TROPIC News

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Escape the Economic Crisis: Move to Costa Rica

Posted : Wed, 31 Dec 2008 07:24 AM

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Just Another Day in Paradise: It wasn’t until a recent trip home to the states for my best friend’s wedding, that the true weight of the U.S. economic crisis really hit me. Am I living in a cave, you ask? No, but I did opt to pass on the fast-paced, consumer driven society of the states three years ago when I first graduated college. Granted at the time my reasoning was different: I wanted to perfect my Spanish and I had a solid job offer despite telling the world of my plans to head straight to Spain after school. Despite the ups and downs of living in a 3rd world country (categorized as such because it’s main export is agricultural products), I believe the change has made me a better, more adaptable person. Will I ever go back to the states? Very likely, but in the mean time I am very happy with my choice to live in Costa Rica.

Let’s start with the real estate. I’m definitely not talking about Costa Rica real estate in the investment sense (I did mention I just graduated in 2006, right?). But home rentals here are far more affordable than the prices you all pay in the states. It is becoming a bit more of a hunt, but I just recently landed a two bedroom, two bathroom casita in an upscale neighborhood for $375 a month. I’m already dreaming of decking the halls with boughs of holly and serving up hot chocolate and mint schnapps for holiday get-togethers.

What I am not doing is freaking out about my 401K (ok, to be honest I still don’t have one, I’m waiting for the ‘real life’ to begin). Nor am I stressing about gas prices as I live six blocks from my office and take the bus anywhere I want to go for 50 cents each way. I am not concerned about how to give up a take-out driven life, as I taught myself the art of cooking out of a ‘multi-use’ rice cooker over four months ago. The oven in my new house is quite the blessing, and I am excited to make sugar cookies in the shape of snowmen and Christmas trees once more. (It’s the little things that count).

My new house does not come with cable or internet, a monthly package of $50 that I may opt to acquire down the line. For now, I’d prefer to spend that money at the local farmers market, where I buy a giant driveway-salt sized bag of vegetables every Saturday for less than $10. The time, I can spend reading as English-language book exchanges here are easy to come by, as many displaced Americans and Europeans are always looking to get their hands on a new novel to read, no matter its theme or condition.

When it comes to extra daily expenses, Costa Rica is luckily void of Starbucks (by some miracle), forcing me to take advantage of the office coffee pot, or try out coffee ‘choreador’ style, where it is sieved through a sock-like filter. Costa Rica is also one of the only Central American nations to have potable water from coast to coast (for the most part). I’ve probably had the same water bottle for about 2 months to take to the gym with me daily with tap water. Oh and the gym! Forget those $60/month memberships. I pay $25/month with a personal trainer included!

And vacations! Let’s talk about vacations… for one I am blessed to work in the travel industry, where free weekends in 5-star hotels happen about once every three months. As a way of widening my Costa Rica Tourist perspective, I also get to play the backpacker whenever my little heart desires. With hostel stays averaging around $15 a night, and a wealth of beautiful destinations within a 3-hour, $5 bus ride, there is little excuse to stay home on the weekends. So now, if I want to reward my workout efforts with quality bikini time, it is just a quick bus ride away ‘to the sun’.

As for taxes, I have recently joined the Costa Rican ‘caja’ system, in which 12% of my salary goes toward my health insurance and taxes. However, 70% of what I spend in taxes is then returned to me at the end of the year for the ‘aguinaldo’ or Christmas bonus, which is used to boost the December economy. No claiming of taxes, as it all comes right out of my salary which is deposited into my account twice a month. As an American citizen, I am exempt from paying income taxes for a salary under $80,000 a year.

When it comes to extra-curricular activities, there are a handful of expat groups in the country like Couch Surfing, or the new International Professionals in Costa Rica, which organize weekly and monthly events. While you are always going to be a foreigner, there is a wide network of like-minded expats to hang out with no matter what your personality. There is also a wealth of volunteer opportunities related to local wildlife and under-privileged populations. If you were so inclined, the tuition at the public universities is a fraction of the cost in the states (somewhere around $1,000 a year). I have had friends get masters degrees here at the Universidad Latina (in translating) and at the University for Peace, a prestigious masters program that is affiliated with the United Nations.

Another benefit of Living in Costa Rica is the phenomenon of being a big fish in a little pond. In the United States, to pursue my job as a journalist, there is endless competition from people with equal or higher education eager to write about every topic under the sun. With a smaller English-speaking population, my native language automatically becomes a very important strength to add to my resume. I am also highly qualified to write about the country, arguably more so than more weathered journalists who travel to the country for the first time. Want to know the secrets of this beautiful country? It is going to take more than a couple of weeks to consider your self an expert, giving me a heads up on most U.S.-based competition in my field.

Perhaps writing isn’t your thing, but I would bet that your skill set mixed with your capacity for the English language is just as valuable here. Are you a website designer? Teaching professional? Contractor? Accountant? You’ve got a job in Costa Rica! Also, by diversifying your client base in another country, that job is more stable than one that services solely people living in the United States. Can you telecommute for your job? Then what are you waiting for?!

While salaries at Costa Rica-based companies are likely to be less than what you make in the states, if you factor in a lower cost of living, and take life a bit slower like I have been forced to (no car, limited TV, no cell phone, and Saturdays at the farmers market), you will find that your savings add up quite quickly. You will also become ‘that friend’ with a free place to stay in Costa Rica, so do expect to become an expert on travel itineraries to the country right away.

In the end, my decision to stay has become a mental battle between having or doing. I don’t consider my life here an accumulation of things but an accumulation of memories, experiences and learning both on the job and in life. Thanks to a little in-advance planning, I don’t have to dig into my savings to do these things, and have created a sustainable life here with enough profit, though the entrepreneur among you could surely rake in more. In the states (and granted all these stereotypes come with exceptions) there is the mentality of work hard now and play later. I simply choose to balance work and play in an environment that is conducive to both.

Well hopefully I at least sparked your interest enough to test the country out on vacation. If you have any questions, do ask us! Be it in a comment on an article or in our travel forum, we are eager to help you out. You just may find that, as we all have, leaving isn’t as easy (nor attractive) as one might think!