2025 Costa Rica NEWS RECAP
Costa Rica closed 2025 with a dramatic mix of breakthroughs and challenges. From forging a bold security pact with El Salvador to weathering volcanic eruptions, earthquakes, a tourism drop and political turbulence. The nation saw rising crime and security issues, yet also climbed global rankings in happiness, retirement appeal, and enjoyed an elevated economic performance.
As the country prepares for 2026 its resilience, reform efforts, and regional alliances signal a pivotal year ahead. A year shaped by both internal transformation and international scrutiny. I have a feeling that 2026 will be a year to remember. But for now let’s recap the scintillating 2025 that was!
🚨Costa Rica – El Salvador Security Alliance, CECOT-Styled Prison Announcement
Rising crime pushed Costa Rica to form a bold security partnership with El Salvador. Presidents Rodrigo Chaves and Nayib Bukele signed the Coatepeque Declaration, creating the Escudo de las Américas alliance to coordinate intelligence, run joint operations, and strengthen regional security.
Chaves praised El Salvador’s dramatic drop in gang violence and explored adopting similar strategies. His visit included a tour of El Salvador’s massive CECOT mega‑prison, which houses thousands of alleged & convicted gang members. Costa Rica then announced plans to build a prison modeled after CECOT. The project, designed with technical assistance from El Salvador, aims to house over 5,000 high‑risk inmates and expand Costa Rica’s overcrowded prison system by 40%. Officials say the tougher model is necessary to prevent criminal networks from operating behind bars, though critics warn it may import El Salvador’s harshest practices.
🌋 Poás Volcano Eruptions
Costa Rica faced renewed volcanic activity when Poás Volcano erupted multiple times in 2025. On April 21, a powerful explosion sent ash plumes up to 4.5 km above the crater, forcing authorities to declare a Red Alert for Poás Volcano National Park. Ashfall reached nearby towns including Grecia, Sarchí, and Alajuela, while residents were urged to wear masks and avoid contaminated rivers.
The Observatorio Vulcanológico y Sismológico de Costa Rica reported ongoing eruptions through August, with incandescence visible at the Boca A vent and sulfur dioxide emissions reaching up to 1,000 tons per day. Tourism suffered as park access was suspended, echoing the economic losses from the volcano’s 2017 closure. The park was re-opened later in the year albeit with numerous restrictions.
🫨 5.9‑Magnitude Central Pacific Earthquake
Costa Rica experienced its strongest seismic event of 2025 when a magnitude 5.9 earthquake struck 21 km south‑southwest of Quepos on October 22. The quake originated at a shallow depth of 9 km, which amplified shaking across the Central Pacific and into parts of the Central Valley.
Residents in Quepos, Manuel Antonio, Jacó, Uvita and Ojochal reported a strong, sudden movement. Buildings swayed in San José, though no major structural damage occurred. Emergency officials activated monitoring protocols and urged coastal communities to review evacuation routes due to Costa Rica’s ongoing tectonic activity along the Cocos–Caribbean plate boundary. The event served as a reminder of the region’s seismic vulnerability, especially as Costa Rica averages a major quake every 8–10 years and is affected by a near 6+ magnitude event (either originating in Costa Rica or nearby countries and seas) every year or so.
🍹Chilling Among the World’s Top Retirement Destinations
Costa Rica secured the #3 spot in the 2025 Global Retirement Index, earning recognition for its strong healthcare system, political stability, and high quality of life. The report highlighted the country’s “pura vida” culture, noting that retirees benefit from a slower pace of living, warm communities, and access to nature.
Officials and local experts say the ranking reflects long‑term investments in public health and environmental protection. For many foreign retirees, Costa Rica’s mix of safety, affordability, and natural beauty continues to make it one of the most appealing destinations in the Americas.
⚖️ Historic Presidential Immunity Political Standoff
Costa Rica confronted an unprecedented political moment as the Supreme Electoral Tribunal and the Legislative Assembly debated, twice, whether to lift President Rodrigo Chaves’s immunity over alleged electoral‑law violations. President Chaves has pushed back against the process, calling it a form of political persecution. Supporters argue the claims lack solid proof and stem from opposition tactics while critics say the president’s conduct warrants scrutiny to protect electoral integrity.
This marked the second attempt in one year to remove his immunity—an event without precedent in Costa Rican history. The debate raised questions about democratic norms, rule of law, and the balance of power ahead of the 2026 election cycle.
🦹♀️ United States & Canada Security Alerts for Costa Rica
In November of 2025, the United States issued a nationwide security alert for Costa Rica after a sharp rise in crimes affecting foreign visitors. Mid-Desember, Canada followed suit with their own advisory.
The alerts highlighted several key risks:
• Criminal gangs targeting foreign‑owned homes and rental properties
• Tourists being forced to withdraw large sums of cash from ATMs under threat
• Break‑ins and armed robberies at vacation rentals across popular beach towns
• Scams involving fake taxi drivers, ATM fraud, and signal‑blocking devices used to unlock rental cars
The U.S. State Department maintained Costa Rica at Level 2: Exercise Increased Caution, citing both petty theft and violent crime as ongoing concerns for visitors. Despite this, the country remains a beacon of safety and security in the region, benefitting from lower crime levels than many of its South and Central American neighbors.
💪 Costa Rican Colón Strengthens in 2025, Irking Travelers and Export Businesses
The Costa Rican Colón became a major economic story in 2025 as it strengthened from the low ₡510s per USD to the high ₡480s by year’s end, slightly recovering by December. The shift made travel slightly more expensive for visitors paying in dollars, especially in popular destinations like Guanacaste and the Central Pacific where prices are already elevated.
Import‑focused businesses benefited from cheaper dollar‑priced goods. Exporters felt pressure as their products became less competitive abroad – including coffee producers. Economists linked the Colón’s rise to strong reserves, stable monetary policy, and global market shifts. 2026 promises more wild swings.
⚽ Costa Rica Misses the 2026 World Cup
On November 18, Costa Rica’s road to the 2026 FIFA World Cup ended in frustration after a 0–0 draw against Honduras. This final qualifier result mathematically eliminated both teams. Earlier, the Ticos showed promise with a dominant 4–0 win over St. Kitts and Nevis at the Estadio Nacional. But inconsistency in later matches proved costly. Despite strong goalkeeping from Keylor Navas and flashes of attacking pressure, the team struggled. Across six matches, they scored only four goals in total.
This outcome marks a significant setback for Costa Rica which participated in the last three World Cups. In 2014 the team made it to the quarterfinals in Brazil, losing on penalties to the Netherlands. The 2018 and 2022 tournaments saw early exits, but participation remained a point of national joy and pride.
☺️ 6th Place in the World Happiness Rankings
Costa Rica celebrated a major national milestone in 2025 by rising to 6th place in the World Happiness Report. This marked its highest position since the index began. The nation also ranked as the happiest nation in the Americas. This title was built on strong social cohesion, accessible public services, and a cultural mindset that values balance and well‑being over material excess.
The report highlighted Costa Rica’s long‑standing investments in education, healthcare, and environmental protection. It noted how these pillars continue to shape daily life and public optimism. Researchers also pointed to the country’s low levels of corruption and its stable democratic institutions as key contributors to the population’s sense of trust and security. Together, these factors helped Costa Rica stand out globally. They offer a model of how social resilience and community values can translate into measurable national happiness.
🌧️ Tourism Crisis
Costa Rica suffered one of its hardest tourism years in recent memory. Visitor arrivals fell for six straight months and February 2025 showed a 7% drop compared to last year. The downturn hits especially hard in coastal towns where hotels, restaurants, and tour operators depend almost entirely on high‑season traffic.
A stronger colón, rising taxes, and growing concerns about theft and safety have pushed travelers toward cheaper regional alternatives. For many locals and expats, the crisis is visible in empty tables, quiet beaches, and a high season that never truly arrived.
📈 Strong Economic Momentum in 2025
Costa Rica entered 2025 on a wave of economic success, posting one of the strongest growth profiles in Latin America. The GDP rose 4% in 2024 and reached similar values through the quarters of 2025. The country achieved a primary fiscal surplus for the first time in years. This stabilized public debt and strengthened long‑term financial resilience. International confidence surged as rating agencies retained or upgraded Costa Rica’s outlook to “Positive,” while the Country Risk Atlas highlighted low inflation, a stable currency, and strong performance in exports, tourism, and foreign investment. Together, these indicators positioned Costa Rica as a regional standout. The nation’s reputation for economic stability and smart fiscal management was reinforced.
What an exciting year in a wonderful, topical, happy, welcoming and successful country – and show me a place without any ups-and-downs! Do you want to live here and share in the fun? We invite you to browse the local properties available in our area, knowing that RE/MAX WE SELL PARADISE is your trusted partner in the South Pacific corner of Costa Rica.
