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With year-round sunshine, lush landscapes, and friendly communities, Costa Rica is a popular choice for those seeking a change of pace. While the lifestyle is idyllic, the reality of relocating involves several practical steps, including securing legal status and opening a bank account.
From visa requirements to the cost of living, find out what it takes to make the leap and prepare for moving to Costa Rica.
Pros and cons of living in Costa Rica
For many, living abroad is an enriching adventure. But no destination is perfect—there are always drawbacks to consider. If you’re considering living and working in Costa Rica, here are some of the main advantages and disadvantages to keep in mind.
Pros
Costa Rica stands out as an attractive option because:
- The cost of living in Costa Rica is generally lower than in countries like the U.S.
- It’s a peaceful, politically stable democracy with strong institutions and a focus on human rights and welfare.
- It’s known for the “pura vida” mindset—a simple and laid-back approach to daily living.
- It’s a “Blue Zone,” where many residents live long, healthy lives with meaningful social connections.
- Costa Ricans—known as “ticos”—tend to be welcoming toward international workers.
- Public healthcare is available to most temporary and all permanent residents, and the care system is ranked among the best globally.
- The climate is generally warm year-round.
- Natural beauty is everywhere, from tropical beaches to misty rainforests.
- Its location makes travel back to North America relatively easy.
- Foreigners can access tax benefits, including lower income tax rates and exemptions for digital nomads.
Cons
Costa Rica may not be the right fit for everyone because:
- Government bureaucracy can be slow and frustrating to navigate.
- The infrastructure, particularly the road network, is not as advanced as in other countries, making travel challenging at times.
- Spanish is the main language, which can be difficult for newcomers who don’t speak it.
- Imported goods are costly due to high taxes.
- Tropical living brings heavy rainfall, humidity, and plenty of insects.
- Standard working hours are longer than in many Western countries, often including Saturdays.
Visa requirements for living in Costa Rica
If the pura vida lifestyle sounds appealing, the first step is securing the right visa. Here’s an overview of four common types of temporary residency visas and who qualifies for each:
- Retiree visa (Pensionado): This visa is available to retirees, or pensionados, with a regular monthly income of at least $1,000, which can come from retirement accounts or Social Security benefits. The visa is renewable every two years.
- Income-based visa (Rentista): The renewable Rentista visa is designed for those with more than $2,500 in guaranteed monthly income for the two-year duration of the permit. Applicants often demonstrate eligibility by depositing $60,000 into a Costa Rican bank account.
- Investor visa (Inversionista): Costa Rica offers renewable, two-year visas to those investing $150,000 or more in qualifying areas of the economy, including real estate, forestry, and manufacturing. Investors can also inject funds into local businesses, like lucrative tourism and customer service operations.
- Digital nomad: Remote workers earning more than $3,000 per month can apply for a renewable, one-year digital nomad visa. Applicants with dependents must make $4,000 per month. Digital nomads must also be able to show evidence of private health insurance coverage.
The paperwork can feel overwhelming, but temporary residency is an important step toward making Costa Rica home. Pensionado, rentista, and inversionista visas are routes toward permanent residency, while digital nomad visa holders can later transition to another residency category if they decide to settle long-term.
How to move to Costa Rica
If you meet the requirements for one of Costa Rica’s temporary visas, the relocation process becomes more straightforward. Here’s a step-by-step guide to securing residency and settling into Costa Rica life.
1. Contact your local embassy
Costa Rica’s visa requirements vary depending on your country of origin. Reach out to your local Costa Rican embassy to confirm the process and paperwork requirements. Some people may need an entry visa to get into Costa Rica before beginning a temporary residence application.
2. Gather your documents
Most applicants need to provide originals and official, apostilled translations of the following documents:
- A valid passport
- Proof of finances (such as salary, investment holdings, or pension payments)
- Bank statements
- A background check
Some visa-seekers may also need to provide additional documents based on their country of origin and visa type.
3. File the visa application
Submit your application to the country’s Department of Immigration. Many applicants use a legal professional or third-party service to help navigate the process. You can apply for a digital nomad visa online via Costa Rica’s Tramite ¡YA! website. Investor visa applicants will also need to open a local bank account and deposit qualifying funds.
4. Complete the process in Costa Rica
If you originally initiated the visa application from abroad, you’ll need to travel to Costa Rica, where you’ll provide the government with biometric data, like fingerprints, to complete the process. If you’re already in the country, you’ll need to remain there until your application is processed.
5. Get your DIMEX
The government will review your documents and alert you when your temporary residency has been granted. You can check the status of your application with your expediente number or work with a legal professional to track progress. Once approved, you’ll receive a Documento de Identidad Migratorio para Extranjeros, or DIMEX, which is your official resident ID card.
6. Open a bank account
If you don’t already have a Costa Rican bank account, apply to open one with your DIMEX. This will make local banking and on-site transactions, like paying at a restaurant or store, easier.
7. Apply for social security
All temporary residents, except those on a digital nomad visa, must register with the Caja Costarricense de Seguro Social. Registration involves monthly contributions and provides access to Costa Rica’s public healthcare system.
The cost of living in Costa Rica
Your residency application may be the top priority before you move, but it’s smart to familiarize yourself with other aspects of life in Costa Rica, such as the cost of living.
For many international workers—especially those coming from more expensive countries like the U.S.—Costa Rica feels more affordable. Single people or couples can often live comfortably on $1,500 to $2,000 a month, while families usually maintain a good quality of life for less than $3,000. That said, costs vary widely depending on location. San José and popular coastal destinations command higher prices, while rural and inland areas are more budget-friendly.
Here are some average monthly estimates for San José:
- Rent: $500 to $1,500 for a one or two-bedroom apartment or small house, depending on the neighborhood and amenities
- Groceries: $500 to $800 (less when shopping at local stores and markets)
- Dining: Less than $5 per person for street food, up to $50 for an upscale restaurant meal.
- Internet: $10 to $40
- Transportation: Around $50 for moderate use of buses, taxis, or short-distance travel
Working in Costa Rica: What you need to know
Being able to live in Costa Rica doesn’t automatically grant the right to work there—each visa type comes with its own conditions. Here’s a breakdown:
- Retiree (Pensionado) orincome-based (Rentista) residents: Residents living in Costa Rica under either of these visas can work independently or run their own business, but they cannot be employed by a Costa Rican company.
- Digital nomads: People in this visa category can only work remotely for foreign employers and clients.
Hire and pay your team in Costa Rica with Oyster
Costa Rica offers a lifestyle that attracts many international workers, so companies need to be ready to support professionals living abroad.
With Oyster’s employer of record (EOR) service, businesses can compliantly hire, pay, and provide benefits to full-time employees in Costa Rica (and around the world) without needing to set up a local entity. Want to start by hiring a contractor or freelancer? Use Oyster’s global contractor solution to compliantly onboard, pay, and manage contractors in 180+ countries.
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About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
