What is the Currency in Costa Rica?

What is the currency in Costa Rica?

Whether you’re planning a tropical getaway, exploring property investments, or trading internationally, it’s vital to understand the currency used in Costa Rica. This guide is designed for travellers, expats, business owners, and anyone managing money across borders. We’ll cover the official currency, how it works, who uses it, and the best ways to manage it when visiting or working with Costa Rica.

Understanding the Costa Rican Colón (CRC)

The official currency of Costa Rica is the Costa Rican Colón, abbreviated as CRC and symbolised with a ₡. Named after Christopher Columbus (Cristóbal Colón in Spanish), the colón has been in use since the late 19th century, replacing the earlier peso.

Although the US Dollar (USD) is also widely used, particularly in tourist-heavy areas, the colón remains the country’s legal tender. This means most government, banking, and daily transactions are done in CRC.

One colón is subdivided into 100 céntimos, although coins are rarely used below the 5-colón mark. Common banknote denominations include ₡1,000, ₡2,000, ₡5,000, ₡10,000, ₡20,000 and ₡50,000.

Who uses the colón?

The colón is used across all of Costa Rica, from the capital San José to beach towns like Tamarindo and jungle regions such as Monteverde. It is used by locals and residents for all standard purchases, including food, transport, utilities, and rent.

Tourists and foreign visitors will need to use colones for many everyday transactions, although US dollars are accepted in some areas, particularly in hotels, car rentals, and tour agencies. However, change is often given in CRC, and paying in USD may result in poor exchange rates.

How the colón operates

Costa Rica operates a managed float exchange rate system, meaning the value of the colón is determined by supply and demand in currency markets, but the Central Bank of Costa Rica (BCCR) may intervene to stabilise sharp fluctuations.

Historically, the colón has depreciated gradually against major currencies, especially the US Dollar. As of 2024, exchange rates typically range between ₡520 and ₡550 to 1 USD, although this can vary based on inflation, global trade, and local policy shifts.

Advantages and challenges of using the colón

Benefits:

• Widespread acceptance: Colones are accepted everywhere in Costa Rica, including rural or remote areas.

• Clear pricing: Prices for most goods and services are displayed in CRC, helping avoid tourist markups.

• Lower dependence on foreign exchange: Using local currency ensures accurate conversion and avoids unnecessary bank charges.

Challenges:

• Exchange rate confusion: Varying rates between vendors, especially when accepting USD, can cause inconsistency.

• Dual pricing systems: Some tourist areas list prices in USD, while locals pay in CRC, creating confusion or inequality.

• Cash reliance: Many small businesses, taxis, or local markets operate on a cash-only basis.

Tips for managing money in Costa Rica

• Withdraw colones locally: Use ATMs to access fair exchange rates. Bank-affiliated ATMs such as Banco Nacional or BAC Credomatic are widely available.

• Avoid airport currency exchanges: These tend to offer poor rates with high markups.

• Carry both cash and card: Credit and debit cards are widely accepted in cities and tourist zones, but not everywhere.

• Check prices before paying in USD: Always ask for the exchange rate and compare it with the market rate before handing over dollars.

• Keep small denominations: Useful for buses, local eateries, and tips where large bills may not be accepted.

Common questions about currency in Costa Rica

Can I use US dollars in Costa Rica?
Yes, especially in tourist areas. However, it's usually better to use CRC for local purchases to avoid inflated exchange rates and to receive change in full.

Is it better to exchange money before I travel?
Not necessarily. It’s usually more cost-effective to withdraw CRC from local ATMs using a travel-friendly debit card.

Do Costa Rican businesses accept cards?
Yes, most large shops, hotels, and restaurants accept Visa and Mastercard. American Express is accepted in fewer places. Small businesses often prefer cash.

What’s the best way to handle tips and small purchases?
Always keep a mix of coins and low-value CRC notes. Tipping is customary but not mandatory—10% is standard in restaurants.

Real-world example

A traveller arrives in San José with $300 USD and uses an ATM to withdraw ₡150,000 CRC, equivalent to around £230. They use their card in larger stores and restaurants but carry cash for bus fares, markets, and souvenirs. While booking a local tour, they’re offered a USD price of $45 or ₡25,000. By paying in CRC, they save money due to a better conversion rate, demonstrating the value of using local currency where possible.