Latin America Collection

Lifestyle permitting, the cost of living in Nicaragua is generally
less than in Costa Rica and most parts of the United States. But
with the influx in tourism in recent years has come the beginning
of a parallel economy: one for foreigners and well-to-do
Nicaragua folk, and one for the rest of the locals.
For example, if you want to go out to eat dinner and have a
couple of drinks, you have several options: you can go to a
typical local restaurant and walk out having spent about $5 for a
simple meal and a couple of beers; or you can go to a tourist
restaurant, and do the same thing for about $10.
Since most foreigners still think it's a steal to pay $10 for a good
meal and some beer, many opt for the tourist restaurant. But for
travelers on a shoestring, or families looking for a cheaper meal,


know that local restaurants ­ or sodas ­ are available. Just ask
around.
Overall, purchasing power in Nicaragua is greater than most
other countries. But some items are ­ perhaps surprisingly ­
more expensive here. Electro-domestics, computers and vehicles
are all about 30% more expensive in Nicaragua than they are in
the United States, due to import duties and a limited offer of
luxury items (there is no Circuit City or Wal-Mart here, although
there is a Price Mart). Gasoline, at more than $2 a gallon, is
among the most expensive in Central America.
The real-estate boom in the last five years has had a skyrocketing
effect on property prices in hotspots such as San Juan del Sur and
Granada, where the cost of colonial homes has doubled since the
late 1990s.
But all things considered, housing still costs a fraction of what it
does in attractive real-estate markets in the U. S., and even parts
of Costa Rica. The cost of hired domestic help and construction
is, subjectively, low.
Electricity and water bills, although climbing, are still very
affordable. Water utility bills are the least expensive in Central
America, usually coming out to well under $10 a month,
depending on usage.
You never need to heat your home or apartment because of
Nicaragua's warm climate. If you get chilly, put on a sweater. It
never gets colder than that, and usually only drops to sweater-
temperatures at night in the mountains.
Prices for making phone calls are the exact opposite of what you
expect them to be. International calls made from cyber cafes to
the United States cost virtually nothing. The calls are make


Approximate Cost of Living and Prices as of
February, 2005 in U.S. Dollars*
Rentals - Monthly
House (small, unfurnished)........................................$160
House (small, furnished)............................................$300
House (large, luxurious) .........................................$1,000
Apartment(small,1­2bedrooms, unfurnished) ..........$250+
Apartment (large, luxurious) ...................................$700+
Property Taxes ...........................................Almost nothing
Home Prices
House (small) ....................................................$60,000+
House (large)...................................................$250,000+
Miscellaneous - Monthly
Electric Bill (apt.) ...................................................$15-30
Water-Sewage (apt.).......................................................$5
Telephone(calls within the country) .............................$40
Cable TV.....................................................................$12
Direct TV....................................................................$30
Taxi...............................about 25 cents for a short distance
Bus Fares(around city) ................................................$.15
Gasoline (regular gas)...............................$2.00 per gallon
Maid/Gardener(full time)............................$75 per month
RestaurantMeal (inexpensive).................................$5.00+
Soda (a diner or coffee shop) Meal ...........................$3.00
Restaurant(mid-range) ............................................$10.00
Banana (dozen) ..........................................................$.25


Soft drink ...................................................................$.30
Pineapple....................................................................$.43
Papaya ........................................................................$.92
Lettuce .......................................................................$.43
Cereal(large box of cornflakes) ..................................$1.50
Bread (loaf) ................................................................$.50
Tuna (small can) .........................................................$.61
Orange (dozen) ..........................................................$.85
Rice (1lb.)..................................................................$.30
Steak(lb)...................................................................$1.30
Quart of Milk .............................................................$.61
Beer ...........................................................................$.73
Beans (5 lbs.) ...........................................................$1.80
Airmail Letter ...............................around $.60 to the U.S.
Doctor's Visit.........................................................$10-30
New Automobile.............U.S. prices plus around 30%duty
Used Car.........................U.S.prices plus around 30% duty
* These prices are subject to fluctuations.


through Internet lines (Internet-Voice Overs) allowing you to
talk for 30 minutes on a clear line for about $3. Local calls, and
calls to other Central American countries, are a lot more
expensive, costing as much as $.40 a minute from a cell phone (it
is slightly less from a landline).
Public transportation is also very inexpensive. Bus fares to the
provinces cost no more than $6 to the farthest part in the
country. And inner-city taxi travel usually costs $.30 to $.60 (and
never exceeding $1.70 in Managua). Expect to pay more for taxis
at night, and obviously more if you are hiring cabs to take you
from one city to another. A cab from Granada to Managua, for
example, will cost around $25, depending on the deal you strike.
Flying on domestic airlines La Costeña and Atlantica is also
affordable, and makes otherwise difficult places to reach easily
accessible. A roundtrip flight from Managua to Corn Island ­ the
longest domestic flight you can take ­ costs only $110.
Healthcare is also very affordable, even without insurance.
Doctor's visits usually cost from $10-30, before medications.
Even if you have to spend the night in a hospital, you normally
won't have to spend more than $100 for a private room.
Renting a home can be disproportionately expensive (compared
to Costa Rica), because the rental market is still emerging and
the supply is not greater than the demand. In Granada, a
furnished home rents for about $350 to $1,500 a month, while
a small unfurnished home, or a single private-entranced room
with bath can be rented for around $250.
To live simply in Nicaragua, a single person should budget a
minimum of around $500 a month. For double that amount,
that same person can upgrade their lifestyle to near-extravagant,
with money to hire a maid, go out every night and eat out two


or three meals a day. Couples should plan on budgeting at least
$750 a month (for a small house and simple, eat-at-home
lifestyle) up to $2,000 to live like yuppies.
Grocery stores are another example of the parallel economy. If
you purchase just basic food staples like many locals do, you can
fill up your cart for about $30. If you are entrenched in your
gringo eating habits, and insist on Hagen Daz, brand name
Doritos and Gatorade, your final checkout bill will be a lot
steeper.
The cost of entertainment is also affordable. Going to the movie
theater with a date only costs a couple bucks, and you can afford
to be generous buying other people drinks at the bar (domestic
beers cost about $1.25 and a national rum and coke costs even
less). A night on the town, even a big night, usually costs less
than $20.
After living in Nicaragua for a while, you will learn the ins and
outs and figure out ways to live more frugally, or economically.
With time, you will get a better sense of what things cost and
where to get them. Knowing Spanish doesn't hurt. The more
you sound like a local, the more locals will treat you like a local.
If follow the lead of the Nicaraguans and live a more-modest
lifestyle, you can save a lot of money and still enjoy yourself.