Properties in Costa Rica Blog

If you are like many of our clients, you are looking for a property that can be a second home in the tropics and provide rental-income generation. This property can range from a luxury house on sizeable acreage to a condo unit in a prime location.

There are many factors to consider when looking at profitable rental properties—

• Location. The closer to the ocean, the better. The easier the access, the better.
• Ocean View. The bigger the ocean view, the better. If you can see the sunset into the ocean, even better.
• Swimming Pool. Even though the Pacific Ocean and Caribbean are warm, guests want a pool for their children. As for the size… the bigger, the better.
• Proximity To The Beach. People on vacation love to walk to the beach, but you definitely want to read up on Maritime Property, which is leasehold, before committing to anything.
• Security. There’s nothing worse for rental reviews than an incident of theft. If your rental house is not in a gated community, a private gate and/or a caretaker can limit bad experiences.

It’s difficult to quantify, but the more boxes you can check, the better. The higher the weekly/nightly rental rates, the higher your occupancy and the better your reviews. All of which lead to bigger net profits.

Open concept, tropical finishes, and a luxurious pool with sunset views to infinity.

BUYING A HOUSE

Let’s start with the “Buying a House” strategy. If you are an investor looking to relocate to Costa Rica, you will need to find a property that either has a guest house/casita to rent or room to build one. These property owners can either rent to a tenant long term or to people on vacation typically on a weekly basis. The short term (e.g., weekly) rental strategy is more lucrative than finding a long term rental, but it’s also more work and your rental will suffer a bit more wear and tear.

Owners will quickly discover there are two roles that need to be filled—the property manager and the rental manager. Often, they are one in the same. The property manager deals with daily life on-site. They coordinate with the cleaning crew, the gardener, the pool service, the maintenance man, and everything else house related and local. The rental manager deals with the online listing across various vacation rental websites, the inquires (the most important component), booking reservations, receiving monies, and luxury services like a personal chef and a masseuse. They also arrange shuttle services and book excursions and tours (and subsequently receive referrals from tour operators). In the vacation rental game, extra income is always welcomed!

In some cases, like this luxury rental estate, the semi-retired owners live on-site and manage everything. For years now, they comfortably lived in one of the spacious studio casitas and aggressively marketed the main house as a luxury vacation rental. Their rental history is strong like their online reviews.

BUYING A CONDO

If your busy life only allows for two or three trips down to Costa Rica per year, then investing in a condominium makes a lot of sense. The benefits are many—prime locations, no need for a caretaker or house sitter, and just easier to manage. In addition, low property tax, common area expenses are shared among all of the owners in the development.

You can find nice condominium projects in popular tourist areas all along the Pacific Coast, but this new development on the Costa Ballena is setting a new standard. Our clients are impressed with the luxury finishes, quality amenities and just steps from Playa Ballena, one of the nicest beaches in Costa Rica. If you don’t feel comfortable on dirt roads, this project has easy two-wheeled drive access. Guards are present 24/7 at the gate, and this element is a benefit for you and your rental guests. On-site management with a multi-layered rental program. In fact, we recently had clients focused on houses switched to one of these three-bedroom condominiums because of the aforementioned benefits.

Tucked in the Costa Ballena jungle, steps to an idyllic beach, and amenities galore!

CONCLUSION

Foreigners have the same ownership right for titled land as native Costa Ricans. Property taxes are low, and there is no capital gains tax. If you’re planning on relocating to Costa Rica, buying a house with an extra rental unit is a smart strategy. If you will only be able to enjoy it a couple of times per year, then a condominium may be a better fit as an income-producing investment.

In most coastal areas of Costa Rica, the vacation rental market is strong and getting stronger. The beach areas of Guanacaste (e.g., Tamarindo) have long been tourist destinations, but if you want to invest early in the development cycle … the southern Pacific zone is worth exploring. Especially when you consider there are no large, all-inclusive hotels on the Costa Ballena to compete with your rental.

Costa Rica real estate is heating up and global economic downturn continues to fade in the rear view mirror. Pura vida.

Costa Rica biggest Surf Town Jaco Beach is located in Garabito, the youngest county in Costa Rica, it is a black volcanic sand beach.

If you thinking about visiting Jaco let me fill you in with some local knowledge; first of all know your level of surfing!

The beach of Jaco is 4 kilometers long and has three mayor surfing spots:

– South of Jaco is a very well-knowing area for learning how to surf, this part of the beach is where the majority of surf schools go to. This area presents approximately a 19° – 22° angle from the beach to the shore break, providing long easy right and left hand breaks. So if you are in the beginner stage or use a long board or boogie board, I highly recommend this area (this spot extends from Madrigal’s street to Hidalgo’s street). Given that this area of the beach has the easiest waves and safer spot for kids on their first steps as surfers. Prime time to surf 2 hours before high tide.

– Center of Jaco, this area extends from Hidalgo’s street to Bohio’s street. This part of the beach has two river mouths; Corey river and Quebrada Seca river and presents a 22°-30° angle from the beach to the shore break, this combination of steeper beach angle and two river mouths running into the ocean makes it a more challenging wave for intermediate to advanced surfers. It’s common to see some of the professional surfers as well as the Costa Rican champions training on this area of the beach. This is the closest area of all town amenities such restaurants, surf shops, stores, medical services, banks, bars and much more, making it a convenience spot after surf sessions. Prime time to surf 2.5 hours before high tide.

– North of Jaco, this part of the beach runs from the Bohio’s street to Estero’s street this area presents a 30°-40° angle from the beach to the shore break, this area is the most expose part of the beach to the swells directions and also a very steep beach angle produces a faster more aggressive wave. This spot is where the biggest surf competitions were held such; ISA World Championship 2016 / Central America Championship 2016 / National Costa Rica Championship Circuit 2015 & 2016 / ALAS Pro Latin Tour 2014. If you like fishing, on the north corner on this spot there are some schools showing up at the shore during; September, October and November. Prime time to surf 2.5 hours before high tide.

The north area it has been growing faster over the last 2 years with important developments such Croc’s Casino and Resort recently awarded as the finest build construction, you can also find nice accommodations at Bahía Encantada Condominiums, Aqua Residence and Best Western Jaco Beach which is the first beach Hotel in Costa Rica since 1976.

Come and surf with us and don’t forget to say Pura Vida!

Alvaro Solano,
Properties in Costa Rica Team

Costa Rica is well known as an expensive country compared with others in Central America and even with the United States and Europe. However, traveling to Costa Rica can be 100% worth it if you are able to manage your expenses. This is made possible by keeping yourself organized in terms of lodging, transportation, dining, and avoiding guided tours by visiting places and attractions by yourself.

At the moment of looking for a place to stay, the best option for you is to rent a room for a short-term if you are coming by yourself, on the other hand, if you are coming in a big group the best option is to search for a multi room property for short-term. There are many options to choose from.

Travel method inside San Jose and its surroundings

You can reach Costa Rica by airplane, by car/bus or even by ferry. The main airport in Costa Rica is the Juan Santamaría International airport located in the city of Alajuela about 10-15 min from San Jose. The cheapest option for you to go to San Jose, Heredia, Alajuela or any other places from the airport is by bus. Prices normally start around $1, the bus stop is just in front of the airport and it is convenient as well as comfortable. Once in San Jose transferring to other buses is really easy. You won’t get lost but if you do you only need to get off the bus and cross the street and take another bus to your destination. If you don’t like buses the other economic way to travel is by taking UBER, and drivers are friendly and usually take no more than 5 minutes to reach your location.

If you are planning to go to other cities in Costa Rica you can go to the bus terminal and you will find several buses that will go to every destination in Costa Rica. Being a small country, the bus takes you from San Jose to the border of Nicaragua in only 2-3 hours, from San Jose to Jaco (on the pacific ocean) only 2 hours, and prices are cheap. It can cost you around $30 to the border and $5 to Jaco.

Sightseeing and the weather in Costa Rica

There are many gorgeous things to see in Costa Rica that you will enjoy. Costa Rica is well known as a natural place to visit. My favorites are National Parks. The government of Costa Rica protects a lot the nature.

The weather in San Jose is awesome, it is fresh, you can wear a simple t-shirt and you won’t feel warm or cold, you just will feel fresh. You can visit museum, volcanos, beaches (you can choose between going to the Pacific side or the Caribbean side). The cheapest way to get to these places is by bus, where prices start from $4 return. Prices for entrance to the places start from $7 to the volcanos, with some museum being free of charge.

People in Costa Rica and its Typical Food

People in Costa Rica are friendly, they will help you at every time when you need something. Most of the people here speak English, so if you don’t speak Spanish don’t worry, most of them will understand you at the time when you ask them for direction.

The typical food in Costa Rica it is called Casado, which contains rice, black beans, eggs, salad, and any meat of your preference such as chicken, beef and pork. It is delicious, and you can buy it for as low as $7. Costa Rica is famous for its delicious coffee. Eating in Costa Rica is not as expensive as in other countries, and the best thing here is that everything is fresh, sometimes completely organic, and delicious to eat. And it goes without saying that it is always hand crafted, so you actually will end up paying a good price.

November and December mark the beginning of the dry season and the end of the wet season. Its when the snowbirds begin to flock to Costa Rica to escape the dismal weather back east and the country’s population peaks. Located in the northern hemisphere, Costa Rica is bordered by the Caribbean Sea on one side and the vast Pacific Ocean on the other. Costa Rica is known for it’s biodiversity, rich ecosystems and near perfect year round weather. This subtropical climate has two seasons: The wet season and the dry season.

From beaches to mountains to lush forests, the distinct climates create a rich country to explore. The average temperature is between 70-81 degrees Fahrenheit. The coolest months of the year are November, December and January while March through May represent the hottest months. During high season, Costa Rica experiences consistent sunny beautiful days. Coinciding with spring break, winter break and Christmas vacations back north, it’s considered the best time to visit. Many families pick this time of year to travel Costa Rica.

Dry Season represents the peak of the rental season. The streets bustle with visitors, the restaurants are full and reservations difficult to get in areas highly populated by expats. High season is also when rental properties command the highest price. It’s the time for fiestas, culture, mingling amidst buzzing towns with lots of activity and fun.

The dry season is also better for hiking and visibility especially in areas such as Corcovado National Park where the runoff from the rain makes hiking a very muddy experience. Scuba divers will also enjoy clearer water during the dry season and mountain climbers take in better views from the top. This season is optimal for outdoor activities. Visitors don’t have to schedule their day around the afternoon showers, which makes long treks more feasible during this time of year.

However, don’t dismiss the rainy season either. September and October are the height of whale watching and turtle watching. It’s also the peak season for foliage, which turns a lush green. Marking Costa Rica’s winter, everything is much quieter during this time of year. During the rainy season, life tones down a bit. Locals meander the streets, and enjoy the laid back pace of life. There are no crowds, and it’s much cheaper to travel during this time of year. Prices on just about everything are lower. Rain consists of a daily afternoon shower, which cools things off a bit. Many people find it to be a nice break from the constant sunshine. It provides a refuge. Rainy season is also when the foreign property owners tend to head down to Costa Rica for a break.

Both seasons offer advantages to the discerning traveler. For those looking to be in the center of the action, November through April are the peak months to travel to Costa Rica. People looking for a laid back atmosphere and good rates will find the rainy season optimal especially if you are planning to travel to tourist areas such as Tamarindo or Jaco.

Rincón de la Vieja

Located right outside of the city of Liberia, Rincon de la Vieja is easily accessible for a day or few of nature exploration. The park encompasses three volcanoes, Rincon de la Vieja, Santa Maria and the dormant Cerro Von Seebach. Hiking to the different waterfalls, mud pots, or hot springs you’ll spot a number of the over 300 species of birds. The area is also home to cougars, monkeys, kinkajous, jaguars, and many others.

Isla del Coco

Isla del Coco, with a coastline of 14 miles, is the largest uninhabited island in the world. You may even recognize it from the opening scene of Jurassic Park. Nearly 360 miles off the coast this secluded National Park is a sight to be seen. Due to its remote location only hundreds of people have visited the island. With 200 waterfalls and around 60 species that are unique to the island, this hidden paradise is a must see for nature enthusiasts.

Tortuguero

Located in the Limon Province of the country, Tortuguero. Despite its remote location, it is the third-most visited park in Costa Rica, reached only by airplane or boat. The tropical climate park has a large variety of biological diversity with eleven different habitats, including rainforest, mangrove forests, swamps, beaches, and lagoons. The main attraction of the park is the turtles! Green sea turtles, leatherbacks, and hawksbill all lay their eggs here. Whether its watching the eggs be laid or seeing the baby turtles emerged an scuttle down to the water you will surely be mesmerized.

Corcovado

Corcovado National Park is Central America’s largest lowland Pacific rainforest containing
13 major ecosystems. These include the lowland rain forest, highland cloud forest, jolillo palm forest, and mangrove swamps, as well as coastal marine and beach habitats. It’s the most important sanctuary of biological diversity and endangered wildlife in the country, and one of the most important in the world. Five hundred species of trees, more than 6,000 kinds of insects, almost 400 species of birds, plus frogs, butterflies, and many of the world’s most endangered and spectacular mammals, including tapirs and jaguars, live in this place.

Arenal

Arenal Volcano National Park is home to incredible hiking, magnificent views, abounding wildlife and one of the world’s most active volcano. Hiking and horseback riding tours allow you to get up close and personal with this incredible area that extends into eight different life zones.
Of the 850 total species of birds identified in Costa Rica nearly all can be found inhabiting the area. Also keep your eyes peeled for the white-faced monkeys, jaguars, deer, coatis, toucans and snakes. In Arenal you experience hot springs, rappelling, waterfalls, volcano hiking, a modern tico town with delicious food and much, much more.

Olla de carne is a hearty beef stew that is typically prepared on weekends both in homes and in many local sodas. The stew combines a number of locally grown ingredients to help provide its rich taste, including cassava, carrots, corn, plantains and taro roots. Olla de carne often features larger vegetables like potatoes as well to provide an extra hearth to what is already a savory stew.

Ingredients

• 8 cups water
• 1 lb lean beef, cut into 3-4 inch pieces
• 1 lb lean beef short ribs, cut into 3-4-inch pieces
• 1 cup potato, cut into bite-sized pieces
• 1 lb cassava, peeled and cut into bite-sized pieces
• 1 lb carrots, chopped
• 5 corn on the cob, cut into 3-inch pieces
• 1 lb taro roots, peeled and cut into bite-sized pieces
• 1 lb sweet potato, cut into bite-sized pieces
• 3 green plantains, peeled and cut into 3-inch pieces
• Salt to taste

Directions

Heat water in a saucepan over medium high. Add salt, lean beef, and short ribs and cook for 20 minutes. Add carrots, cobs, green plantains, and cassava. Wait five minutes and add the taro roots, potatoes, and sweet potatoes. Cover and cook for 25 minutes on high medium heat until vegetables and roots are cooked. Serve hot with a bowl of rice.

Just a week ago America woke up to learn that Donald Trump had been elected the 45th President of the United States. Winning the electoral vote, Trump beat Hillary Clinton in a close race. Donald Trump, a real estate mogul turned reality star emanates the 21st Century demagogue. A master of ceremonies and power broker, he is not a career politician. Hillary Clinton has been invested in US national politics since before her husband, Bill Clinton, won the election in 1992. The Clinton’s have gone on to become one of the most powerful couples in the USA.

The election broke down into a tireless fight between these two diametrically opposed groups. The Republicans gained the support of the working class disenfranchised people in the US hit hard by the loss of manufacturing jobs. The Democrats relied on the support of urbanites and the professional class to boast Hillary Clinton failing to engage the grassroots and disenfranchised in a meaningful way. A clear cultural division has emerged in the USA as a result of this election. It is symbolic of a larger struggle between globalization and nationalistic forces around the world. The fate of the USA looks precarious at this moment and so the world holds its breath waiting to see how these startling events play out in international affairs. If Wall Street is any indication, the markets did not crash. In fact, they raised higher.

Likewise, the ultimate impact on Costa Rica is still unknown. Will it be negative since the country has benefitted through trade agreements such as NAFTA? Costa Rica could see decline in the number of jobs moved to its shores from America. Or will this show little effect, as most of those exported jobs are due to be eradicated as a result of automation. The impact of Trump on Latin America relations and trade remains to be seen.

On a high note, we can expect to see a new migration of Americans moving here if things continue to unravel in the USA. As of now real estate companies have already seen an increase in interested buyers. Hand in hand with the real estate business is the rental business and 2017 is projected to be the best year yet, with record numbers in tourism. More tourism means more rentals and more rentals mean more value in real estate. Unhappy with the results? Costa Rica is waiting for you! Want to take advantage of the tourism? Costa Rica is waiting for you!

So, as the world waits to see what the fate of the nation will have on long-term impacts in the world, let us all hope for the best of outcomes.

1. Llanos Del Cortes Waterfall

A great location to spend the day with family and friends. Bring a cooler with a spread of food and drinks to enjoy by the waterfall. The main fall is large and powerful, but you can still jump from the rocks and stand underneath to feel the magnificent force. If you’re lucky you’ll find the hidden path to a more secluded smaller waterfall with naturally heated water!

2. Barra Honda

After a short hike through the forest you’ll arrive at the caves. Once you get harnessed in you’ll make your way down into one of the caves, but don’t look down! In the cave you’ll admire the art the natural world has created over thousands of years. If you’re adventurous enough to reach the furthest point you’ll experience the amazing sensation of being in complete darkness and hear echoing drips of water all around.

3. Rio Celeste

Unlike any waterfall you’ve seen before, Rio Celeste has the most vibrant unique color. The color is caused by a physical phenomenon where two rivers collide causing a significant drop in the pH level. In the park you’ll also see several hot springs and lots of pizotes, a unique Costa Rican creature.

4. Sensoria- The Land of Senses

Sensoria is surely not to be missed. While easily accessible, this park focuses on maintaining the natural balance of the ecosystem while letting visitors get up close and personal with all the rainforest has to offer. Hike to several stunning waterfalls and be on the lookout for snakes, frogs, monkeys, and so many other animals that call Costa Rica home.

5. Diamante Adventure Park

Newly opened this park has it all. From watersports and ziplining to an animal sanctuary and horseback riding. Spend the day enjoying all of the park’s activities with their day pass that includes a lunch buffet with typical costa rican cuisine, as well as, some favorites from back home.

6. Typical Fiestas

Each weekend of the Costa Rican “summer” a different town hosts their own fiesta. The town comes together to set up a rodeo where everyone gathers to watch the bull riders and take a shot at running with the bulls. Everyone stays up all night dancing, celebrating, and enjoying Imperials and typical dishes.

7. Visit The Amazing Beaches

Guanacaste is known for its miles and miles of pristine coastline. Enjoy as many as you can by going on a beach hop! Every beach is unique, from the color of the water and sand to the wildlife you’ll find. Some beaches are secluded, so you may have the whole place to yourself. Others are booming with life, but never overcrowded, where you’ll find tons of activities to enjoy. Surfing, snorkeling, stand up paddling boarding, fishing, these beaches have it all.

8. Ostional Wildlife Reserve

Every year the turtles return to the same beach where they were born to lay their eggs. At times there are thousands of turtles covering the beach digging holes to plant their eggs. If you come at night you’ll follow your guide with a red light, as to not disturb the turtles, to witness this amazing event. You can also come as the sun is rising to see the turtles as they finish the job and scurry back into the water. Once the eggs are laid it’s only time until the main event, the hatching of the baby turtles. What an incredible experience to see them emerging from the sand and finding their way to the water. Hundred of little turtles swimming out to sea for the first time to join their families.

9. African Safari Adventure Park

In the Costa Rican savannah you’ll ride past the incredible animals you find on an African Safari. You’ll see Emu, Giraffes, Zebras and so many other exotic animals. You even have the opportunity to pet some of them up close! After the animal tour enjoy a hike to the waterfalls or take a ride on the quads through the winding trails of the park.

10. Mountain Bike

Guanacaste is becoming a big destination for mountain biking! More and more communities, like Hacienda Pinilla, are creating trails where avid riders and beginners can explore the natural beauty by bike. Up and down the mountains you’ll arrive at some incredible view point, so don’t forget the camera!

The US election this year has been like no other election in history. The whole world watched a knock down drag down fight between two unlikely opponents. For the Republicans, Donald Trump ascended from a splintered party divided into factions to win the party nomination. Hillary Clinton won the Democratic party’s nomination. Hillary Clinton has always been the favored candidate but no one anticipated the rise of populist and nationalistic fervor that has seized the nation. With many people holding their breath, (too many), it appears the fate of the USA and the world hangs in the balance. Will Hillary Clinton win the election to become the first female President of the USA? It’s the question many people are asking themselves right now.

This election is a battle between a newcomer and an old pro. Donald Trump, a real estate mogul turned reality star emanates the 21st Century demagogue. A master of ceremonies and power broker, he is not a career politician. Hillary Clinton has been involved in US politics since her husband, Bill Clinton won the election in 1992. The Clintons have gone on to become one of the most powerful couples in the history of United States. The election has broken down into a nasty fight between these two diametrically opposed interest groups. With many of the disenfranchised people in the US supporting Trump, while urbanites and the professional class support Hillary Clinton. A clear division has emerged in the US as a result of this election. It is symbolic of a larger struggle between globalization and nationalistic forces around the world. As we saw with BREXIT, many now fear the election of Trump will mark a frightening retreat into nationalism in the USA.

Meanwhile, Hillary Clinton would be the first lady in US history to become President. The election of Clinton would symbolize a significant historical moment. Reminiscent of the Suffragists who marched down the streets demanding the right to vote over 100 years ago dressed in white, Hillary Clinton has also been spotted wearing white on many occasions. While she does not have the charisma of Barack Obama or Bill Clinton, people who work with her have called her a pragmatist who gets things done. She has been surrounded by controversy the entire election. We suspect women will be the deciding factor. All eyes are on the USA today as its citizens vote.

One thing is for certain, it promises to be a close race as battleground states such as Pennsylvania will be the deciding factor. People will likely wait until the early morning hours to find out who will become the next President of United States. We will soon know the results of this historic US election. The world awaits to see the fate of the nation that will have a long-term impact on the fate of the whole world.

The magic of the Costa Rican lifestyle is being discovered by people from all over the world, recent graduates, retirees, and families included. The laid back lifestyle found here is desired by many, but possibly even more desirable are the tax advantages of living here.

Income Taxes

Here only those earnings made by an individual within Costa Rica are subject to taxes. This means income taxes concern only those who have a job or business in the country. Please note, that a vacation home rental is considered a business and will be prone to taxation. Pensioners, social security collectors, freelancers, telecommunicators, and online business owners all have the advantage of not having to pay taxes on their income. Those individuals working in Costa Rica must pay a 15% progressive tax based on their monthly earnings. The tax is levied on both employment source income and non-employment source income. For self employed parties the taxes are anywhere between 10 and 25%.

Business’s income tax is determined on the difference between the gross income and allowable deductions. For businesses making under $25,000 the rate is 10%, under 50,000 is 20%, and more than 50,000 is 30%. Businesses in free trade areas are exempt from paying taxes.

Sales Tax

When a property is purchased there is a 1.5% transfer tax on the value of real estate purchased, typically paid by the purchaser. This tax must be paid at any point where the property is transferred to a new owner. Sales tax is 13% and is levied both at importation and at the sale. It is levied on all goods with the exception of food products, medical products, and a number of other items. Sales tax must be collected by all business owners from their customers and transferred to the government.

In Costa Rica investors are exempt from paying capital gains taxes on real estate investments. Costa Rica has the maximum tax rate set around 30 percent with no city or state taxes and low property taxes.

When to Pay?

Taxes are assessed provisionally based on the previous year’s results and payable each quarter. The fiscal year runs from Oct 1 to September 30th of the next year. The balance of due taxes is then payable on December 31st.

While Costa Rica has excellent tax regulations in place, US citizens are required to pay income taxes wherever they are living. US income tax returns must be filed yearly through the American Embassy. All income earned abroad must be declared, but you can claim a tax exemption up to $78,000 on foreign-earned gross income. Married couples can claim up to $144,000 of foreign income, but you cannot combine the two exemptions. While this may be a downer, the US gives all citizens living abroad a 2 month extension to file their taxes. Be sure to contact your account for further information and help in ensuring you file your taxes properly.