The Pensionado visa

The Pensionado program is Costa Rica's retirement residency track. Requirements:

• US$1,000/month lifetime pension income (Social Security, government pension, or a qualifying private annuity). One income can cover a couple.
• Apostilled proof of pension, birth certificate, marriage certificate (if applicable), and FBI/RCMP background check less than 6 months old.
• Register with Caja (public health) — mandatory for all residents.

Processing is typically 6–14 months. You can live in Costa Rica while your file is pending. After 3 years on Pensionado you can apply for permanent residency, which removes the pension requirement.

A realistic retirement budget

Typical monthly spend for a retired couple in the Central Valley:

• Rent (furnished 2-bed): US$900–1,400
• Groceries + household: US$500–700
• Utilities + internet: US$150–220
• Caja + private health: US$200–400
• Transport (car ownership or rideshare): US$150–350
• Dining + entertainment: US$300–500

Total: US$2,500–3,500/month for a comfortable Central Valley retirement. Add US$800–1,500/month for premium Guanacaste beach towns (Tamarindo, Nosara).

Healthcare for retirees

Every resident is enrolled in the Caja, Costa Rica's universal public system. Retirees pay 7–11% of declared pension income and receive full coverage — GP visits, specialists, hospitalization, surgery, and prescription drugs, no co-pays.

Most expat retirees add a private plan (INS Medismart or BMI, US$60–200/month) for faster elective procedures and access to private hospitals like Clínica Bíblica, CIMA Escazú, and Hospital Metropolitano. Combined health spend for a couple: US$200–400/month.

Best towns for retirees

• Escazú & Santa Ana — Central Valley, best hospitals in the country, walkable, largest expat community. Higher rents.
• Atenas & Grecia — smaller Central Valley towns, spring-like climate year-round, lower cost, easy 45-min drive to San José hospitals.
• Tamarindo, Nosara, Playa Flamingo — Guanacaste beach communities, established retiree scene, hotter, higher cost.
• Ojochal & Uvita — Southern Zone, quiet, rainforest-meets-ocean, Canadian and French-Canadian retiree presence.
• Arenal / La Fortuna — lakes, cooler climate, lower cost, further from major hospitals.

Taxes on your pension

Costa Rica does not tax foreign-source pension income — Social Security, US pensions, UK state pensions, Canadian OAS/CPP all arrive tax-free locally. Costa Rica taxes only Costa Rica-source income.

US citizens still owe US federal tax on Social Security. The FEIE does not apply to pension income, but the standard deduction and the low effective rate on Social Security often make the tax bill minimal. Talk to a US expat CPA before filing your first Costa Rican year.