Why Costa Rica works
The Pensionado visa is one of the easiest residency pathways anywhere — just $1,000/month in lifetime pension income (Social Security counts).
Costa Rica uses territorial taxation: only locally-sourced income is taxed. US pension, SS, and investment income aren't taxed in Costa Rica.
The Central Valley (San José, Escazú, Heredia, Atenas, Alajuela) offers spring-like weather year-round at 3,000-4,000ft elevation.
CAJA (public health) is comprehensive and ~$80-100/month for residents.
Where to live
Escazú (San José suburb): upscale, modern, large expat community. Excellent restaurants, schools, hospitals. $2,500-$3,500/month for a couple.
Atenas: smaller mountain town near San José. Mild climate. Tight expat community. $2,000-$2,500/month.
Grecia: similar to Atenas. Quieter, cheaper. $1,800-$2,300/month.
Tamarindo / Nosara (Pacific coast): beach towns, surfing, expat beach lifestyle. Hot. Higher cost: $2,500-$3,500/month.
Heredia / Alajuela: closer to airport, smaller cities, lower cost. $1,800-$2,200/month.
Visa pathway
Pensionado: $1,000/month in lifetime pension income (SS + private pension counts). Cheapest visa.
Rentista: $2,500/month in stable income (proven for 24 months) OR $60,000 deposit in CR bank.
Inversionista: $200,000 investment in Costa Rica.
All three issued for 2 years, renewable. Permanent residency after 3 years. Citizenship after 7 years.
Taxes
Territorial taxation: foreign-sourced income (US pensions, SS, investments) NOT taxed in Costa Rica.
Locally-sourced income (rental income from CR property, work for CR employer) is taxed at progressive rates up to 25%.
No US-CR tax treaty technically, but practical taxation is light because of territorial rule.
Healthcare
CAJA: public system. Residents pay ~$80-100/month. Comprehensive.
Private insurance: $100-200/month adds private hospital access (CIMA, Clínica Bíblica) — comparable to US private hospital quality.
Cash-pay: doctor visit at private clinic ~$60-80. Surgery at top private hospital 60-70% less than US.