The Retirees Who Left for Costa Rica at 59 Say the Hardest Part Was Not the Money
Couples who retired to Costa Rica at 59 say the spreadsheet made it look obvious, but they consistently underestimated the same category of cost that no budget column can capture.
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Every year, Americans in their late fifties run the numbers and conclude the money works better elsewhere. Costa Rica sits near the top of that shortlist, as couples who made the move at 59 will tell you the spreadsheet was the easy part. What they underestimated was everything the spreadsheet could not price. This piece is for the reader stress-testing that move, and the financial case is real. The question is whether the rest of life is.
Money Case Holds, Briefly Stated
Retirees report living comfortably in the Central Valley on roughly $2,500 to $3,500 a month for a couple. A modest long-term rental in Atenas, Grecia, or Escazú typically runs $900 to $1,800. Purchase prices for a small home outside tourist zones sit well below coastal US equivalents. The average US household spent $78,535 in 2024, so a $40,000 Costa Rica budget clears with room. The Pensionado residency program requires $1,000 per month in lifetime pension income, which Social Security satisfies.
Costa Rica does not tax foreign-source pension, Social Security, or investment income. US citizens remain taxable to the IRS on worldwide income. The foreign earned income exclusion of $132,900 for tax year 2026 applies to earned income only, not pensions, Social Security, IRA distributions, or 401(k) withdrawals. The $32,200 standard deduction for married couples filing jointly in 2026 handles most of a typical retirement withdrawal.
Healthcare Drives the Decision
Legal residents can enroll in CAJA, the national system, paying a monthly contribution generally reported as 7% to 11% of declared income. It covers everything, including medications. Most expatriates carry private insurance or pay cash at private hospitals in San José, where a specialist visit costs a fraction of US prices.
Medicare does not pay for care outside the United States except in narrow circumstances. A retiree who drops Part B while abroad and re-enrolls later owes a permanent late-enrollment penalty of 10% of the standard premium for every full 12 months not enrolled, added to the premium for life. With the 2026 Part B standard premium at $202.90, years off Part B compound into a permanent surcharge (the late-enrollment penalty is one of several Medicare traps we mapped in a free guide here). Most retirees abroad keep paying Part B while receiving no benefit, purely to preserve the option to return home. Budget the premium as an insurance policy on that option.
What Actually Sends People Back
Distance from adult children and grandchildren compresses imagined monthly visits into a couple of long trips yearly. Additionally, managing a produce market in intermediate Spanish differs from managing a cardiology consult, property dispute, or frozen bank account. Costa Rican bureaucracy for residency renewals, vehicle imports, and property transfers moves at its own pace. Many local banks also hesitate to open accounts for Americans, which is another important consideration for potential retirees.
Aging in place abroad differs from active early retirement. When one spouse dies, the survivor often faces a second language, distance from family, and sometimes cannot drive mountain roads that were charming at 60 and dangerous at 78. Rainy season potholes, power interruptions, and water outages feel like texture on a visit and like friction on year six.
Reporting, Handled or Punished
Any US person with foreign accounts exceeding $10,000 in aggregate at any point in the year must file an FBAR (FinCEN Form 114). Form 8938 kicks in at $100,000 for joint filers living abroad. Filed on time, these are clerical. Ignored, willful FBAR penalties can reach the greater of $100,000 or half the account balance per violation.
Final Verdict
This works for someone who has spent extended time in country, has functional Spanish, has family circumstances flexible enough to absorb distance, and has thought concretely about care at 82. It does not work for someone acting on a cost comparison and a two-week visit. Rent for six months through the green season without selling the US home, and complete one real administrative task before deciding. Then make the Medicare Part B decision deliberately, because that one is hardest to reverse.
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David Beren has been a Flywheel Publishing contributor since 2022. Writing for 24/7 Wall St. since 2023, David loves to write about topics of all shapes and sizes. As a technology expert, David focuses heavily on consumer electronics brands, automobiles, and general technology. He has previously written for LifeWire, formerly About.com. As a part-time freelance writer, David’s “day job” has been working on and leading social media for multiple Fortune 100 brands. David loves the flexibility of this field and its ability to reach customers exactly where they like to spend their time. Additionally, David previously published his own blog, TmoNews.com, which reached 3 million readers in its first year. In addition to freelance and social media work, David loves to spend time with his family and children and relive the glory days of video game consoles by playing any retro game console he can get his hands on.
