Cost of Living
The major difficulty in determining the cost of living somewhere is comparing apples to apples. We will try to present some costs here but as always, we strongly recommend you live in your new country or location for at least six to 12 months before buying any major property. What is the cost of living of the United States or Europe? Well, that depends on where you live, your idea of a required standard of living, how much you travel, how big your house is, how much you eat out and how much you embrace your new culture.
Having said all that, your cost of living in Nicaragua is substantially cheaper than living in the states or Europe. One of the reasons you may be moving to Nicaragua is to reduce your costs yet improve your lifestyle. Review your needs especially after renting here for a while. You will find that there are some things you no longer need and there are some things you absolutely will not live without regardless of what your neighbors think. We’ll try to present accurate pros and cons of various choices you will encounter. Finally, remember that these are our experiences and opinions. Also, remember that there are three prices starting at the highest: price for tourists, price for expatriates and the price for locals. Except at major stores, you can always barter especially when you buy more than one.
And there is more inflation on the local currency, sometime 5-7% so if you have dollars and the item is priced in cordobas, it is getting cheaper each year. This is why you must give at least a 5% raise to your employees just to ensure they are getting paid as much.
Location, location, location
Like any country, where you live will greatly affect your costs assuming everything else is equal. Our experience has been that costs are highest where the greatest number of expatriates live, for obvious reasons. More accurately, the greater percentage of expatriates to the local population will raise your costs. One way of comparing the cost of living is to compare the cost of housing in those locations. If the same house is 20% higher in one location then the cost of living will probably be higher there also.
Starting with the highest cost of living, the list goes like this:
Location within location is also important. Granada is the number one tourist location in Nicaragua and has a substantial number of expatriates. Within any city, the closer to the central park you are, the higher the cost of housing for purchase or rent. The central park exists in almost every town of substance here and is the heart of the city. Natives speak of pride in living close to the park. Living a mile outside Granada will substantially reduce your cost of housing yet accord you the conveniences of living near a major city though your cost of living will be about the same as those living in Granada.
You have many choices where to live. Are you the type to live by yourself on a farm or do you want the security of a development? Do you want to live within walking distance of good restaurants? How do you want to live? People forget that Nicaragua has not only the vast beaches and the colonial cities but also cool mountains and majestic valleys. Nicaragua has everything.
It is worthwhile to mention that many people moving to Nicaragua want to immerse themselves in the new culture and not be near many other gringos. This sounds good at first but often, after six or more months, you may want to meet and converse with people of like cultural or educational background. Another reason to live in your chosen location for six to 12 months before buying.
For people buying a winter home or living here part-time, your selection criteria is completely different and the effect of the cost of living is much less since you are probably still earning a substantially higher income in the states or Europe.
Typical Costs
The cost of food and housing will be some of your highest costs and they will depend greatly on how often you eat out but there are many other costs. We’ll do a general overview here then cover each major topic in more detail.
We estimate our average total monthly cost is around $1,500 but that includes everything except traveling outside the country. We have a large, beautiful colonial home with a pool, employ a maid, a 2005 SUV and a pickup truck. Taxes are much lower here but they still exist and they probably will go up someday though they have dropped about 10% per year so far. You can find articles about people living on $500 in other countries but we live well and keep very active in the community. Eat local fruit, read books all day and never get sick if you want to live cheap.
Updated April 2016
The below monthly costs are typical for a typical home for a expatriate in Granada which tends to be a palace compared to the homes of the locals.
More detail is under the section of building vs renting but some quick tips are here. We can’t stress enough the importance of living in your chosen location for at six to 12 months.
Electricity is expensive here compared to the states and for Nicaragua, it is very high. But most people do not use much electricity. Assuming you do not leave all of your lights and ceiling fans on continuously, the highest cost items are your refrigerator, your pool pump and the number one cost, air conditioning. We never use air conditioning and most people do not since the luxury can cost over $100 per room per month.
The secret is to ensure you rent, buy or construct a home with good air flow. Roof vents and other means of letting rising hot air to escape are rare here though my next house will have them. There are many homes here that are beautiful and well-built but the bedrooms only have windows on one side meaning they need air conditioning to cool off.
Another common means of reducing your rent or supplementing your home cost is to have extra bedrooms to rent out. At this time, renters are often looking for rental rooms instead of houses. The cost to the renter is lower and some people feel more comfortable being in a house with other people. Many of our friends do this successfully and it is a great way to meet interesting people. And they are like relatives, they usually do not stay that long.
Rents in Granada, Managua and San Juan del Sur are not substantially less than in Europe or the states unless you come from Los Angeles, New York City or Chicago. Still, a $1,000 a month will get you a substantial home with the comforts you would want. Check my section on Realtors-Property Management under Our Granada.
Maintenance
Once you buy or build a house here, the maintenance costs are much lower for several reasons. There is no carpeting, tile lasts forever, water damage is almost impossible, the walls are usually concrete instead of sheetrock, building materials are somewhat cheaper but mostly because labor is much cheaper.
Before our drainage problems were solved, our bedroom was flooded to the depth of four inches several times but there was no damage to the house. We painted every square inch of our house and the labor cost was under $200.
Cars, Transportation
Big decision you will have to make. Having a car, paying for gas and maintenance is a major expense if you are on a fixed expense. We have a large garage but the majority of homes here have no garages so you have the monthly storage expense ($20-25) plus the worry of your vehicle being in someone else’s possession.
We use our SUV rarely which means less than 2000 miles per year but we like the convenience of traveling when we wish. We also have friends that just hire a driver when they need it or of course, you can always rent a car. Much cheaper than owning a vehicle.
A third option is that some people here have a vehicle then hire a driver or a caretaker that also drives. This person then can also watch the vehicle while you running errands or whatever.
Entertainment
They are pirated but we can get first-run movies on DVD here for less than $1. We watched the new X-Men movie a month before it was released in the USA. You may feel a little guilty about using pirated goods initially but then you remember Tom Cruise getting $20 million for six months work and you realize that is even more obscene. Ladies, he is not very tall, get over it.
Most people go to Managua that has many movie theatres of the same quality as the USA but for $2.50. Like the states, the popcorn and the drinks cost as much as the movie tickets but here you can also get a beer.
Living in another culture is a form of entertainment. Relish it and enjoy it.
Income Taxes
The USA requires you to file your taxes each year even if you live here. I believe only the USA and North Korea taxes foreign income on their citizens. You must report any income, any capital gains and notify the IRS of any foreign bank accounts. The fines are substantial for not doing so and you know that the USA is even going after Swiss and Panama offshore accounts. If you renounce your USA citizenship and they determine it is to avoid taxes there are very substantial fines up to 50% of your assets.
Do not listen to anyone that tells you otherwise or that you can take a huge deduction against your foreign or domestic income. There are stipulations for enjoying that deduction, Nicaragua does have a reciprocal agreement with the USA so Nicaragua will not tax you for any income taxed by the USA.
The Nicaragua government knows most citizens and certainly, expatriates will not report interest income so if you have a bank savings account here, the bank usually automatically gives 10% of your interest income to the government.
Talk to a tax expert familiar with foreign income or expatriates living abroad. There aren’t that many with that knowledge. I used the International Living tax bible which they sell and found it had a wealth of information I used to help file my taxes.
The USA is now putting IRS people in the various embassies so they will be watching you even overseas.
Cost of Going Home
If you are the type of person needing to return to the states every few months then you should consider that cost and budget for it. As of this writing, the major carriers are cutting back on the number of flights and air fares are increasing especially due to taxes and security fees. I recently found round trip tickets for $100 from here to Charlotte, NC but the taxes and fees added another $400.
Still, the proximity of Nicaragua to the states is a major plus. Nicaragua is much closer to Miami than Los Angeles. Flight time – 2 ½ hours.
Taxes In General
It would be rare for you to have to file taxes in Nicaragua unless you plan to start a business or work for a salary. Nicaragua does not expect people to pay their taxes so most of their taxes are immediately collected. For example, if you sell a property, there is a property transfer tax which is paid at the closing. If you have a savings account, the bank usually gives 10% of your interest to the government.
If you hire a regular worker like a maid, gardener or caretaker then you will be paying fees to the government for the employee’s social security and medical. More details on this in the section on domestic help.
Sales tax (IVA) is substantial at 15% but it is usually already included in the price of the item and many times, you do not pay it because the vendor is not reporting his income to the government. Most restaurants had included the IVA in their menu prices but in the last two years some restaurants started adding the IVA of 15% at the presentation of the bill which substantially increases the price of eating there. Be sure to check before ordering since 15% sales tax plus 10% tip adds substantially to your bill.
Property taxes are an art in Nicaragua. Do not argue over your taxes because you will lose. The alcadia (city or state offices) has the authority to tax you whatever they wish. Officially it is .8 to 1% of the cadastral value of your home. The cadastral value can be anything they decide though almost always much less than the value paid. For example, we paid $189,000 for our house originally and it has a value of around $250,000 but the cadastral amount is around $30,000. It is not unusual for a buyer and seller to agree on the value the sales contract states regardless of the purchase price. After all, it reduces the profit the buyer will show. Still, the property appraiser can agree or change the cadastral amount to anything he or she believes.
Spanish Classes
If you are not able to hold a basic conversation in Spanish then you should consider Spanish lessons. You did move here to learn another culture and language is necessary to learn this culture even if only for basic conversation. Unfortunately, Nicaragua has one of the lowest percentages of people in the Latin world knowing any English. And when you leave the major cities there will be very few people knowing any English.
Spanish language lessons are one of the most expensive services you will pay for other than professionals like doctors, lawyers and architects. Typical costs are $5 to $10 an hour and many of the instructors expect more if there are two or more students at a time. You can get package deals if you sign up for many hours per week or for many weeks. It took a long time to find a Spanish instructor that would charge only $4 an hour to work with my wife and I and to come to our house twice a week.
You may not think $4 an hour is substantial but very few of these instructors are properly trained language instructors and in a country where teachers make $200 a month and policeman even less, it is very high and everyone offers it.
Take the time to find a good instructor that speaks clearly and understands the rules of grammar. Personally, I think the instructor should also be able to speak some English or the learning process will take longer. The best method is total immersion where you live with a family in their home. We learned more in two weeks of immersion than in six months of four hours per week.
Food
The food is excellent here but the restaurants owned by the expatriates can be relatively expensive depending on your budget. A $5 cheeseburger may sound reasonable in the states but that is a lot of money here. Every major town has a market and the costs of the various foods there are very low but it takes time to go to the market every day.
Ladies come everyday to our door selling fruits and vegetables. Their prices tend to be a little higher than the market but then you have the convenience. A young man brings us fresh seafood and an older gentleman brings us fresh bread. We have fast food outlets in the larger cities such as Subway, McDonalds, Burger King and Pizza Hut but the prices are about the same as in the states. We have three Chinese restaurants in Granada though only one is similar to what you would expect from a Chinese restaurant.
Living in a tourist town like Granada or San Juan del Sur expands the types of restaurants you have but the prices are more in line for the tourists. We do have our favorite Nica restaurants which are much cheaper and yet, very good. Some of our neighbors make various dishes to sell and they are very good values. Be sure to try out the fare of the street vendors, it’s part of the culture.
Labor Cost
The average paycheck is stated to be around $100 though many families receive money from relatives living overseas and there is so much black market that it is hard to say. Speaking English can easily double the income since the tourist-related jobs pay more.
As stated before, teachers make around $200 a month and it is a very desirable job since it also includes relatively good benefits. Maids, caretakers and gardeners will be $80-$120 per month depending on their responsibilities and hours. Repairman, painters, and other manual laborers usually quote a price for the project but they will expect you to pay for all materials upfront. And they will often use your tools since they rarely have them. You usually even have to buy paint brushes for the painters and they will not be usable after the job. Always get a written cost estimate before the job starts.
Like the states, there are lawyers everywhere and they charge very little for their services usually though the top three law firms charge up to $250 an hour. Our experience has shown that an expensive lawyer does not necessarily mean a better lawyer but they have better connections and usually speak good English. This may be important to you if doing a major project or a major purchase.
Having said all that, your cost of living in Nicaragua is substantially cheaper than living in the states or Europe. One of the reasons you may be moving to Nicaragua is to reduce your costs yet improve your lifestyle. Review your needs especially after renting here for a while. You will find that there are some things you no longer need and there are some things you absolutely will not live without regardless of what your neighbors think. We’ll try to present accurate pros and cons of various choices you will encounter. Finally, remember that these are our experiences and opinions. Also, remember that there are three prices starting at the highest: price for tourists, price for expatriates and the price for locals. Except at major stores, you can always barter especially when you buy more than one.
And there is more inflation on the local currency, sometime 5-7% so if you have dollars and the item is priced in cordobas, it is getting cheaper each year. This is why you must give at least a 5% raise to your employees just to ensure they are getting paid as much.
Location, location, location
Like any country, where you live will greatly affect your costs assuming everything else is equal. Our experience has been that costs are highest where the greatest number of expatriates live, for obvious reasons. More accurately, the greater percentage of expatriates to the local population will raise your costs. One way of comparing the cost of living is to compare the cost of housing in those locations. If the same house is 20% higher in one location then the cost of living will probably be higher there also.
Starting with the highest cost of living, the list goes like this:
- San Juan del Sur
- Granada
- Managua
- León
- Everywhere else
Location within location is also important. Granada is the number one tourist location in Nicaragua and has a substantial number of expatriates. Within any city, the closer to the central park you are, the higher the cost of housing for purchase or rent. The central park exists in almost every town of substance here and is the heart of the city. Natives speak of pride in living close to the park. Living a mile outside Granada will substantially reduce your cost of housing yet accord you the conveniences of living near a major city though your cost of living will be about the same as those living in Granada.
You have many choices where to live. Are you the type to live by yourself on a farm or do you want the security of a development? Do you want to live within walking distance of good restaurants? How do you want to live? People forget that Nicaragua has not only the vast beaches and the colonial cities but also cool mountains and majestic valleys. Nicaragua has everything.
It is worthwhile to mention that many people moving to Nicaragua want to immerse themselves in the new culture and not be near many other gringos. This sounds good at first but often, after six or more months, you may want to meet and converse with people of like cultural or educational background. Another reason to live in your chosen location for six to 12 months before buying.
For people buying a winter home or living here part-time, your selection criteria is completely different and the effect of the cost of living is much less since you are probably still earning a substantially higher income in the states or Europe.
Typical Costs
The cost of food and housing will be some of your highest costs and they will depend greatly on how often you eat out but there are many other costs. We’ll do a general overview here then cover each major topic in more detail.
We estimate our average total monthly cost is around $1,500 but that includes everything except traveling outside the country. We have a large, beautiful colonial home with a pool, employ a maid, a 2005 SUV and a pickup truck. Taxes are much lower here but they still exist and they probably will go up someday though they have dropped about 10% per year so far. You can find articles about people living on $500 in other countries but we live well and keep very active in the community. Eat local fruit, read books all day and never get sick if you want to live cheap.
Updated April 2016
The below monthly costs are typical for a typical home for a expatriate in Granada which tends to be a palace compared to the homes of the locals.
- Maid - $100 (depends on number of hours, duties, responsibilities)
Ex-Our maid comes in four hours per day five days a week - $80 a month
Plus she gets one month vacation, one month extra pay in December, $32 in taxes and SS. - Gas (cooking) - $4
- Electricity - $90-199 (lower if no pool pump, higher if you need A/C)
One reason this is high is that many of the locals are not paying for their electricity. - Water - $30
- Garbage Pickup - $1.00 a month and they pick up three times a week at the door
- Telephone - $100 (two cellulars, unlimited minutes, no calls outside country)
Note-there are two major phone companies here, one of your highest costs will be when you make calls to someone with the other phone company – high surcharges - Internet - $18 (cable internet with WIFI, good speed, competition is heating up)
- Cable TV - $17 (fairly similar to cable in the states, many English channels)
If not in major city, you may have to purchase a satellite system. High definition satellite is supposedly coming. - Homeowners’ Association Fees (if your property is in a complex or development)
They have just started these here and they vary greatly. - Property Taxes – In Granada, $115 a year for our 3,400 SF home and 5 acre farm.
We know people paying more for a smaller home and less for a larger one.
Treat the property inspector and the alcadia (city offices) like kings – they are. - Home Maintenance – Cost of labor very low, materials higher but still low
- Gasoline – around $3.50 per gallon, diesel is less
Good reason to have a motorcycle, scooter or bicycle. - Vehicles – 20-40% higher than prices in the states except Chinese which are lower.
- Vehicle Maintenance – Part prices similar to states but labor much cheaper
Ex. Flat rear tire on motorcycle – They had to disassemble, fix tube, reassemble – cost $2 - Food - $400-600 for 2 people (locals live on a lot less if you like rice and beans every day)
- Entertainment - $100 (Depends on what this encompasses and your hobbies)
- Homeowners’ insurance – Many people do not have this but rather inexpensive
- Car, Motorcycle Insurance - around $60 a year per vehicle
- Massages - We each get a Shiatsu massage each week for an hour - Cost $15 each
- General Taxes – Sales tax (IVA) is 15% but is usually already in the cost.
- Tips – Generally around 10%
- USA Income Taxes – Only the USA still requires taxes on any income no matter where you live and any capital gains you make. USA is starting to put IRS people in each embassy to catch those not reporting capital gains, etc.
- Medicine – Generally much, much less and usually do not need a prescription
- Doctors – Office visit to English speaking doctor $15
- Dentist – A thorough cleaning $25 (see section on health care) though a local clinic opened up and it is $2 a cleaning.
- Beer, Liquor – Local beer wholesale $.60, at restaurant or bar ($1)
Good rum – very cheap but imported liquors are more expensive but everything still tends to be cheaper since taxes are generally lower. Wines do not have extensive variety here but a good bottle can be $5-6. - Clothes, Shoes – Very inexpensive at the outlets but much higher at shopping malls.
Note - We live on about $1500 a month but that is because we own our home so we are saving $800-$1300 a month for rent, assuming a nice home like ours. If you add up the list it comes to much less but there are other costs such as maintenance of house (we just updated two bathrooms), saving for trips home every couple years, trips within country, some medical and medicine costs, etc. Depending on how many meetings I have in Managua, gas can be $120-$200 a month.
More detail is under the section of building vs renting but some quick tips are here. We can’t stress enough the importance of living in your chosen location for at six to 12 months.
Electricity is expensive here compared to the states and for Nicaragua, it is very high. But most people do not use much electricity. Assuming you do not leave all of your lights and ceiling fans on continuously, the highest cost items are your refrigerator, your pool pump and the number one cost, air conditioning. We never use air conditioning and most people do not since the luxury can cost over $100 per room per month.
The secret is to ensure you rent, buy or construct a home with good air flow. Roof vents and other means of letting rising hot air to escape are rare here though my next house will have them. There are many homes here that are beautiful and well-built but the bedrooms only have windows on one side meaning they need air conditioning to cool off.
Another common means of reducing your rent or supplementing your home cost is to have extra bedrooms to rent out. At this time, renters are often looking for rental rooms instead of houses. The cost to the renter is lower and some people feel more comfortable being in a house with other people. Many of our friends do this successfully and it is a great way to meet interesting people. And they are like relatives, they usually do not stay that long.
Rents in Granada, Managua and San Juan del Sur are not substantially less than in Europe or the states unless you come from Los Angeles, New York City or Chicago. Still, a $1,000 a month will get you a substantial home with the comforts you would want. Check my section on Realtors-Property Management under Our Granada.
Maintenance
Once you buy or build a house here, the maintenance costs are much lower for several reasons. There is no carpeting, tile lasts forever, water damage is almost impossible, the walls are usually concrete instead of sheetrock, building materials are somewhat cheaper but mostly because labor is much cheaper.
Before our drainage problems were solved, our bedroom was flooded to the depth of four inches several times but there was no damage to the house. We painted every square inch of our house and the labor cost was under $200.
Cars, Transportation
Big decision you will have to make. Having a car, paying for gas and maintenance is a major expense if you are on a fixed expense. We have a large garage but the majority of homes here have no garages so you have the monthly storage expense ($20-25) plus the worry of your vehicle being in someone else’s possession.
We use our SUV rarely which means less than 2000 miles per year but we like the convenience of traveling when we wish. We also have friends that just hire a driver when they need it or of course, you can always rent a car. Much cheaper than owning a vehicle.
A third option is that some people here have a vehicle then hire a driver or a caretaker that also drives. This person then can also watch the vehicle while you running errands or whatever.
Entertainment
They are pirated but we can get first-run movies on DVD here for less than $1. We watched the new X-Men movie a month before it was released in the USA. You may feel a little guilty about using pirated goods initially but then you remember Tom Cruise getting $20 million for six months work and you realize that is even more obscene. Ladies, he is not very tall, get over it.
Most people go to Managua that has many movie theatres of the same quality as the USA but for $2.50. Like the states, the popcorn and the drinks cost as much as the movie tickets but here you can also get a beer.
Living in another culture is a form of entertainment. Relish it and enjoy it.
Income Taxes
The USA requires you to file your taxes each year even if you live here. I believe only the USA and North Korea taxes foreign income on their citizens. You must report any income, any capital gains and notify the IRS of any foreign bank accounts. The fines are substantial for not doing so and you know that the USA is even going after Swiss and Panama offshore accounts. If you renounce your USA citizenship and they determine it is to avoid taxes there are very substantial fines up to 50% of your assets.
Do not listen to anyone that tells you otherwise or that you can take a huge deduction against your foreign or domestic income. There are stipulations for enjoying that deduction, Nicaragua does have a reciprocal agreement with the USA so Nicaragua will not tax you for any income taxed by the USA.
The Nicaragua government knows most citizens and certainly, expatriates will not report interest income so if you have a bank savings account here, the bank usually automatically gives 10% of your interest income to the government.
Talk to a tax expert familiar with foreign income or expatriates living abroad. There aren’t that many with that knowledge. I used the International Living tax bible which they sell and found it had a wealth of information I used to help file my taxes.
The USA is now putting IRS people in the various embassies so they will be watching you even overseas.
Cost of Going Home
If you are the type of person needing to return to the states every few months then you should consider that cost and budget for it. As of this writing, the major carriers are cutting back on the number of flights and air fares are increasing especially due to taxes and security fees. I recently found round trip tickets for $100 from here to Charlotte, NC but the taxes and fees added another $400.
Still, the proximity of Nicaragua to the states is a major plus. Nicaragua is much closer to Miami than Los Angeles. Flight time – 2 ½ hours.
Taxes In General
It would be rare for you to have to file taxes in Nicaragua unless you plan to start a business or work for a salary. Nicaragua does not expect people to pay their taxes so most of their taxes are immediately collected. For example, if you sell a property, there is a property transfer tax which is paid at the closing. If you have a savings account, the bank usually gives 10% of your interest to the government.
If you hire a regular worker like a maid, gardener or caretaker then you will be paying fees to the government for the employee’s social security and medical. More details on this in the section on domestic help.
Sales tax (IVA) is substantial at 15% but it is usually already included in the price of the item and many times, you do not pay it because the vendor is not reporting his income to the government. Most restaurants had included the IVA in their menu prices but in the last two years some restaurants started adding the IVA of 15% at the presentation of the bill which substantially increases the price of eating there. Be sure to check before ordering since 15% sales tax plus 10% tip adds substantially to your bill.
Property taxes are an art in Nicaragua. Do not argue over your taxes because you will lose. The alcadia (city or state offices) has the authority to tax you whatever they wish. Officially it is .8 to 1% of the cadastral value of your home. The cadastral value can be anything they decide though almost always much less than the value paid. For example, we paid $189,000 for our house originally and it has a value of around $250,000 but the cadastral amount is around $30,000. It is not unusual for a buyer and seller to agree on the value the sales contract states regardless of the purchase price. After all, it reduces the profit the buyer will show. Still, the property appraiser can agree or change the cadastral amount to anything he or she believes.
Spanish Classes
If you are not able to hold a basic conversation in Spanish then you should consider Spanish lessons. You did move here to learn another culture and language is necessary to learn this culture even if only for basic conversation. Unfortunately, Nicaragua has one of the lowest percentages of people in the Latin world knowing any English. And when you leave the major cities there will be very few people knowing any English.
Spanish language lessons are one of the most expensive services you will pay for other than professionals like doctors, lawyers and architects. Typical costs are $5 to $10 an hour and many of the instructors expect more if there are two or more students at a time. You can get package deals if you sign up for many hours per week or for many weeks. It took a long time to find a Spanish instructor that would charge only $4 an hour to work with my wife and I and to come to our house twice a week.
You may not think $4 an hour is substantial but very few of these instructors are properly trained language instructors and in a country where teachers make $200 a month and policeman even less, it is very high and everyone offers it.
Take the time to find a good instructor that speaks clearly and understands the rules of grammar. Personally, I think the instructor should also be able to speak some English or the learning process will take longer. The best method is total immersion where you live with a family in their home. We learned more in two weeks of immersion than in six months of four hours per week.
Food
The food is excellent here but the restaurants owned by the expatriates can be relatively expensive depending on your budget. A $5 cheeseburger may sound reasonable in the states but that is a lot of money here. Every major town has a market and the costs of the various foods there are very low but it takes time to go to the market every day.
Ladies come everyday to our door selling fruits and vegetables. Their prices tend to be a little higher than the market but then you have the convenience. A young man brings us fresh seafood and an older gentleman brings us fresh bread. We have fast food outlets in the larger cities such as Subway, McDonalds, Burger King and Pizza Hut but the prices are about the same as in the states. We have three Chinese restaurants in Granada though only one is similar to what you would expect from a Chinese restaurant.
Living in a tourist town like Granada or San Juan del Sur expands the types of restaurants you have but the prices are more in line for the tourists. We do have our favorite Nica restaurants which are much cheaper and yet, very good. Some of our neighbors make various dishes to sell and they are very good values. Be sure to try out the fare of the street vendors, it’s part of the culture.
Labor Cost
The average paycheck is stated to be around $100 though many families receive money from relatives living overseas and there is so much black market that it is hard to say. Speaking English can easily double the income since the tourist-related jobs pay more.
As stated before, teachers make around $200 a month and it is a very desirable job since it also includes relatively good benefits. Maids, caretakers and gardeners will be $80-$120 per month depending on their responsibilities and hours. Repairman, painters, and other manual laborers usually quote a price for the project but they will expect you to pay for all materials upfront. And they will often use your tools since they rarely have them. You usually even have to buy paint brushes for the painters and they will not be usable after the job. Always get a written cost estimate before the job starts.
Like the states, there are lawyers everywhere and they charge very little for their services usually though the top three law firms charge up to $250 an hour. Our experience has shown that an expensive lawyer does not necessarily mean a better lawyer but they have better connections and usually speak good English. This may be important to you if doing a major project or a major purchase.
