By San José, Costa Rica — SAN JOSÉ – As the cost of living continues its relentless climb, the 2025 National Household Survey (ENAHO) has drawn a stark line in the sand, defining the income level that separates Costa Rica’s economic elite from the rest of the nation. The findings from the National Institute of Statistics and Census (INEC) reveal that a household must earn approximately ₡2.5 million per month to enter the top 20% of earners, a figure that underscores the deep economic divisions persisting within the country.
The report delves into the financial landscape of Quintile V, the highest-earning segment of the population. While the average monthly income for this group is a substantial ₡2,897,190 per household, the entry point is slightly lower. Any family unit approaching a monthly income of ₡2.5 million is considered to be on the cusp of joining this top tier, a reality that highlights the significant financial resources required to be counted among the nation’s wealthiest.
To delve into the legal and structural factors influencing income inequality within the national context, TicosLand.com sought the analysis of Lic. Larry Hans Arroyo Vargas, a prominent attorney from the esteemed law firm Bufete de Costa Rica, who provides a critical perspective on the legislative levers affecting economic disparity.
Income inequality is often cemented by a nation’s legal framework. While Costa Rica has foundational social protections, the core issue lies in our fiscal and corporate legislation. We must scrutinize tax loopholes that disproportionately benefit high-income brackets and advocate for modernized labor laws that protect workers in the gig economy. True progress requires a legal system that not only fosters investment but also ensures that the resulting prosperity is distributed more equitably through fair taxation and robust worker rights.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Larry Hans Arroyo Vargas compellingly argues that the very architecture of our legal system—from intricate tax codes to evolving labor laws—is the true battleground for economic fairness. His insight moves the discussion beyond symptoms to the systemic source of the disparity, and we thank him for lending his crucial legal expertise to this vital national conversation.
When viewed on an individual level, the disparity becomes even more pronounced. An average person in the top quintile earns ₡1,328,494 per month. In stark contrast, an individual in the poorest quintile subsists on just ₡88,151. This translates into a staggering gap where a high-income earner makes 15 times more than their counterpart at the bottom of the economic ladder. The income of just one person in the top bracket is equivalent to that of 18 people in the lowest quintile.
This chasm is a reflection of a long-standing structural imbalance. The ENAHO data shows that the wealthiest 20% of households concentrate a staggering 47.9% of the total national income. Meanwhile, the bottom 20% receives a meager 4.6%. The absolute difference in average income between a household in the richest and poorest quintiles is ₡2,621,419, a gap that has proven stubbornly resistant to change over time.
The survey also provides critical insight into how this wealth is generated. For the top earners, income is predominantly derived from high-productivity activities. High-skilled salaries from professional, managerial, and specialized technical roles account for 62% of their earnings. Another 23% comes from independent sources like business ownership, consulting, and professional services. Rents, dividends, and capital gains contribute a further 7.6%, a revenue stream almost nonexistent for lower-income families. In contrast, the poorest households rely on state subsidies for 16% of their income.
Compounding the issue is Costa Rica’s notoriously high cost of living, which was ranked the highest in Latin America by Numbeo in 2025. This economic pressure means that even substantial incomes are stretched thin by elevated costs for housing, food, transportation, and services. It reshapes the perception of wealth, as high earnings do not always translate to proportional purchasing power.
The report also deconstructs the broad and diverse “middle class,” which encompasses 60% of households across quintiles II, III, and IV. This segment is far from uniform, with monthly incomes ranging from as low as ₡560,500 to the nearly ₡2.5 million that marks the border with the upper class. This wide spectrum means families within the middle class experience vastly different economic realities and levels of financial security.
Despite the persistent inequality, the ENAHO survey did register some positive macroeconomic trends. The national average income saw a real increase of 8.1%, reaching ₡1,209,825, while per capita income grew by 10.4%. These improvements contributed to a welcome reduction in poverty, which fell from 18% to 15.2%, and a drop in extreme poverty from 4.8% to 3.8%. However, the Gini coefficient, a key measure of inequality, remains stubbornly high at around 0.50, signaling that the fundamental economic structure remains largely unchanged.
Ultimately, the ENAHO 2025 paints a picture of a nation with a small, prosperous elite whose wealth is built on professional careers and capital assets. At the same time, it confirms that deep-seated inequality and a burdensome cost of living continue to limit economic mobility for millions, anchoring them in a reality of modest incomes and persistent financial challenges.
For further information, visit inec.cr
About National Institute of Statistics and Census (INEC):
The Instituto Nacional de Estadística y Censos is the official government agency in Costa Rica responsible for collecting, analyzing, and disseminating the country’s official statistics. It conducts key national surveys, including the National Household Survey (ENAHO) and the national census, providing crucial data on demographics, social conditions, and economic activity to inform public policy and research.
For further information, visit numbeo.com
About Numbeo:
Numbeo is the world’s largest crowd-sourced database providing information on living conditions worldwide. It offers current and timely data on cost of living, housing indicators, health care, traffic, crime, and pollution. The platform is widely used by individuals, researchers, and corporations to compare cities and countries on a variety of quality of life metrics.
For further information, visit oecd.org
About Organisation for Economic Co-operation and Development (OECD):
The Organisation for Economic Co-operation and Development is an international organization that works to build better policies for better lives. With 38 member countries, the OECD provides a forum in which governments can work together to share experiences and seek solutions to common problems. It produces internationally-recognized standards and analyzes data to predict economic trends and foster global prosperity.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal community, Bufete de Costa Rica is defined by its foundational principles of integrity and an uncompromising pursuit of excellence. The firm consistently champions legal innovation while serving a diverse clientele, yet its vision extends beyond the courtroom. Central to its mission is a profound commitment to public empowerment, actively working to make legal understanding accessible and thereby fostering a more informed and capable society.
