A comfortable retirement works out cheaper in Dominican Republic — around £1,650/month for a couple, versus £2,100 in Costa Rica (about 21% more).
Cost of living, side by side
| Costa Rica | Dominican Republic | |
|---|---|---|
| Modest (couple/mo) | £1,500 | £1,150 |
| Comfortable (couple/mo) | £2,100 | £1,650 |
| Premium (couple/mo) | £3,400 | £2,400 |
Indicative monthly estimates for a couple — real costs vary by location, lifestyle and exchange rates.
Costa Rica: Foreigners can buy and hold titled property with the same freehold rights as Costa Rican citizens. The main exception is the Maritime Zone: the first 200 metres from the high-tide line, where the initial 50 metres are public and the next 150 metres are usually held under renewable concession rather than outright title.
Dominican Republic: Foreigners buy with the same rights as citizens, taking full fee-simple (freehold) title in their own name with no restrictions. Property is registered in the buyer's name at the Title Registry.
Costa Rica: The Pensionado residency suits retirees with at least US$1,000 a month of lifetime pension income, while the Rentista route uses stable unearned income or a bank deposit; both are renewable and can lead to permanent residency.
Dominican Republic: Pensionado residency is aimed at retirees with about US$1,500 a month of pension income (plus roughly US$250 per dependent), with a Rentista option for other passive income; both offer a relatively quick route to permanent residency.
Costa Rica: Costa Rica is well regarded: legal residents join the public CAJA system by income-based contribution, alongside excellent private hospitals such as CIMA and Clinica Biblica in San Jose. Many keep private cover too, which is good value.
Dominican Republic: Private hospitals in Santo Domingo, Santiago and the main expat hubs are modern and cost far less than in the US or UK; expat-focused insurance starts around US$100 a month, often including medical evacuation. Public care is basic, so most retirees insure privately.
Costa Rica: Taxation is territorial, so a resident's foreign pension and overseas income are not taxed in Costa Rica, only locally sourced income is. That makes a UK or other foreign pension straightforward to draw here, though you keep any home-country obligations.
Dominican Republic: Holders of Pensionado residency have their foreign pension exempted from Dominican tax, and new residents broadly enjoy favourable treatment of foreign income; the Pensionado also brings a 50% cut in annual property tax and exemption from the 3% transfer tax on a first home. Confirm the current rules when you apply.
Costa Rica: Tropical with a dry season December to April and a greener rainy season May to November; the Central Valley stays spring-like around 22-27C year-round while the coasts are hotter and more humid. Safe by regional standards with everyday care against petty theft; Spanish is the language but English is widely used in expat and tourist areas, and driving is on the right.
Dominican Republic: Tropical and warm all year, typically 26-31C; the drier, most comfortable season is December to April, with a wetter hurricane-season stretch from June to November. Relaxed and welcoming in the expat areas, though normal precautions against petty crime apply; Spanish is the language with English common in tourist zones, and driving is on the right.
Costa Rica: Expect total one-off costs of about 5-6%: a 1.5% transfer tax plus registry stamps, with the balance for notary and legal work; foreigners are treated like locals outside restricted coastal concession zones. Purchases usually complete within a few weeks.
Dominican Republic: One-off costs run roughly 4-5% of the price — a 3% transfer tax (waived on a first home for Pensionado residents), plus legal fees of about 1-1.5% and registration. Foreigners take full freehold title, and using a lawyer to verify title is strongly advised.
Costa Rica: The Central Valley towns of Escazu, Santa Ana, Atenas and Grecia for a spring-like climate and expat services, plus Guanacaste (Tamarindo, Nosara) and the Central and South Pacific (Uvita, Dominical) for the beach.
Dominican Republic: Las Terrenas on the Samana peninsula for its French-Caribbean flavour, Sosua and Cabarete for an established north-coast expat scene, Punta Cana for resort-style living and flights, and Santo Domingo for city amenities and the best hospitals.
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