FAQ’s

It is just as safe to buy titled land in Costa Rica as it would be in the US, Canada or Europe. The guiding principles of offer and acceptance and the public registration of ownership, loans and encumbrances are no different here. Additionally, there are no restrictions on foreign ownership of real estate in Costa Rica as there are in some other countries such as Mexico. So, a foreigner has the exact same rights on titled real estate as a Costa Rican does.

If you are looking to purchase property in Costa Rica, we strongly recommended that should always find a well-respected real estate Broker. This way you can be addressed to get the right information, safe time, money and effort. Costa Gold will offer you trustworthy highly professional agents.

No, Foreigners in Costa Rica can own property in their own name and is fully guaranteed by the constitution. When you are purchasing a property the most recommended and normal process is through a new or existing corporation (S.A). There are only special rules that apply for foreigners in the Maritime Zones only in concession properties, (beachfront with concession “lease” format) this is mostly for big parcels.

Always make sure to meet with a reputable Attorney’s firm who can speak your language and answer all your questions. Costa Gold Real Estate will refer the services of a well respected firm in the area who will perform a first class service in the specific needs of foreign investors and most important, to assured that the property in question is free of all liens and encumbrance before purchasing a property in Costa Rica in order to make successful investment.

All properties in Costa Rica should be registered in the Public Register whether the property is fee simple or concession. Your attorney will be able to confirm that seller possesses ownership of the property conducting a respective due diligence, also to like said before determine if there are any restrictions, liens or encumbrances. Avoiding the purchase of property with legal issues is strongly advised.

No yet. Currently, there is no nationally sanctioned Multiple Listing Service. Some of the local associations have working on and are recommending certain systems, but participation is not required and there is no one system supported by all the associations officially. Well respected agents will know the best deals in their market and will show you their own listings and those of other agencies that fit your parameters and criteria.

Property taxes in Costa Rica are very low when compared to the USA, Canada or Europe, The municipal taxes is administered by the municipality or (city hall), the real estate tax is 0,25% of the declared value of the property. Some very large and luxurious properties are subject to a Luxury Tax that is based on a calculation that includes such features as structure size and finishings. As of 2013, the Luxury Tax has worked out to somewhere between .1 and .25% depending on the property’s size and features.

A really nice incentive for foreign investment is that there is not capital gain tax. The Costa Rican Government will not tax you on the profit from the future sale of your property as long as this is not undertaken as a means of business.

Absolutely. Costa Gold will work with all legitimate brokers and agents. We will assist and represent you and our goal is to find you the perfect property you are dreaming of owning a peace of paradise in Costa Rica.

Title insurance and escrow services are available through very recognized companies such as Stewart Title and Chicago Title which is are some of strongest title company in USA and now in Costa Rica, also one of our strategic partners. There is also the national company INS which is the strongest reading insurance in the country.

Financing though a local bank is still slow and a little complicated because of bureaucracy. It is generally far simpler and interest rates are much lower in your home country. If your credit rating is exceptional and you are a resident, you may be eligible for financing through institutions such as Banco Nacional or Scotiabank Bank. The interest rate is between 7% and 12% in a USD loan.

Yes. All publicly titled real estate must be registered with the Costa Rican National Registry by definition. This computerized system is widely recognized as being more advanced, and dependable, than that of many industrialized countries, including the US. But the rules are very similar.

The building cost is estimated per square meter and range between $800 and $2000 per square meter ($80 to $200 per square feet, aprox) and up, for a high end construction. It all depends on the quality you want. Average time for building permits generally range from 2 to 3 months, but can take longer depending on the Municipality. Building materials and technique are similar to that of the U.S. Costa Gold offers the entire process of designing and building to facilitate your investment experience

This is a great question that should be addressed before buying property in Costa Rica. If you have not bought a property within a complex like a condominium or gated community with administration on site, we recommend that you hire a caretaker, especially if it is a larger piece of vacant land and in more remote areas. Costa Gold Real Estate can offer you profesional management services depending on the type of property you choose. We can also give you tips and hints depending your individual situation and the type of the property.

No, it is not necessary to have a residency to be able to purchase a property in Costa Rica. You can purchase with your tourist status. The last incentive of the government is that when you purchase a property of over $200,000 you automatically apply for the residence. Living here without is another matter, as a foreigner and tourist you normally leave the country for 72 hours once every 3 months in order to renew your legal status in Costa Rica. Some of the foreigners without residency enjoy travelling and are visiting Nicaragua or Panama for a couple of days or discover more of Central America in order to renew their visa. There are many forms of residency available; we can help you to contact an attorney who can assist you in determining what residency status would work best for you. If you plan on living here year round, you will find it easier if you have legal residency.

There are several ways to get a residency with a different status like Investor in which case you need to invest over $200,000, as a Renter or Retiree. It depends on your individual situation; we will recommend you a lawyer that specialise in immigration regarding the residency.

Regarding beachfront the first 200 meters measured horizontally from the high tide line defines the boundary of the maritime zone. When buying property located on Costa Rica’s beaches, you should be aware of the following: building a home adjoining beach areas falls under a category known as the Maritime Zone Law, the first 200 meters of land measured from the high tide line. The first 50 meters from the high tide mark cannot legally be built on by anybody, as it is public beach. From that point, the next 200 meters is subject to the Maritime Zone Law (Concession), unless the property is registered prior to 1973, there is a very small percentage of title beachfront in the country, in which case it has full title and can be transferred as such and called titled to the 50 meter line.

Concession, which is in effect a lease from the government and local municipality, must be approved by the I.C.T (Tourism Institute) and normally run for a period of 60 years. At the moment of expiration, concessions can be renewed for a similar period of time. To legally lease concession property, the property must be subjected to a “Plano Regulador” (a type of zoning and approval plan). Only in this case is required that you have a Costa Rican partner that owns part of the company that obtains it. A Costa Rican citizen is required to hold at least 51% of the corporation until the lease-concession is granted by the government. Most importantly, keep in mind that when you buy concession property you do not actually acquire title to the land, but rather the right to utilize it for a specified project and period of time.

Unlike fee simple ownership, Costa Ricans and foreigners are treated differently when it comes to purchasing concession property. If a foreigner has resided in Costa Rica for at least five years, he or she may be permitted to have majority ownership of concession property. Foreigners who have resided in Costa Rica for less than five years are usually permitted to possess only minority ownership of a concession property.

First, you must determine whether you wish to operate the business as a sole proprietorship or through a corporation. A business license must be obtained from the Municipality, where you intend to conduct business. Some Municipalities, such as the Municipality of San José, require that you obtain a Certificate of Zoning (Certificado de Uso de Suelo), to insure that the property intended for the business is properly zoned for that use, prior to applying for a business license. You must also register your business with the Revenue Ministry, with respect to the collection of any sales tax. If an existing business is to be purchased, extreme caution must be taken in ascertaining all of its liabilities, some of which may not be readily apparent. This is not a matter which should be undertaken without appropriate legal advice. there is many businesses opportunity for sale with all paperwork at the date that we can to present you for your activity in the country.