Below is a comprehensive guide on buying property in Costa Rica, including information on legal processes, corporate structures, property taxes, and financing options. This information will be very helpful for individuals considering real estate investment or residency in Costa Rica.
Foreigner-Friendly Laws: Costa Rica has foreigner-friendly laws that allow non-residents to purchase property in their own names or through a corporation without the need for a local partner.
Corporate Ownership: Many buyers prefer to purchase property through a Costa Rican corporation for tax benefits, estate planning, and ease of transfer in case of a sale. You can also puchase in your personal name.
Costa Rica Real Estate Registry: The central land registry in Costa Rica allows for the verification of clear title and any restrictions on the property. Title insurance is also available for added protection.
Low Property Taxes: Property taxes in Costa Rica are relatively low, approximately 1/4 of 1% of the registered property value annually.
Choosing the Right Agent: Working with a reputable and experienced real estate agent is crucial.
Legal Representation: Having a local attorney to represent your interests during the property purchase process is advisable. They can check the title, assist with forming corporations, and handle other legal aspects. I have over 20 years of experience and can direct you the the best lawyers in this area.
Making an Offer: Offers can be made with a small good faith deposit, and the final closing typically occurs within 30-60 days. Financing options are available using your 401k, either in Costa Rica or through your home country.
Mortgage Brokers: Mortgage brokers in Costa Rica may provide financing options with competitive interest rates, especially for those with impeccable credit.
Overall, this guide provides valuable insights for individuals navigating the real estate market in Costa Rica. It's important for potential buyers to do thorough research, seek legal advice, and work with reputable professionals to ensure a smooth and secure property transaction.