For many expats, the idea of a Costa Rica retirement seems like a dream. However, making that dream a reality is actually easier than ever before.
With beautiful beaches, well established communities of expats, and one of the most modernized infrastructures in the region, Costa Rica maintains its standing as one of the best places to live and retire in the world.
Martina Rathgens
Answers to Your Costa Rica Retirement Questions
For many retirees, soon-to-be retirees, and those not quite ready to retire but looking for new horizons, the idea of moving to Costa Rica often leads to a number of questions. Here are the answers to some of the most important matters about life in this Central American paradise.
Can I Afford to Live There?
There is no bigger concern for retirees on a fixed income than how much it will cost to live on a monthly or yearly basis. There have been a lot of stories about how inexpensive a Costa Rica retirement can be. It is important to remember that there are a lot of individual factors that can determine whether the move is affordable.
Living in the larger, more developed areas, such as San Jose, Santa Ana, or Escazu is naturally going to cost more. The larger residences, modern homes, and condominiums in these areas will have a higher price tag than those in smaller towns.
Rents vary along the same lines. It is possible to find a modest “tico-style” house for a few hundred dollars a month. The trade-offs are that some of the appliances that are commonplace in U.S. homes (ovens, dishwashers, etc.) may be lacking.
Similarly, shopping for groceries and other items can have an impact on your budget as well. Going to the local farmers’ markets or local “mercados” will certainly cost less than visiting more expat-oriented stores like the Walmart in Escazu or some of the upscale Auto Mercados in the major metropolitan areas.
The bottom line about your “bottom line” is to examine your own priorities, the “have to haves,” and go from there. Balancing those items against your monetary resources can help you decide if Costa Rica will work for you.
Reckert20
Where Are the Best Expat Communities?
One of the major selling points of retiring in Costa Rica is the large number of expats who have already settled in the country. There are many established expat communities throughout the Central Valley; Grecia, Atenas. and Lake Arenal are good examples.
Escazu, Alajuela, and San Jose are metropolitan centers with a large number of expat neighborhoods, as well as stores and shopping centers that cater to the U.S. clientele. Beach communities along Costa Rica’s “Gold Coast,” including Playa Flamingo, Tamarindo, and Playa del Coco have long been favorites for retirees looking to find that tropical escape by the sea.
The Central Pacific Zone is also another location where a growing number of foreigners have decided to move to and thrive in. Jaco, Los Suenos, and Playa Hermosa (not to be confused with the Playa Hermosa near Tamarindo), have seen their numbers of expats dramatically increase in recent years.
While these areas are some of the best known, it is not difficult to find groups of happy retirees from the U.S. in many Costa Rican locations. Using social media and online resources is a good way to begin to check out the places that best suit your needs and wants.
What Kind of Housing Can I Expect?
The housing in Costa Rica can range from a simple “tico house” with minimal appliances and space, to multi-million dollar estates and resort properties. Looking at real estate listings can be an invaluable tool to learning what your retirement money can actually bring you in terms of a place to live.
The quality of construction, modern amenities, and neighborhood “extras,” such as 24-hour security, pools, etc., will depend on the type of property and location. In this sense, Costa Rica really isn’t any different than most U.S. cities; doing your due diligence is the best way to determine these elements of your retirement “mecca.”
costa rica retirement
Is the Infrastructure Like the U.S.?
Much of Costa Rica has access to cable television, cellular phones, and high speed internet. The public transportation system, in the form of buses, taxis, and shuttles make getting around easier than you might expect.
The constant improvements of the roads throughout the country have dramatically reduced drive times – particularly in the southern part of the country. Completed in 2010, the four-lane highway from San Jose to Caldera has made getting to the Pacific Coast and towns such as Jaco, Manuel Antonio, and Dominical a much easier proposition.
Do I Need to Speak Spanish?
With a large number of English speakers in Costa Rica, being able to speak Spanish is not a prerequisite for retirement life there. Even in smaller towns, finding someone who can understand you usually is not difficult. In more rural locations, having some Spanish is strongly recommended. Obviously, your comfort level with living someplace where English is not the primary language can be a significant factor in retiring here.
What About Health Care?
Costa Rica’s health care system is one of the best in Latin America. With world-class facilities like CIMA In San Jose (affiliated with Baylor Medical Center) and Clinica Biblica (also in San Jose), you can receive access to the same level of care and diagnostic expertise of any modern U.S. facility. Dental care and dental tourism has become prominent in the last few years, providing dental services at a fraction of the cost found in the States.
Dennis Tang
It All Sounds Good – So How Do I Begin?
If you’ve never been to Costa Rica, make certain that you visit and explore (more than once!!!) various parts of the country before deciding to make your move. Read about areas you’re interested in and talk to foreigners who live in those areas.
Take a long, hard look at your budget (realistically) and see what you can and can’t afford. Retirement should be less stressful and having reasonable economic expectations is an important part of this process.
Last, but not least, ask yourself if you are ready to live in a new country with a new lifestyle. If your answer is “yes,” a Costa Rica retirement certainly can be part of your future.
Many expats are discovering that moving to Belize may be the ideal choice for those seeking a tropical paradise. Perhaps one of the best kept secrets in Central America, this unique location offers a blend of history, a large range of biodiversity, and an environment that actively welcomes expats to become part of the Belizean lifestyle.
There are many features that Belize offers that set it apart from other destinations in the region. Below is a list of these factors that can give you an “insider’s” perspective on the potential that Belize contains for permanent expats and investors alike.
The Simple Good
Why Moving to Belize Can Be the Best Decision You’ll Make
- English is the official language of Belize. Being able to freely converse with Belizeans makes day-to-day tasks like shopping, asking directions, or dealing with repair people much easier.
- Belize freely accepts the U.S. dollar. Although it does have its own currency, the Belizean Dollar (BZD), its conversion rate is a steady 2 BZD:1 USD.
- Its close proximity to the U.S. makes for easy access. There are a variety of regularly scheduled flights to and from Phillip Goldson International Airport located at Ladyville, which is 11 miles from Belize City. Major U.S. carriers, such as American and Delta, in addition to regional operators such as TACA and Maya Island Air, provide international and regional service to Belize.
- Its varied options make it easy to find the perfect spot to live. Whether your idea of paradise is the island community of Ambergris Caye, the thriving and vibrant atmosphere of Belize City and Belmopan, or the more rustic and tranquil setting of Seine Bight, there is a wide selection of properties in all price ranges to choose from.
- As a resident of North America or the United Kingdom, you do not need a visa to enter Belize. The “tourist card” is good for a 30 day period and is renewable on a monthly basis for a $25.00 fee for up to six months before that amount increases. This makes for an easy transition as expats explore their options for permanent residency.
- Belize is filled with many opportunities for exploration and entertainment. From the Mayan ruins at Altun Ha, Caracol and Lamanai to the world famous Blue Hole and the Belize Barrier Reef to the jungles of the interior, there’s incredible biodiversity and authentic culture to explore.
- Belize offers incredible bang for your buck. That’s not to say that Belize is the cheapest place to live, but the value you get for your money is much greater than in comparable destinations. Below is a chart comparing the average price of rents and utilities in Belize City with that of its sister city in the U.S., Ann Arbor, Michigan:
| City | Ann Arbor, MI | Belize City | |
| Apartment (1 bedroom) in City Center | $1047 | $291.01 | |
| Apartment (1 bedroom) Outside of Center | $700 | $126.67 | |
| Apartment (3 bedrooms) in City Centre | $1850 | $1000 | |
| Apartment (3 bedrooms) Outside of Centre | $1116.57 | $808.33 | |
| Basic (Electricity, Heating, Water, Garbage) for Apartment (85 square meters) | $150.76 | $60 | |
| 1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans) | $0.20 | $0.75 | |
| Internet (6 Mbps, Unlimited Data, Cable/ADSL) | $53.11 | 46.67 | |
(research by numbeo.com)
With the same modern amenities found in U.S. cities, the cost of living in Belize is significantly lower. Additionally, there are the added benefits of a more relaxed tropical lifestyle and the opportunity to immerse yourself in the rich historical and cultural aspects of this Central American destination.
Even Paradise Has Things to Consider
For all of the positives of moving to Belize, there are still some challenges that may be encountered. One of the major issues is the availability of rental units throughout the country.
Belize is small; the population is only 331,900. As a result, there are not a lot of rental units and, as a consequence, those units that do exist, often come at a premium price. You may not find a residence in your desired area, so being flexible is important.
Like other developing Central American countries, Belize can be a study of contrasts when it comes to infrastructure. If you are looking at a more rustic location, the trade-off might be that some of the amenities of the more popular areas (better roads, cable, and internet are examples) may not yet be in place.
Mangrove Mik
So What Do You Need to Do to Make the Move to Belize
Before you decide to make the move to Belize, you should visit the country. Check out some of the potential locations that you think would be a place that would suit your lifestyle. There is no substitute for actually “being there” in order to discover whether this is the move for you.
Once you find the place and atmosphere that calls to you, a decision has to be made as to whether you want to rent, buy, or build. Obviously, this is dependent on your short- and long-term financial outlook. Contacting realtors in the area can help you narrow the search for your residence in paradise.
In addition to doing your online research, check out expat blogs as well as social media pages. These are people who have “been there, done that” and can answer many of your questions as well as offer advice based on their own experiences.
Another step in the expat process is to make certain that you have made a realistic budget that takes into account the money you will need from month to month. Make certain that you also allow for the “unexpected expenses”; even in paradise these can and do arise when you least want or need them. Planning ahead can make your transition that much less complicated.
Deciding to move to another country can be a daunting choice. The potential that you can discover when you make the move to Belize certainly will support the old saying: “No risk, no reward.”
Much like Costa Rica and Panama before it, Ecuador has gained the attention of expats from the U.S., Canada and Europe. Ecuador’s top five locations for expats offer the unique combination of being largely undeveloped with reasonable real estate prices.
Michael Shick
Whether your tastes run to a beach lifestyle, an Amazonian jungle hideaway, or a mountain retreat, Ecuador Real Estate has something for everyone. Supported by expat friendly policies and a commitment to develop and improve the infrastructure, Ecuador is truly on the cusp of a renaissance for those looking to find a new way of life in Latin America.
What Makes Ecuador Special
There are a number of reasons that expats should consider Ecuador as a possible spot to retire or invest. First and perhaps most important is the fact that the U.S. dollar is the official currency in Ecuador. Being able to calculate the costs of things, without having to consider exchange rates, makes budget allocation much easier.
A second important consideration is that non-residents have the same property rights as Ecuadorian citizens. It is not even necessary to apply for residency in order to own land.
Ecuador has some of the most favorable tax rates anywhere in Central or South America. For expat retirees, the already low assessment is reduced even further to 50% of the amount assessed.
Last, but by no means least, is the fact that so much of Ecuador still retains its authentic and rustic qualities. For expats seeking a less hectic, more traditional lifestyle, the small villages and towns in Ecuador are a great fit.
With so many options, looking at available properties and lots in Ecuador is certainly worthwhile. Finding your tropical paradise begins with just a click of a mouse.
Samuel Irving
Ecuador’s Top Five: Life at the Beach – San Clemente
Located on the Central Pacific Coast, San Clemente has become one of the prime locations for high adrenaline sports like hang gliding, paragliding and kite surfing. Enthusiasts from all over the globe have flocked to this sleepy fishing village to enjoy these adventure activities.
One of the prime draws of San Clemente is its beaches. There are no fewer than seven named beach locations close to town that expats can visit and enjoy.
Being largely undeveloped, San Clemente has lower property costs than larger communities such as Manta or Portoviejo. Similarly, the overall cost of living is much lower for basics such as rent, utilities and other basic services.
In terms of larger investment projects, at present there is only one major effort, the Vistazul Townhouses, in and around the village. Certainly there is ample opportunity for other developers to start projects that will meet the anticipated needs of new expats expected in the region.
Eduardo Santillán Truillo
Life at the Beach Part II – Bahia
It’s not surprising that Bahia is one of Ecuador’s Top Five. Long a favorite beach community, Bahia, or more properly Bahia de Caraquez, has reinvented itself as an “ecocity” that draws eco-tourists and expats from all over the world.
Located on a peninsula at the mouth of the Rio Chone, Bahia was home to the indigenous native city of Caran before being settled by the Spanish in 1628.
The influx of expats over the last two decades has transformed Bahia into a tourist friendly destination with a well-developed infrastructure. A great example of this growth is the bridge spanning the Rio Chone to San Vicente. This bridge has become the major source of traffic between these two communities.
There are many high-rise properties, hotels, and resorts in the city. Even though the number of cluster-type and high-density units is large, Bahia still retains a cleanliness and calm atmosphere not often found in resort-type areas. Ironically, many of the properties sit vacant expect during the “high” (January through April) season as a significant number are vacation homes only.
With many amenities and a significant expat community, Bahia is particularly attractive for those who want the conveniences of “home” (U.S., Canada, or Europe). As the coastal roads continue to improve, visiting and exploring other parts of western Ecuador becomes more convenient and an additional feature of relocating there.
As might be expected, the cost of living in Bahia is somewhat higher than less-developed locations. While rentals in town can run between $1,000-$1,500 range, utilities are still relatively low and, depending on use, may average less than $120 per month for basic services. Importantly, sales prices just outside the city center are more reasonable even for the higher end units.
Meredith Cook
Two Costal Lowlands Getaways – Canoa and Ancon
Separated by roughly 125 miles, the two beach communities of Canoa and Ancon both have real potential for expats looking to get away from it all at the beach. With very little development at either location, immersing in a true, rustic Ecuadorian lifestyle can be a dream come true.
Ancon, located just outside of Salinas, was the first oil-producing location in the area, starting in 1911. Originally the village was home base for British petroleum engineers. Nearly forgotten through the years, the town is now regaining popularity as a vacation spot for Ecuadorians living in the U.S. and for expats discovering the great values that can be found there.
Finding ocean view properties and restored villas for under $150,000 is not an unreasonable expectation. While there is not much in the way of infrastructure at this point in time, as more investors and expats move into the area, improvements and higher prices will not be far behind.
Canoa, to the north, has 17 km of pristine sands, making it the longest beach in Ecuador. The roads in the village are all dirt and the rustic, hippie-like vibe of the place is one of the major reasons that expats have been drawn there.
There are some higher-end properties in and around Canoa but, for the most part, the private homes clustered around the center are modest. As a consequence, property costs remain low and the potential for development is high.
One important aspect to keep in mind is that the lifestyle of both places IS rustic. If a more cosmopolitan environment is a requirement, these small fishing communities may not be for you.
Also, remember that English speakers may not be as numerous as in larger cities. For some expats, having to deal with day-to-day matters in Spanish may be a bit confounding.
Dr. Dicker
Valley Living – Yunguilla: A Hidden Gem
Combining an eco-friendly lifestyle, stunning views, and a true Ecuadorian vibe, Yunguilla is being touted as a more accessible alternative to Vilcabamba. Located a short 45 minutes from the community identified as the “cultural heart and soul” of Ecuador-Cuenca, this area could well become a major expat location as more people discover the potential waiting there.
One big difference is that Yunguilla is not a town but a valley running 104 miles from just outside of Cuenca to the port city of Machala. There are a number of small villages scattered throughout the valley but a large portion has retained its natural, untouched state.
The climate in Yunguilla is very comfortable due in large part to its geography. The valley has an East-West orientation providing ample sunshine and a short rainy season.
Ranging from a altitude of 4500 ft. on the Santa Isabel end to roughly 7000 ft. near Giron, closest to Cuenca, temperatures in the valley range from the low 80s during the day to a very comfortable high 50s-low 60s at night. These moderate numbers also translate into reduced costs for air conditioning; certainly an added benefit not found in most tropical locations.
Although much of the Yunguilla area is underdeveloped, the region is home to a number of prominent and wealthy Ecuadorian families. The result is that most of the development being undertaken is being done by Ecuadorians.
Additionally, the infrastructure is far superior to most of rural Ecuador. Quality water, telephone, and electrical power plus a well maintained and modern highway has made Yunguilla very attractive as a potential expat magnet.
For those seeking an existing residence, the quality of construction in the valley far exceeds many areas of Ecuador. In spite of all the modernization, property values from one end of Yunguilla to the other may range as much as 30% less than comparable properties in Vilcabamba. When the natural beauty and rustic charm of this hidden gem are factored in, Yunguilla can tick many of the boxes expats have for their tropical destination.
Andreas Kay
Cotacachi – Retreat to the Mountains
Nestled between two volcanoes, Cotacachi is becoming one of the more popular expat destinations in Ecuador. Located two hours north of Quito, this mountain town is next to the Cayapas Ecological Reserve with its 750,000 acres of protected forest land.
After online features about this rustic village appeared in 2007, expats began to move into Cotacachi. Having an established expat community certainly can make the transition to life in Ecuador much easier for those who are experiencing life abroad for the first time.
The beautiful Andean vistas, low cost of living and the reasonable property prices have all contributed to Cotacachi’s popularity. The top leather artisans in Ecuador offer their quality products, including coats, shoes, and accessories for sale at prices far lower than in many other locations.
The mountain climate with temperatures in the low 70s during the day to mid 50s at night makes air conditioning almost unnecessary. Rainfall is very moderate; even during rainy season, it is rare to have more than days out of the month with any precipitation.
Property prices, while on the rise, are still quite reasonable for an area with a good infrastructure and amenities. Utilities can run under $60 per month (electricity, water, heat, telephone, cable, and internet) and rents can be under $600 a month for multi-bedroom units.
For those looking to buy, there are a number of choices from small Ecuadorian homes to well-appointed villas. Lots of all sizes are also available for those expats wanting to build their own vision of paradise.
How to Find the Best Place for Expats in Ecuador
The top five areas described above are some of the hottest locations for expats throughout Ecuador. There are many other options that are worth exploring. Understanding the fine points of property ownership and how it can benefit you is an important first step in becoming an expat in Ecuador. Take that step today!!
Pedasi, Panama is in the midst of a dynamic transformation. This little-known fishing village on the southeastern tip of the Azuero Peninsula, with a population of roughly 2000, has seen a surge in foreign investment that heralds a period of growth for both expats and investors.
Known for its local festivals, sportfishing, nearby pristine beaches, and natural beauty, it is also the home of Panama’s first female president, Mireya Moscoso Rodríguez de Arias. She has been instrumental in improving Pedasi’s infrastructure and making the real estate market more attractive for foreigners seeking to build new homes and invest in the region’s growth.
Zanzabar Photography
Pedasi, Panama – Historical and Cultural Heartland
The Azuero Peninsula was settled over 11,000 years ago and remnants of this pre-Columbian culture are still evident today. Pedasi, like other small towns in the area, tracse its cultural roots to this ancient civilization.
It was in 1671 that Pedasi and Las Tablas (a community just north of Pedasi) were formally established. Local history holds that the area became a choice for settlers after major fires in Old Panama City during the latter 16th century drove people to find safer locations. The region still has many colonial churches that reflect the beauty and richness of their Spanish heritage.
The waters around the peninsula have become known as Panama’s Tuna Coast. The abundance of yellowfin tuna, marlin, sailfish, and snapper in the area offer excellent year-round fishing. Restaurants in Pedasi will actually cook your edible catch to taste, something that you won’t find elsewhere in the region.
Playa Venao – Panama’s Surfing Destination
Just a short distance from Pedasi, Playa Venao has become one of the world’s premier surfing destinations. Recently, it hosted the DaKine ISA World Junior Surfing Championship and has become a favorite with wave riders from all over the globe. With the laid-back vibe, beach bars, and nightlife you’d expect from a surf-oriented town, Playa Venao can be a gateway to your own “endless summer.”
Come for Carnival, the Big Party in Pedasi
With over 500 celebrations and religious festivals each year, there is always something going on in and around Pedasi. Perhaps no festival has gotten as much attention as the Desfile de las Mil Polleras – the Thousand Pollera Parade. This is part of the larger regional Festival Nacional de la Pollera, based in Las Tablas in July.
The pollera is considered one of the most beautiful national costumes in Latin America. Consisting of a two-tiered skirt and a blouse, these elaborate garments have come to symbolize Panamanian culture at its finest.
Associated with Carnival, four days before Ash Wednesday, La Pollera is celebrated in full glory. The rich materials, brilliant colors and accessories (Tembleques) have become a centerpiece for Panamanian and Pedasi culture.
Isla Iguana and Cerro Hoya
Isla Iguana and the lesser known Cerro Hoya Nature Park are two locations where expats can get “up close and personal” with a wide selection of wildlife not found elsewhere in Panama. Five species of sea turtles, buffalos, sloths, monkeys, and even the occasional jaguar or ocelot can make visiting these natural preserves a once in a lifetime event.
Jason Cserny
Buying in Pedasi
The recent uptick in buying real estate in and around Pedasi has dramatically influenced property prices, even for undeveloped lots. With a number of luxury projects planned, it is not surprising that may foreign investors are pouring large amounts of money into the area.
For the single buyer, trying to make sense of the pricing can be both confusing and frustrating. It is necessary to look, not only what the value of your property might be, but also what the realistic value (and price) of the land you are interested in is in its current state.
Pedasi’s Market Stage Is Important
With all the potential that exists for investment and development in Pedasi, the Azuero Peninsula, and Panama in general, it is important to understand exactly at what stage the market is in terms of the prices that are being asked.
Think of a “market stage” as a description of where an expat location is in terms of land development. The price of property starts with its value to local residents and increases all the way to a full scale town complete with amenities.
Being able to identify what “stage” a particular area might be in can help you decide what to buy, what to build and, most importantly, what you should pay. As in any real estate market, prices are not always reflective of the value of a parcel of land in its current state. Remember that speculation on what property may be worth in the future might not support the price being asked today.
Being Selective Can Pay Dividends
The number of foreign investors buying large plots of land in Pedasi has increased dramatically in the last decade. The prices that many of these developers are asking are often in the “stage four” (established expat community level) range when, in truth, the area is only at a “stage two” or “stage three” level.
The remoteness and unsullied nature of Pedasi is both its biggest drawing card and major drawback. Being able to get building materials, and modern infrastructure amenities can be a challenge for investors who are working with a limited budget.
By being selective, you can maximize your potential in terms of finding property that is priced realistically. With the promise of a strong return on investment, Pedasi may just be the hidden tropical getaway you’ve been looking for
So What Are You Waiting for?
The best way to experience Pedasi is to go there. Plan a visit and see what this growing village has to offer; you won’t be disappointed.
Map of Pedasi, Panama
Pedasi, Panama Fast Facts
- Population: 2,000+
- Typical temperature: 86 Fahrenheit
- Nearest airport with U.S. flights: Tocumen International Airport (Panama City, Panama)
- Nearest U.S. consulate: Panama City, Panama
Mexico has been a favorite expat destination for several decades. For those contemplating moving to Mexico, here are the answers to your top questions about going “south of the border.”
With a rich cultural history, established communities, and many locations to choose from, expat life in Mexico becomes a great option. Understanding some of the basics can make the transition from visitor to resident less complicated.
Bri
1. Is Getting a Visa in Mexico Complicated?
The short answer is: No. However, like other Latin American countries, there are rules concerning the types of visa and residency requirements that you should be aware of.
Non-Immigrant Visas
Perhaps the most common type of visa is the “Visitante” or Visitor visa. This is intended for those who are planning to stay in the country for six months or less. Importantly, it is not renewable.
Known as the FMM (Forma Migratoria Multiple), the form is supplied by airlines prior to landing in Mexico; if entry is by land or sea, the form is available at the Immigration Office at the point of entry. There is a small charge (approximately $20 US) for this visa; this fee is usually included in the price of your airline ticket.
A second type of non-immigrant visa is the FM3 (No Inmigrante) that allows foreigners to live in Mexico longer than six months. This is generally the visa chosen by expats looking to make Mexico their retirement home.
The major stipulation is that you can prove that you have sufficient funds to live there; a general estimate is roughly $1250 US per month plus an addition 50% for each dependent. Since the amount required is revised on a regular basis and dependent on which location you are applying in, it is important to keep track of any changes.
The FM3 visa is good initially for one year, with an option to renew for an additional four years. The process can subsequently be repeated every five years.
Resident Visas
The FM2 (Inmigrante) is the visa you would apply for if your goal is to ultimately become a Mexican citizen or seek permanent residence. Upon being confirmed for this status, an identification card is issued allowing you to cross Mexico’s border as if you were a citizen.
There are a number of types of FM2 visas that depend on an individual’s situation. Retirees, investors, professionals, artists, and athletes are just some of the categories that may qualify for permanent residency. Seeking the advice of a competent immigration attorney is the best to see if your particular situation qualifies.
The Temporary Resident Visa (Visa de Residente Temporal) is similar to the FM3 in that it allows foreigners to live in Mexico longer than six months. The distinction, however, is that it is only renewable for up to a period of four years.
Martintoy
2. Can Expats Own Property in Mexico?
Expats and investors can buy and own property in their own name in the interior of Mexico but, at the current time are prohibited from direct ownership in the “restricted zone. This zone refers to areas within 100 km (64 miles) of international borders or within 50 km (32 miles) from the coastline at high tide.
In 1993, however, the Mexican constitution was amended to permit foreign ownership of property in these areas through a legal mechanism known as “fideicomiso,” or bank trust. Under this system, a bank is the actual title holder and the purchaser is the “beneficiary” with full rights of ownership. These trusts are granted for a 50-year period and renewable for an additional 50 years.
Expats can find a wide variety of properties available at reasonable prices. Whether your idea of the perfect hacienda is a beachfront condo, urban location, or rural retreat, Mexico offers something for every taste and budget.
Joe Runy
3. What Is Life for an Expat Like in Mexico?
Although it borders the U.S., it is important to remember that Mexico is a foreign country with its own cultural make up and lifestyle. Daily life in Mexico varies from location to location – much like everywhere else in the world.
In the larger cities, such as Mexico City and Acapulco, expats can find most, if not all, of the modern amenities of any major U.S. city. With that lifestyle, however, comes a higher cost of living for everything from rent or property prices, food, utilities, etc.
Major tourist locations such as Puerto Vallarta, Cancun, and Rivera Maya are going to have a lot of English speakers (which may be a plus) and the tourist-beach vibe that a lot of expats find attractive. Again, the popularity of these places has made the price tag of living there higher as well.
For those seeking a more relaxed and rustic lifestyle, there are many smaller towns and villages that can make immersing in Mexican culture an easy task. While the cost of living is less, some of these areas may lack some of the cosmopolitan amenities of bigger cities – which is part of the trade off.
Finally, it is important to remember that Spanish is still the language of Mexico. Although many Mexicans understand and speak some English, having some knowledge of their language can make daily life much easier.
mig8447
4. What About Crime?
In recent years, Mexico has made the headlines concerning the ongoing problems with various drug cartels and other criminal activities. With so much attention being given to these high profile incidents, being concerned about the impact of crime, when considering moving to Mexico, is both understandable and realistic.
While there are certain areas that seem to be hotspots for many of the incidents, the majority of the country is largely unaffected. In a real sense, a comparison could be made to urban centers in many countries that are dealing with similar issues. Doing your own due diligence when looking at a particular location can better inform you of any potential problems before making a move.
5. Is Mexico the Place for Me?
Perhaps the best way to answer that question is to spend some time in various parts of the country. Learn what living in Mexico is like and, even more importantly, see how you feel about the possibility of making it your own. There’s no time like the present to begin the journey.
If you’ve been thinking about leaving home to live abroad as an expatriate, now is a great time to make your move. While you want to have a few ducks in a row, you can’t wait until the moon and the stars align in some cosmically perfect configuration. Sometimes you have to look at the overall global conditions for emigration and if they’re good enough, just jump. Here’s our list of eight reasons why being an expat escape artist rocks and why that’s true today in particular.
Ostrosky
You Will Gain Valuable Language Skills
While there are a few countries outside of the U.S. and the U.K. where English is the official language, most countries speak something else. Even if you don’t take formal language lessons, you will learn the native language where you live because it will make escape artist living so much easier. Unless you want to take your chances with cryptic menu items when you dine out or drink household cleaner thinking it’s fruit juice, you will learn at least some rudimentary vocabulary.
If you hang out with locals, you’ll learn a whole lot more. Immersion is the easiest and most natural way to learn a language, so living abroad puts you head and shoulders above learning a language in school only. That competency or even fluency will be a huge advantage at work, socializing, or just watching foreign films.
Don’t worry about being fluent in any language before departing. Do what you can to learn the basics, and know that you’ll pick up more as you go.
You Can Advance Your Career
In addition to language skills, being culturally adept can land you job promotions or freelance work you never dreamed of before. Even if you return to the U.S., you’ll have the knowledge you gained living overseas to apply to any number of fields. Some common areas where language and foreign etiquette come in particularly handy include
- logistics, transportation, and shipping
- food and wine
- teaching
- health and medicine
- fine and performing arts
- writing and publishing
Many U.S.-based companies are currently adding more jobs abroad than they are at home. And while you still have to pay the IRS even if you work from a foreign country, the reverse is true as well; they have to pay you any refunds you’re entitled to.
Panama ATP
Entrepreneurial Opportunities Abound for the Escape Artist
If you’ve contemplated changing careers or better yet, starting your own business, there are plenty of opportunities overseas. Moving out of the country is a completely legitimate and organic way to reinvent yourself, especially career-wise. This is a perfect time to try something you’ve always wanted to do but couldn’t when you were tied to the working-to-live mentality (versus living to work, which is so much more fun).
No matter what kind of business you intend to run in your new locale, it’s best to have some kind of income source in place before you leave. Living in a foreign country can be challenging enough without having to worry about money too. Some popular ways expats fund their lives abroad include
- sale of property in the U.S.
- investment property purchase in their new location (rental units, B & B, etc.)
- savings
- working remotely (practicing law, writing, etc.)
- passive income (investments, book sales, etc.)
- grants and stipends
- funding from an existing business to open a new branch or satellite
Many countries make obtaining a visa easier if you are opening a business there that benefits the local citizens, such as recycling, retail of indigenous arts and crafts, or education. Some require a certain amount of money be available to invest in the business, so be sure to check out the rules wherever you are headed.
Eskimo Jo
You Can Leave Stress Behind
Until you spend a certain amount of time living outside the U.S., you probably won’t realize how aggressive, competitive, and stressful American life has become. Many cultures, especially those of Latin America, take a much more relaxed approach to life. While they may drive with the speed of nuclear missiles, everything else moves a lot slower. Food and conversation are savored, and there is less time spent in front of the television.
The downside of this is that it’s generally harder to get things done. Lines at government offices can snake for blocks, and seemingly simple things like paying bills or getting your tires rotated can take the better part of a day. The plumber who says he’ll be there at 10 may come at noon – or he might not show up until two days later. Waiting for cable or Internet service can seem interminable.
This is all part of the balance of being an escape artist. Relax, take a deep breath, and trust that everything will get done eventually. And take comfort in the fact that a lot of stressful stuff from the States, like maintaining your lawn or cleaning your house, can be eliminated or done cheaply by paid help in your new country.
Your Resourcefulness Will Increase Exponentially
There will be times when you have challenges that seem overwhelming. This is actually a good thing, because it will push your resourcefulness in new directions. Once you have made it through to the other side, you will have a new level of self-confidence and know you can get through anything. Whether it’s dealing with roadside breakdowns, water shortages, banking failures, or medical emergencies, you will figure it out – because you have to.
WFT.Travel
You Will Learn to Love Your Own Company
Unless you live alone on your own island and never leave, you’ll make friends and acquaintances in your new overseas home. But until that happens, you may be on your own for a while. Even once you meet people you want to hang out with, you’ll still have times when your own company is all you’ve got.
Being comfortable with solitude is definitely a helpful trait if you want to be an expat, and if you don’t start off knowing how to be okay with being alone, you will probably end up there. For women especially, this can be disconcerting.
Of course you need to be safe going out alone, but dining or attending events solo can give you new self-assuredness, and you may make some friends in the process. Some seasoned expats suggest getting used to being alone first at home before trying it abroad.
You Will Feel Rejuvenated
There’s nothing like moving to a new place to feel both physically and psychologically rejuvenated. You’ll be in new surroundings (often with better weather), and you’ll have the opportunity to take up an alternative career to start different hobbies. If you’re single, there’s a whole new dating pool to sample too.
Because diets in most parts of the world are healthier than in the U.S., and in many countries you’ll be walking or bike riding more, it’s easier to get the diet and exercise you need. Plus, giving up the stress that comes with living in the U.S. can make anyone look and feel younger.
Barbara Eckstein
You Will Never Be Bored or Boring
There’s one thing for sure about living overseas as an expat escape artist: it’s never boring. Between the natural beauty of a new location, a different culture to appreciate, and a widening circle of friends and colleagues, your mind will be kept occupied all day, every day. You’ll never be boring either. Once you’ve lived abroad you’ll have enough cocktail party chatter and writing material for the rest of your life.
Like most people who take up the expat lifestyle, you may like it so much, you’ll never go home again. If the expat way of living even remotely intrigues you, be sure to check out our article links here, then head to our home page to start learning more about where you might like to escape to – in a year or maybe even a month or a week, your whole life could change in amazing ways.
Viva Tropical Radio
Scott Nichols joins the podcast to discuss his trials and tribulations of building a house in Central America. He is currently in the middle of a building project and took the time to stop and share with us his progress and knowledge about all things building in Latin America.
He and Josh tackle the topics of:
- How to find a builder
- What to know before you design a house
- Why certain materials are more expensive
This episode is a must-listen for anyone who is considering building a house in the Latin Tropics for living or investment.
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Panama is starting to come into its own as a prime expat destination. For those seeking to truly become part of the Panamanian lifestyle, Santa Fe, Panama can be your bridge to traditional village living with stunning natural surroundings.
Santa Fe Bridge
With increasingly favorable changes in residency and investment laws, the government is actively courting expats seeking new opportunities. Whether your ideal escape is a rustic retreat in the jungle or a place by the ocean, it can be found here in beautiful Panama.
Santa Fe, Panama Combines Shades of the Past with Potential of the Future
The Santa Fe region has, literally and figuratively, been a gold mine since the Spanish under Captain Francisco Vázquez conquered the area in 1557 in order to search for the yellow metal. In fact, gold is still mined in the area today.
During the 1557-1559 period, Vázquez founded several towns including Santa Fe, the oldest settlement. In the early 1600s, settlers from Santa Fe and Montijo established Santiago as a kind of communication outpost; ironically, today Santiago has surpassed the community that originated it in size.
Largely unknown outside of the country until the late 1960s, Santa Fe became a focal point of a peasant’s revolt led by a priest, Jesús Héctor Gallego Herrera. The ultimate result was that Santa Fe was finally connected by paved road to Santiago and the Pan American Highway, making access to the world at large available.
Today, Santa Fe still retains all the best elements of rustic life in Panama. With a population of roughly 3200, the natural beauty and abundant flora and fauna are a magnet for expats needing a more basic and relaxed lifestyle.
Falls
Experiencing What Santa Fe Offers
Nature lovers have found that this unsullied village is the perfect gateway to the Panamanian highlands. The national park surrounds Santa Fe in three directions covering nearly 320 square miles. Nature hikes and tours can delight expats who want to experience the over 300 varieties of birds along with other creatures of the region.
There are a number of waterfalls nearby that can be explored. For the more adventurous at heart, the fabled Mosquito Coast of the Caribbean is only 60 km distant.
There is also a well-known and loved organic farm that gives the concept of sustainable living a fresh meaning. Chong and Maria’s family farm is a favorite among locals and expats alike and provides the opportunity to see how organic farming works.
Café Tute is a local coffee roaster that is run by the town’s farming cooperative. Tours of coffee plantations and the factory are a great way to gain appreciation for the ubiquitous breakfast beverage.
Flower Power
Santa Fe is known throughout Panama for the beauty of its over 300 varieties of orchids. Each August, expats can see the best of these stunning flowers at the Exposición de Orquídeas held at the Feria (Farmer’s Market) of Santa Fe.
Why You Should Consider Santa Fe As Your Expat Destination
There are many reasons to explore Santa Fe as a possible location for retirement or investment. Some of the more compelling ones are listed below:
Affordable Cost of Living
Perhaps one of the most attractive aspects of living in Panama is the cost of living. Smaller communities, like Santa Fe, are extremely affordable; particularly when compared to larger cities, such as Panama City.
Rents, even in the center of town run under $1,000 per month. Similarly, utilities for basic services such as electricity, water, heat, and garbage may be as little as $50 to $100 per month. Importantly, because of its location in the mountains (500 meters-1640 feet ) cooler temperatures translate into less use of air conditioning, keeping electric costs down.
With more expats arriving all the time, the infrastructure is also improving. Internet access and cable television are now available (and reasonably priced) along with improved telephone and cellular services.
There are also a number of discounts offered to holders of the pensionado (retirement) residency. Everything from travel, entertainment and even medical expenses are reduced for expat retirees, making life even more affordable.
Buying or Building
The area in and around Santa Fe is seeing a dramatic increase in real estate activity similar to that of its neighbor to the west, Boquete. At present, there are not a lot of developers in the area but, given the popularity Santa Fe is gaining, that may not be the status quo for long.
As might be expected, prices for lots and existing structures are still on the low end. The promise of increased tourism to the region certainly makes the idea of investing, either in a purely commercial venture or as a rental part time, very attractive.
Money Does Talk, and It Speaks American
Although the Balboa is the official currency, the U.S. Dollar is the only paper money in Panama (Balboas are coins only). Since the dollar is freely used in daily transactions, expats don’t have to worry about exchanges or calculating prices.
Santa Fe, Panama May Not Be Perfect for Everyone
Understanding some of the challenges of living in a small Panamanian town is important before making that leap. Expat life can be rewarding but not without some “speedbumps” along the way.
The language issue is always an important factor to examine. Like other smaller communities throughout Central America, English speakers may not be as common as in major centers. This may pose a problem for some expats seeking to become part of village life.
Finding modern items, such as electronics and appliances may involve a trip to one of the larger cities. If having the kind of shopping access that is found in the U.S. is necessary, giving serious thought to relocating to Santa Fe is strongly recommended.
Lastly, since there is no airport in Santa Fe, the closest connection by air can be found in David, some 130 miles west. David does have regular flights on Air Panama to and from Panama City. As a consequence, a lengthy drive will be involved even before making the flight.
Alternatively, there are buses, private shuttles, and rental cars that can get you from Panama City to this mountain location. If a long ride doesn’t fit your tropical dream, this may be a stumbling block as well.
Go There
Sometimes there is only one way to know if the expat “shoe” is going to fit. Visit Santa Fe and try traditional Panamanian living on for size.
Map of Santa Fe, Panama
Santa Fe, Panama Fast Facts
- Population: About 3200
- Typical temperature: Average temperature is 85°F
- Nearest airport with U.S. flights: U.S. bound flights leave daily from Tocumen Airport.
- Nearest U.S. consulate: Panama City
One of the biggest considerations for expats seeking to buy their retirement or getaway home in Latin America is the taxes on real estate. Comparing property taxes of the most popular destinations for expats is an important step to deciding the best location for your tropical retreat.
Once the decision is made to become an expat, finding a home in paradise will involve some research. Looking at the unique qualities of each country and the properties available is a great way to begin your journey.
Tropical House in Paradise
Comparing Property Taxes in Latin America Country by Country
Countries in Latin America have widely different approaches as to what real property should be taxed and when. Similarly, the calculations of property taxes can be confusing for expats trying to choose which location might be a good fit for their budget.
What follows is a brief overview, by country, of the tax structure for real property. This comparison will also include any taxes imposed at the time of sale or transfer of title as well as when payment of these assessments are due.
Anoldent
Belize
Belize has a fairly straightforward approach to property taxes. For residential property, the tax rate will be between 1% and 1.5% of the value as set by the Department of Natural Resources. These are payable each year by April 1st at any Lands Department office. When looking for your Belizean retreat, making this calculation is easy.
Residents in Belize City can take advantage of a 10% discount if taxes are paid by March 31st. There is a 25% discount on property taxes for Senior Citizens (over 65) that certainly is a great incentive for expat retirees.
Investors and developers of large plots of undeveloped land (parcels over 300 acres) are subject to a Speculation Tax. This tax is computed based on 5% of the undeveloped value of the property.
When a title is transferred, a transfer tax is collected as part of the buying process. There is no tax for values under $10,000; for values in excess of that amount, the tax is a flat 5%.
Didier Baertschiger
Costa Rica
For all of the attention and growth that Costa Rica has experienced in the last decade, property taxes still remain as some of the lowest anywhere, including the U.S. The tax rate is 0.25% of the registered property valued as determined by the local governments or municipalities.
Some of the very large and high-end properties have been subject to a luxury tax based on such items as size, custom furnishings, and fixtures. These rates are still surprisingly low; in 2013 it was estimated that that this tax was in the range of 0.1% to .25% of property value.
Changes to the transfer tax of 1.5% may impact some buyers. While the percentage has stayed the same, the basis for the calculation (property value) cannot be less than the highest recorded fiscal value. Fortunately, this amount will usually be less than the market price of the parcel. With low tax rates, finding your home in the land of Pura Vida is still a great option.
Casey
Ecuador
Ecuador has some of the lowest property taxes in Latin America. The tax rates are progressive from 0.025% to 0.5% of the value as assessed by municipal officials.
These values are considerably lower than the purchase price – often by as much as 25% to 75%. As a result, it is rare to pay over $400 in annual taxes.
There are also deductions and discounts that can appeal to expats. Homeowners over the age of 65 only have to pay half the amount of the tax assessed.
Additionally, deductions for mortgages to purchase or improve the property are possible. Ranging between 20% and 40%, these must be requested and cannot exceed 50% of the value of the property. Ecuadorian real estate may provide some of the most affordable options in the region.
Waterways
El Salvador
El Salvador is unique in that there is no property tax assessed for owning real estate. Although there is no annual assessment, when property is transferred, a transfer tax is triggered.
The tax, paid as part of the buying and selling process, equals 3% of the value over $28,571.43 of the purchase price. Non-residents also are subject to a 25% capital gains tax when selling property unless the sale occurs within three years of taking possession of the property.
The El Salvadoran government is considering a tax reform package that would include a tax on property that does not have any productive function except for private leisure or recreation. This “luxury tax” would be assessed at the rate of 1% of the value over $350,000 even if the property has not been developed.
Whether or not this tax will be enacted is uncertain. Regardless, the great majority of expats will not be impacted because of the high dollar threshold of the assessment. Low prices enhance the attractiveness of the selection of properties available.
Stefano Ravalli
Guatemala
Guatemala uses the cadastral value of real property to calculate the tax owed. The word “cadastral” refers to the extent, value of, or ownership of real property and is used widely throughout Central America.
Taxes are calculated in local currency (the Guatemalan quetzal) by local authorities. When converted to U.S. dollars, it becomes apparent that these are quite reasonable for the great majority of expat residents. Below is a chart showing the tax rates:
PROPERTY TAX |
|
| TAX BASE, GTQ (US$) | TAX RATE |
| Up to 2 million (US$255,428) | 0% |
| 2 million – 20 million (US$2,554,278) | 0.20% |
| 20 million – 70 million (US$8,939,975) | 0.60% |
| Over 70 million (US$8,939,975) | 0.90% |
| Source: Global Property Guide | |
As can be seen, there is no property tax owed on properties valued under $255,428. The taxes are due annually and are paid to local municipalities where the property is located. Searching for properties under this dollar amount may be easier than you might imagine.
Chamo Estudio
Honduras
Honduras has one of the few property tax laws that permit 12 monthly payments instead of just a single annual amount. The tax rate itself is based on value assessed by the municipality and can be calculated at $3.50 per every $1,000 of assessed value.
For example, a property value at $100,000 would have a yearly tax of $350.00. Spread out over twelve monthly payments, each installment would be for $29.16. Buying property in Honduras with the ability to spread out yearly taxes is an attractive prospect.
As a result of new tax reforms that went into effect on January 1, 2014, property transfers carried out by nonresidents are now subject to an increased 4% (previously 2%) withholding tax over the transfer value to be withheld by the acquiring party.
One important feature of the Honduras tax scheme is the incentive program for projects or plans that would increase tourism to Roatan. Under this program, property taxes may be given a 20 year exemption. This is a powerful incentive for investors looking for a location to develop and build.
Chris Goldberg
Mexico
Mexico was the first Latin American country to attract expats. The older expat enclaves, such as Puerto Vallarta, have demonstrated the potential for living and investing in Central and South America. Mexico still has a great selection of properties and lots to interest expat buyers.
Property taxes in Mexico vary from state to state. Each state’s tax department sets the assessed value and the tax rate can range from 0.05% to 1.2%, depending on the property location. Other variables such as whether the lot is improved, if there is poor access, and if it is only used seasonally also factor into the assessment.
The assessment itself is done at the time of sale or transfer and will remain the same until the property is sold again. The taxes are due at the beginning of the year although the tax amounts are not available until mid-January of the year they are due. Since tax bills are not sent out, it is up to the property owner to go to the tax office with a previous bill to obtain the current one.
Payments can be made in six installments during the first ten days of every second month; ( i.e. January, March, May, July, September, and November). Failure to pay the taxes when due can result in steep penalties; in some cases as high as 3% for every month the payment is past due.
Mexico also charges an acquisition tax on every transfer of real property regardless of whether it is through a sale, donation, trust, or other method. The rates can range from 2% to 3.3%, again varying by state and is owed as part of the transfer process.
Daniel Fajardo Valenti
Nicaragua
Nicaragua has, perhaps, the easiest property tax scheme in Latin America. The tax is a flat 1% and are calculated at 80% of the cadastral value of the property (land, buildings, and permanent improvements) as assessed by the local office.
In the city of Managua, the calculation is slightly different. There the figure is based on 80% of the cadastral value LESS 40,000 Nicaraguan Cordobas (NIO); roughly equaling $1,624 in U.S. dollars.
Since there is no up-to-date national registry for property values, property taxes are less important than in other locations. With a lack of proper records, many small communities do not even collect the taxes which has led some to view paying them as a voluntary, rather than mandatory, act. Many of these smaller towns and villages have attractive and unique properties that are worth a look.
There is a 30% capital gains tax assessed on property sales. Again, this is based on the land value and not the sale price.
Bocas Del Toro
Panama
Panama is unique among the countries in the region in that the property taxes are national and are collected by the Ministry of Economics and Finance. The tax rate is a maximum 2.1% and is based on the assessed value – usually the declared value in the original sale documents. Expats are increasingly interested in the homes and lots available here and the possibilities that Panama offers new arrivals.
The calculation is based on the value of the land plus the declared value of any improvements made. If a transaction is made for an amount in excess of this amount, that will automatically increase the value of the property for tax purposes. Payments can be made in three installments: April 30th, August 31st, and December 31st.
Property taxes are graduated depending on the assessed value. Below is a chart showing this breakdown: Value of the property Property Tax Rate US$ 0.00 up to US$ 30K (exempted) 0% US$ 30K up to US$ 50K 1.75% US$ 50K up to US$ 75K 1.95% US$ 75K and above 2.10%
Condominiums, however, use a slightly different formula:
Property Tax Rate for Condos:
Value of the property Property Tax Rate US$ 0.00 up to US$ 30K (exempted) 0% US$ 30K up to US$ 100K 0.75% US$ 100K and above 1.0%
The 20 year exemption on property taxes that was so attractive to investors ended in 2009. That program has been replaced by a revised set of exemptions:
- 15 years Up to US$ 100,000.00
- 10 years From US$ 100,000.00 to US$ 250,000.00
- 5 years Above US$ 250,000.00
- Commercial Use/Non-residential improvements have 10 year exoneration regardless of the property value
Lastly, Panama does have a transfer that is the greater of a) 2% of the total sale price or; b) the declared value of the parcel plus the value of improvements plus 5% for each year the property was owned.
A Brief Note on U.S. Property Taxes – Paradise Is Cheaper!!
While the various property tax schemes throughout these tropical locations may seem confusing, there is one important element to keep in mind: U.S. property taxes are higher!!!
22 of the 50 states have median property taxes in excess of 1%. New Jersey is the highest at 1.89%. When combined with other property-related taxes and fees, the overall cost of property ownership far outstrips most of the Central and South American locations expats desire. In a very real sense, paradise is cheaper and living there is easier now than ever before.
There are special places whose essence is not driven by modern amenities or convenience but, rather, a more primal and rustic style of living. Santa Teresa, Costa Rica – with its ample beaches and fishing village aura – has become one such location for expats seeking a more naturally connected existence.
From high-end developments to rustic beach towns, Costa Rica has a vast selection of real estate options. Places like Santa Teresa, in the southern Nicoya Peninsula, call to those who truly are seeking to embody a “Robinson Crusoe” spirit to find their own secluded ocean hideaway.
Santa Teresa Beach
Santa Teresa, Costa Rica Is an Understated Gem
Santa Teresa, like most of the small fishing villages in the southern part of the Nicoya Peninsula has not yet been caught up in the surge of development and modernization that had predominated much of Costa Rica’s Pacific coast. Linked by a single, unpaved road to Playa del Carmen and terminating at the hamlet of Mal Pais, this region is only now beginning to see signs of expat investment and construction.
From a population of a few hundred, the Santa Teresa-Mal Pais area has grown to a surf-bohemian magnet of 2,000-3,000 full time residents. Some “A “ list personalities, like Mel Gibson and Gisele Bündchen have purchased lots and built homes there; fortunately, the location is still largely pristine and not turned into a high-end tourist mecca.
The entire location is collectively known to locals as “Mal Pais” or “bad country.” The origin for this nickname is not the unpaved conditions of the roads but due to the rivers and streams going dry during the summer months making this a “bad country” for the farmers and ranchers who still live and work in the region.
Ironically, the conditions of the road have become a source of controversy among the residents here. While there are those who think paving would be beneficial in terms of reducing the amount of dust in the village, others are concerned that making access easier could lead to the kind of over-development that has dominated other communities such as Tamarindo.
Much to See and Even More to Experience
There are many opportunities for exploration and recreation in and around Santa Teresa. Whether your tastes are centered around the beach, the ocean or inland, the choices are both plentiful and exciting.
Surfing is, as might be expected, one of the principal activities along the southern Nicoya Peninsula coast. With consistent wave conditions year round, wave riders have made their pilgrimage to Santa Teresa for many years.
There are many surf camps and shops specializing in surfing supplies and board repair in the area. Two of the surf camps – Chica Surf Adventures and Pura Vida Adventures – are for women only; certainly a unique aspect to the traditional surfing lifestyle that expats can immerse themselves in.
In a kind of spiritual contrast to the adrenaline-fueled experience of challenging the surf breaks along Santa Teresa’s beaches, a growing number of yoga retreats have also sprung up. With the natural serenity and unspoiled beauty of the surrounding area, expats seeking the inner peace of quiet meditation can find a most conducive environment here.
Expats can also enjoy the many snorkeling and fishing opportunities found offshore from the village. There are a number of inshore fishing charters that can provide both beginning and veteran anglers the opportunity to land mahi-mahi, dorado, and other denizens of the deep.
Santa Teresa Is Proof that “Life Is a Beach”
The coastline running from Santa Teresa southward to Mal Pais was recently identified by Forbes Magazine as one of the ten most beautiful beaches in the world. With this kind of recommendation, there is little wonder that a growing number of sun and sand aficionados have made the trek to this remote Nicoya Peninsula location to experience the stunning vistas first hand.
Stephanie Rogers
Natural Wonders and Other Land Activities
Not all of Santa Teresa’s attractions are centered around the ocean. The first national park in Costa Rica, Cabo Blanco Absolute Nature Reserve is just a short distance from both Santa Teresa and Mal Pais.
Founded in 1963, in large part due to the efforts of Olaf Wessberg and his wife Karen Mogensen, the reserve has become known for its wide variety of flora, fauna, and over 150 avian species as well.
Another nature park, the Curu Wildlife Refuge, provides a special opportunity to experience a great selection of eco-diversity in a single location. With five distinct eco-systems within the park’s borders, there is a tremendous opportunity to see a wide collection of mammals, birds, reptiles, and amphibian species during a single visit.
Celebrations and Culture
Like so much of Costa Rica, Santa Teresa has a distinct culture and flavor over and beyond that which expats have introduced. One of the charms of the area is being able to immerse oneself in the daily lifestyle of the region and its people.
The sabaneros (Costa Rican cowboys) represent a lifestyle that has been an important part of the Nicoya Peninsula culture. Each February, this lifestyle is celebrated with the arrival of the Fiestas Civicas de Cobano.
This two week event honors the culture and traditions of cattle ranching and the sabaneros who are a part of it. In addition to food, contests, and musical concerts, the major event is the rodeo.
Just like their counterparts in the U.S., the sabaneros compete at various skills like roping and bull riding to demonstrate their prowess. The most unique event, however, is the “rodeo for everyone” that allows anyone who wants to participate to run with the bulls in the ring. This certainly elevates the traditional concept of a rodeo to a new level of spectator sport.
Contemporary Living Is Starting to Arrive in Santa Teresa
While locals and many of the early expats are not happy about it, progress is starting to make inroads in the Santa Teresa-Mal Pais locality. The last decade of increased tourist activity has spawned a number of new development projects and resorts.
Luxury resort type hotels and gourmet restaurants are beginning to appear side by side with yoga retreats and surf camps. Along with this tourist-driven growth, a number of residential projects ranging from single family villas to gated communities are in the planning stages.
Santa Teresa’s challenge in the coming years will be to maintain its ambiance as a place where it’s still possible to reconnect with nature without modern distractions. Even as more attention is being given to the region, the idealism of those who became disenchanted with life in Europe and the U.S. during the recession is a strong force to keeping that pura vida vision alive.
Santa Teresa
Challenges of Living in a Rustic Environment
While living in a small bohemian style hamlet may seem like “paradise” found, there are several important aspects that should be taken under advisement. Certain elements of daily contemporary life in the U.S., Canada, and Europe may be found wanting in Santa Teresa and could turn the romantic idyll into something far less attractive.
Getting There Isn’t Half the Fun
The allure of living in a place without a paved road has a serious downside. A four-wheel drive vehicle is almost a necessity as visitors have to deal with jarring potholes during the dry season and a veritable sea of mud during rainy season. Needless to say, vehicle maintenance costs should also be considered as well as access to mechanical services.
There isn’t any fast way of getting to Santa Teresa from either San Jose or Liberia-the location of the two international airports in Costa Rica. The drive from San Jose to Santa Teresa is roughly six hours whether by bus or car; from Liberia the time is slightly less-in the four to five hour range.
While there are no direct flights to Santa Teresa, the two domestic carriers, Sansa Air and Nature Air, do offer flights to nearby Tambor Airport. Once there, visitors can expect a forty minute taxi ride to get to the village; the cost is in the neighborhood of $50.00.
Getting Your Point Across – the Language Issue
As is the case with many small and/or remote communities in Costa Rica, the predominant language for everyday transactions is Spanish. With such a small expat population, finding an English speaker can be somewhat confounding.
While some people may embrace learning a new language, the prospect of not being able to express oneself – or understand what others are saying to you – may be a difficult hurdle to surmount.
Bohemian and Rustic Are Definitely the Themes
There are limited modern amenities in the Santa Teresa-Mal Pais area. For most of the 20th century, such common items as cars, telephones, and refrigerators were practically unheard of.
As might be expected in such a small community, options for shopping for basics like groceries are going to be limited. Higher-end items such as appliances, computers and televisions, and vehicles will require a journey to San Jose, Liberia or Tamarindo. Balancing a life less scripted on one hand with the conveniences of being able to obtain needed or wanted items on the other is an important question that a potential expat needs to examine carefully.
Electricity did not become available in this end of the Nicoya Peninsula until the mid-1990s. The first street light wasn’t installed until 1993 and telephone service didn’t become truly accessible until the late 1990s.
While there is slow improvement (high speed internet access is now available for example), the area is still largely an undeveloped, unpaved paradise. If truly “living off the grid” is not something of interest to you, serious thought should be given before making Santa Teresa, Costa Rica your tropical “landing pad.”
Map of Santa Teresa, Costa Rica
Santa Teresa, Costa Rica Fast Facts
- Population: Numbers are hard to find, but a good guesstimate is 1,200
- Typical temperature: Mid 80’s
- Nearest airport with U.S. flights: San Jose
- Nearest U.S. consulate: San Jose
Living in Panama today can provide a wide variety of options for those seeking opportunities outside the U.S. and Europe to live, retire, and invest. Ranging from big city living to secluded mountain villages, Panama offers a selection of lifestyles that is second to none in Central America.
Panama City at Night
Panama’s Past Is the Cornerstone of Its Future
Panama’s history is one of change and growth. From its earliest colonial beginnings, to the construction of the Panama Canal, the turmoil of the late 20th century to the revitalization of today, Panama continues to thrive and offer fresh opportunities to live and immerse oneself in the diverse culture of Central America.
One of the major attractions in Panama is the lower cost of living throughout the country. With reasonable rents, lower food and medical costs, and a continuing growing standard of living, it is small wonder that Panama is viewed by many as picking up where other Central American countries have left off.
Living in Panama today provides a cultural and economic opportunity to share in a rich historical tradition while exploring and becoming part of a vibrant and exciting future. In a real sense, Panama’s past has become the cornerstone of the future potential as the country continues its course to becoming a premier expat destination in the 21st century.
Living in Panama – A Wide Choice of Locations and Climates
Panama is fortunate in that it offers variety in both climates and locations. Though located in tropical Central America, Panama has several “micro-climates” that reflect the many regions in the country.
For those seeking the energy and excitement of a modern city, Panama City is the place to be. The skyline along the beaches of the Pacific Ocean is more reminiscent of South Beach than an emerging nation.
The cool climates of the mountains in such locations as Boquete, Sante Fe and El Valle offer a nice contrast to the hotter, more humid beachfront locations. The La Armistad Biosphere Reserve, at Volcan, demonstrates both the geographic and meteorological diversity that can be found in Panama.
A more rustic lifestyle awaits expats looking to the interior communities of David and Chitre. Being able to become part of daily village life may be an ideal alternative for those wanting to avoid the more frenetic pace of larger cities.
Island Life – A Uniquely Panamanian Alternative
Having more islands than any other Central American country, Panama can boast of some of the best beach living in the region. The Las Perlas Islands group on the Pacific side and the San Blas Islands on the Caribbean coast contain the best beaches in Panama and are more affordable than many oceanside locations elsewhere.
Panama Is a Land of Potential on Many Levels
The aggressive efforts of the Panamanian government in recent years to attract foreign investment and to make Panama a desirable location for expats and retirees is beginning to reap dividends. Changes in residency laws, enhanced benefits for retirees, and a pro-business and investment approach is making Panama a model for Central American vibrancy in the 21st century.
New Residency Laws Make Living in Panama an Easy Choice
In May 2012, Panama enacted the Specific Countries Program. Under this program, holders of passports from the United States, Canada and many European countries can become Panamanian residents in as little as six to eight months.
As Panama’s economy continues to grow, the need for skilled workers has led to revisions in the laws impacting those who may want to work in their new expat location.
The Highly Skilled Worker Permit is one of these new revisions. Under this program, which is exempt from quotas and sponsorship requirements, all that is needed is a Bachelor’s Degree (or higher) and a letter from the perspective employer.
Living in Panama – Retirees Are More Than Welcome
Panama is making a major effort to attract retirees with the Pensionado (retirement) Visa program. Any person over the age of 18, with a guaranteed monthly income of $1000 from a government agency, such as Social Security or the U.S. Armed Forces, can qualify for this type of residency.
Holders of retirement visas receive many discounts and benefits in the form of reduced prices for a wide variety of services and items. Some of the most attractive of these discounts are:
| Discount | |
| Entertainment (movies, sports, etc.) | 50% |
| Airline Tickets | 25% |
| Closing Costs for Home Loans | 50% |
| Professional/Technical Services | 20% |
| Dental/Eye Exams | 15% |
With the Retirement Visa, an individual is entitled to a one-time tax exemption on imported household goods (up to a $10,000 limit). Another important benefit is a tax exemption every two years for the purchase or importation of a new vehicle.
Living in Panama – Growing Pains
For all the positives and potential that Panama offers, it is important to remember that this is an emerging nation in the throes of development. As a result, some of the challenges that expats may encounter may not be a good fit for everyone.
Infrastructure Is Not the Same Everywhere
The modern and urban environment of Panama City does not carry over to other parts of the country. Less developed regions in the mountains and further inland are far more rustic in nature. If having access to modern amenities is a requirement, this could limit the choices for relocation.
Changing Legal Environment
Not everyone has welcomed the efforts of the government to attract foreign businesses and workers to Panama. As a result, changing laws and regulations could impact residency and tax matters. This potential for change can be a negative for some who would like a more stable, less dynamic environment in which to invest.
Improvement and Construction Versus Quiet and Established
The constant improvement of Panamanian infrastructure and amount of new construction is certainly a positive for the country. With this growth, however, comes the disruption of the tranquil nature of many communities in the country. Navigating through construction zones and dealing with the issues that this kind of development brings may be a negative to those seeking a more rustic environment.
Discover the “Panama Potential”
The emergence of a growing real estate market makes doing research on what is on the market more important than ever. Whether the desired location is big city or rustic village, looking at what is available can provide a perspective on the true potential that can be found in the various locations of Panama.
Viva Tropical Radio
Ecuador has a ton of coastline, but much of it isn’t good for beach living due to high cliffs and industrial activities. When Park and I explored Ecuador from tip to tip and covered the entire coastline, we found there are several spots that could be perfect to live and you have to know what is happening locally to determine where is best.
So today we are speaking with Greg Gilliam, long-time Ecuador expat, about how to approach the Ecuador market and where you should focus your time when looking for your own paradise. Greg is a builder, hotel owner, and real estate entrepreneur, who has lots of experience and a straightforward approach you are sure to learn from on the show.
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The Show Notes
Contact Greg Gilliam here
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