Gorgeous Nature and Affordable Paradise: An In-Depth Look at Costa Rica

Costa Rica is known around the world as a tourism destination boasting stunning natural beauty. However, beyond the pristine beaches and lush rainforests lies a country that generates over half its income from agriculture. While tourism contributes significantly to Costa Rica’s economy, agricultural exports of coffee, sugar, bananas and cocoa make up 55% of its revenue. In this article, we’ll explore Costa Rica’s geography, history, economy, culture and daily life to better understand what makes this Central American nation unique.

Introduction to Costa Rica’s Location and Geography

Costa Rica is a country located in Central America, nestled between Nicaragua to the north and Panama to the south. On a map, you can see it occupies a relatively narrow land area between the Caribbean Sea and Pacific Ocean. The country covers 51,000 square kilometers and has coastlines on both major bodies of water.

The northern Caribbean coastal region faces the Caribbean Sea while the Pacific coastal region in the south faces the Pacific Ocean. Most visitors arrive via Juan Santamaría International Airport in the central valley near the capital city of San José. You can also reach Costa Rica by bus from neighboring countries like Nicaragua, Honduras, El Salvador and Panama.

Costa Rica’s Tropical Climate

Thanks to its proximity to the equator, Costa Rica enjoys a predominantly tropical climate all year round. Average temperatures remain around a pleasant 25°C or 77°F. The drier months fall between December and April, making this the most popular tourist season. However, the lush greenery can be enjoyed year-round.

Spanish Colonization and Independence

Spanish is the official language spoken in Costa Rica today. This stems from the colonial era when the Spanish Empire conquered and ruled over the region starting in the early 16th century. Christopher Columbus first landed on the Caribbean coast in 1502, naming it the “Rich Coast” after believing gold deposits were plentiful here.

However, the Spaniards were disappointed to find minimal gold reserves in the country. Instead, they realized the underground resources were quite poor. The indigenous peoples living in Costa Rica when the Spanish arrived were migrants from areas like Guatemala who subsisted through farming and hunting.

It wasn’t until 1821 that Costa Rica finally gained independence after almost 300 years of Spanish rule. This marked a turning point as the locals began to reclaim autonomy over their land and resources.

High Life Satisfaction and Happiness Rankings

Today, Costa Rica consistently ranks among the top 15 happiest countries in the world based on life satisfaction surveys. Unlike some other Latin American nations facing economic instability, Costa Rica manages to keep its population relatively content.

With its small population of just 5 million people, family-centered culture and breathtaking natural landscapes, Costa Rica offers a high quality of life for its residents. We’ll explore more about the local lifestyle later on.

Ethnic Diversity and Indigenous Populations

Around 90% of Costa Rica’s population today consists of mestizos and mulattos, or people of mixed European and indigenous descent. The remaining percentage comprises those of African heritage and members of a few native tribes.

Only 4 indigenous tribes remain in Costa Rica that preserve their unique identity, language and customs. These include the Maleku, Bribri, Cabecar and Boruca peoples. The rest of the population leads a modern lifestyle aligned with global standards.

Laidback Laws on Gambling, Prostitution and DUI

Some of Costa Rica’s laws related to social issues take a more laidback approach. For instance, gambling and prostitution are fully legalized activities that the government does not restrict or intervene in. This attracts many foreign tourists, especially from the United States flocking to entertainment hubs. Large international casinos operate freely under Costa Rica’s liberal gambling laws.

Remarkably, Costa Rica is also the only country where driving under the influence is legal. If a driver gets behind the wheel while intoxicated, traffic police will not issue fines or revoke their license. Road signs were only introduced in 2012, showcasing the previously lax attitude toward driving regulations.

Abolishment of Military in Favor of US Alliance

In 1948, Costa Rica took the unprecedented move to abolish their military forces. Today, it remains one of just 23 countries in the world without an active military. So how does it ensure national defense and security?

Costa Rica relies heavily on its alliance with the United States for external security matters. With the backing of the US, it becomes difficult for other forces to encroach on Costa Rica’s autonomy. The absence of military spending also allows the country to divert funds toward healthcare, education and environmental protection.

High Literacy Rate and Free Healthcare

Costa Rica boasts the highest literacy rates in Latin America, with education provided freely to all citizens. Medicines can also be obtained for free through pharmacies under the national healthcare system. This promotes a happy, healthy and educated population.

Renewable Energy Production

Around 98% of Costa Rica’s electricity stems from renewable sources including hydropower, geothermal, wind and solar. Thanks to this clean energy infrastructure, the fresh water from the country’s winding rivers remains pristine and suitable for drinking in its natural state.

Sustainable Practices

Costa Rica aims to preserve its natural ecosystems through sustainable practices. For example, urinals in public restrooms lack automatic flush systems to conserve water whenever possible. The country also banned fossil fuel extraction and single-use plastics to minimize environmental impact.

Obtaining Residency as a Pensionado

Foreigners from the US, Canada and Europe in their retirement years often choose to start a second life in Costa Rica. The warm climate, laidback lifestyle and beautiful landscapes make it ideal for pensionados.

Obtaining residency is relatively straightforward for retirees who can prove a monthly income of at least $1,000. This provides access to the healthcare system and tax benefits.

English Proficiency and Expat Communities

While Spanish is the official language, English proficiency is relatively high, especially in popular expat areas like the Central Valley. Thriving expat communities provide social support and resources for those relocating from abroad.

Costa Rica’s “Pura Vida” Outlook

The Costa Rican philosophy of “pura vida” influences many aspects of local culture and daily life. Loosely translated as “pure life”, this mindset values living simply, finding joy in everyday moments, not sweating the small stuff, and going with the flow.

Costa Ricans radiate a certain relaxed, carefree happiness and always take time to greet others with a warm smile. Rather than racing through the day stressed and impatient, they focus on savoring the present.

Strong Sense of Community

In line with the pura vida mentality, Costa Ricans maintain a strong sense of community and willingness to help one another. They come together to collaboratively solve problems, showing generosity and friendliness even to strangers and visitors.

Importance of Family

Family represents a core pillar of life in Costa Rican culture. Multiple generations commonly live together under one roof, or neighboring homes, maintaining very close family ties. The pura vida attitude gets passed down through the generations.

Typical Daily Routine

The typical Costa Rican wakeup time falls around 5:30 am, going to bed by 9 pm. Their schedule revolves around sunrise and sunset, with evenings spent at home once it’s dark out. Of course, those seeking nightlife in tourist areas can find lively bars and clubs. But in rural villages, the nights remain peaceful and quiet.

Abundant Nature Supporting Self-Sufficient Living

Given the fertility of the land, locals can live quite self-sufficiently harvesting their own fruits and vegetables. Staple crops like corn, beans and squash grow bountifully to support the population’s needs. Living off the land allows for financial freedom.

Tourism Hotspot with Thriving Nightlife

While life might move at a slower pace in villages, popular areas like Tamarindo and Jaco boast buzzing nightlife. Costa Rica attracts millions of tourists annually seeking fun in the sun. Vacation hotspots offer beach parties, chances to meet new people, and entertainment that goes all night long for those who want it.

Passion for Football (Soccer)

Football represents the most popular sport in Costa Rica. You’ll find a dedicated football field not just in the cities, but even small rural villages. It’s an integral part of community life. While the national team hasn’t achieved worldwide fame, Costa Ricans are devoted fans.

Lack of Addresses or Street Names

Curiously, Costa Rica lacks a formal addressing system with street names and house numbers. Locals navigate based on landmark references, describing a destination as “across from the park”, or “next to the school”. Since most places are small, this functions well without formal addresses.

Predominantly Rural Landscape

Observing Costa Rica from above reveals a landscape dominated by greenery rather than urban infrastructure. Most buildings remain single or double-story structures, leading some to refer to it as a “single-story country”. Outside the central cities, it remains largely rural.

Tax Benefits for Digital Nomads and Remote Workers

An interesting perk for remote workers in Costa Rica is exemption from paying income tax. As long as your legal tax residence lies in another country, you won’t be taxed on foreign income even when withdrawing from a Costa Rican bank account. There are very few countries offering this financial benefit.

High Unemployment Alongside Rising Cost of Living

While Costa Rica offers expats and retirees an alluring lifestyle, around 15% of the local population remains unemployed. Job opportunities favor Costa Rican nationals, so foreigners seeking work may struggle.

Furthermore, the cost of living has steadily increased over recent years, especially in tourist areas. Rent and goods cost more compared to some neighboring countries.

Housing Options and Costs

In downtown San José, expect to pay around $700 per month for a basic 2-bedroom apartment. Luxury beach homes with gardens rent for upwards of $1500 monthly. Tourist hotspots drive up real estate prices, but more affordable options exist away from major hubs.


From its pura vida culture to breathtaking scenery, Costa Rica has captivated the imaginations of tourists and expats worldwide. While the country faces some economic challenges, it balances preserving its natural ecosystems and resources with modern infrastructure and governance.

The people radiate joy, kindness and community spirit. Life moves at a slower, calmer pace aligned with nature. For those seeking an affordable tropical paradise to live or retire in, Costa Rica checks many boxes. Just be prepared for a language barrier and cultural adjustment period. But once you get settled in, the Pura Vida attitude is contagious!