The lower cost of living is one of many reasons foreigners choose to relocate to Nicaragua. But like anywhere in the world your quality standard of living and lifestyle will have a great impact on your overall budget.
Below is a summary by category that shows exactly how much Gordon and I spent in April of this year (2017).
For a more detailed report – that shows every single purchase and expense for the month – click here.
A BIT ABOUT OUR STANDARD OF LIVING
Detailed information on each expense category is listed below. This information will give you great insight on cost of living and budgeting for a life in Nicaragua.
RENT – $550 USD
Base rent for our 800 square foot 1 bedroom, 1.5 bathroom home with shared pool is $550 USD. All utilities (electricity, internet, satellite TV and water) are extra. The house is equipped with hot water, air conditioning in the bedroom and a washing machine.
Currently in San Juan del Sur the going rate for a 2 or 3 bedroom, two bath home with a similar quality standard to ours is between $1000 – $1500 USD per month.
As with most long term affordable rentals this home was sparsely furnished when we moved in. To make the home more comfortable we’ve purchased black out curtains for the living room and bedroom, a sofa, a coffee table, a dining table and six dining chairs.
We got our sofa on (an extraordinary) sale for $400 USD at a department store in Managua called Siman. Our dining chairs were also purchased on sale for $55 USD each at a store called Full Home, which is also located in Managua. Both our coffee table and dining table were custom made by a friend who has a small mill in Masaya.
TIP: Even if you’re not purchasing big ticket items like furniture for your rental home it’s important to leave room in your budget for initial set up costs.
UTILITIES – $273.73 USD *
* This month we changed internet providers and had to pay an installation charge so our utility costs were $100 USD higher than they normally are.
INTERNET – $76.02 USD
We’ve been paying $76.02 USD per month for internet through a company called GGNet, but as mentioned above we changed internet providers this month. We now have service with a company called Wifinic. Moving forward our monthly charge for unlimited bandwith at speed of 2 Mbps will be $52 USD.
For detailed information on internet providers and packages available in San Juan del Sur click here.
SATELLITE TV- $17.73 USD
Our service provider for satellite TV is Claro. We have a dozen or so English channels including American networks like NBC, ABC and Fox. We also get BBC News, Sony Channel and FX, as well as an assortment of Spanish programming.
WATER – $10.98 USD
Water comes to our home via the city. Our monthly water bill averages between $8 to $11 USD.
ELECTRICITY – $16.46 USD
On average we spend between $15 – $20 USD per month on electricity, except for April and May when we use air conditioning for a few hours at night. During these months our bills range from $35 – $60 USD.
An Interesting Fact About Electricity Consumption in Nicaragua
If you use under 150 KWH of electricity in a month you qualify for a rebate of 50% off your total bill. If you go over 150 kilowatts – even if it’s by just one kilowatt – you lose the entire rebate and your bill pretty much doubles. In addition, the more electricity you consume the higher the rate per kilowatt hour you will be charged.
TIP: If you and your family need air conditioning to be comfortable at night electricity bills will be significantly higher than ours. If you’re planning to rent a home with a private pool you’ll need to factor in added electricity expenses to run the pool pump. Your water bill may also be slightly higher and often the home owner will require you to pay for pool chemicals.
CELL PHONE – $16.95 USD
We use unlocked cell phones that we purchased from Amazon.
We are set up on a pay as you go plan with Movistar. A local SIM card costs $2 USD. For just under $17 USD each we get a plan that includes 2.5 gigs of data and enough calling time to last the entire month. This plan does not include International calling minutes or text messaging. It does include unlimited Snapchat, Whatsapp and Facebook usage.
Since Gordon topped up his minutes at the end of March and went without data for latter part of the month we only spent half of what we’d normally spend on cell minutes this month.
TIP: Here cell phone credit is referred to as “saldo”. If you buy “saldo” on bonus days you can triple, quadruple or even quintuple your calling credits.
VEHICLE & TRANSPORTATION – $28.81 USD
Vehicles – whether new or used – are expensive here compared to what you’d pay for them in Canada or the US. You can see examples of pricing on Encuentra24.
We drive a 2001 4 x 4 Hyundai Galloper that we purchased 5 1/2 years ago for $7000 USD. Since doing a full overhaul in May of last year we haven’t had any major maintenance issues with the truck. We did however have the air conditioning repaired in January. The bill was $400 USD.
A few months ago Gordon sold his 2002 – 225 Yahama XT and purchased a brand new 2016 – 180 UM (United Motors) Renegade Sport. Sale price was $1600 USD. This included the registration paperwork, insurance and lawyer’s fees.
TIP: If you’re on a tight budget a motorcycle is a great option for personal transportation. Maintenance is inexpensive and gas mileage is great. Motorcycles also hold their value really well here.
GASOLINE – $37.63 USD
Although we drive our truck daily we never go very far. It takes only 5 minutes to drive to town from our home. And it only takes 15 minutes to get to our favorite beach.
Gordon’s motorcycle is very fuel efficient; the truck gets good mileage also. The truck runs on diesel which currently costs $0.79 USD per litre. The motorcycle operates on gas which costs $0.97 USD per litre.
Our monthly fuel consumption is consistently low.
HOUSEHOLD EXPENSE – $10.35 USD
On a month to month basis we spend very little on household purchases.
As inexpensive as it is to hire a housekeeper we do our own cleaning. The going rate for a cleaner to come to your home on a casual basis and clean for 4 to 6 hours is $10 USD.
TIP: If you’re planning hire a full time domestic worker (nanny, housekeeper, gardener, etc.) you should know that the current minimum wage for workers in this category is $171 USD. In addition to this base salary employers are required to pay a percentage to the government for the employee’s social security and health insurance plans. They are also required to pay aguinaldo (an extra month’s pay) and 4 weeks of vacation pay.
For more detailed information on hiring employees in Nicaragua follow this link to our friend Jenna Reid’s blog The 1 Less Traveled By.
GROCERIES & SNACKS – $356.30 USD
We enjoy cooking and eat the majority of our meals at home. 80% of what we buy is local with the remaining 20% consisting of more expensive imported items. Some examples include peanut butter, imported cheese, tuna, nuts and specialty cooking oils.
Since we tend to shop every two or three days – buying things as we need them – we have almost zero food waste here. This is a change from when we lived in Canada and bought groceries once per week only to have them go bad because we were usually too tired to cook after a hard day’s work.
Locally grown fruits and vegetables are inexpensive with prices varying according to the season. For example a pineapple costs a $1 USD, 6 bananas costs 34 cents, a large avocado costs between $1 – $2 USD. Potatoes are 68 cents per pound and a small head of broccoli costs around a dollar.
Imported products and pre-packaged foods cost the same, or in some cases more, than what they do in Canada or the US. For example: a 2 lb block of cheddar cheese costs $10 USD, a 3 lb box of Cheerios costs $8.78 USD and a 1 lb jar of peanut butter costs $4.39 USD.
TIP: If you are buying a lot of canned goods, pre-packaged foods and imported produce like apples, grapes and strawberries your grocery bill will add up quickly.
RESTAURANT – $172.63 USD
We ate out 14 times this month.
Depending on where you go a simple typical Nica plate of food with chicken, fish or beef served with rice, salad and fries averages in price from $3 – $8 USD.
TIP: Restaurants located directly on the beach generally tend to charge a little more for food and drink. Save yourself some money by eating and drinking at these places during Happy Hour when beer, rum and appies are only $1 – $2 USD.
ALCOHOL – $89.73 USD
The cheap price of alcohol makes it very easy to drink here.
$89.73 USD reflects the amount we spent on alcohol when we were out for drinks only and for alcohol that purchased to drink at home or friend’s houses.
A 12-pack of beer purchased at the supermarket or local pulperia (convenience store) costs $10 USD. A 750 ml bottle of 7 Year Flor de Caña rum also costs $10 USD. Wine is little more expensive averaging in price from $6 – $12 USD per bottle. You go you can expect to pay $1 – $2 USD for a beer in a bar or restaurant.
TIP: By taking advantage of Happy Hour drink specials – which are offered almost daily at nearly every restaurant on the beach and at various bars around town – you can save a lot of money on alcohol. Buying bottled beer by the case at the distributor saves 30%.
PET – $27.80 USD
Our only pet expense this month was for food. The 7.5 kg bag of food we purchased lasts our 15 lb miniature schnauzer approximately 2 1/2 months.
For complete details on life with a dog in Nicaragua including information on veterinarian costs, as well as details on what’s required to bring a pet into the country, click here.
HEALTH & BEAUTY – $78.86 USD
This month I had my hair cut at a foreign owned salon. The cost was $40 USD (plus a $5 USD tip) and included a shampoo, but no blow dry or styling. Services at locally owned salons are much cheaper. For example a ladies cut at Sol y Luna Spa costs just $8 USD.
CLOTHING – $0
Finding inexpensive quality clothing and footwear here – keyword being quality – is quite difficult. The majority of my clothing shopping is done in Canada once per year when I go back to visit family.
Although our wardrobes are more basic now, living in a tropical environment is definitely hard on clothes. That being said the costs of replacing tank tops, t-shirts, shorts and flip flops is drastically less than having to purchase both work and casual ware; not to mention trying to keep up with the trends and clothing needed for each changing season.
Gordon is less picky when it comes to clothing. He can usually find most everything he needs here in San Juan or at various retail shops at the malls in Managua.
GIFTS – $0
Since moving to Nicaragua we no longer buy birthday and Christmas gifts for family. On occasion we do purchase an inexpensive birthday gift for a friend here. From time to time we also make small charitable donations to local non profit organizations. This month we didn’t do either.
ENTERTAINMENT – $10.61 USD
Our entertainment budget is consistently low. Other than our Spotify music membership and the purchase of a Kindle book now and again we don’t spend a lot on entertainment.
Here is San Juan there is live music almost every night of the week – with no cover charge. A ticket to see a movie at our 30 seat cinema costs $4 USD. For $15 USD you can enjoy an all inclusive night of Wine, Painting & Pasta at the Art Warehouse.
ROAD TRIP – $337.64 USD
This month we took a mini 4 day, 3 night vacation to the city of Matagalpa with friends. Total spend for accommodations, meals, snacks and activities was $337.64 USD.
Highlights of our trip included a hike and lunch at Selva Negra Ecolodge & Coffee Estate, a tour of El Guayabo Coffee Farm and a visit to a local weaving shop. By doing self guided tours we saved a ton of money.
Our friends drove and were kind enough to pay for all the gas which cost around $55 USD. It was their treat to us in exchange for us being their “tour guides”.
If you do the math we only spent $42 USD per day per person on this trip. It really is great to live in a place where taking a mini vacation doesn’t have to break the bank.
DAY TO DAY SPENDING VS. TOTAL COST OF LIVING
Figuring out what your cost of living will be in Nicaragua it not as simple as multiplying your estimated daily spending by 365. It’s important to consider for the following additional expenses:
TRIPS TO YOUR HOME COUNTRY & OTHER VACATIONS
This year I paid $660 USD for a return ticket from Managua to Calgary. Over the course of a three week trip I usually spend between $1100 – $1500 USD.
Although I have a free place to stay and access to a vehicle while in Canada I still pay for groceries and gas. I don’t go crazy with eating out and entertainment, but expenses tally up very quickly.
As mentioned earlier I do buy a lot of clothing to replenish our wardrobes. I also come back with a few household items.
If you we were to multiply this amount by 2 (or 3, 4 or 5 if you’re a family) it’s clear to see trips “home” are not cheap. If you plan to do any traveling after moving to Nicaragua – whether it be to your home country or elsewhere – don’t forget to add this expense into your budget.
At this time we choose to live without medical insurance. Public health care is free, but not at the quality standard we are accustomed to in North America.
Depending on who you see a consult with a private doctor here in San Juan del Sur costs anywhere from $10 – $13.50 USD. An appointment with an English speaking doctor at the Vivian Pellas Metropolitan Hospital in Managua costs $35 USD. You can see a specialist there for $60 USD.
Almost all drugs that are only available by prescription in Canada or the US can be purchased here over the counter. I priced out a some drugs at our local pharmacy recently – a month’s supply of Yazmin birth control pills costs $21 USD. A Ventolin asthma inhaler costs $7.06 USD. A 500 mg tablet of Amoxicillin costs just 10 cents.
Recently Gordon had a cleaning and check up at Clínica Dental Rivense in the town of Rivas, which is 30 minutes by car from San Juan del Sur. Cost was $20 USD. He was happy with the quality care he received.
CAR & MOTORCYCLE INSURANCE
Motorcycle insurance for the year is $35 USD. Basic insurance for our truck for one year is $55 USD. Full coverage insurance is not an option for us as our vehicle is over 10 years old. For new vehicles full coverage insurance is in the range of $350 – $400 USD for the year.
If you own a used vehicle you will need to factor vehicle maintenance and repairs into your budget. Labour here in inexpensive, but parts are not.
TOURIST VISA RENEWAL
If you are living in Nicaragua full time and you do not have residency you will be required to renew your tourist visa every 90 days. The cheapest and easiest way to do this is by crossing the border to Costa Rica. Cost per person for tourist visa renewal via Costa Rica border crossing (not including transportation to and from) is $24 USD.
For detailed information on tourist visa renewal and border crossing click here.
Are we spending less money than we did when we lived in Canada? Absolutely! Could we live on less in Nicaragua? Of course.
In conclusion, if you want to live with many or all the comforts of home in Nicaragua it’s likely going to cost more than you think. Budget wisely!
The low cost of living is one of the things that attracted us to a life in Nicaragua.
Below is a summary by category that shows what our day to day spending was for the month of June 2016.
For a more detailed in-depth view to our expenditures you can view our daily spending report.
A BIT ABOUT OUR STANDARD OF LIVING
Below we’ve provided a ton of detail regarding our standard of living for each expense category. This information will give you great insight on cost of living and budgeting for a life in Nicaragua.
Base rent for our current 1 bedroom, 1.5 bathroom home with shared pool is $550 USD. All utilities (electricity, internet, satellite TV and water) are extra.
Our internet provider is GGnet. Our monthly package costs $72 USD. We have unlimited bandwith at speed of 2 Mbps.
For detailed information on internet providers and packages available in San Juan del Sur click here.
Our service provider for satellite TV is Claro. Our monthly package costs $23 USD. We have a dozen or so English channels including American networks like NBC, ABC, Fox. We also get BBC News, Sony Channel and FX, as well as an assortment of Spanish programming.
Water comes to our home via the city. Our monthly water bill averages between $5 to $10 USD.
Our monthly electricity bills average between $15 – $20 USD per month, except for April and May when we use air conditioning for a few hours at night. During these two months of the year our bills go up to $50 – $60 USD. We also noticed an increase in our electricity bill in December when we had Christmas lights plugged in.
An interesting point regarding electricity usage — if you use under 150 KWH of electricity you qualify for a rebate of 50% off your total bill. If you go over 150 kilowatts, even if it’s by just one kilowatt, you lose the entire rebate and your bill doubles.
Luckily we have fairly new appliances (refrigerator, washing machine and air conditioner) in our rental home, but if you find yourself living in house that has older appliances you can expect your energy costs to be a bit higher.
Also if you end up living in a place that doesn’t have a lot of airflow you may have to resort to using air conditioning at night to get a good night’s sleep, which in turn will have a significant impact on your electricity bill.
We have a shared pool which means we aren’t paying for the electricity to run the pump, the water to fill it or the chemicals. If you’re renting a house with a private pool you’ll need add extra in your budget for these expenses.
We use unlocked phones that we purchased from Amazon. We are set up on a pay as you go plan. For just under $18 USD we get 2.5 gigs of data and enough calling time to last the entire month.
VEHICLE & TRANSPORTATION
New and used vehicles in Nicaragua are much more expensive to buy than they are in North America.
We own a 2001 4 x 4 Hyundai Galloper. We purchased it 4 1/2 years ago for $7000 USD. Rarely a month goes by when we don’t have to do some sort of repair or maintenance on it. Here in Nicaragua labour is inexpensive, but prices for parts are similar to what we would pay in Canada.
We also own a motorcycle. It’s a 2002 225 Yahama XT. Purchase price was $1500 USD. The motorcycle will go forever on a tank of gas.
Other than driving around town for groceries or a trip to the beach once in awhile the truck is parked, which keeps our monthly fuel costs low. The truck runs on diesel which currently costs $0.73 USD per litre. The cost of gasoline is a bit more at $0.87 USD per litre.
Presently we do our own housecleaning, but in the past we have hired a cleaner to come into our home once a week. Cost for 4 to 6 hours of house cleaning was $10 USD. The maid took care of the basics like sweeping and mopping the floor, cleaning the bathrooms and dusting, but also did the extras like wiping down the inside of the refrigerator, dusted ceiling fans and washed the windows.
On a month to month basis we spend very little money on household purchases. Here in Nicaragua we live with a lot less than we did in Canada. Our cupboards are no longer stocked full with a different glass for every type of beverage and fancy serving dishes. We only have two sets of bedsheets and a half a dozen or so bath towels. It’s been interesting to see how little we really need to live comfortably.
GROCERIES & SNACKS
When it comes to groceries we buy a ton of local fresh fruit and vegetables, which are very inexpensive, but we also purchase imported items such as peanut butter, cheddar cheese, olive oil, etc. on a regular basis.
We’re not eating beans and rice everyday, but we’re also not feasting on lobster and tenderloin all the time either.
Breakfast is almost always eaten at home. For me, it’s usually a coffee, a fresh fruit smoothie and some toast or a bagel. For Gordon it’s pretty much the same but with the addition of eggs and an extra cup of coffee.
We tend to eat only one big meal a day here, either lunch or dinner.
A typical lunch or dinner always includes some sort of protein, usually chicken, sometimes ground beef. Chicken salad or stir fry, pasta salad, hamburgers, homemade squash soup and Shepard’s Pie are part of our regular rotation.
We enjoy cooking and eating at home, but we also enjoy meals out.
When we do go out for a nice meal average cost for two entrees and a couple alcoholic drinks each is $25 to $35 USD.
Often times — especially when we’ve prepared a nice lunch at home — dinner ends up being a few $1 appies at one of our favorite Happy Hour spots on the beach or a light snack at home.
If you looked through our detailed spending you probably noticed we drink alcohol quite regularly. When it’s hot and we’re on the beach or at the pool in the company of good friends with the sun shining (or in most cases setting) we really enjoy a cold Toña or two. The fact of the matter is drinking is easy to do here. And when beer and rum are half the price of water, soda and natural fruit juice some sort of alcoholic drink is usually what we tend to choose.
Since we purchased a large bag of food for our dog Maggie in May and stocked up on flea and tick preventative that same month when we were in Colombia and didn’t have any trips to the vet this month we didn’t have any pet related expenses.
For complete details on life with a dog in Nicaragua including information on food costs and veterinarian care and costs and details on what’s required to bring a pet into the country click here.
HEALTH & BEAUTY
Health and beauty spending is much less here in Nicaragua than it was in Canada. Eliminating expensive trips to a salon every eight weeks for a cut and color saves a ton of money. Not to the mention all the money I save by not buying so much make up and hair products.
Here in San Juan del Sur you can expect to pay $8 for hair cut if it’s a local salon or $30 USD in a foreign owned salon. Yoga classes cost $6 – $8 USD and monthly gym memberships are around the $20 USD. A one hour massage can be had at our local chiropractor’s office for $35 USD.
Although there are a couple new affordable clothing shops (Zara, Pull & Bear, Berska) that recently opened in the Galeriás mall in Managua, it’s still difficult to find inexpensive quality clothing and footwear here. 95% of my clothing shopping is done when I go back to Canada once per year to visit family. When I do shop here it’s usually at a used clothing shop in the nearby city of Rivas and even then prices aren’t cheap. For example: A t-shirt would still cost between $6 – 8 USD and a little cotton dress would still be $12 – $15 USD.
Since moving to Nicaragua we have stopped buying birthday and Christmas gifts for family, but on occasion we do purchase an inexpensive birthday gift ($10 – $20 USD) for a friend here. From time to time we also make small charitable donations to a local non profit organization.
This month we treated ourselves to a sailing trip. The $100 USD we paid for the two of us to go on the boat was a big splurge, but worth every penny! Especially because we almost never treat ourselves to weekend getaways or activities like this.
DAY TO DAY SPENDING VS. TOTAL COST OF LIVING
When it comes to figuring out how much money it will actually cost you to live in Nicaragua it’s not as simple taking this budget and multiplying it by 12.
Although $1600 USD typically covers our day to day expenses for the month we also have the following additional expenses:
My Annual Trip Back to Canada
Airfare to Canada is not cheap. This year I paid $800 USD for a return ticket from Managua to Calgary. Over the course of a two to three week stay in Calgary I usually spend between $1500 – $2000 CAD. Although I have a free place to stay and access to a vehicle while there I still pay for groceries and contribute towards gas. I don’t go crazy with eating out and entertainment while in Canada, but expenses tally up very quickly. Clothing purchases to replenish our wardrobes are a significant part of this expense. I always come back with a few household items as well.
Luckily Gordon and I are both relatively healthy. At this time we choose to live without medical insurance. We have a local doctor in town who charges $10 USD for an appointment. An appointment with an English speaking doctor at the Vivian Pellas Metropolitan Hospital in Managua costs between $35 and $40 USD.
This past April an acquaintance of ours had a full physical complete with blood work, chest x-rays, an EKG and stress test, plus a colonoscopy and the cost was $800 USD. A new set of breasts will run you $3200 USD. $10 000 USD covers a hip or knee replacement.
Almost all drugs that are only available by prescription in Canada or the US can be purchased here over the counter. Costs are typically much less than what we would pay for them in Canada without insurance.
In April I visited the local dentist here in San Juan. Total cost for an exam, x-ray and cleaning costs $40 USD. Much cheaper than what I would pay in Canada, but also not the quality standard I was used to. Needless to say I have been researching my options elsewhere to have an onlay replaced.
Car & Motorcycle Insurance
Basic insurance for our truck for one year is $55 USD. Full coverage insurance is not an option for us as our vehicle is over 10 years old. Basic motorcycle insurance for the year is $35 USD. Friends of ours who just bought a brand new Hyundai Elite i20 paid $300 USD for full coverage insurance for one year.
As previously mentioned rarely a month goes buy when we don’t end up making a trip to the mechanic with our truck. Maintenance and repairs for our vehicle since we bought it 4 1/2 years ago has averaged around $800 USD per year.
Like anywhere in the world what you’re willing to live without and what you need to be comfortable and content will have a great impact on your overall cost of living in Nicaragua.