As we’ve seen, Costa Rica is not just another tropical retirement destination.
In fact, location-independent expats and nomads are thriving throughout the country while continuing to make a healthy income.
That said, there’s something altogether different happening around Lake Arenal, where those in search of a better life are discovering the perfect balance of connectivity, affordability, and natural beauty.
Lake Arenal is about three hours north of San José and three hours east of Liberia, just west of the popular tourist destination of Fortuna with Arenal Volcano as a backdrop.
The stunning emerald-green hills that rise from the lake’s shores would command a premium in the United States, which makes the affordable real estate and low cost of living especially sweet.
I’ve been running my digital businesses since 2006 and can confirm that finding the perfect balance of connectivity, lifestyle, and cost efficiency transforms not just where you work, but how effectively you operate. Lake Arenal delivers this trifecta remarkably well, which is why it’s on our short list of investable areas.
The region provides the infrastructure needed for serious work thanks to upgraded internet capabilities, while offering the kind of environment that stimulates creativity and reduces stress. The weather — moderate and breezy rather than humid — allows for year-round comfort without the expense of constant climate control.
Plus, the outdoor lifestyle here isn’t just for weekends. Imagine structuring your workday around morning hikes through the rainforest surrounding Volcán Arenal, where you’ll encounter more than 200 species of birds and plenty of wildlife.
The lake itself offers the perfect midday break with fishing, boating, and kayaking. It’s even become a haven for wind- and kite-surfing, with some of the world’s steadiest winds from November to April at the lake’s western end.
This isn’t just about trading cubicles for spectacular views. It’s about creating a sustainable environment that eliminates the artificial separation between work and life.
From Hidden Gem to Expat Hub
It’s ironic that a region with an active volcano maintained such a low profile until recently. For decades the Lake Arenal area didn’t attract nearly the attention of Costa Rica’s Central Valley or Pacific Coast.
That situation has changed dramatically.
Lake Arenal is now attracting a growing community of Americans, Canadians, and other expats who recognize the opportunity to build businesses while living in one of Costa Rica’s most spectacular regions. The area remains on the cusp of discovery, with real estate prices well below comparable North American properties, though expected to rise as more people discover the region.
The most significant development is happening in Nuevo Arenal, where a community of location-independent expats is forming. Unlike traditional retirement enclaves, this is a place where meaningful work continues to be central to residents’ lives.
The days of gold watches and rocking chair retirements are long gone. Our generation needs to maintain purpose and income well beyond the traditional retirement age. Lake Arenal offers an opportunity to do both.
Real Costs and Practical Examples
What makes Lake Arenal particularly compelling is how it transforms your financial equation. Consider these real estate options:
- A U.S.-style townhouse with lake views in Tronadora: three bedrooms, three baths, and only seven minutes from Tilarán’s supplies and medical clinics – priced at $175,000.
- Or a three-bedroom lake-view home in Nuevo Arenal with stunning views and abundant wildlife for $250,000.
Perhaps the most striking example comes from expat entrepreneur Molly Ruland’s experience:
“The first time I went to Arenal, before I even got out of the car, I was like, THIS is it,” she shared with International Living.
During the pandemic, she closed her branding agency’s physical office in Washington, DC, recognizing that location independence made living in Costa Rica viable years ahead of her original timeline.
“Ultimately, I want to be able to travel the world,” she explains. “And paying rent in an expensive city in the United States doesn’t leave much to do anything but survive.”
After testing several locations in Costa Rica, Molly found Tilarán, a small town near Lake Arenal, where she purchased a home. She pays just $150 monthly for a gardener who works three days weekly and employs a weekly housekeeper.
The financial transformation extends to daily expenses. Sandwiches cost under $2, restaurant dinners around $9 (compared to $20 in tourist areas), and high-quality meat at a fraction of U.S. prices.
This isn’t just about saving money. It’s about strategic reallocation of resources. What could your business achieve if your overhead were cut by 60-70%, in addition to tax savings?
The Location-Independent Shift
The pandemic dramatically accelerated remote work trends, but what matters now is how we leverage this freedom. With location-independent income that is not tied to the whims of an employer, life in places like Lake Arenal becomes not just possible, but strategically advantageous.
“I think the pandemic has shifted things,” Ruland notes. “With remote job opportunities and location independent businesses, many young people and families are moving here full-time.”
This represents a fundamental transformation. While previous generations viewed living abroad as something that happens after careers end, forward-thinking members of Generation X are creating a new model where work and lifestyle integrate seamlessly.
I’ve seen firsthand how removing geographical constraints liberates not just where you live, but how you think about business opportunities. Operating from a place that energizes you creates a competitive advantage that’s difficult to quantify, but impossible to ignore.
