Costa Rica has been recognized as one of the top retirement destinations in Latin America for U.S. citizens, according to "Forbes' The Best Places To Retire Abroad in 2026" report.

According to the American business magazine, a growing number of Americans are choosing to retire overseas in search of lower living costs, a different lifestyle and, in many cases, what it describes as a friendlier political climate.

"As of the last official count (from the end of 2024), 712,000 Americans received Social Security benefits abroad, up 20% over 13 years," the report states. "But many more, surveys suggest, are giving it serious consideration these days."

Forbes noted that retiring abroad is a major life decision requiring extensive research, flexibility and an adventurous spirit. The publication evaluated 24 countries across five continents for its 2026 rankings.

Among the top retirement destinations in Latin America, Costa Rica was recognized for its "amazing biodiversity and beaches on two oceans."

In its healthcare assessment, Forbes says medical care in Costa Rica's larger cities is both high quality and affordable. Foreign retirees who become legal residents can enroll in the country's public healthcare system through the Costa Rican Social Security Fund, paying about $150 per month, according to the report.

The residency process was also cited as one of Costa Rica's greatest advantages for retirees.

"The residency includes a two-year renewable pensionado retirement visa requiring a showing of just $12,000 in yearly income," the report states. "A U.S. retiree can stay in the country as a 'tourist' for a half-year, providing time to work on gaining longer permissions."

Although the United States and Costa Rica do not have a tax treaty to prevent double taxation, Forbes notes that Costa Rica does not tax the foreign income of retirees.

Among the challenges of retiring in Costa Rica, Forbes cites seasonal flooding in some regions and the language barrier, while adding that speaking Spanish is helpful but not essential.

Other Latin American countries included in the report are Argentina, Colombia, Mexico, Panama and Uruguay.

Earlier this year, Costa Rica received the 2026 Forbes Travel Award in the Best Nature Destination category. The recognition highlighted the country's status as one of the world's most biodiverse nations, home to approximately 6% of the planet's terrestrial biodiversity and 3.5% of its marine biodiversity. Costa Rica also has 30 national parks, nine biological reserves and 51 protected areas.