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If you’re considering relocating to or investing in Costa Rica, then an important step we recommend is taking an extended trip, as long as possible, to explore the area and everything it has to offer.

Sure you read those occasional stories about the guy who got a hankering, got on the internet, bought a property sight unseen, sold all his belongings, moved to the tropics, and never looked back.

Unfortunately, stories like that are the exception, not the rule. The reason being, there’s just no substitute for seeing and experiencing a country, a region, a city, even a neighborhood for yourself before you make any major life-altering decisions.

But if you haven’t been to Costa Rica before, or at least not since you honeymooned at that all-inclusive resort many moons ago, then how do you know which areas to visit, where to stay, what to eat, etc.?  The answer?  Ask a local.

costa rica

Mauge

The Guidebook That’s Just Like Having a Real, Live Tour Guide

There are plenty of books and websites that will claim to tell you everything you need to see and do in Costa Rica. If you’ve read any, you’ll probably even notice (spoiler alert)…they’re usually all the same.

Why? Because half the people who write those things have never even been to those places or eaten at those restaurants. They’re recommending what they’re told to recommend or what 10 other people have already written about and recommended. Don’t fall for it.

What’s better is to rely on local sources, natives, or even other expats. They know the hole-in-the wall restaurants, the best dish that’s not on the menu, and the day of the week when you should steer clear because it’s “gringo night.”

So, now you’re probably thinking “But I don’t know anybody in Costa Rica.”  Well, that’s not a problem.  Because our friend Camille Willemain has written an incredible ebook called “The Ultimate Guide to Costa Rica.” It’s a great resource, and I highly recommend that you check it out if you’re planning on visiting Costa Rica.

Costa Rica

MF Carter

Experience Costa Rica Like a Local

Even if you aren’t already planning a trip in the near future, this ebook might just be enough to convince you to book a flight.  It’s full of tips and recommendations, as well as some really amazing photos.

In the book you’ll find everything from which beaches you absolutely cannot miss seeing to how to stay safe and healthy when you’re traveling in Costa Rica. The author has even outlined detailed two-week itineraries for experiencing the best of Costa Rica’s beaches, wildlife, or the Caribbean coast…a tremendous help for someone who wants to pack a whole lot into a single trip.

And the sights, tastes, and experiences highlighted in this guidebook aren’t your typical touristy attractions and hangouts.  They’re places where you can get an authentic Costa Rican experience and truly immerse yourself in the culture and lifestyle, just like a local.

costa rica

Matthew Karsten

Take it From An Expert

The author is a self-proclaimed expert on Costa Rica, and I would have to say that’s a fair statement.  She’s traveled all over the country and seen pretty much everything there is to see. When I read her advice about the best places to visit in Costa Rica I could tell…this girl knows her stuff.

This ebook is the perfect starting point for someone who’s considering a new life in Costa Rica.  It’ll help you skip all the tourist traps and see firsthand what living in Costa Rica is really like.  Give it a read.  Then get to planning!  Your pure life awaits you.

Perhaps the most important question for expats considering a move to Latin America is:  What is the cost of living? The differences in prices for basics, such as food, utilities, and rent, can often be the determining factor in choosing one location over another.

By comparing the cost of living of three of the most popular Latin American destinations – Costa Rica, Panama, and Ecuador – you can get a better understanding of the budget needed to make your tropical dream a reality. Learning about these (and other) popular destinations is a great way to begin the search for that perfect piece of tropical paradise.

costa rica ecuador panama price comparision

Super0923

What Goes into Figuring the Cost of Living

There are a lot of factors that can be included when calculating how much it would cost to live in one place as compared to another. Looking at the big picture is one way to get an idea of the comparative pluses and minuses of each location.

Below is a chart that compares prices and consumer spending power (on a macro level) between Costa Rica, Panama, and Ecuador:

Ecuador Costa Rica Panama
Rent Prices are 59.25% lower than in Panama Rent Prices are 86.62% lower than in Panama Rent Prices are 59.25% higher than in Ecuador
Consumer Prices are 17.89% lower than in Panama Consumer Prices are 9.65% higher than in Panama Consumer Prices are 17.89% higher than in Ecuador
Grocery Prices are 23.82% lower than in Panama Grocery Prices are 5.78% higher than in Panama Grocery Prices are 23.82% higher than in Ecuador
Local Purchasing Power is 20.15% lower than in Panama Local Purchasing Power is 19.03%  higher than in Panama Local Purchasing Power is 20.15% higher than in Ecuador

Information Source is Numbeo.com as of May 2015

As can be seen, each country has positives and negatives in terms of the cost of living. Ecuador has the lowest rent, Costa Rica has the highest local purchasing power, and Panama occupies the middle ground on most categories.

This is also a direct reflection of the stage where each of the three countries find themselves in terms of growth. Costa Rica has the most developed market in terms of expats, Panama is in the middle of a growth spurt, and Ecuador is just now emerging as an expat hotspot.

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sitzmansitzman

Looking at Specific Items That Go into the Cost of Living

To better explain how these percentages impact expat budgets, it helps to look at the actual dollar amount that such things as food, housing, and transportation cost in these three countries. This comparison appears in the chart below:

SAMPLE GROCERY ITEMS Costa Rica Ecuador Panama
Milk (regular), (1 liter) $1.40    $1.06 $1.47
Loaf of Fresh White Bread (500g) $1.61    $1.45 $2.06
Rice (white), (1kg) $2.14    $1.41 $1.48
Eggs (12) $2.83    $1.81 $2.17
Local Cheese (1kg) $6.35    $4.76 $7.73
Chicken Breasts (Boneless, Skinless), (1kg) $6.97    $5.94 $7.15
UTILITIES
Basic (Electricity, Heating, Water, Garbage) for 85m2 Apartment $70.65     $44.13 $69.84
1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans) $  0.07     $  0.17 $  0.14
Internet (6 Mbps, Unlimited Data, Cable/ADSL) $53.16     $44.07 $41.99
TRANSPORTATION
Gaosline (1 Liter) $1.34 $0.50 $0.90
Volkwagen Golf 1.4 90 KW Trendline (or similar new vehicle) $22,569.12 $25,000.00 $19,500.00
RENT PER MONTH
Apartment (3 bedrooms) in City Centre $833.13 $661.34 $1,780.77
Apartment (3 bedrooms) Outside of Centre $654.21 $524.29 $   967.86
Information Obtained from Numeo.com as of May 2015

Again, the differences reflected in the cost of certain items mirrors each country’s particular characteristics. Panama, long recognized as the commercial hub of Latin America, benefits from the ready access to imports in the form of lower prices for cars and gasoline. Both Costa Rica and Ecuador have significantly lower rental costs than Panama; the modern wonder that is Panama City is a prime example of this disparity.

Interestingly, the food items selected for comparison are all roughly the same in cost across the three countries. The accessibility of locally grown produce and meat can further reduce the food budget across the board.

Mauge

Mauge

What Does It All Mean?

Panama, Ecuador, and Costa Rica each have unique qualities that have made them three of the top locations for foreign investors, expats seeking a new or different lifestyle, and retirees looking for that tropical paradise. Depending on where you live, the cost of living may be higher or lower than these examples.

If a more rustic lifestyle is the preferred choice, the amount spent will be lower; conversely, for those seeking a luxury residential location with modern amenities, the cost will obviously be higher. In any event, what one would spend for these items in the U.S. is going to be different than in any Latin American location.

Ultimately, the question that has to be answered is a simple one: Does this place (Panama, Costa Rica, Ecuador, or elsewhere) call to you? Being realistic about your own monetary resources is another important facet in the expat process.

Learning about each country by connecting with others who have made this leap of faith, and, hopefully, visiting those places that appeal to you, is the best way to put everything into context. You can then measure the cost of living in the context of the cost of making a dream come true.

Becoming an expat is an exciting proposition. But the sad truth is that, despite all their careful planning and preparation, many expat families and businesses don’t succeed. Sometimes it’s due to unforeseen events. Often it’s the result of a failure to plan mentally for the transition.

One huge part of this important mental prep-work is understanding the culture you’re entering and what skills you need to help you fit into both the social and business climate of the area. This guest post, by John R. Henry of Cultural Consulting, LLC, outlines a few tips that are crucial for embracing and being accepted in the Latin American culture, specifically. Give it a read if you want to avoid making some typical gringo mistakes.

Courtesy of

Courtesy of Cultural Consulting llc

Many think globalization is a recent phenomenon. The truth is that people from different nations have been traveling, emigrating, working, investing, and trading (not to mention pillaging, conquering, and colonizing) for centuries! The resulting interactions between these diverse cultures have inevitably produced some conflict. Fast-forward to today, where adventurous entrepreneurs look for opportunities and new markets across international borders.

The internet is full of stories about successful businesses that have been established abroad. The barriers to entry in many “emerging” markets are considerably lower than those of the entrepreneur’s home country. However, there can be other barriers to achieving long-term success that often go overlooked.

After living in Latin America for over 12 years, I have witnessed scores of business ventures, investing efforts, and non-profit philanthropic projects utterly fail as a result of one missing ingredient to success . . . . . cross-cultural skills.

What you don’t know CAN hurt you.

The well-intention individuals behind these failed attempts often do not realize that with even the most basic cross-cultural understanding, their dream could have become a reality. The businesses and organizations that dosurvive their first few years in the new culture will recount the months (or even years) of wasted time and potential income as results of their lack of cross-cultural knowledge early on.

Similarly, many expat singles, families, and retirees embark upon their new lives in Latin America with the highest of hopes for their piece of paradise, only to be disillusioned and frustrated when confronted with cultural conflicts from housekeepers, gardeners, building contractors, and internet companies.

Some hold on a few years, while others only a few weeks! In one case I know of, the people moved their entire lives to Central America, only to last less than the time it took them to sell all their possessions in the U.S.! The tragedy is, that in most of the aforementioned failed attempts, the involved parties did not even realize that most of their frustration was a result of cultural misunderstandings.

3 Tips for Success

Whatever our reason for living in another culture, be it business or pleasure, cross-cultural skills are invaluable. There are many, but let me list three that can start helping you today, specific to Latin America. I guarantee that if you do these three things, you will see both short and long-term success.

Courtesy of Cultural Consultingllc

#1-Take Time to Tomar un Cafecito

There is always time for coffee. Morning, noon, and night. Learn to drink coffee, even when it’s hot outside. Learn to drink it at night. I have worked with the Ngäbe Indigenous people group from Panama in community development for over 7 years and have learned to drink coffee right before bed like they do.

In Panama, it’s coffee; in Argentina, it’s mate; in the Amazon, it’s chicha. Whatever the drink, the point is that you slow down and take some time to talk to people. If your Spanish is rusty, make your best effort; your host will not mind and it will be more than enough to strengthen the relationship.

In the business world, people from North America/Western Europe tend to see two or more people who are engaged in long conversations about non-business related subjects during business hours as idle or unproductive.

In Latin America however, work is meant to be a social endeavor. If you choose to ignore this advice, you may be slightly more productive in the short-term, but you will lose out on the lasting beneficial business relationships that will exponentially reproduce as a result of you being perceived as buena gente(you can look that up later).

#2 – “¿Qué Xopá, Fren?” Learn a Few Very Localized Phrases

Learning Spanish is great. Learning Spanish and some local idioms is even better. Sit back with your coffee in a local café, fonda, or soda, and listen to some of the interactions. Learn a greeting or expression that is truly local.

The powerful thing about phrases such as the Panamanian expression, “¡Ayala vida!”, is that once the locals hear it come out of your mouth, they are both surprisingly amused and truly honored that you took the time to learn something that is so close to their cultural identity.

Be aware, however, that you will get laughed at. Take this in stride; yes they are laughing at you, but that is a good thing. It means you are becoming accepted. You know you have arrived at this point of acceptance because you will receive the honor of recognition: a nickname.

From Mexico to Argentina I have been Juancho, Canela, Juanito, Marqués, and Jochi. Wear your nickname with pride and learn everyone else’s nicknames as well. It will take you far.

Amy McTigue

#3 – Don’t be a Gringo Bravo

If you are in Latin America for any considerable length of time, you will inevitably experience frustrations over the differences in how things are done. Please remember to find a way to keep your cool. Yes, it is true that it is culturally acceptable for Latin Americans to lose their cool with one another.

However, you are not Latin American (I’m assuming if you are reading this). The rules are different for you. It’s not fair, but it is just the way things are. If you become visibly angry, it is the quickest way to destroy business and personal relationships.

Now this is tricky, because even if you think your are keeping your cool, Latin Americans are expert face readers. Be extra aware of what your face is communicating; you may be unknowingly turning a dark shade of red. So what do you do if you are upset about something but confronting that person in a direct manner (which is what North Americans/Europeans tend to do) is not an option?

Here is one technique that usually works, though it requires you to do exactly the opposite of what you naturally want to do. With the offending party, communicate disappointment, not anger. Make a point to not make eye contact and tell about how in your country things are different, and you mistakingly thought things would be the same here.

Ask the person how you can do differently next time to avoid this type of disappointment. This gives them a way to communicate their point of view without being defensive and it avoids the shame of feeling blamed by you. Nine times out of ten, the problem will have been a misunderstanding anyway. You can end it with a joke and offer to buy them a drink.

There are many other excellent tools for cross-cultural conflict resolution. I love to pass on this knowledge to others and would be more than happy to help you. If you have any questions or are interested in experiencing unhindered success in Latin America, please contact him.

John R. Henry As a life-long cross-cultural learner, John has resided full-time in Latin America for the last 12 years, and worked throughout 10 different countries from Mexico to Argentina. During his time, spent mainly in the non-profit sector, John has become sought after as a consultant and training specialist in the area of cross-cultural communication. Fluent in Spanish and possessing limited proficiency in several Indigenous languages, John loves to help people understand one another and come alongside them to help make their dreams a reality.

He currently works in a very multi-cultural area in the coffee-growing region of the Central American nation of Panama. There, many cultural understandings and ways of working frequently collide, causing great frustration and confusion for involved parties. Out of this perceived need, came his desire to begin a cross-cultural consulting firm. He offers coaching, mediating, staff training, and translation services.

 

Viva Tropical Radio

Viva Tropical Radio

Park and Josh look for a large tract of land for their next project. After combing through hundreds of options and locations they have narrowed it down to the Southern Zone of Costa Rica or Nosara, Costa Rica. Join them as they talk about the pros and cons of each site while walking around on the property.

Listen in as they discuss the process of deciding what direction to take or not take on a particular property. The initial stage of deciding what property is the best for them is only the beginning; the next steps of figuring out a plan and how it will work is where the rubber meets the road in this special episode.

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It may come as a surprise that Panama health care is as good as in the U.S. and at a much lower cost. However, there are always the unexpected events that can catch even the most seasoned expats unawares.

While it is impossible to guard against the unforeseen, a little forward planning can go a long way towards dealing with unplanned medical issues. Learning about medical options in Panama is a great way to prepare for those unanticipated events that can arise and how best to deal with them.

panama health care

audio-luci-store.it

The Basics of Panama Health Care

Panama health care can be divided into two basic categories: public and private. There are distinct differences between the two systems that every expat should know.

The Public System

The public health system in Panama is run by two separate governmental entities. The Ministry of Health (Ministerio de Salud) establishes examination and health care programs for the poorest Panamanians. Additionally, the Ministry also has the responsibility for carrying out hygiene inspections, building new clinics and hospitals, and overseeing general health care training.

The other governmental body, the Social Security System (Caja de Seguros Social), operates the country’s hospitals and clinics.  Regardless of income, both foreigner and national can receive free health care, emergency medical treatment, and maternity care.

The Private System

Private medical care in Panama is on par with modern facilities in the U.S. These private institutions have modern equipment, bilingual staffs, and are often affiliated with U.S. medical schools. The Punta Pacifica Hospital, one of the top state-of-the-art centers in Latin America, is affiliated with Johns Hopkins University. Other examples of U.S.-affiliated operations are the San Fernando (Tulane) and Centro Medico Patilla (Cleveland Clinic).

Location, Location, Location

Access to medical care, regardless of whether it is public or private, is often determined by one’s location. There is a major difference between urban and rural facilities – both in terms of access and in the level of specialty care.

Rural clinics and hospitals can handle basic health issues (although the wait times can be lengthy). For more complex or difficult issues, a trip to David or Panama City may be required to find the specialists that may be needed.

Finding a private hospital or facility in a rural area can be challenging at best. Once again, the greater majority of private medical providers are located near the major urban centers.

panama health care

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Pros and Cons of Panama Health Care

Health care in Panama has its positives and negatives. Being aware of potential benefits and drawbacks can help you plan ahead for medical situations that may arise.

Cost of Care Is Cheaper Than Back Home

Generally speaking, the cost of medical care in Panama is cheaper than comparable services offered in the U.S. That being said, it is still important to know that the private system can still be costly; having medical insurance is the best way to ensure fast and reliable service.

Another major difference is that, while credit cards are usually accepted for hospital service, doctors fees are expected to be paid immediately – regardless of whether or not the care involves an emergency. Just as in the States, the charge for the hospital or clinic does not include the fees of the medical practitioner in attendance.

Many Prescription Drugs Can Be Purchased Without a Prescription.

One major pluses of Panama health care is the fact that many medications that would require a prescription in the U.S. can actually be purchased over the counter. Like its neighbor Costa Rica, pharmacies (called farmacias) carry most of the regular medications that expats (and locals) would take and at a lesser cost than purchasing the same drug back home.

The one major exception is for pain medications that would require physician’s approval (just like in the U.S.).  A written prescription from a local doctor will be required to obtain these medicines.

Not All Health Care Options Are Equal

As mentioned above, there is a significant difference in the level of care found in local clinics and the major medical facilities of Panama City and David.  The local clinics often have much longer waiting times, fewer available doctors, and limited treatment options.  Additionally, there may be fewer English speakers at the smaller locations which could create a language barrier for those who are not comfortable with Spanish.

panama health care

Flying Eye

Health Insurance Is Good Preventative Medicine

Having health insurance in Panama is one of the best ways of preparing for unexpected medical issues. As the number of foreigners choosing Panama has increased, the health insurance options have also become more sophisticated.

Insurance can be purchased individually or through an employer (and, yes, expats can work in Panama). The price for general health policies will be affected by age, pre-existing conditions, etc. The good news is that a basic Blue Cross type policy, for a healthy individual, may be less than $100 per month.  In some cases, much less.

The advantage of having insurance is being able to have low co-pays, even for specialists, and lower deductibles. While insurance is not mandatory, not having to worry about paying the full amount for services (especially for emergencies) at the time of treatment is certainly a valuable consideration.

A Panama Health Care Insurance Example

Recently, an expat mother had to take her 7 year old to the emergency room for a ½ inch cut close to the eye. A general surgeon was called and stitched up the wound at a private hospital. Total cost: $400.

This parent had insurance and the result was that the entire amount was 100% covered. Rather than having to be concerned with coming up with a large amount of cash (even though the cost was far less than one would expect in the States), she was able to focus her attention on her child. Given the affordable cost of health insurance, the peace of mind and convenience was certainly priceless.

Planning Ahead Makes Using Panama Health Care Easier

Understanding the basics of Panama health care, the positives and negatives, and how insurance works can make being prepared for the unexpected health events much less complicated. It is better to have the appropriate provisions in order, even if you never need to use them, than to find yourself in need of medical care with no plan in place. The old saying is true: An ounce of prevention is worth a pound of cure.