Living Cost Costa Rica

Living cost Costa Rica - Like anywhere in the world the property prices vary from area to area, beach and city and surrounding suburbs of course are significantly higher than rural properties. You can normally find properties ranging from $60,000 for a small condo into the millions for fabulous beach front. Of course personal taste and needs play a large role in what you will pay for your property.

Construction in Costa Rica is much less costly than usually found in North America. The majority of construction in Costa Rica is block and concrete which lend to very durable and sound proof structures. A good quality finished house currently would cost about $80-130 per sq. ft to build in Costa Rica. Of course the finishing’s you choose can affect that cost significantly. The contractor is responsible for defects in construction for 5 years.

Building your own home can save you as much as 20-60% over buying an existing home.

Utility Cost Costa Rica

Utilities are still very low-cost in Costa Rica. For example an average family of 4 the monthly bills will normally be about:

• Electricity: $ 48 (without air conditioning or heating a pool)

• Water: $18 per month

• High speed Internet: $50 per month- Unlimited home user plan

• Digital Cable TV: $40 Includes 4 HBO stations and NBC,CBS most other English stations (about 100 stations)

• Local Phone Service: $7.00 per month

• Long distance call to U.S: .45c a minute

• Long distance call to U.S using Internet Phone- 500 minutes $25.00

• Cellular Phone Service runs $8.25 monthly and includes 60 minutes each extra minute costs 6 cents

To apply for any phone line you need a residency permit or a Costa Rica Corporation, even a cell phone, but many Costa Ricans will help with that requirement. Nearly all homes in Costa Rica come with at least one phone line already working. Cell phones are available through special arrangements with local Costa Ricans. Though the cell phones themselves are cheaper in the U.S., a local invoice must be shown to get the cell phone connected, so buy it locally. Recently Costa Rica converted to the GSM system, so don’t buy any other type of phone. International roaming is just being offered by the cell Phone Company so can use your cell phone when out of the country, but it is expensive

Internet service is available by dial up everywhere in Costa Rica. Most communities in the central valley can get high speed connections of 256k to 1MB. DSL service is currently being rolled out in the central valley and should be more widely available soon. Other options are available to businesses at significant costs.

Automotive Cost Costa Rica

Cost Costa Rica - Autos carry a high import tax in Costa Rica and this is one area that is more costly than in the U.S. Generally the cost of a car will run about 59%-80% more than in the U.S. because of the Costa Rican Governments taxes on all vehicles. This is one of the few areas that are strictly enforced in Costa Rica. You can save a little by importing your own car; ask a real estate agent about the import services. They can arrange for the import, customs and licensing of your auto. Also talk to them about the best vehicles to bring to Costa Rica, from their experience they will be able to help and advice you.

Cost Costa Rica - Generally, vehicle parts are more expensive in Costa Rica and sometimes take time to get. On the other hand, labour is cheaper. So a visit to the mechanic might cost a little less than what you would pay in the U.S.

Household Help

One of the great things about living in Costa Rica is that you can afford to have a maid and/or a gardener for very little money. By law, you must pay your live-in maid $200 per month, plus food and lodging. In return she must only work 12 hours per day (up to 16 hours if you pay overtime). You must give her 1 hour off each day, to coincide with a meal time. You also must give her 1 half day off per week, a half day off on holidays and 15 days of paid vacation per year. You should also enrol her in the Costa Rica Social Security system, so you would deduct 9% of her salary for this tax, but you must also pay 11% to the "Caja". If a live in maid is not your desire you can easily find daily help which will run $1.50 to $2.50 per hour. Remember, live in help adds another level of security to your home when you are travelling.

Groceries cost Costa Rica

Groceries will cost about 50%-70% of what you spend in the U.S. But of course a lot depends on what products you buy. Some products have price controls under what is called the "basic food basket". Products imported from the U.S tend to have higher prices than local or imports from other Latin American countries. The good news is the more fresh fruits, vegetables, eggs, meat and poultry you eat the lower your grocery bill will be.

Tax

The government of Costa Rica goes to great lengths to encourage people to invest within the country. Taxes earned in Costa Rica are low relative to the U.S. and with a good accountant it can be kept to a minimum. It offers up a host of incentives to investors such as no capital gains taxes on real estate, low business taxes, and very low property taxes. As a result, many companies have chosen Costa Rica as an investment place. Companies such as Intel and Siemens are leading the way in the implementation of the infrastructure needed to make Costa Rica the “Silicon Valley of the Americas,”, computer giant Intel has made the central valley of San Jose its new chip making headquarters. Intel's investment in Costa Rica represents the largest ever made in a developing country and the results have been tremendous thus far.

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