Last Updated: March 5, 2020
If you’re a first time visitor to Costa Rica, you probably have some questions related to money. Maybe you’re wondering about the best way to exchange currency or want to be sure you can use your credit card during your travels. Or perhaps you want to know if it is customary to tip in Costa Rica. In this post, we’ll answer these questions and more to get you ready for your trip.
Currency and Exchange Rate
Costa Rica’s currency is the colon (₡), named after Christopher Columbus. It comes in both paper and coin form. The paper money goes from bills of ₡1,000 (called a “mil” (Spanish for 1,000) or “un rojo” because of the bill’s red color) to ₡50,000, but we’ve never seen anything higher than ₡20,000 come out of the ATM. Coins go from an almost valueless ₡5 to ₡500 (“quinientos” (Spanish for 500)) and are quite heavy for the higher denominations.
Be sure to get a good look at the paper money while you’re here because it is gorgeous. Each depicts a different colorful scene from Costa Rica. For example, the ₡1,000 bill has the tropical dry forest, iconic Guanacaste tree, and a white-tailed deer. And the ₡10,000 bill has the rainforest, a sloth, orchids, and birds.
The exchange rate fluctuates daily but usually works out to between ₡500-600 per US dollar (typically around ₡575 nowadays). To give you an example, if something costs ₡1,250, it is around $2.25. A rough way to estimate is to double the amount in colones and move the decimal point. You will need to then reduce the number a bit according to the exchange rate. Here are the most common bills and their estimated USD equivalent using this method:
₡1,000 is about $1.75
₡2,000 is about $3.50
₡5,000 is about $9.00
₡10,000 is about $18.00
₡20,000 is about $35.00
*Note that the higher the bill, the more off it will be if you use the doubling calculation. For example, if the current exchange rate is ₡575 for each dollar, a ₡20,000 bill will equal only about $35 instead of $40.
Exchanging Money
In addition to colones, US dollars are widely accepted throughout the country, though it is best to have some local currency as well. There are a few different ways to deal with changing money in Costa Rica. What we used to do when we traveled as tourists was bring some US dollars and use them to get local currency back as change. Then when we ran out of money, we would get colones out of the ATM with our debit card. This saves the hassle of having to exchange money and also the associated fees. Only bring denominations of $20 or less as bigger bills are not widely accepted.
If you do this, be sure to use the US dollars at larger grocery stores, restaurants, etc. where they’re doing the transaction through a computer so that you get the correct exchange rate. Cab drivers, buses, and other smaller places are not likely to do the math based on the actual exchange rate and usually will base the transaction on an unfavorable (to you) rate of ₡500 per USD. For this reason, use local currency for these types of smaller transactions.
Another option is to exchange money when you arrive in Costa Rica. This is best done at a local bank because they will give you the most favorable exchange rate. Be sure to bring your passport and some patience, as the lines at banks can be long. Although it is also possible to change money at the airport, they have the worst exchange rates so are best avoided.
Using ATMs
As we mentioned above, you also can get local currency out of the ATM as long as you’ve authorized your card for use internationally. Keep in mind that usually only debit cards and not ATM cards work. ATM machines can be found throughout Costa Rica and in most tourist destinations. A noteworthy exception is Drake Bay on the Osa Peninsula.
Tips: Some of the banks in Costa Rica limit ATM withdrawals for foreign ATM/debit cards. Banco de Costa Rica (BCR) and Banco Nacional now allow foreign account holders to take out only $100 per transaction or $200 per day if you do two transactions. You can still go into the bank to get more money out, but of course, this is less convenient. Either plan to bring a little more cash with you or use other banks’ ATMs, which do not have the same limits.
Another thing to keep in mind is foreign transaction fees. Most banks in Costa Rica, with the exception of BCR, charge a fee for use of their ATM machine. In addition to that, you might get charged from your home bank for using an out-of-network machine and also foreign currency conversion fees for taking out local currency. Last time we checked, this fee was 3% of the total amount withdrawn for our bank back in the United States, though the percentage can vary. Check with your bank before you leave about the different fees.
Using Credit Cards
One very convenient aspect of traveling in Costa Rica is that credit cards are widely accepted. We prefer to use our card whenever possible because we know we’re getting the correct conversion and it’s nice not to have to carry a lot of cash around. Many restaurants, hotels, gas stations, and tour operators accept credit so be sure to ask. The Spanish phrase is ¿Acepta tarjetas? Mastercard and Visa are the most widely accepted.
Tip: Be sure to authorize your credit card for use internationally so that your bank doesn’t flag your account for fraud when you use it. Also ask your bank about its fees for foreign transactions so that you don’t have any surprises when you get back home. These charges typically range from 1-3% of the total transaction amount. Credit unions tend to have the lowest fees. If you travel out of the country frequently, consider getting a travel credit card, which doesn’t have fees for international purchases. We’ve had good luck with our Capital One and Bank of America Travel Rewards Cards.
Traveler’s Checks
Traveler’s checks are not widely accepted in Costa Rica so we don’t recommend them.
Tipping
Tipping is less customary in Costa Rica than in some other countries like the United States. Many people don’t tip at all, but because wages are low in Costa Rica and don’t match the higher cost of living, we often tip. Here are some different scenarios for how to handle tipping.
Restaurants
At restaurants, 10% gratuity is always included in the bill. Sometimes it is a separate line item called servicio (service) that you can see right on the bill. Other times, the 10% is included in menu prices (sometimes the menu will say this but not always). Although it can be hard to tell if service is not listed separately, know that it is included somewhere and you are indeed being charged.
As for leaving more than the 10%, the locals usually don’t and servers don’t expect it, but we like to leave a little extra for exemplary service or if the bill is low. At sodas (traditional Costa Rican restaurants), the bill is often less than $10 a person so we leave an extra ₡500 or ₡1,000.
Tip: Some people complain of slow service (and tip accordingly) because it took so long to get the check.Keep in mind that servers will usually not bring the bill unless you ask for it because they think it is rude to kick you out. Just ask and they will be happy to bring it.
Taxis
Cab fares are regulated in the San Jose area, but elsewhere in the country, you may have to negotiate the fare with the driver. When there is a meter, we usually leave a little extra beyond the meter price. And when there isn’t a meter, we try to judge if the price we were given was in line with the going rate. If it seems fair, we’ll leave a dollar or two extra, and if it seems inflated (which sometimes happens in tourist towns), we’ll just pay what we agreed to.
Bell Boys/Bag Handlers and Housekeeping
$1-2 per bag for a hotel bell boy or shuttle van driver who helps with your luggage is customary. For housekeeping, we like to leave $1-2 per day.
Tour Guides
For someone who is taking you on a guided tour like to a national park/reserve, it is nice to leave a tip since they’re sharing their knowledge and expertise with you. Ten to 15% is a standard range.
Shuttle Van Drivers
It’s nice to tip your van driver for a tour or transfer as well. $10-20 is much appreciated.
Additional Advice
- If you don’t have a good grasp of Spanish, many merchants will sense that you are confused and show you the total price in colones on the register’s screen or calculator. Almost all small grocery stores have a calculator handy.
- We keep an emergency backup of cash on us just in case we end up somewhere that doesn’t accept credit or our card won’t swipe, or worse, we lose our wallet. Matt’s money belt (see here) has saved us on multiple occasions.
- If you’re traveling during holidays, know that ATMs in popular tourist towns may run out of money and not be restocked right away. Lines at banks around holidays also can be very long so plan accordingly.
Those are our tips for how to handle money issues on your next trip to Costa Rica. If you have a question about something that we didn’t address, feel free to ask us in the comments below.
Last Updated: March 5, 2020
Looking for more information to plan your trip? Check out these posts and pages:
- Packing List for Costa Rica: Our comprehensive list of what to bring, based on our years of traveling to and living in Costa Rica.
- Driving in Costa Rica: Tips for navigating Costa Rica’s crazy roads. Conditions, rainy season travel, local customs, what to do if you get in an accident, and more.
- Rental Car Discount: Find out how to save 10-25% on a rental car in Costa Rica with our exclusive discount.
- Best Hotels Near SJO Airport: Our list of the best hotels to begin or end your time in Costa Rica. Includes a promo code to save at one of San Jose’s most popular options.
