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A Happier Life for Less: Costa Rica’s Secret

Standing on the beach in Tamarindo all those years ago, I thought to myself, “I could live here”.|©iStock/CarolineBrundleBugge

“Costa Rica has it figured out...” I said to my dog, Louis, who was laying on the floor next to me, hoping I’d drop a piece of quesadilla in his general direction. 

The 2026 World Happiness Report rankings had just popped up on my phone, which I was absentmindedly scrolling through as I ate lunch, standing at our kitchen island.

In Costa Rica, people are happy. And I understand why.  

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When I think of Costa Rica, I always think back to one particular moment from a trip I took there years ago. I was standing on the broad curve of beach in Tamarindo, along the Northern Pacific coast... soaking in the sound of the surf, the rustle of the palm fronds in the warm breeze, the whistle of the grackles.

It was just so peaceful. The sky had faded to pastels—soft pink and yellow and orange. Young kids were digging in the sand with their plastic shovels while their parents chatted. A few surfers were out in the waves. It was a nice mix of locals and vacationers on the beach—and folks had struck up friendly conversations.

I had my sandals in my hand, and I remember my toes playing in the sand as I talked with a few expats I’d met earlier in the day. It was low-key, easy, friendly, slow...  

And I remember thinking to myself, “I may not be that much of a beach person, but I could live here...”

Costa Rica, at #4 on this World Happiness Report list, looks like a warm-weather interloper up near the top, where Nordic countries dominate: Finland (# 1), Iceland (#2), Denmark (#3), Sweden (#5), Norway (#6), and The Netherlands #7).

(The United States slides in at #23. Ireland, where I landed on Wednesday, sits at a respectable #13.) 

It’s not just on the happiness scale that Costa Rica shines. It has, for all the years we’ve produced our Annual Global Retirement Index, scored near the top... just as it does this year. Check out the full Index Report, here. 

That’s because Costa Rica checks a lot of boxes—the climate is attractive, you get good bang for your buck, it’s relatively easy to get residency, and more.

So I am not surprised it’s a place where people feel happy. 

Researchers say factors like healthy life expectancy and high levels of social support make people happier. And Costa Rica shines in both those areas—and others. 

It’s a secure and peaceful country, respectful of personal freedoms. Foreigners can access the highly regarded healthcare system, which costs a fraction of what healthcare does in the US. 

It’s a place where you can improve your standard of living while you spend less than you do today. A place where it’s easy to slow down, relax, and enjoy life. 

"Sámara’s a great place for families wanting to live in nature and enjoy a simpler life," Tamara Gabbard, a transplant from New York, says[JLS3] . "There are lots of art and sports classes and extracurricular activities, which gives us expats many options in our free time. "And," she adds, "I won’t ever get over how beautiful it is." 

"I felt no stress from the moment I arrived,” says David Hirabayashi[JLS4] , who settled in the Orosi Valley. “And I looked around and I saw no stress in anyone, in anything, anywhere. Everyone was always smiling... 

"The weather is so perfect here (temperatures rarely go below 60 F at night or above the high 70s during the day) that everyone basically lives outdoors. From my covered terrace, with a cup of delicious locally grown coffee in my hand, I’m surrounded by mountains covered in coffee bushes. The distant city lights twinkle in the evenings, and a herd of wild deer often passes through. But my favorite view is tropical flowers around the swimming pool, with the soaring Irazú volcano in the background." 

"I grew up surfing in Southern California, so Costa Rica has always been on my radar," says Mike Clifford[JLS5] . "We came to Tamarindo for a month in October 2000 and fell in love. We bought a condo on the beach on that trip... I love being in a small town… being part of a community. Everybody knows us, we know everybody." 

If you’re looking for a place where you can escape... a friendly place where you can go a few months a year—or even full-time—Costa Rica should be on your short list.

We’ve created a beefy resource designed to help you find your place there. It comes with a bunch of guides and videos—and we have a special offer on the table right now—details here. 

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