I live in Bogota, what I would classify as a middle income city with a middle-of-the-road cost of living. One of the most frequent questions I get as an expat is: Do you think I can live on X amount of money per month in X country? My answer is always that it depends how you want to live and where you want to live. If your idea of retirement is living a simple life in a small house far outside any major city, then yes, you can probably live on $1,000 a month. Of course, if you want to live in a nice apartment in a nice part of town in a large city, your cost of life goes up. But the truth is, it’s really quite hard to answer this question because some countries are more expensive than others and some cities are pricier than others; you can live like a king on your social security check in rural Bolivia, but in Sao Paolo, you may find yourself struggling on a single retirement income.
However, in an attempt to better answer this question more scientifically, I’ve been keeping track of my expenses for the last few weeks here in Bogota, and it breaks down like this:
(1) Rent (1 bedroom with cable, Wi-Fi, electricity, gas, water and once-a-week maid service included in a “nice” area of town): $225.00
***Of course, if you are 60, you probably don’t want to live in a 5-bedroom apartment with a bunch of 25 year-olds, so I called some rental agencies in a variety of middle upperclass neighborhood and found that a 1-bedroom (no utilities) apartment runs between $250 and $1,000.
(2) Utilities in an upper middle-class neighborhood (electricity, gas, Internet, cable, water) if you decide to live on your own: $195 per month
(3) ”Typical” Meal in a middle class neighborhood: $3.00
(4) Nice meal in Bogota’s most upscale dining district (without appetizer or wine): $10.00-$17.00
(5) Gym membership in a nicer gym (per month): $30.00-$100.00
(6) Bottle of water: $0.75
(7) Taxi, 65 city blocks: $4.50
(8) Typical monthly grocery bill at a “higher-end” chain store: $80.00-$100.oo
(9) Gallon of gas: $3.00-$4.00
(10) Normal bus: $0.65; Transmilenio bus: $0.80.
(11) Cocktail at a high-end bar: $7.50-$12.50
(12) Beer at your average bar: $0.90
(13) Coffee at a casual bakery or cafe: $0.50-$1.00
(14) Skim milk frappaccino with light cream at a “fancy” cafe: $2-$4
(15) Health Insurance (I have my own in the U.S., but I’ve called around and a policy, depending whether you get public or private, runs anywhere between): $35-$120 per month
(16) Misc (because I always seem to spend money and have nothing to show for it): $150.00
Total Expenditures in Bogota:
Total: $764.00
Total Expenditures in the U.S:
Total: $639.00
So basically, I need $1,303 to live every month. Obviously, this figure doesn’t reflect leisure travel, home-insurance, car insurance, car payment or savings, but this budget should give you an idea how much you need to get by and have a few nice dinners and drinks along the way.
For more on my experiences in Latin America, check out my blog. And for additional information on Latin America, check out more reasons to visit.
Hello
My name is Giovanna Barrantes. I’m a Lic Attorney with Barrantes & Associates in San Jose Costa Rica.
To answer your question. How much do you need to retire in Costa Rica.
Well it all depends on your life style. I would say $1,500 can do it.
Please see the types of residency that is available in Costa Rica.
Residency In Costa Rica – Types of Residency
Pensionado
• Requires proof of US$1000 per month income from permanent pension source or retirement fund.
• Must remain in country at least 4 months per year.
• Can claim spouse and dependants under 18 years of age.
• Cannot work as an employee.
• Can own a company and receive dividends.
Rentista Residency in Costa Rica
• Requires proof of US$2500 per month income for at least five years, guaranteed by a banking institution, OR a US$150,000 deposit in an approved Costa Rican bank. One amount covers the family.
• Must remain in country at least 4 months per year.
• Can claim spouse and dependants under 18 years of age.
• Cannot work as an employee.
• Can own a company and receive dividends.
Investor
• Investment of US$200,000 in a business.
• Must remain in country at least 6 months per year.
• Cannot claim spouse and dependants under 18 years of age.
• Income allowed from the project.
• Can own a company and receive dividends.
Representante Residency Program – Costa Rica
• Applicant must be director of a company meeting certain requirements, such as employing a minimum number of local workers as established by the labor law, with financial statements certified by a Public Accountant.
• Must remain in country at least 6 months per year.
• Cannot claim spouse and dependants under 18 years of age.
• Can earn an income from the company.
• Can own a company and receive income.
Permanent Residency Costa Rica
• First degree relative status with a Costa Rican Citizen (through marriage to citizen or having a Costa Rican child) OR may apply after three years in another status.
• Must visit Costa Rica at least once per year.
• Cannot claim spouse and dependants under 18 years of age.
• Can work.
• Can own a company and receive income.
Contact Barrantes & Associates. We look forward to helping you with all your
legal issues in Costa Rica.
Lic Giovanna Bararntes
Barrantes & Associates
US/Canada 786 235 2660
Office 011 506 2 256 3807
Direct 011 506 8 398 1203
Edificio Casa Canada Paseo Colon Subway
Anexo Uno 100 metros sur/50 metros oeste
Skype CostaRicaLaw1
http://www.lawyerofcostarica.com
http://www.twitter.com/lawyerofcr
I am would like to know exactly what the income requiremetns are to live in Bogota, Columbia if there is a requirement? What are all the requirements to retire to Bogota, Columbia.
Hi Delana, you can find more information on all available types of Visa on this official site. The requirements depend on your specific case, whether you are looking to retire or not for example.
http://www.cancilleria.gov.co/wps/portal/espanol/visas (Spanish)
Scroll down to the bottom of the page you will find a list of small links that outline the requirements for different types of VISA.
I spend the 6 winter months each year in Santa Marta not counting the flight,I spent $ 10,000 including rent, food and many hand-outs to needy students at a school where I voluntarily teach English in the mornings. For me its the ideal place, very quiet most of the time and totally safe. Brian at mimino50@yahoo.com
I think the correct answer is: a lot! There’s some more up-to-date info on the cost of living in Brazil at: Cost of Living in Brazil.