Costa Rica is again on several lists as a top retirement destination:
- #2 by International Living
- #5 by Money/Time
- top 24 by Forbes (Forbes did not rank the 24 places against each other).
International Living’s assessment
In naming Costa Rica as the #2 retirement destination (behind Panama), International Living cited Costa Rica’s healthcare accessibility, abundance of outdoor activities and stable democracy. Indeed, Costa Rica abolished its military 70 years ago.
…with a dozen microclimates, there is someplace for everyone to fit your personal weather preferences. Many people love the temperate “eternal spring” climate of San Jose, the capital and all the surrounding Central Valley. Or the dry, hot beaches of Guanacaste, or the lush, green landscape of the jungles in the south.
– Kathleen Evans, International Living
We opted for Guanacaste over the south when selecting our home base and first investment properties. However, we look forward to traveling all over Costa Rica and revisiting the south and Central Valley for additional investments.
Money/Time assessment
Money/Time put Costa Rica in 5th place behind Malaysia, Mexico, Panama, and Ecuador (#1). Tamarindo, where we have Condo Boom and Condo Reeves, is cited as one of the popular ex-pat cities. Tamarindo is quite the melting pot and has amazing restaurant options as a result. We are able to find authentic Filipino food, our favorite comfort foods, and Italian food to die for.
$2500 is Money/Time’s estimated monthly income requirement for living in Costa Rica. This figure is very doable based on our experience. Our condo costs are under $300 for HOA, taxes and insurance. Utilities, including Internet, electric and water, are well under $200. This leaves $2,000 for all other expenses, which requires one to stick to a budget but a comfortable one.
Forbes assessment
Forbes includes Costa Rica in its list of top 24 places to retire abroad, citing a lower cost of living compared to the US, good medical care and a relatively easy country for gaining residency. On the income requirement for residency:
Most countries require proof that a retiree has a minimum annual income from sources like pensions, Social Security and investments, but these amounts tend to be modest. In Colombia, for example, the requirement is $19,000 yearly for a couple. In Costa Rica, it’s $24,000. Australia, on the other hand, looks for a net worth of $600,000.
– William Barrett, Forbes
If you plan to withdraw 4% of your savings to generate that $24,000 in income, it implies a nest egg of $600,000. You could retire even before reaching the million-dollar mark!
If you have the skills to develop a portable income, your savings target would be even lower. $24,000 comes out to $2,000 per month, which is doable as a side hustle.
It would be prudent to develop that side hustle income before making the move abroad – to establish a track record for the income, to give yourself an earnings head start (moving abroad would be disruptive all on its own without launching a business at the same time!), and to allow yourself to build the business while you’re still in the comforts of home.
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I love looking at retire abroad lists. It was the International Living list that expanded my FIRE thinking just a few years ago. Our heavy travel plans start in July 2019, and I can’t wait to check out all the places on these lists firsthand!
We are Scott and Caroline, 50-somethings who spent the first 20+ years of our adult lives in New York City, working traditional careers and raising 2 kids. We left full-time work in our mid-40’s for location-independent, part-time consulting projects and real estate investing, in order to create a more flexible and travel-centric lifestyle. 
Financial independence and early retirement is not something we originally focused on, but over time realized it was possible. Our free report, 
