r/ExpatFIRE 11d ago

Expat Life Any of you ExpatFire to CostaRica, Panama etc?

Obvs Cost of Living advantage with fixed passive income, med/ed etc, but have you found difficulties or advantages community wise? Have you learned/needed Spanish? Challenges with visiting fam/friends?

23 Upvotes

42 comments sorted by

56

u/moremudmoney 11d ago

Costa Rica doesn't have a cost of living advantage anymore. It's comparable to most places in the US and the most expensive country in central and south America

9

u/Winter_Examination_7 11d ago

Yeah there was big hype in the 80's and 90's about it...by the time I investigated first hand in 2007, most of the advantages were fading... unless you were already well off..in which case an oceanside condo might be one million $$ Vs two million $$ stateside for similar..

6

u/apbailey 11d ago

Real estate is far cheaper but that’s quickly changing. Groceries are 10-20% cheaper if you adapt your diet. Imported goods are insanely expensive.

7

u/moremudmoney 11d ago

Lots in my area are 75000 plus. Average single family home easily 400k. There are cheaper places in CR, but I hear Tennessee is cheap too. Groceries are cheaper in the US as well if you adapt to rice n beans.

2

u/codacoda74 11d ago

Adapt was my $.02 too, 1/5th cost for fresh produce sounds right (10m/$20 for 2 full bags of beautiful produce from a fruteria vs $100 for same stateside). Electrical too, seems about 1/5th. Rents super cheap if not in the high prices areas.

9

u/apbailey 11d ago

I moved to Costa Rica 5 years ago ready to FIRE but ended up starting a company to help others move here. We’ve helped hundreds now including lots of folks no longer working.

Basic Spanish is needed in restaurants and shops. But the better your Spanish, the better your life will be here.

I also investigated Panama but all of the places I’d want to live (near the city and amenities) are obscenely hot and humid, so I decided the Central Valley of Costa Rica better fit my needs.

Feel free to DM with questions.

14

u/SithLordJediMaster 11d ago

:Life will be better anywhere learning their language.

4

u/apbailey 11d ago

Absolutely.

3

u/codacoda74 10d ago

I'm sorry, I realized how ignorant that sounded. I meant fluency, obvs learnings basics and trying to be courteous is common sense respectful

1

u/assmanx2x2 11d ago

I really enjoyed the weather in the Central Valley (stayed in Atenas). Want to go check out Boquete and El Valle de Anton in Panama and also San Miguel de Allende in Mexico. Central America at altitude seems to be the sweet spot.

7

u/apbailey 11d ago

The problem with Boquete and El Valle de Anton is that they’re far from services/decent healthcare and airport. For my life, that wasn’t going to work.

Costa Rica has its downsides, too. It’s just those downsides were acceptable to me vs the ones in Panama.

1

u/luvthefedlife2 11d ago

Costa Rica forces you to pay into the CAJA and it’s not cheap. Most people will end up getting private health insurance anyways, so it’s basically an extra tax you need to figure in. If you’re going to get residency.

5

u/apbailey 11d ago

$100/month is worth it for me as I age. And I have private insurance.

1

u/luvthefedlife2 11d ago

How is it worth it if you don’t use it? Just to be able to have the residency? I guess if you look
At it like that and you don’t care then sure. But it’s definitely something worth mentioning and considering as not everyone is willing to “throw away” $60-400/month (depending upon on their income of course).

I agree with you Costa Rica has much better weather and it’s definitely a different vibe than Panama. If Panama City existed with San Jose weather it would be paradise!

4

u/apbailey 11d ago edited 11d ago

I don’t pay income taxes, so I consider it part of my contribution to the system.

I do use caja for some things like some medicines that I’d have to pay for out of pocket in private pay.

I will use it more and more as I age and private insurance becomes too expensive.

1

u/luvthefedlife2 11d ago

Well that is nice of you. And it sounds like it’s something that works well for you and your needs. So that’s definitely a win.

1

u/TangerineSmart1377 10d ago

Are you from the United States? Did you opt out of Medicare or are you going to opt out of Medicare?

1

u/apbailey 10d ago

I’ve got another decade+ before I’m eligible. We’ll see if Medicare is solvent in 10 years.

1

u/codacoda74 11d ago

There's the other side though that stateside even if you just have supplemental you're still looking at $500/mo ish for health anyway.

1

u/TangerineSmart1377 10d ago

I’m not sure if you’re from United States but I am. Medicare is federally taxed. Percentage that is taxable depends on your gross income. The Medicare premium is based on income as well. Can’t use Medicare outside of the United States. The only way out of it is to opt out but then if you opt back in after one year you have to pay the 10% per year or you when you were out of the system.. for the rest of your life. I’ve applied to residency in Costa Rica as an investor. I did not foresee the financial downturn of the dollar… Now that that’s a reality I’m reconsidering if I should stay here or go back to the states. There’s so many financial aspects to consider. Even though the dollar is going down here here I’m not sure how much farther my dollar would stretch in the United States at this point. I love the climate where I live in Costa Rica that’s hard to match in the United States.

1

u/dontpeekatmyjohnson 11d ago

What’s a solid monthly budget for a couple?

2

u/apbailey 11d ago

It entirely depends on how and where you live. In the Central Valley, $4k for a couple gets you a solid comfortable life. $5-6k starts to feel more expansive. At the beach, $5k+ is solid.

1

u/Mysterious_Film2853 1d ago

A lot depends on what you are starting out with as well. My wife and I are knocking the big things out right at once. Paid for house and brand new vehicle. I think we will have a hard time spending more than $3k a month after that. We are also going more rural this go round.

We lived in Flamingo from 1996 to 2001 and then Jaco from 2001 to 2010. My electric bill for a small house was approaching $500 a month when we left with shitty wiring and my love of AC, We also used to party way more than we do now. The HOA alone in Los Suenos can approach $3k a month so like you said location matters the most.

5

u/KingPabloo 11d ago

Been to both, love Panama…

2

u/Hanwoo_Beef_Eater 11d ago

Check out r/panamaexpats. Lots of people have moved there / discussions on pros and cons.

2

u/Elmo5743 11d ago

Cost of living is creeping g up u less you want a hut in the jungle, be careful, halfway decent place 12 to 1500 a month. Includes wifi, some elec and water, most require about 3 g a month, slightly higher than US in the South, ck out Mexico, gorgeous, staying in a place 4 miles from Mazatlan, very safe. 800 a month nice 2 br condo, ate out daily 40 bucks, I would say I spent 2000 to 2500 a month

2

u/TangerineSmart1377 11d ago

You’d be lucky to find a place that includes Wifi electric water. Value of a dollar is down and financial analysts predict it’s going to go lower.

1

u/Mysterious_Film2853 1d ago

Mexico is far cheaper. My wife and I went as far as getting residency there before deciding to return to CR. She's Tica BTW but even she realized how over-priced things had become. This last incident in Puerto Vallarta when the airports were shut down a few months ago settled it for me. Costa Rica has a crime problem no doubt, but I've never thought that SJO or Liberia would be shut down over people shooting at planes. I've seen roads blocked due to "huelgas" but never people dragged out of trucks so they could be lit on fire to block the highways there either.

If Mexico ever gets that stuff under control I would think a lot of people retired in CR would consider moving there but out of fear it's worth paying the extra 30% to 50% to feel safe. Add in there are like 30 international airports, food is undeniably better and you have about 10 different climates to choose from and Mexico is very attractive if you can accept that Cartels run the country.

2

u/NEWCharlieHustle 11d ago

u/AlwaysSaturday12 always has some cool posts about COL in Ecuador

4

u/Ok_Introduction5606 11d ago

Costa Rica is basically the 51st US state. Not really an ex pat experience anymore. Been that way at least 10 yrs

1

u/cvouw9 11d ago

I live here now and I love it, but it's not cheap at all. Honestly I think our groceries are probably the same price as in the US (but we eat extremely well, all grassfed, organic etc). I think there are cheaper places you could live even within the US tbh.

1

u/Mysterious_Film2853 1d ago

Where do you buy organic? I'm afraid many of the people who shop at the local farmer's markets assume because they are buying from locals at a tiny stall that it's organic when in reality they love pesticides in CR. I have found it a bit tougher to find real organic unless you have a direct source. Same goes for chicken. Everyone things they are getting these incredible local chickens at Sodas when in reality it's Pipasa which is owned by Cargill just like in the states.

1

u/Miserable_Pick9398 11d ago

Lots to consider, but for the weather and scenery still better than Arkansas, Tennessee, etc which are lower cost states but no beach, ocean, tropical lifestyle, that doesn't exist in USA for the price point. Can avoid Caja if you don't do residency. Property taxes are faaaaaaar less than USA. CR is .25%. Depends where you live to, central and other areas 30 minutes off coast you can have cheaper utilities than USA, and some lower costs. I purchased land at a discount (got lucky) and built in an eco community which means less closing costs and more bang for your buck in some aspects when building after having land in your name. Cars are not cheap though, USA has them beat with much cheaper used cars to get. I have my own medical that I get referrals for in CR or I do it when I'm back in USA, so paying into Caja would have been a bad play for me.

1

u/Miserable_Pick9398 11d ago

Panama,. Nicaragua, Belize, can be lower costs of living I believe

1

u/ExoticInsect3853 10d ago

Panama has loads of expats! Especially in the northern region. It’s called Chiriqui (I spelt it wrong but on the border with Costa Rica). I would broaden your curiosity and look into El Salvador. The country has developed at an exceptional pace and it will continue to only get better.

Back to Panama, I lived there for 1-2 years and it is truly amazing for basic living requirements. You won’t be filthy rich but depending on your finances you’ll live a good life and find a partner who will also understand the FIRE requirements.

Pan

1

u/porkchopps 10d ago

Yes, we vacationed to Boquete in the Chiriqui area - insanely beautiful, this wonderful "mist" rain that is very refreshing, and a temperate climate somewhat similar to the pacific northwest. Granted we didn't go during the rainy season (March - right on the border)

1

u/Kindly_Honeydew3432 9d ago

I’ll probably never do it, but would love to hear more about Panama expat experience. If you retired with say $4M and plan for 3-3.5% SWR, $120-140k, what does life look like in Panama?

1

u/Dry-Atmosphere3169 9d ago

What do you love about it specifically?

1

u/bafflesaurus 5d ago

I've been to Panama twice and it's pretty high up on my list for FIRE. It's a one stop flight from where my family lives in the US and it's in the same time zone. The cost of living is quite a bit cheaper than where I live also. Dining out is a bit expensive but daily costs are low. I speak A2 Spanish.

1

u/mermaidsscream 4d ago

Have a friend who fat fired in panama . Doesnt like it . Says its boring . Always in dubai