| Costa Rica |
Is it Difficult to Buy Property in Costa Rica?
The reality is, when working with the right team of professionals, the buying process is very
quick and easy.
Foreigner Friendly Laws
Unlike some of the other countries, foreigners have the same rights when purchasing as locals
do. You can own property outright in your own name or in the name of your corporation. You
do not need a local partner, except in cases of beachfront concession property, where special
rules apply. There is absolutely nothing to prevent you from purchasing property in your own
name, but the majority of buyers form a corporation with the help of a reputable lawyer and
then purchase property through that corporation. The reason for this is threefold. One - it may
be more beneficial to have your income (from rentals) or capital gain (from sale of the
property) taxed within a Costa Rican company rather than having it taxed as personal income.
Of course, this depends on the tax laws of the country from which you originate. Two - it allows
for simplified estate planning, whereby you can give or will shares of the corporation that owns
the property to members of your family. Three - if you ever decide to sell your property, you
can avoid paying property transfer taxes a second time by simply transferring the shares of the
corporation to the new owner.
The Real Estate Registry
Another plus for property purchasers in Costa Rica is its central land registry which allows your
lawyer to confirm that there is clear title to your property, as well as to discern if there are any
restrictions on the property before the deal goes through. Further, if you would like to have the
added protection of title insurance, the services of international title insurance companies such
as Stewart Title are now available in Costa Rica. Also attractive are Costa Rica's very low
property taxes - 1/4 of 1% annually. That means if you buy a condominium or home with an
assessed value of $200,000, the property taxes per year would be $500.
How to Choose an Agent in Costa Rica
The actual nuts and bolts of purchasing are similar to those in North America. Dealing with a
real estate company you recognize can provide additional security, since international
franchises are governed by standard rules and regulations. More importantly, work with a
realtor with a good reputation. One of the best ways to find someone you can trust is simply to
ask around. Given that most communities in Costa Rica are relatively small, it won't take you
long to come up with some names of reputable realtors in the area. Also, you should secure
your own lawyer to represent your interests in a property purchase. Your lawyer should check
the title on your property in the central registry, and can also assist with forming corporations,
opening bank accounts and doing other business related to land purchase.
How to Make an Offer on Costa Rica Real Estate
Like us, many foreigners who come to Costa Rica to look at property have already arranged
their finances so that are ready to make an offer if they find what they are looking for. But what
can you do if you happen upon the perfect property while on vacation? An offer can usually be
written up with a small good faith deposit to be raised to 10% within a few weeks. Final closing
would normally be anywhere from 30 - 60 days. If you need to borrow funds, it is far simpler
and interest rates are usually lower in your home country. However, if your credit rating is
impeccable, financing in Costa Rica may be available to you.
The reality is, when working with the right team of professionals, the buying process is very
quick and easy.
Foreigner Friendly Laws
Unlike some of the other countries, foreigners have the same rights when purchasing as locals
do. You can own property outright in your own name or in the name of your corporation. You
do not need a local partner, except in cases of beachfront concession property, where special
rules apply. There is absolutely nothing to prevent you from purchasing property in your own
name, but the majority of buyers form a corporation with the help of a reputable lawyer and
then purchase property through that corporation. The reason for this is threefold. One - it may
be more beneficial to have your income (from rentals) or capital gain (from sale of the
property) taxed within a Costa Rican company rather than having it taxed as personal income.
Of course, this depends on the tax laws of the country from which you originate. Two - it allows
for simplified estate planning, whereby you can give or will shares of the corporation that owns
the property to members of your family. Three - if you ever decide to sell your property, you
can avoid paying property transfer taxes a second time by simply transferring the shares of the
corporation to the new owner.
The Real Estate Registry
Another plus for property purchasers in Costa Rica is its central land registry which allows your
lawyer to confirm that there is clear title to your property, as well as to discern if there are any
restrictions on the property before the deal goes through. Further, if you would like to have the
added protection of title insurance, the services of international title insurance companies such
as Stewart Title are now available in Costa Rica. Also attractive are Costa Rica's very low
property taxes - 1/4 of 1% annually. That means if you buy a condominium or home with an
assessed value of $200,000, the property taxes per year would be $500.
How to Choose an Agent in Costa Rica
The actual nuts and bolts of purchasing are similar to those in North America. Dealing with a
real estate company you recognize can provide additional security, since international
franchises are governed by standard rules and regulations. More importantly, work with a
realtor with a good reputation. One of the best ways to find someone you can trust is simply to
ask around. Given that most communities in Costa Rica are relatively small, it won't take you
long to come up with some names of reputable realtors in the area. Also, you should secure
your own lawyer to represent your interests in a property purchase. Your lawyer should check
the title on your property in the central registry, and can also assist with forming corporations,
opening bank accounts and doing other business related to land purchase.
How to Make an Offer on Costa Rica Real Estate
Like us, many foreigners who come to Costa Rica to look at property have already arranged
their finances so that are ready to make an offer if they find what they are looking for. But what
can you do if you happen upon the perfect property while on vacation? An offer can usually be
written up with a small good faith deposit to be raised to 10% within a few weeks. Final closing
would normally be anywhere from 30 - 60 days. If you need to borrow funds, it is far simpler
and interest rates are usually lower in your home country. However, if your credit rating is
impeccable, financing in Costa Rica may be available to you.
Walk to Hermosa Beach in 5 minutes from this beauty! 2
Bedroom, 2 Bathroom Main House with attached 1 Bedroom, 1
Bathroom Lock-out. 1,657 sq.ft. of living space set on a 388
sq.mt. lot. House is eco-friendly construction, finished with
Granite Countertops, solar hot water, a/c and BBQ. Common
area ammenities include a gorgeous pool, jacuzzi BBQ area.
An Ideal Rental Income Generator. Financing Now Available!
$289,000.
Bedroom, 2 Bathroom Main House with attached 1 Bedroom, 1
Bathroom Lock-out. 1,657 sq.ft. of living space set on a 388
sq.mt. lot. House is eco-friendly construction, finished with
Granite Countertops, solar hot water, a/c and BBQ. Common
area ammenities include a gorgeous pool, jacuzzi BBQ area.
An Ideal Rental Income Generator. Financing Now Available!
$289,000.
This 3 bedroom 2.5 bath home was built with attention to
detail to include water features and pool in the center of
construction. Water features can be seen from every room.
2200 square feet of custom design with many extras such as
back up generator, gate intercom with camera, jacuzzi in
Master with marble finishing, imported granite kitchen sink,
imported Schalge door mounts and handles, Hunter and
Monte Carlo ceiling fans, coralina surrounding pool and much
more. Central a/c throughout home with gas/electric kitchen.
Seperate office acommodates individual split unit a/c to
conserve energy. A great find for the selective home owner.
$650,000.
detail to include water features and pool in the center of
construction. Water features can be seen from every room.
2200 square feet of custom design with many extras such as
back up generator, gate intercom with camera, jacuzzi in
Master with marble finishing, imported granite kitchen sink,
imported Schalge door mounts and handles, Hunter and
Monte Carlo ceiling fans, coralina surrounding pool and much
more. Central a/c throughout home with gas/electric kitchen.
Seperate office acommodates individual split unit a/c to
conserve energy. A great find for the selective home owner.
$650,000.
| Many more listings are available. Send us your information today from the home page and we will contact you to discuss the possibilities. Prices and availability subject to change without notice. These are real sample listings. |