Why live in Costa Rica ...

Recently I led a group of prospective residents on a trip around Costa Rica. After a week of traveling and attending a series of informative seminars, the majority had decided they would like to live here for at least part of the year. It comes as little surprise that they felt this way. Costa Rica has more Americans per capita than any other country outside the United States. Why do so many people want to live here?

People are tired of freezing winters
The most obvious reason is the climate. People are tired of freezing winters, scorching summers and the high utility bills that go with them. In Costa Rica they can enjoy one of the best year-round climates in the world (72 degrees average in the Central Valley.) We have only two seasons here, dry and rainy, both with an abundance of sunshine. We rarely need air conditioning and never need heat. Costa Rica has more winter sunshine than Hawaii or Florida and fewer people.

The Switzerland of the Americas
Costa Rica is called by many “the Switzerland of the Americas” due to its neutral political status and spectacular mountains. From the huge, curling waves of the Pacific coast, to the sight of molten rock tumbling down the sides of a volcano, Costa Rica’s natural beauty has something for everyone. This unique little country offers a real paradise for the nature lover, the fishing enthusiast and water sports fanatic as well as the retiree. Many come here for the lifestyle. Costa Rica fits the bill for anyone sick of the hustle and bustle, seeking a more laid-back way of life. One of the tour participants remarked, "Costa Rica reminds me of the U.S. about 40 years ago when everything was unspoiled, unhurried and less crowded." It will also appeal to people of all ages seeking to move to a new and exotic land outside of the States and Canada and the energetic entrepreneur, the burned-out baby boomer, those sick of long rush-hour commutes and anyone seeking an alternative way of life.

This beautiful country
This beautiful country is so appealing because it has the warmth and flavor of Mexico, without anti-Americanism and fear of government expropriations; the physical beauty of Guatemala without a large military presence; and the sophistication of Brazil without the abject poverty and far less crime.

But Isn't It Expensive ?
Although much has been written about the high cost of living here, what you spend depends on your lifestyle. If you must have a luxurious home, drive a late model car and buy imported goods, you will spend as much or more than you would in the States. But if you live more like the locals and watch your spending, you will spend considerably less. Many Americans living below the poverty line in the United States can live in moderate luxury on a modest retirement or investment income in Costa Rica. The favorable exchange rate and low rate of inflation let you stretch your dollars here. The cost of food, utilities and entertainment are all substantially lower than in the United States. Costa Rica’s affordable medical care is among the best anywhere. The quality of health care is comparable to North America but the prices are one half or less! Considered by many to be the healthiest country south of Canada, Costa Rica has a higher life-expectancy rate—rumored to be the third longest in the world (76.3 for men)—than the United States (76 for men, 79.8 for women).

Low housing costs
Housing costs are a fraction of what you are accustomed to paying in the U.S. My wife and I just purchased a new three-bedroom home in Lagunilla de Heredia, about five miles from downtown San José, for $62,000. It has a cathedral ceiling, sits on a 250 square meter lot and is very comfortable for three people and a dog. We have a 15-year mortgage and pay $452 monthly including insurance, with a 9% loan from a Costa Rican state bank. Besides our home we have a car and a full-time maid. Household help makes life easier. (You can hire a full-time maid for as little as $200 per month or $1 per hour.) My son goes to one of the best private schools in the country. We eat out a few times a week and enjoy various types of entertainment. We spend a week at the beach during Easter and go to the United States every Christmas. Our monthly expenses are about $2500. The country’s inexpensive medical care, affordable housing, excellent transportation and communication networks, every imaginable activity to stay busy and happy, a government which goes to great lengths to make retirement and living as easy as possible, contribute to Costa Rica’s appeal and make it tops on the list of retirement and expat havens. According to a survey of potential foreign retirement areas in the Robb Report, due to the high quality of life Costa Rica surpasses all countries including Mexico, Puerto Rico, Spain, Portugal, Australia, the Caribbean Islands and Greece.

What Sets Costa Rica Apart from Its Neighbors ?
Countries such as Nicaragua, Belize, Honduras and Guatemala have lower living costs, but you get what you pay for. The quality of life and lack of infrastructure in those countries leave a lot to be desired. Safety is a concern, especially where paramilitary police have power or where police are corrupt, as in Mexico.Costa Rica is politically stable and is unique in having no army. Although theft occurs, violent crime is minimal.

A Place to Invest
Costa Rica has a myriad of business opportunities awaiting creative, hard-working individuals. You can run a global business from here by using Internet access, fax machines and cell phones. It is also relatively easy to start a small business on a shoestring. Furthermore, tax incentives and a government that encourages investments and affords investors the same rights as citizens contribute to a propitious business climate. Many countries do not permit noncitizens to own property or place restrictions on foreign-owned real estate, but this is not the case in Costa Rica. Anyone may buy real estate with all the legal rights of citizens. Actually, an investment in Costa Rica today is much better than an investment in California real estate was 30 years ago.

Some of the best real estate of the planet
What gets people excited about Costa Rica, however, is that it offers some of the best real estate on the planet at affordable prices. The price will eventually go up as the rest of the world catches on. There’s only so much beautiful beachfront and prime real estate left in the world. When you think that almost every bit of the coastline in the U.S. is becoming overcrowded and overpriced, Costa Rica seems like a bargain. Passive investors will find CD's, second mortgages or other investments that pay 25% to 30% in dollars annually. These numbers are fantastic when you consider that a million dollars invested in the U.S. at a standard 4 to5 percent annual rate, will generate only$45,000 to $50,000 a year.

With the new milennium
With the new millennium upon us, a shrinking world due to better communication, a burgeoning global economy—possibilities are unlimited for doing business in Central and South America. Trade pacts between Costa Rica, U.S., Mexico and South America be a reality by 2005. They promise to link all of the nations in the hemisphere in to one trading block.

Prosperity is fueled by emigration
Costa Rica’s current prosperity is being fueled by the emigration of affluent baby boomers from around the world seeking their own piece of paradise and the same engine that fueled the growth in California for the last 30 years, technology. When Intel decided they needed more capacity, they looked all over the western hemisphere and chose Costa Rica for the very same reasons you will. Word is getting out about Costa Rica. And that’s why now is such a good time to invest.

The Adventure of Starting Over
Some move here to start over and seek adventure in an exotic land. They are tired of dead-end jobs or the rat race and want new challenges, a chance to pursue their dreams and achieve greater personal growth. As an expat, you have the challenge of immersing yourself in a new culture and, if you choose, the rewards of learning a foreign language. Newcomers can make friends easily because foreigners gravitate towards one another. One Florida transplant told us he had lived in Florida for 20 years and hardly ever had contact with his neighbors. He claims not to be the most sociable person in the world, nevertheless he has made over a hundred friends in Costa Rica. He proudly says, “Everywhere I go I bump into people I know.”

Adjusting and Keeping Busy
Adjustment to a new way of life can take many months. However, an open mind, a positive attitude and a willingness to seek out new experiences can make the transition relatively painless. Costa Rica has come a long way in the last decade. Satellite and Direct TV, private mail service and the Internet make it easier to stay in touch with family and friends in the United States and keep up with what is going on all over the world. If you don't own a computer, you can go to an Internet café.

Technology has made life easy
Costa Rica’s modern technology has made life easy for foreign residents. In most areas of the country you can get cash at a local ATM, manage your investments online and read almost any major newspaper in the world the day it comes out. A friend of ours, a 20-year resident of Costa Rica, said, " My days are so filled with exciting activities and interesting experiences that each day seems like a whole lifetime. I really feel that I have discovered the fountain of youth." Another plus is that Costa Rica has the reputation of having the most beautiful, flirtatious and accessible women in Latin America. It comes as no surprise that Costa Rican women are highly sought as companions by foreign men of all ages. Single men will have no problem finding love, romance and a second chance in life with a devoted Costa Rican woman.

Costa Rica has something for everyone
You will never be bored here unless you choose to be. Costa Rica has something for everyone. In the Tico Times, the weekly English-language newspaper, you can find hundreds of interesting activities: movies in English, support groups, computer and bridge clubs. You name it, and Costa Rica has it. Living in Costa Rica can open the door to a new and exciting life. Who knows? You may never want to return home.

One Expat’s Experience
Michael Pierpont, the founder of Sunburst Coffee, fell in love with Costa Rica a few years ago and knew right away that this was where he wanted to live. You too may find that you want to spend more than just a few weeks every year in this delightful country. “People ask me all the time why I chose Costa Rica,” says Michael. “I like this country for several reasons. First, it is a spectacularly beautiful place. Along the Pacific coast you’ll find rocky outcrops and pounding surf. The beaches look just like those in California, which is where I’m from. But you can buy here for one-tenth the cost of California. Inland you’ll find a lush jungle...Lake Arenal...the Irazú volcano, and coffee plantations...and the most beautiful rain forests in the world. In the northwest you will find white-sand beaches, many declared turtle reserves, one of the numerous areas in this country set aside for wildlife research and preservation.

The cost of living
Second, and important to me is the cost of living. I can live well in this country on as little as $1,500 per month. You can rent a comfortable house in San José, where I chose to settle, for $500 per month. You can employ a full-time maid for $185 monthly. You’ll spend $300 per month on groceries, $65 per month on electricity. You can see a movie for $3 and have a nice dinner with drinks for $15. ‘Third, I was smitten by the people. Costa Ricans are good-natured and kind, trusting and friendly and extremely beautiful. I knew I’d be happy living and making friends here.” “A few more notes on why I came to Costa Rica: The weather is great, the Spanish colonial history and architecture is delightful, the small expatriate community is welcoming and an extremely interesting bunch. Everyone’s got a story. And best of all the taxes are low and easy to deal with.”