
• Inversionista (Investor): Secure your spot by investing in real estate, active businesses, or even certain forestry projects. Note that while the entry point is currently $150,000, it is expected to return to its original $200,000 level in late 2026, so timing is everything.
• Temporary residency: The catch-all for folks testing the waters before committing to permanent resident status.

The process usually involves proving income, opening a Costa Rican bank account, and wading through the legal paperwork. Spanish fluency helps, but plenty of English-speaking professionals and officials make the path smoother.

Cost of living in Costa Rica

The “low cost” reputation of Costa Rica is only partly true. Some things—like fresh produce, public transportation, and domestic services—are significantly cheaper than in the U.S. Others—like cars, electronics, and imported foods—can cost more.

• Housing: Inflation and high demand in expat bubbles have pushed prices up. A modern 2-bed in San José now ranges from $1,200–$2,500+, while beach hubs like Nosara or Tamarindo often see U.S.-level pricing for premium rentals.
• Utilities: Electricity is notoriously pricey thanks to air conditioning. Internet is widely available and relatively cheap compared to U.S. rates.
• Groceries: Local fruit, vegetables, and fish are inexpensive. Imported wine, cereal, or snacks will make you nostalgic for Costco prices.
• Healthcare: Public healthcare (Caja) is affordable and available to permanent residents, but many expats also carry private insurance—expect $100–$300 per month depending on coverage.
• Transportation: Buses are cheap and reliable; owning a car is costly thanks to import taxes and high fuel prices.

Bottom line? Many expats say they save compared to living in the U.S., but Costa Rica isn’t a “$500-a-month paradise.” Think modest but comfortable, not tropical bargain bin.

Healthcare in Costa Rica: What expats need to know

Costa Rica takes healthcare seriously—so seriously, in fact, that its Caja Costarricense de Seguro Social (Caja) is one of the most comprehensive universal systems in Central America. As a legal resident, you’ll be required to join the Caja, paying monthly contributions based on your income. Once you’re in, you get access to doctors, hospitals, and medications across the country.

That said, many Americans living in Costa Rica also carry private health insurance. Why? Because while Caja is affordable and high quality, it comes with long waits and the occasional bureaucratic shuffle. Private hospitals in San José and Liberia offer shorter lines, English-speaking doctors, and modern facilities—and prices are still far below what you’d pay back home in the U.S.

A few practical notes for expats:

• Enrollment: Once your residency is approved, you must enroll in the Caja before you can receive your DIMEX (residency card). Monthly fees are calculated on a sliding scale—expect to pay roughly 7% to 11% of your reported residency income.
• Geography matters: In rural areas, the nearest Caja clinic might be a bus ride (or two) away, and specialized care often requires a trip to the capital.
• Climate considerations: The rainy season brings more than mudslides—it can also mean an uptick in dengue and other tropical diseases. Many expats in coastal towns keep a trusted private doctor on call for peace of mind.

Costa Rica’s healthcare is often compared with nearby Panama’s, and both countries score high with expats. But Costa Rica wins extra points for balancing affordability with quality, making it a cornerstone of the pura vida lifestyle.

Taxes for Americans living in Costa Rica

Sorry, expats—just because you’ve swapped snow boots for sandals doesn’t mean you’ve escaped the IRS. U.S. citizens must file an annual U.S. tax return no matter where in Latin America they live, and that includes Costa Rica. Worldwide income is reportable, from your freelance writing gig to your side hustle teaching surfing in Tamarindo.

On the Costa Rican side, residents pay income tax on locally earned income, with rates that top out lower than U.S. federal brackets. The good news? Foreign retirement income (like Social Security) generally isn’t taxed in Costa Rica. The bad news? Double taxation can still loom if you don’t file correctly.

This is where the IRS offers some relief:

• The Foreign Earned Income Exclusion (Form 2555) is a powerful tool—for the 2026 tax year, the exclusion limit has risen to $132,900. This can significantly reduce or eliminate your U.S. tax bill, provided you meet the physical presence or bona fide residence tests.
• The Foreign Tax Credit (Form 1116) provides a dollar-for-dollar offset for income taxes paid to Costa Rica.
• Expats may also need to report foreign bank accounts through FBAR or FATCA if balances exceed certain thresholds.

Best places to live: Where American expats settle

One of the perks of Costa Rica? You can swap your view without ever leaving the country—volcanoes one month, beach the next. That’s why American expatriates tend to cluster in a handful of regions, each with its own flavor.

• Central Valley (San José, Escazú, Heredia): Cooler weather, modern amenities, and easy access to hospitals and schools. Great if you like city life with mountain views.
• Guanacaste (Liberia, Tamarindo): Sunshine almost year-round, plus an international airport. Expect higher real estate prices and plenty of surfboards.
• Pacific coast (Jacó, Nosara, Dominical): Beach towns with big expat communities. Perfect for those who like yoga studios and organic cafés within walking distance of the waves.
• Caribbean coast (Puerto Viejo, Limón): Quieter, cheaper, and more culturally diverse. Ideal if you prefer reggae beats over resort crowds.
• Urban centers (San José, Liberia): Bustling, practical, and a good fit if you need regular access to embassies, banking, or corporate work.

Wherever you land, expect a dose of “tico time”—Costa Rica’s famously laid-back approach to life. Great for your stress levels, not so great if you’re waiting on home repairs.

Expat community life in Costa Rica

Moving abroad is easier when you don’t have to do it solo—and Costa Rica makes plugging into an expat community surprisingly easy. Whether you’re in a bustling hub like San José or a sleepy surf town, you’ll find plenty of Americans and international living enthusiasts who’ve already blazed the trail.

• Clubs and organizations: From Rotary chapters to environmental groups, expats love to join forces for good causes—and socializing.
• Volunteer work: Animal rescues, beach clean-ups, and community development projects are popular ways to give back while making friends.
• Language learning: Spanish helps (a lot), but English is widely spoken in tourist areas. Expats often form bilingual friend groups, swapping language lessons over coffee.

Most importantly, the pura vida philosophy seeps into daily life. Relationships are built on friendliness, patience, and a shared appreciation of slow mornings and long sunsets. The result? Expat life in Costa Rica feels less like “starting over” and more like slipping into a well-worn hammock.

Safety and quality of life

Costa Rica is generally considered safe for day-to-day life, but homicide rates have risen in recent years—reaching some of the highest levels in Central America in 2023–2024. Most expats report feeling secure with basic precautions, though petty theft and crime in certain areas remain concerns.

While crime rates are a reality, expats often find that the rewards of living in Costa Rica—the natural beauty, community, and slower pace—far outweigh the risks when taking sensible precautions:

• Safety: Stick to common-sense precautions—don’t leave valuables on the beach, and lock your doors at night. Most expats feel secure day-to-day.
• Rainy season: Expect daily downpours from May to November. Annoying at times, yes—but it’s what keeps the landscape lush and beautiful.
• Outdoor lifestyle: Surfing, hiking, birdwatching, or just lounging in a hammock—year-round outdoor living is part of the package.
• Language: English is widely spoken in expat hubs, but learning Spanish opens doors to deeper friendships and smoother integration.

Together, these pieces create a pura vida way of life that blends safety, natural beauty, and community into one very livable package.

Pros and cons of living in Costa Rica as an American

Every paradise has its quirks, and Costa Rica is no exception. Here’s what most expats consider when weighing the move:

Pros

• Year-round natural beauty: From misty volcanoes to pristine national parks and endless beaches, the scenery is both everyday life and weekend entertainment.
• Friendly ticos: Locals are known for warmth and patience, making it easier for newcomers to feel at home.
• Affordable healthcare: The public Caja system offers comprehensive coverage, while private hospitals deliver quick, modern care at a fraction of U.S. prices.
• Laid-back lifestyle: The pura vida mindset encourages slowing down, focusing on relationships, and enjoying simple pleasures.
• Lower costs (in many areas): Rent, groceries, and domestic help are often far cheaper than in the U.S., though imported goods and cars can push budgets higher.

Cons

• Language barrier: Spanish is necessary for navigating government offices, medical visits, and daily life outside expat hubs.
• Bureaucracy: Residency applications, utilities, and property paperwork can be slow-moving and require persistence.
• Rainy season: From May to November, expect daily downpours that can wash out roads and complicate travel.
• Slower pace: “Tico time” makes for a stress-free culture, but it can frustrate Americans used to fast service and a quicker pace of life.

Making Costa Rica home—the smart way

Costa Rica offers a unique mix of natural beauty, community, and the pura vida lifestyle that keeps drawing Americans year after year. But moving abroad comes with its fair share of fine print—visas, healthcare, and yes, taxes that follow you no matter how far you travel.

That’s where Bright!Tax comes in. As the leading U.S. expat tax specialists, we help Americans in Costa Rica (and over 200 countries worldwide) simplify their filing, minimize their tax burden, and stay fully compliant with the IRS.

Ready to enjoy Costa Rica’s pura vida lifestyle without IRS stress? Let Bright!Tax handle the taxes so you can focus on the sunsets, not the spreadsheets.

Americans looking to move to a beautiful, safe, and relatively affordable country in their golden years may want to retire in Costa Rica.

Whether you want to relax, go on adventures, or indulge in a bit of both, Costa Rica’s got you covered. And with a dedicated retirement visa, moving there is much more attainable than you might think.

So, who qualifies for this visa, what’s the country’s healthcare system like, and what are the tax implications of retiring in Costa Rica? We’ll go over all of these topics and more below.

Benefits of retiring in Costa Rica

Roughly 120,000 Americans — many of them retirees — live in Costa Rica. So what is it exactly that they love about the country?

• Natural beauty: Costa Rica is home to some truly stunning natural wonders, including white-sand beaches, lush rainforests, awe-inspiring volcanoes, sprawling national parks, dramatic waterfalls, and fascinating wildlife.
• Safety: Costa Rica’s stable democracy and low crime rates make it the safest country in Latin America and the 39th safest in the world.
• Eco-friendliness: Costa Rica is a world leader in dealing with environmental issues, with 99% of its electricity coming from renewable sources, low deforestation rates, high recycling rates, and excellent sustainability practices.
• Cost of living: While Costa Rica is one of the more expensive countries in Central America, it still has a relatively affordable cost of living. By some estimates, consumer prices (including rent) are approximately 38% lower in Costa Rica than in the US.
• Relaxed pace of life: Those seeking a reprieve from the daily grind will appreciate Costa Rica’s laidback pace. In fact, the country’s unofficial motto—“pura vida”, or “pure life” in English—celebrates its easygoing, sunny attitude.
• Diversity: Costa Rica’s culture is a mix of Spanish, indigenous, and Afro-Caribbean influences, with a high number of digital nomads, expats, and immigrants adding to the diversity.
• Health & wellness: With fresh, nutritious food, access to outdoor activities, and one of the best healthcare systems in the world, it’s easy to get and stay healthy in Costa Rica.

Potential challenges for retirees in Costa Rica

Of course, there are pros and cons to anywhere you might live — Costa Rica included. Some of the potential challenges US retirees may face in Costa Rica include the:

• Language barrier: While English is more common in cities and areas popular among tourists and expats, only about 8.2% of Costa Ricans are proficient in it. Daily life is much easier for those who speak at least some Spanish.
• Infrastructure: Although Costa Rica has more advanced infrastructure compared to many other Central American countries, it still lags behind the US in some ways. Rural areas, in particular, may lack paved roads, potable tap water, and public transportation.
• Bureaucracy: Costa Rican institutions can be slow-moving, especially when it comes to processes like immigrating, starting a business, and buying real estate.
• Rising prices: Despite the fact that Costa Rica is significantly cheaper than the US on average, prices are on the rise, particularly in areas frequented by expats and tourists.
• Rainy season: While Costa Rica generally has a warm, pleasant climate, there is frequent rainfall between mid-May and November.

That said, many expats find that Costa Rica offers enough benefits to outweigh the negatives.

How to retire in Costa Rica

A dedicated temporary residence permit for retirees makes it fairly straightforward to retire in Costa Rica.

Costa Rica retirement visa: Eligibility and requirements

To qualify for Costa Rica’s temporary residence permit for retirees, you must:

• Have a clean criminal record
• Receive a pension/retirement income of more than $1,000 per month

Permissions, restrictions, and duration

The Costa Rican temporary residence permit for retirees allows holders, their spouses, and children under 25 (or older, if disabled) to live in the country for two years.

Upon expiration, you may renew the visa if you continue to meet the qualifications. After three years of living in Costa Rica, you may apply for permanent residence.

This permit also allows holders to open a business in Costa Rica or work as independent contractors. However, they may not work as employees.

Required documents & application process

The required documents for Costa Rica’s temporary residence permit application include:

• A valid passport & copy
• Two passport-sized photos
• Letter explaining why you are applying for the permit
• Fees
  • $50 + $3.75 per page in the application
• Completed application form
• Fingerprint registration issued by Costa Rican Ministry of Public Safety
• Proof of consular registration issued by your local consulate
• Birth certificate
• Clean criminal background check from your home country (or wherever you’ve been living for the past three years)
• Proof of monthly pension/retirement income of over $1,000
• Documentation for any dependents who will accompany you (e.g. marriage certificate, birth certificates, medical documentation for disabled children over 25, passports, etc.)

To apply for the permit, you need to:

• Gather the required documents
• Submit your application at your nearest consulate (in the US) or the Immigration Office of Costa Rica (in Costa Rica)
  • Note: You may need to reserve an appointment in advance, depending on the office
• Receive approval

How much does it cost to retire in Costa Rica?

While Costa Rica’s retirement visa requires you to bring in over $1,000 per month, you will likely need more to live comfortably. 

How much you need exactly will depend largely on your location and lifestyle, of course. According to International Living, however, many single people can live comfortably on between $1,600 and $2,000 per month. Retired couples, on the other hand, should expect to pay between $2,000 and $3,000 per month.

To help shape your budget, here are the average prices of a few common expenses in Costa Rica:

• Rent for 1-BR apartment in city center: $662
• Rent for 1-BR apartment outside of city center: $466
• Rent for 3-BR apartment in city center: $1,253
• Rent for 3-BR apartment outside of city center: $900
• Utilities: $85.84
• Monthly public transportation pass: $41.76
• Monthly gym membership: $54.87
• Meal for two in a mid-range restaurant: $58.90

Best places to retire in Costa Rica

While there are a number of great places to live in Costa Rica, these five stand out as the top retirement destinations:

Tamarindo

Tamarindo is home to one of the largest expat communities in Costa Rica. Located in the northwestern Guanacaste province, this idyllic beach town offers premium access to the Pacific Ocean. As you can imagine, surfing, fishing, and kayaking are nearly unbeatable. 

When you’ve had your fill of the beach, Tamarindo also offers excellent restaurants and hiking. And if that weren’t enough, Tamarindo is in a blue zone: an area where people live exceptionally long lives.

Escazú

Escazú, a trendy suburb in the Central Valley, offers the best of both worlds. The town has modern amenities like great shopping, dining, medical care, and schools, as well as gorgeous mountain views. In just about 15 minutes, you can reach the capital of San José — but this tranquil, affluent town still feels well-insulated from the hustle and bustle of the city.

Quepos

Quepos, located along Costa Rica’s central Pacific coast, is best known as the gateway to Manuel Antonio National Park. Despite being one of the biggest tourist attractions in Costa Rica, Manuel Antonio still has a decidedly laid-back atmosphere.

Visitors and locals alike love to lounge on the beaches, hike through the trails, and spot monkeys, sloths, and colorful birds — making Quepos a nature lover’s dream come true.

Heredia

In Heredia, Costa Rica’s storied past is on full display. The town’s colonial architecture, museums, and traditional markets all give it a quaint, traditional feel. Mountain views and beautiful flora (hence Heredia’s nickname, the City of Flowers) only add to the charm. 

Coffee lovers should take particular note — Heredia has several coffee plantations that offer tours, scenic views, and some of the best java you can find in the whole country. 

Dominical

Dominical, a charming beach town on the south-central Pacific coast, attracts surfers, nature lovers, and wellness buffs in equal parts. Despite its chill vibe, there’s plenty to do in Dominical, from world-class surfing to birdwatching, yoga, and waterfall hikes. 

Marino Ballena National Park in Uvita is just a 20-minute drive away, where you can snorkel, SUP, and even go whale watching.

Healthcare options for retirees in Costa Rica

Holders of Costa Rica’s temporary residence permit for retirees have access to the country’s universal healthcare system. After paying a tax of roughly 9-11% of their monthly income, La Caja Costarricense de Seguro Social (CCSS) covers 90-100% of permit holders’ medical costs.

While CCSS offers extensive coverage and high-quality care, many expats choose to supplement it with a private health insurance policy.

Doing so typically grants you access to:

• Shorter wait times, especially for specialists and diagnostics
• State-of-the-art facilities
• English-speaking staff
• Dental & vision

There are two main private health insurance plans you can choose as an expat in Costa Rica:

• Instituto de Seguro Nacional (INS): Private coverage available through the Costa Rican government, with costs typically between $60 to $250 per month depending on your age and health.
• International health insurance (e.g. Cigna, Allianz, IMG): Offers extensive coverage across countries. Costs vary widely from as little as $100 per month to as much as $1,000 per month depending on coverage, age, health, etc. May not cover all pre-existing conditions.

Do Americans pay taxes in Costa Rica?

Costa Rica taxes

Those who spend more than 183 days out of a given fiscal year in Costa Rica are considered tax residents.

However, the government only levies taxes on Costa Rican-sourced income. Income coming from foreign sources — such as US Social Security payments, a pension, or a retirement plan — is typically tax-free.

US taxes

Unfortunately, moving to Costa Rica does not absolve you of your US tax filing obligations. All American citizens and permanent residents who meet the minimum income reporting requirements must file an annual federal tax return. In some cases, they may even need to file state taxes.

Tax breaks for US expats in Costa Rica

The good news? US expats qualify for a couple of tax breaks that those living stateside don’t.

A commonly used break includes the Foreign Tax Credit (FTC). The FTC provides you with dollar-for-dollar credits on any foreign income taxes you’ve paid, which you can apply toward your US tax bill. However, if you don’t pay any foreign income taxes, you won’t be able to leverage this tax credit.

Remember that the US government taxes certain types of retirement income at a lower rate. Only 85% of Social Security payments, for example, are subject to taxation. Meanwhile, withdrawals from post-tax retirement accounts like Roth IRAs and Roth 401(k)s are tax-free.

Reporting obligations for US expats in Costa Rica

It’s worth noting that living abroad may change or add to your reporting obligations. Two of the most common reports that US expats must file include the following:

• Foreign Bank Account Report (FBAR): Required if you have $10,000 or more across foreign financial accounts.
• Statement of Specified Foreign Assets (Form 8938): Required if you have more than $200,000 in foreign assets on the last day of the tax year, or more than $300,000 in foreign assets at any point in the tax year. Thresholds are much lower, starting at just $50,000 for taxpayers living in the US.

Depending on your circumstances, however, you may have to file additional forms and reports. To ensure full compliance, it’s best to consult a tax professional.

From big cities to beaches, volcanoes, and tropical rainforests, Costa Rica has a little bit of everything. For those looking to improve their Spanish, live well at a lower cost, or surf to their heart’s content, there’s even more reason to move to Costa Rica. And thanks to the country’s digital nomad visa, living there is more accessible than ever for US expats.

Read on to learn how to qualify for Costa Rica’s digital nomad visa, where the expat community in Costa Rica can be found, and what life in Costa Rica is like.

How the pandemic opened the door for digital nomads in Costa Rica

When digital nomadism exploded in the wake of the COVID-19 pandemic and subsequent remote-work revolution, countries — especially those looking to make up for years of below-average tourism — rushed to court them. Costa Rica was one such country, initially announcing their plans to launch a digital nomad visa in October 2021. They officially greenlighted it in July 2022.

Costa Rica language & Costa Rica currency

Costa Rica’s official language is Spanish, while the official currency is the Costa Rican Colón (CRC). One US dollar is equal to about 540 Costa Rican Colones.

How to become a digital nomad in Costa Rica

So, what exactly does it take to become a digital nomad in Costa Rica? Here’s what you need to know.

Apply for the Costa Rica Digital Nomad Visa – Eligibility

To qualify for the Costa Rican digital nomad visa, you must, above all, work remotely for a non-Costa Rican company or non-Costa Rican clients.

Visa requirements & duration

Costa Rica’s digital nomad visa application involves:

• Registering and filling out the required digital nomad visa application forms on Costa Rica’s immigration website¹
• Submitting the required documents² (note: any documents not in Spanish must be accompanied by a translated version)
  • A copy of the first and last pages of a valid passport 
  • Bank statements showing that you make at least $3,000 per month (or $4,000 per month if you plan on bringing your family)
  • Proof of health insurance that covers you (and anyone accompanying you) for the duration of your stay
  • Pay the $100 fee to process the application; later, you will receive a $90 fee to certify your legal stay documents and an additional fee upon approval of your application
  • Documents for accompanying family members such as a marriage/civil union certificate, birth certificate, etc.
  • Additional documents as requested

Applications for the Costa Rica Digital Nomad Visa can be submitted online or in person after booking an appointment.³ If you have any elements missing from your application, you will be notified within eight days. Within 15 days of submitting a complete application, you will receive a decision via email.

If your visa is approved, you’ll need to apply for a residency permit within three months of your application’s approval. Note that the digital nomad visa lasts for one year and can be renewed for an additional year.

Health Insurance for Digital Nomads in Costa Rica

There are a few health insurance companies that specifically offer coverage for digital nomads, including SafetyWing, World Nomads, AIG Travel Guard, Allianz, and IMG Global, among others.

Expats in Costa Rica: Best places to live

There are many great places to live in Costa Rica,⁴ but the five below are some of the best cities in Costa Rica for US expats.

San José

This lively capital city is chock-full of culture, with great museums, parks, restaurants, theaters, and much more.

How much does it cost to live in San José?

According to Numbeo,⁵ these are the average prices for common expenses in San José:

Monthly rent: 364,375.23 ₡ (~$675.09) for a one-bedroom apartment in the center

Utility bills: 33,194.53 ₡ (~$61.50) 

Meal for 2: 30,000.00 ₡ (~$55.58) at a mid-range restaurant

Tamarindo

A world-famous surfing hotspot, this charming destination is popular among tourists (without being too touristy) and US expats alike.

How much does it cost to live in Tamarindo?

According to Numbeo,⁶ these are the average prices for common expenses in Tamarindo:

Monthly rent: 712,192.14 ₡ (~$1,319.50) for a one-bedroom apartment in the center

Utility bills: 45,465.03 ₡ (~$84.23) 

Meal for 2: 35,000 ₡ (~$64.85) at a mid-range restaurant

Puerto Viejo de Talamanca

This small town located on the Caribbean coast is known for its white-sand beaches, laid-back pace of living, and funky vibe.

How much does it cost to live in Puerto Viejo de Talamanca?

According to Numbeo,⁷ these are the average prices for common expenses in Puerto Viejo de Talamanca:

Monthly rent: 350,000 ₡ (~$648.46) for a one-bedroom apartment in the center

Utility bills: 39,116.20 ₡ (~$72.47) 

Meal for 2: 32,500 ₡ (~$60.21) at a mid-range restaurant

Playa Samara

Playa Samara is another beach town that’s world-renowned as a surfing destination and has a thriving yogi and wellness community.

How much does it cost to live in Playa Samara?

According to Numbeo,⁸ these are the average prices for common expenses in Playa Samara:

Monthly rent: 669,562.53 ₡ (~$1,240.52) for a one-bedroom apartment in the center

Utility bills: 40,530.88 ₡ (~$75.09) 

Meal for 2: 30,000.00 ₡ (~$55.58) at a mid-range restaurant

Jacó

Jacó is known just as much for its lovely beaches as it is for its bustling nightlife. If you like to surf all day and party all night, Jacó is the place for you.

How much does it cost to live in Jacó?

According to Numbeo,⁹ these are the average prices for common expenses in Jacó:

Monthly rent: 274,765.64 ₡ (~$509.07) for a one-bedroom apartment in the center

Utility bills: 31,920.32 ₡ (~$59.14) 

Meal for 2: 21,616.47 ₡ (~$40.05) at a mid-range restaurant

Digital nomad life in Costa Rica

What to do in Costa Rica

There’s no shortage of exciting things to do and places to explore in Costa Rica. A few ideas to get you started:

• Surf or soak up rays at a beach along the Pacific coast
• Check out the museums in San José (e.g. National Museum of Costa Rica, Jade Museum)
• Visit national parks (e.g. Manuel Antonio, Cahuita)
• Bathe in natural hot springs (e.g. Tabacón, Río Negro)
• Explore volcanoes (e.g. Arenal, Poas)
• Hike a trail with a waterfall
• Explore the cloud forest of Monteverde
• Visit a wildlife sanctuary for an up-close encounter with the local fauna
• Explore popular neighborhoods in San José (e.g. Barrio Escalante, La California, Barrio Amón)
• Take yoga classes or attend a yoga retreat
• Go whitewater rafting
• Scuba dive or snorkel
• Visit a coffee plantation

Expat community in Costa Rica: how to find your people

Making friends in a new country might seem difficult, but all it takes is a little proactivity and time. Some ideas you might want to consider:

• Stay at a hostel or co-living space
• Work out of a co-working space
• Use language exchange apps or websites to practice Spanish and meet locals
• Check out Facebook groups for US expats in Costa Rica 
• Meet people through Couchsurfing hangouts, Meetup events, or Bumble BFF dates
• Volunteer in your local community
• Chat up folks you meet at bars, concerts, and other popular sites
• Join a game of pick-up soccer

Moving to Costa Rica

To start your new life chapter out on the right foot, you’ll want to be prepared — so before you leave the States, make sure that you:

• Have all of your official documents ready to go (e.g. passport, visa, plane tickets)
• Book your plane tickets and temporary accommodations
• Bring a three-month supply of any medications you regularly take and a copy of your medical records
• Create a packing list¹⁰ and research shipping services if needed
• Sell or donate unwanted possessions and cancel any services or subscriptions you won’t need any more
• Notify your bank and credit card company of your move so purchases abroad aren’t flagged as suspicious
• Set up a forwarding address for mail
• Research options for Costa Rican banks and cell phone plans
• Find other US expats living in Costa Rica through online groups and ask them for advice

Costa Rica taxes for digital nomads

One of the best perks of Costa Rica’s digital nomad visa is that holders are exempt from federal income taxes, as well as import taxes on computers, laptops, and other tech gear used for work purposes.

VAT in Costa Rica

In Costa Rica, the value-added tax (VAT) — the tax placed on certain goods and services — is called the Impuesto de Valor Agregado (IVA). The standard rate is 13%, but there are certain goods and services eligible for a reduced rate, like wood (10%), residential electricity (5%), and staple groceries and goods (0%).

Do American digital nomads in Costa Rica have to pay US taxes?

Yes. America’s tax system requires all citizens and permanent residents to file a federal tax return (provided that they meet the minimum income reporting threshold) regardless of where in the world they live.

Expat tax provisions for Americans filing US taxes in Costa Rica

Moving abroad can complicate your taxes somewhat — below are some of the additional reporting obligations and tax breaks expats should read up on:

Foreign Earned Income Exclusion (FEIE)

The Foreign Earned Income Exclusion allows you to exclude a certain amount of foreign-earned income from taxation ($112,000 for tax year 2022, $120,000 for tax year 2023). To be eligible, you need to pass either the Physical Presence Test or Bona Fide Residence Test. If you qualify, you’re also eligible for the Foreign Housing Exclusion/Deduction, which allows you to write off qualifying housing expenses like rent and utilities.

Foreign Tax Credit (FTC)

The FTC allows you to subtract what you pay in income taxes to a foreign government from what you owe the US government in income taxes. With Costa Rica’s digital nomad visa, however, you won’t be paying income taxes — so you wouldn’t be able to leverage this unless you eventually secure a Costa Rican visa that classifies you as a tax resident.

Foreign Bank Account Report (FBAR)

If you have $10,000 or more in foreign bank accounts at any point in the year, you’ll need to report the contents of those accounts to the Financial Crimes Enforcement Network (FinCEN) via FinCEN Report 114.

Child Tax Credit (CTC)

If you have qualifying dependents living with you in Costa Rica, you can file the Child Tax Credit. The Child Tax Credit offers all US taxpayers a partially-refundable tax credit of up to $2,000 per qualifying child, provided that they meet the criteria.

Note: when filing for the 2022 tax year in 2023, most expat parents can expect a partial refund of up to $1,500 per qualifying child due to common international tax filing circumstances. 

Foreign Account Tax Compliance Act (FATCA)

If you have over $200,000 in foreign assets by the last day of the tax year, or over $300,000 in foreign assets at any point during the tax year, FATCA requires you to file Form 8938.