For years, Costa Rica promised the good life: beaches, jungle escapes, friendly locals, and that famous pura vida calm. Retirees, remote workers, and digital nomads all saw it as a tropical dream that delivered more for less. But lately, many who moved there are discovering that life in paradise can be far more complicated, and expensive, than they imagined. Rising costs, red tape, and daily frustrations are sending many Americans packing for new destinations that feel more sustainable.
Rising Cost of Living
Costa Rica’s reputation for being affordable doesn’t hold up like it used to. Prices for housing, groceries, and healthcare have climbed sharply, especially in popular towns like Tamarindo and Atenas. Import taxes make even basic goods expensive, everything from appliances to car parts can cost nearly double what they would in the U.S. For retirees living on Social Security or fixed incomes, the math just isn’t working anymore. Many are heading to places like Panama or Ecuador, where their dollars stretch further without giving up comfort.
Frustrating Bureaucracy and Red Tape
Getting residency or handling paperwork in Costa Rica can test anyone’s patience. The process is often slow, inconsistent, and full of surprises, requirements change, offices close early, and responses can take months. Even simple things like renewing a visa or setting up utilities can turn into long, confusing ordeals. What’s more, those relying on local lawyers or “fixers” often pay high fees for help that doesn’t always deliver. Compared to other Latin American countries streamlining their expat processes, Costa Rica’s system feels stuck in neutral.
Healthcare Isn’t as Simple as It Seems
Costa Rica’s public healthcare system is known for being universal and well regarded, but access is another story. The public system (known as Caja) can mean long waits for non-emergency care, while private insurance premiums have risen steeply in recent years. Expats who need regular treatments or fast specialist access often find themselves paying U.S.-level prices out of pocket. For retirees who moved partly for cheaper medical care, the gap between reputation and reality has been a major disappointment.
Limited Job and Business Opportunities
Unless you arrive with a stable remote job or solid savings, earning a living in Costa Rica can be difficult. The government protects local employment, which means foreigners need special permission to work. Starting a business involves navigating heavy taxes, import costs, and layers of bureaucracy that can eat into profits before you even open your doors. While tourism remains strong, competition and overhead are high. For many would-be entrepreneurs, it’s easier to relocate somewhere with clearer business rules and lower startup costs.
Cultural Adjustment and Isolation
The idea of pura vida living, slower, simpler, and more relaxed, sounds appealing, but for many Americans, the adjustment is harder than expected. The slower pace that first feels charming can start to frustrate those used to efficiency and structure. Add in the language barrier and it’s easy to feel cut off, especially in rural areas. While many Costa Ricans are welcoming, deeper friendships can take years to build. Over time, isolation and cultural fatigue lead some expats to move somewhere that feels more familiar or socially connected.
Infrastructure and Internet Gaps
Costa Rica’s infrastructure has improved, but it’s far from perfect. High-speed internet and reliable electricity aren’t guaranteed outside the main cities. Roads can be rough, with potholes and flooding that make travel unpredictable. For remote workers or anyone dependent on consistent connectivity, these issues add up quickly. Even simple errands can turn into all-day efforts in bad weather. It’s no surprise that many digital nomads are now gravitating toward Mexico or Portugal, where connectivity and convenience come standard.
Tourism Pressure Changing Local Life
Tourism keeps Costa Rica’s economy thriving, but it’s also changing its character. Formerly quiet beach towns have turned into busy, high-priced hubs. More hotels, restaurants, and short-term rentals mean locals and long-term residents compete for housing. Noise, traffic, and inflated rents have replaced the tranquil vibe that drew people in the first place. Many expats who came for serenity now feel like they’re living in a resort zone rather than a community, and are choosing to start over somewhere more peaceful.
Climate and Environmental Realities
Tropical living sounds idyllic until you live through your third rainy season with mold creeping up the walls. Costa Rica’s weather is lush but punishing, months of humidity, flooding, and sudden storms take their toll on homes and health alike. Electronics corrode, roads wash out, and insects thrive. While some embrace it as part of the adventure, others tire of the constant upkeep and discomfort. When you add in earthquakes and landslides, it’s easy to see why some retirees are trading paradise for stability.
