If you aren’t rich but could easily get used to the idea of spending your golden years living like a millionaire, you might want to consider retiring to Costa Rica. This popular spot, which is located between Nicaragua and Panama, attracts many older people who are drawn by the temperate climate, the beautiful setting and best of all, the low cost of living. In fact, many retired Americans are able to afford an extremely high quality of life in Costa Rica on a small budget.

The natives, or “ticos” call living in Costa Rica “la pura vida” or “the pure life.” And the nation’s wealth of beautiful beaches, waterfalls, tropical rainforests and many outdoor activities available year-round seem to be worthy of such a high claim. There are currently as many as 20,000 or more Americans who have relocated there, and many of them are likely to stay there for good.

Retirement At Its Best

According to most of the information available online about Costa Rica, the country boosts a stable economy and is relatively safe. In addition, many of the people who live in Costa Rica speak English and many American items and brands are readily available, so it is easy for people from the United States to assimilate there.

Here are some of the key attractions that Costa Rica has to offer for Americans who are considering moving there:

• Spring-like temperatures year round
• Lower cost on local items
• Very affordable services
• A very inexpensive public healthcare system
• Many medical doctors who are trained in the United States
• Easy access to public transportation
• Impressive tax breaks
• Excellent restaurants
• Wide range of cultural activities
• Numerous golf courses
• Safe drinking water
• High sanitary standards

Two Status Options

Most visitors to Costa Rica can stay in the country on a tourist visa for as long as three months before needing to secure a more permanent status. If you plan to stay longer as a retiree, there are two legal status options you will want to explore.

The first status is called “Pensionado.” To qualify for this status, you must be able to prove a monthly income of $600 ($7,200 a year) that comes from outside of the country.

The other legal option is called “rentista” status, which requires people to prove a monthly income of $1000 (or $12,000 a year) that is also from a source outside of Costa Rica), and this amount must be guaranteed for a minimum of five years.

In either case, you must agree to live in the country for four months each year, and your monthly income must be sent to you while there to change it into the country’s currency: colones. (One U.S. dollar equals 520 colones at the present time.)

Each of these retirement statuses is good for two years at a time, and then will need to be renewed. In addition, with either status you are prohibited from being able to work for anyone else in Costa Rica or collect wages. However, you can operate your own business in the country, as well as make investments, and you may also work for others outside of the country (often using high-speed Internet access). Better yet, the profits or income generated from any work or business done outside of the country is not taxed in Costa Rica.