Buying Property in Costa Rica

Buying Property in Costa Rica

It’s about that time. You’re ready for a change, an adventure, or to make a financial investment for your future. You’ve gone over all the possible locations and your heart has led you to tropical Costa Rica (we don’t blame you). Whether it be the lush jungles or the gorgeous coastlines, the abundant wildlife or endless adventures, the affordable health care or you just want to be a part of the “pura vida” lifestyle- Costa Rica will welcome you with open arms. So where do you start? We have narrowed down a few topics & questions that you may have to help get the buying process started and just know that we are here to help you every single step

of the way.

Foreigners Can Buy Businesses, Property, and Land

Have no fear about getting visas or being able to buy in Costa Rica if you’re not from here. Both foreigners and locals have the same buying rights and they are protected equally under the law. In fact, you can be from a country where you can’t even get a visa to come to Costa Rica, own something here and still have the same protections. You can easily apply for residency based on your purchase and can explore other avenues. Starting a corporation as a foreigner is a very quick and easy process to further protect your purchase. While there are some properties that are titled and deeded in different ways, the vast majority are fee simple titled ownership.

Searching for a property with no MLS & Your Partnership with Your Realtor®

Yes, you read that correctly. The real estate industry here doesn’t have an MLS and is unregulated. Choosing the right Realtor® has never been more important as you will be relying on your Realtor® for their knowledge of the market, relationships with other agencies, and Realtors® in order to find you the right home.

Property Taxes

Property taxes in Costa Rica – I dare say that they’re lower than what you are used to paying right now. You’ll find them much more affordable down here. The majority are 0.25% so, essentially, it is $250 tax for every $100,000 of property value. In some cases, this can rise to 0.55% as there is a luxury tax however this does not apply to all houses. Your lawyer will confirm this during the due diligence process. These are paid yearly to the local municipality.

Making an offer- Step by Step

  1. Find your home/business/land
  2. Make an offer- negotiate the price
  3. Offer accepted- we are now under contract
  4. Pay 10% deposit within 10 business days to escrow
  5. Due diligence period (20-30 days) – lawyer checks everything, home is inspected, etc. (DEPOSIT is refunded up until the due diligence is accepted)
  6. Final Closing Statement
  7. Officially own property in Costa Rica

 

So there you have it in a nutshell. Making the leap may be scary at first but once you are here, settled, with an ice cold beer in your hand watching the sun go down into the Pacific Ocean you’ll need to pinch yourself to make sure you’re not dreaming. And don’t forget, our agents will offer you all the support you need from start to finish to ensure you a smooth purchasing process and get you down here to Pura Vida land!

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