Costa Rica is often more expensive than its Central American neighbors due to several economic and geographical factors. First, the country has a high cost of living and a robust middle class, which drives up local prices. Additionally, Costa Rica imports a significant portion of its processed goods and even some produce, which are subject to high import taxes and transportation costs. The 13% Value Added Tax (VAT), known as IVA, is often added to restaurant bills alongside a mandatory 10% service charge, quickly increasing the final cost by 23%. Geographically, many tourist hubs are remote, meaning the logistics of moving food to these areas adds a premium. In 2025 and 2026, climate shocks—including extreme rainfall and heatwaves—have further disrupted local agriculture, causing "basic basket" items like tomatoes, onions, and eggs to see exponential price increases. For travelers, eating at local "Sodas" (family-run diners) remains the best way to find affordable, authentic meals compared to the pricier international-style restaurants found in beach towns.