Moving to Costa Rica
Relocating to Costa Rica is a subject that many expats are considering although a number of people seem to have a very different slanted view of the country and reasons for moving to Costa Rica. We will attempt to give you some background on Costa Rica itself, the prospects for the future, employment and other aspects of everyday life which you will need to consider before moving to the other side of the world.
Costa Rica
While commonly referred to as Costa Rica, the Republic of Costa Rica is the official title of the country. Situated in Central America the country is bordered by Nicaragua to the north, Panama to the south and east with the Pacific Ocean and the Caribbean Ocean on the west and east. This is a country which is relatively small but is in fact a leader in many fields which will surprise a number of people. Despite the fact that the country is so small, with around 51,000 km² in landmass, it has a population of 4.2 million and a relatively low population density when compared to the rest of the world.
Many people will be surprised to learn that Costa Rica has a very strong democratic constitution and has experienced 59 years of uninterrupted democracy leading to one of the most stable political arenas in the world. Various changes over the years have improved the prospects for Costa Rica, both economically and politically, and strong relations with North American countries and South American countries have laid the foundations for a more positive future.
Where is Costa Rica
As we mentioned above, Costa Rica is situated in Central America and is a very important trade route between North America and South America. Surrounded by Nicaragua and Panama, Costa Rica has unfortunately gathered a reputation which in many ways is totally unfair. This is not a crime-ridden country this is a country which continues to prosper and is a leader in a number of different fields. Like relatively small neighbour Panama, Costa Rica has helped make good use of its position in the global worldwide trade route and has to some extent benefited from the success of the Panama Canal and Panama itself.
Many people will be surprised to learn that Costa Rica actually consists of a number of islands, has a number of active volcanoes, has a high point of over 12,000 feet and a climate and geography which is as varied as it is beautiful. When you also appreciate Costa Rica has one of the most varied and greatest densities of species in the world then maybe a very different light begins to cast over the country.
The weather in Costa Rica
In general the climate in Costa Rica is tropical due to the fact it is located around 10° north of the equator although like so many surrounding countries, Costa Rica does also possess a number of microclimates which can be very different. Depending upon the particular geography, elevation of the area and distance to the sea (on either side) there can be a great variation on dry weather and rainfall not to mention temperatures in general. The dry season occurs between December and April with the rainy, or winter season, from May to November.
Costa Rica is unfortunately one of many countries in the area which is affected directly by the Atlantic hurricane season when it can rain constantly for some time. Annual rainfall in the higher areas of Costa Rica can reach 5000 mm with temperatures anything from 50°C to 80°C depending upon the area and the vicinity to either the Pacific or the Caribbean Sea. So in many ways those looking for very different climates may well be able to find something that suits their needs in Costa Rica, even though the country itself is relatively small!
Working in Costa Rica
Despite the fact that Costa Rica has in many ways taken advantage of its position in Central America, the impact has been reduced somewhat by a relatively high rate of inflation, lack of investments by the authorities and relatively high unemployment. The poverty rate in Costa Rica is also alarmingly high with estimates between 5% and 8% with a trade deficit of 5.2%. Unlike the likes of Panama, Costa Rica was hit by the worldwide recession when economic growth fell from between 7% and 9% in the previous two years to “just” 3%.
Unfortunately the rate of inflation peaked at 13.9% in 2008 resulting in the government making changes to the exchange rate system allowing the national currency to float between two bands. On the upside, this reduction in economic power has caused the authorities to review overseas investment and a number of tax exemptions have been brought in to encourage companies and individuals to invest funds in Costa Rica. We have seen the likes of Intel, GlaxoSmithKline, Procter and Gamble and an array of other worldwide leaders setting up branches in Costa Rica to export around the world. This dependence upon overseas parties is perfectly illustrated by the fact that Intel itself was responsible for over 20% of Costa Rica exports and 4.9% of GDP!
Aside from the fact there is a very strong and lucrative tourism industry continuing to grow in Costa Rica, there are other investment opportunities in pharmaceuticals, financial outsourcing, software development and agriculture with bananas, pineapples and coffee are amongst the leading exports from the country. Tourists come from all around the world to visit Costa Rica although the United States at 13.6% is the leader with Nicaragua at 21.8%, Europe at 11.3% and Canada at 5.2%. There is likely to be significant movement in overseas investment in Costa Rica until the economy stabilises and inflation is under control.
Major cities in Costa Rica
There are a number of leading cities in Costa Rica which include:-
San Jose
San Jose is the capital of Costa Rica and situated in the centre of the country, housing the national government and other major authorities. The city itself has a history which goes back to 1738 and while one of the “younger” capital cities in Central America it does have a reputation and a standing of its own. The city itself has a population approaching 370,000 people although when you take into account the wider metropolitan areas the figure equates to around 30% of the overall population of Costa Rica.
San Jose is the largest city in Costa Rica, attracts the lion’s share of overseas investment, has a very strong commerce sector and is the central hub of the country’s tourism industry. There are a number of investment and employment opportunities in this particular city.
Cartago
Cartago is the second-largest city in Costa Rica and the capital of the province of Cartago, which is located around 25 km to the east of San Jose. The population of Cartago is difficult to clarify because it is one of a number of cities which appear to merge together to create a continuous urban backdrop. However, many believe that the population of the area is in the region of 156,000 although it is difficult to clarify with any great confidence.
The city itself has a history which goes back to the 1800s and like so many areas of Costa Rica it still has a very strong link with Spain. This particular area of Costa Rica is very popular with religious tourists who visit a number of the surrounding churches and attend a number of the many religious events throughout the year. If you’re looking for employment in and around Cartago you’re likely to be most successful in the agricultural sector like so many other cities in the country.
Alajuela
Alajuela is unsurprisingly the capital city of the province of Alajuela although it is much smaller than the likes of San Jose with a population of around 46,000 people. The history of Alajuela goes back to the 1840s and there has been much conflict in the region with Colombia staking a claim to this particular area. From a tourist point of view the climate in and around Alajuela is renowned as one of the best in the world although the area itself is prone to earthquakes.
Like so many other cities in Costa Rica this is a export driven city with items such as coffee, sugar cane, corn, beans and tobacco as well as citrus fruits, strawberries, flowers and ornamental plants very popular. There is very little in the way of manufacturing and service companies in Alajuela, with many of these centred round the capital.
Puerto Limón
Puerto Limón is the capital city of the province of Limón which overall has a population of 60,000, including surrounding towns and rural areas. There is a particularly strong Jamaican influence in this particular area of Costa Rica which can be traced back to the late 19th century. Historically the government rejected residency claims of many Afro-Caribbean’s which resulted in a number maintaining a strong presence in and around Puerto Limón, something which continues to this very day.
This particular area of Costa Rica is renowned for parties and festivals although there have been a number of health scares and public service issues of late which have taken the shine off the “party atmosphere” of years gone by. However, situated on the east coast of Costa Rica the area continues to attract tourists in significant numbers.
The cost of living in Costa Rica
The cost-of-living Costa Rica is a very difficult and very varied subject due in the main to a number of issues such as inflation, poverty and the area of Costa Rica in which you live. Many people joke that the cost of living in Costa Rica is “whatever you have to spend it” because as well as the massive variation in wealth across the country there is also a massive variation in the services available, such as restaurants, etc., which can be surprisingly pricey for a country which appears on the surface to be struggling.
Many of the services which overseas visitors will require are situated in and around the capital San Jose which is yet another reason why the population of this particular region is significantly greater than that of any other area of Costa Rica. The variation in the cost of housing in Costa Rica is also particularly large with the option to live in a secure community or a “normal” street setting. Again, many of the options available in Costa Rica will come down to your own specific requirements and your own specific budgets. As a ballpark figure it is possible to get by with a fairly simple yet decent standard of living in Costa Rica for around $1100 a month with anything up to and above $4000 a month offering you a fairly “luxurious” lifestyle.
Conclusion
While Costa Rica is a leader in many fields and is well represented in many of the worldwide country leagues for “happiness”, eco-friendliness, etc. this is a country which has been paralyzed by high inflation, high unemployment and a lack of inward investment by previous governments. This is despite the fact that Costa Rica has one of the longest standing democratic governments and should in theory be a lot more developed than it is today.
However, there are high hopes for the future of Costa Rica as the government has introduced a number of tax breaks to attract overseas investment and overseas visitors. The relatively low cost of living in Costa Rica is catching eye of many expats and while there is more to this country than meets the eye, there are a number of regions which offer a relatively high standard of living for a relatively low cost.
As with any country which you’re looking to make your home in the future you need to do your homework, set your budgets and ultimately see exactly what you can afford and when you can afford it. Poverty is still a major problem in Costa Rica with many rural areas effectively “out of the loop” and in many ways out of bounds for overseas visitors. However, there is the potential for significant change and significant improvement in the Costa Rican economy in the medium to longer term.
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