Properties in Costa Rica Blog

Located up the hill on Alto Las Palomas, Vista al Valle Santa Ana is a unique and exclusive development that represents the meaning of a relaxing and distinctive lifestyle away from the crowd but just minutes from all modern amenities in both Escazu and Santa Ana.

Trip Advisor recently ranked the Travelers Choice Top 10 Beaches of Central America, Costa Rica dominated the list. The ever-popular Manuel Antonio  National Park won the top spot, with lush jungle surrounding by powder sand beach. The crowd favorite Playa Samara took second place, this one being the top choice for tourists to Nicoya region. Along this same coastline, Norsara took fourth while Playa Santa Teresa took fifth place. The Guanacaste region was represented by Playa Avenllanes and Playa Conchal which took sixth and seventh, respectively. The popular surf spot of Playa Hermosa took eighth and on the Carribean side, Playa Viejo took ninth. Popular beaches aside, what if you are looking for an uncrowded and untouched beach? Can they still be found? The short answer is, yes! (or maybe Si!)

Head south of San Jose, about 3.5 hours by car and you will arrive at an area called the Costa Ballena (Whale Coast). By this point you have just passed the “off the grid” beach of Matapalo , with its crescent shoreline and reclusive feel. Ranking number 40 on CNN’s Worlds 100 Best Beaches, Playa Dominical  has long been a surf destination. In fact, many wave hunters claim it is the most consistent surf in Costa Rica. Due to the strong rip tides, there are times when this beach isn’t recommended for swimming, but the fun atmosphere and beach side dining makes up for it. It is a great place to soak up the ‘pura vida’.

The small cove beach of Dominicalito  is a more tranquil option compared to its big sister Dominical. The serene surroundings and unique topography, such as the Roca de Amancio tree island, are picturesque to say the least. Enjoy surfing at high tide or playing in the sandy bay at low tide. Sunset dining at the La Parcela restaurant, located on the peninsula separating Dominicalito and the adjacent bay, is a nice way to end your day at the beach.

Before arriving in the town of Uvita you will come to Playa Hermosa  , not to be confused with Playa Hermosa of Jaco. Easily accessed off the highway, the two mile beach at Playa Hermosa is the ultimate retreat. Sun bathing, surfing, bonfires, sunsets, all the favorite things about visiting the beach can be enjoyed here.

When you reach Uvita  , you enter the area famous for the Marino Ballena National Park . This park boasts one of the most beautifully preserved areas in Costa Rica. The beach, known as Playa Chaman by the locals, is ideal for beginning surfers, swimming and snorkelling. During the annual migration of Humpback whales (AugustOctober), Uvita hosts the Whales and Dolphins Festival. At low tide, one can walk the famous Whale’s Tail sand bar, which can also be viewed from the hotels and mountain property  that lines the coast. Entrance into the park is $6 for visitors.

We are going to skip over one beach and head to Playa Pinuelas, known for its local fishing and very much fits into the “hidden” category. The view of Tres Ninas rock formation is optimal from this rocky cove. Next is Playa Ventanas, aptly named for the “windows” in the rock walls that allow the ocean to rush through. This beach is a favorite among Costa Ricans and visitors due to its majestic cove situated between palm trees and the blue Pacific. Beyond this is Playa Tortuga  , an untouched beach where turtles nest and the Terraba River joins the Pacific Ocean.

This entire southern coastline is where pristine is defined and hidden is found. When you find yourself in the warm rolling waves of the Pacific Ocean, silence surrounding you and you look back to the shore of one of these beaches, palm trees framing the emerald green mountain coastline, you will never want to leave.

But wait a minute, what about the beach we skipped over? Ladies and gentleman, we announce to you the best hidden beach in Costa Rica is… Playa Arco. Unfortunately, that is all we can tell you. You have to visit to find out more.

by Rod Martin

When you read these words- pineapple, palm trees, surfing, fish tacos, sea turtles, coconuts, lava rocks, humpback whales- what comes to mind?  Perhaps you may think, Hawaii.  Those things are also what Costa Rica is made of.  Throw in sloths, bananas, hummingbirds, coffee, monkeys, rainforest, birds of paradise, volcanoes and you haven’t even scratched the surface!

Many travel to Hawaii for family vacations, weddings or honeymoons.  It offers the conveniences of North America wrapped up in a beautiful package.  Costa Rica is an exotic version of Hawaii.  It is only a 3 or 4 hour flight from Texas or Miami, making it a reasonable option for that yearly escape from the cold, or for that retirement dream home.  While it is not an island, it is a foreign country, giving off a sense of excitement for those who want to venture outside their comfort zone.

The list of activities is endless, surfing, zip-ling, horseback riding, canyoning, ATV tours, bird watching, snorkeling, scuba diving, hiking and so on.  The diverse wildlife is breath taking, and no doubt, seeing monkeys Tarzan from tree to tree will bring a smile to your face every time.  The flora is colorful, think birds of paradise and orchids, and fragrant, imagine ginger and lavender.  The landscape encompasses volcanoes and cloud forests to miles of sandy beaches and rivers, all topped off with radiant sunsets.  Then there are the beaches, which can be best described with one word, uncrowded.  Numerous beaches dot the two coastlines of Costa Rica, these are what truly make up the “rich coast”.

Maybe you have thought, ‘wow Hawaii would be a nice place to retire full time’.  Have you considered Costa Rica? If you are looking for simple living away from the hustle and bustle, with comfortable mountain climates within a 10 minute drive to the beach, Costa Rica can give you that.

The language barrier may seem intimidating, but rest assured, you can get by without speaking a word of Spanish.  It is amazing how far hand gestures will get you.  Although, your experience and relationships are only enriched if you even just put forth the effort to speak the language.

For those who are looking for organic, eco friendly living, more and more eco conscience individuals are relocating here and thus contributing to the “one with nature” movement.  While those who have been here for years, whether native or foreigner, are proud to fight in order to maintain the essence of Costa Rica.  While inflation as affected Costa Rica, a budget conscious life can be lived.   Then again, if you can afford to visit Hawaii, you can afford to visit Costa Rica.  And when people have relocated from Hawaii for the surfing and lifestyle of Costa Rica; that in itself says something!

If you are unfamiliar with all that Costa Rica has to offer, or have just started considering it as your next vacation or retirement move, take the dive and fly on down!  How can you go wrong with lounging on the beach, fresh smoothie in hand, listening to the calm ocean waves?

by Zoe Longworth

If you are looking for your next family vacation you might want to consider Costa Rica. If you have not been to Costa Rica you probably know somebody that has been or somebody that has property in Costa Rica.

This small country in Central America has become one of the prime spots for families to visit during their vacation. What Costa Rica offers is an environment of extremely friendly people along with kid-friendly activities that allow everyone to enjoy some adventure and be surrounded by nature. We could go on for hours about the importance of getting your kids out into nature but we just want to emphasize here how kid-friendly Costa Rica has become.

Take for example the canyoneering adventure that allows you to rappel down different waterfalls in the middle of the rainforest. This was an adventure strictly for the extreme adventure crowd while now their is a canyoneering company in the Arenal area that can take kids of all ages allowing your 5 year old to take part in an adventure that will put him among the top adventure 5 year olds on the planet!

Also you can not think of Costa Rica without the famous zipline. Here you will find many different ziplines and plenty are kid-friendly. Not all ziplines are kid-friendly but if you know the right ones then you can guarantee a family outing for the entire family from ages 4 – 90!

Some other adventures that Costa Rica’s tourism industry has geared towards kids have been the surf lessons and whitewater rafting. Costa Rica is known on a worldly level for the waves you can find on the over 800 miles of coastline. There are a number of places where your young ones can learn to surf small waves and almost always stand up on their first or second try. Along with surfing is the whitewater rafting. In a country that is made of mountains and rain the rafting is some of the finest on Earth. There is a river for everyone. Be it the crazy uncle who has not given up kayaking on class VI rapids or the little 5 year old nephew who is looking to get wet but stay in the boat. Costa Rica whitewater rafting can cater to rafters of all levels and sizes.

Half of my family is from Canada, eh. My mother grew up in Newfoundland until the age of 13 when my grandfather found work in California. The extended family that stayed behind, some later moving to Ottawa, would frequently visit us in the San Francisco Bay Area, especially during the cold, winter months.

A few years ago, when I moved down to Costa Rica full time, I realized there are a lot of Canadians visiting (102,471 in 2009*) and living the area. One of the main reason Canadians (virtually all nationalities for that matter) visit, buy land, and in some cases, relocate to Costa Rica is the weather. As one client put it, “Shoveling snow sucks.” I have only experienced it a couple of times in Lake Tahoe, California, and I’d have to agree.

Shorts, No Shoes

The Costa Ballena (Whale Coast) is the tropics. Those living near the beach are rarely (if ever) cold here, and most people walk around in shorts 365 days out of the year. For those who “melt in the heat”, the Costa Ballena’s unique geography offers many cooler locations up in the mountains, most offering spectacular views, waterfalls, and close proximity to the beaches and/or San Isidro, one of the fastest growing cities in Central America. It rains 6 months out of the year, but even in September most mornings begin with blue skies and sunshine.

Active Adult Communities

The landscape and its wildlife are spectacular. In fact, I’ve seen it written that the Corcovado National Park on the Osa Peninsula is “home to more plant & animal species than all of North America combined.” Add in the many outdoor activities available in the area— world class sport fishing, whale watching, bird watching, hiking, golf, tennis, and surfing to name a few — and retirement in Costa Rica is actually when many expat residents really start living.

Another reason Canadians love Costa Rica is the cultural adventure. It starts with the Costa Ricans, also known as Ticos. On the whole, the polite locals are family and community-focused, and even the toughest-looking hombre will break into a smile if you smile. Yes, there are a few cultural nuances to adapt to—“yes” doesn’t always mean “yes”, “tico time” means being late, strange driving habits— but ultimately these are all opportunities to take a deep breath and grow a little. The Costa Ballena has a safe, laid back feel to it, add a hammock and a good book into the mix, and it is relaxation-defined.

A “Lot” For A Little

Foreign investors continue to visit and invest in the Costa Ballena. Add in the fact that annual property tax in Costa Rica is .25% and there is no Capital Gains Tax, and the investment picture is even more appealing. Canadian citizens who claim non-resident status and have residency in Costa Rica are not double taxed by the Canadian government on their Costa Rica income. If you’ve always wanted to make Costa Rica your home, please consult your tax attorney for more details. But, in summary, to be a non-resident Canadian you must—

1. live in Canada for less than 183 days in the tax year

2. not have any residential ties (e.g. cars, houses, a spouse or dependents) in Canada.

We see a lot of people visiting, buying and relocating to The Costa Ballena. There is so much room for growth here; success only requires imagination, a little research, and a few good connections.

Our office is made up of foreigners who have now made the Costa Ballena their permanent home. The communities each have a varying group of expatriates, for instance the town of Ojochal has become known for its community of French Canadians, mainly because of the popular fine dining restaurants run by such individuals.

Beautiful weather, abundant wildlife, friendly people, and good investment opportunities… no wonder so many Canadians are buying real estate in the Southern Pacific Zone of Costa Rica!

*Written by Rod Martin, Agent of PropertiesinDominical.com

There are Toucans and Beaches, but Why Else should you Consider Costa Rica for your Retirement?

Costa Rica is one of the most desirable places in the World to retire for its beautiful natural scenery, tranquil “Pura Vida” lifestyle, friendly locals, year round temperate climate, and many more reasons depending on the individual. Below you will find the Top 10 Reasons that most people retire here. The majority of retires are from the U.S., Canada, and Europe making Costa Rica a unique country of many cultures living peacefully together in paradise and truly enjoying life.

Peace and Stability – Costa Rica is commonly known as the Switzerland of Latin America due to its neutral political stance, peaceful democracy, and dramatic mountainous landscapes. There has been some form of democracy in Costa Rica for well over 100 years and the country abolished its military long ago in 1949. The United States is their closest ally and many expats already live in Costa Rica. Former President Oscar Arias was once awarded the Nobel Peace Prize in 1987.

Cost of Living – Life in Costa Rica is very affordable and one of the lowest in the Americas. For $1,200 per month a retired couple can live very well and for around $2,000 per month can live affluently. Utilities are up to 30% cheaper in Costa Rica than the US and Europe and a full time gardener and house keeper can be obtained for a few hundred dollars per month each. Numerous inexpensive local restaurants with fresh local fruits, vegetables, meats, and seafood ingredients make eating out enjoyable.

Lifestyle – The ‘Pura Vida’ or the ‘Pure life’ is the local expression for everything from a greeting to a state of mind. The pace of life here is laid back and punctuality is merely a suggestion, which is the whole idea of retirement. There is also plenty to do for those searching a healthy active lifestyle such as: surfing, hiking, white water rafting, bird watching, sport fishing, biking, zip line tours, horseback riding, walking secluded beaches, and much more. Explore or relax as much as one desires. According to the New Economics Forum Costa Rica is the happiest country in the World, ranking 1st on the Happy Planet Index since 2009, up from 3rd in 2006. It also consistently ranks among the top Latin American countries on the Human Development Index.

Affordable Health Care – The cost of health care in Costa Rica is a fraction of that in the US or Europe. Many even come here for medical tourism to enjoy the benefits of World class medicine and a top travel destination. Public health care is readily available and private hospitals such as: CIMA Hospital, Clinica Biblia, and Hospital Catolica are filled with specialist doctors that have studied abroad.

Climate – The year round warm weather is another of the desirable reasons to call Costa Rica home. The central valley has moderate temperatures and enjoys weather in the70’s most of the year. The coastal climates are warmer with plenty of sunshine for days at the beach. There are only two seasons here; dry season typically November through April and rainy season typically May through October. Even in the rainy season there are mostly sunny mornings with afternoon or evening rains. September and October are usually the rainiest months of the year.

Natural Beauty – Costa Rica is unsurpassed as one of the most naturally beautiful countries in the World with mountains, rainforests, volcanoes, pristine beaches, rivers, and two coastlines bordered by the Caribbean Sea and the Pacific Ocean. Costa Rica, despite accounting for only 0.25% of the World’s land mass, it is home to 5% of the World’s biodiversity. National Geographic has called the Corcavado National Park on the Osa Peninsula in the Soutern Pacific Zone one of the most bio diverse places on the entire planet.

Sustainability – Costa Rica is very ‘green’ or eco minded with the majority of utility power coming from hydro-electric sources, protecting rain forests and wild life, and promoting eco-tourism. The government even has plans to become the World’s first carbon neutral country by 2021. Costa Rica ranked 3rd in the World, and 1st in the Americas on the 2010 Environmental Performance Index. An astounding 25% of its total landmass is protected by reserves and national parks, more than any other country by percentage.

Taxes – Low tax rates are another popular reason for people to retire in Costa Rica. There is no income tax paid on income earned outside of the country and no capital gains tax. Property taxes here are extremely low at only 0.25% of the recorded property value.

Business Opportunity – There are numerous investment opportunities in Costa Rica with historically rising real estate values, ever increasing international trade, and a large tourism sector. It is the number one Latin American tourist destination, which is more than a $2 billion per year industry. Retirees can start a small business such as; bed and breakfast, hotel, restaurant, fishing charter, tour operator, spa, and more providing themselves with income and additional jobs for the local work force. Costa Rica also has a highly educated population with over a 94% literacy rate.

Comfort Factor – Costa Rica has more Americans living here per capita than any other country outside the United States. The locals are friendly to expatriates and there is less feeling of isolation with other retirees nearby. Only a 3 hour flight from Florida and the US; its close location makes visiting the States easy and accessible. Other comforts include majority English channels on SkyTV, internet access even in rural areas through satellites or 3G cell phone networks, and the same or comparable stores and services in the larger cities and towns.

It is evident that the reasons for retiring in Costa Rica go beyond the natural beauty and friendly locals. If you are considering retirement in a foreign land, the reasons for considering Costa Rica are best experienced in person and it truly is a choice you do not want to overlook.

Written by Joshua Kanter, Agent with Properties in Dominical.

In the past investing in Costa Rica real estate was one of the best investments Worldwide, with exponential returns year over year. However, these exuberant returns were unsustainable and when the global economic crisis hit the property values had to come back down to realistic levels. Today it appears we have past the bottom of the cycle and many of the fire sales have been swooped up by savvy investors. It is still very much a buyer’s market and great time to invest in Costa Rica because as the U.S. and other World economies recover, the property values here will once again begin to increase.

Costa Rica is a safe place to live, with peaceful laid back locals and a ‘Pura Vida’ lifestyle. It is also safe to invest in Costa Rica with the majority of property having fee simple title that foreigners can own outright. There are properties directly on the beach that are “concession” and are technically leased from the government, and proceed with caution in those cases; better yet, search for another titled property slightly off the beach or elevated location overlooking over the ocean. All real estate transactions are done through a local attorney and the proper due diligence is performed in order to make sure the property in question is free of any leans, taxes, or other legal issues. Stewart Title and Chicago Title are also operating in Costa Rica and offer title insurance for added peace of mind over you investment.

This country is also one of the most desirable places to retire in the entire World. The ‘Baby boomers’ are now just beginning to retire and for years to come many will be looking for tropical destinations to live full or part time. Costa Rica real estate values will benefit from this trend and offer exactly what most retirees moving abroad look for:

-Temperate year round warm climates

-Mountain property with amazing views of the ocean, coastline, or valleys

-Close proximity to beaches, restaurants, and amenities

-Plenty of activities or hobbies to enjoy

-Affordable medical treatment and health care

-Accepting, helpful, and hard working local population

-Low cost of living and high quality of life

Many people are looking for investments outside of their home country for diversification. Diversify your portfolio with property or second home in Costa Rica as an alternative to stocks, bonds, and mutual fund investments. A property that increases in value as a long term investment can often beat stock market returns. Owning and operating a business in Costa Rica can be done on a 90 day tourist visa, you do not need to be a resident, this has made it easy for many to invest in bed and breakfasts or hotels, restaurants or tourism. Others have invested in a home with the goal of operating it as a vacation rental, with tourism on a steady incline, vacation rentals are consistently in demand. There are various options to generate an income off your foreign investment.

Costa Rica is also a forward thinking country with over 25% of its landmass in wildlife refuges and nature reserves and even has goals to be the World’s first carbon neutral country by 2025. This natural beauty attracts millions of tourists per year and as eco-tourism becomes more popular Costa Rica will be poised to continue growing its tourism sector; which is already its number one source of GDP. It is consistently #1 or #2 in most visited Latin American countries year to year. The more people that travel to Costa Rica and experience its scenery, culture, and pace of life, the more people that will want to own a piece of this unique paradise in the future.

Costa Rica is a true alternative to traditional investments and well positioned to continue as a leader in places to retire and travel; thus increasing real estate values across the country. Pending another Worldwide economic meltdown this tropical destination will remain one of the best foreign investments money can buy. If there is a complete global financial collapse, the self sustainability of many properties in Costa Rica will allow you to grow your own organic fruits and veggies, raise chickens, and live off the land. Regardless of what the future holds, now is the time to investigate Costa Rica for your next investment.

by Zoe Longworth

While browsing the storefronts of Quepos/Manuel Antonio the other day, I saw this Hurricane History Map in an office window. What caught my attention was how Costa Rica was completely free of any direct hurricane/tropical storm trajectories. People ask us if we get hit by hurricanes, and now it’s nice to have a chart showing just how ideally located Costa Rica is, especially on the Pacific side. Clearly, the vast majority of tropical storms and hurricanes are born in the oceans to the west and especially
the east of Costa Rica, and then almost always track north. In recent years, only Hurricane Cesar and Hurricane Mitch (1996 and 1998, respectively) traveled all the way across the Central America landmass.

However, even though Costa Rica is Hurricane-free Zone, it still feels the effects of heavy rainfall from time to time.

During the hurricane season, June 1st – Nov. 30th, Costa Rica will occasionally feel the effects of these major hydro-meteorological events. Tropical storms are more common than hurricanes in Costa Rica, and it is important to note that heavy rain isn’t the same as heavy rain AND 100+ mph winds!

According to this NASA webpage, “Tropical cyclones are like giant engines that use warm, moist air as fuel. That is why they form only over warm ocean waters near the equator.” The small towns in our area (e.g., Dominical, Uvita and Ojochal) are located at approximately nine degrees north of the equator. The benefit of being at this latitude, and on the Pacific side of Costa Rica, is the wind is significantly lighter than along the Caribbean storm corridor where hurricane winds can rip off your roof. I suppose that’s why the famous Portuguese explorer Ferdinand Magellan called the Pacific Ocean, Tepre Pacificum or “Peaceful Sea”.

What Does This Mean For Pacific Zone Residents and Investors?

Light winds aside, we do experience heavy rain and flooding from time to time in Costa Rica. In some cases, the spiraling arms of a hurricane can reach over 300 miles from the eye of the storm. When there’s a storm over Nicaragua, we feel the effects of it. We know a few clients and residents who have lost portions of their property to landslides and flooding. The question is are there precautions property owners can take to ensure their piece of Costa Rica real estate doesn’t flood or slide down the hill? The answer is most likely, and here’s a brief summary–

EROSION- Lots should not have large cuts (red dirt) exposed above the building site. During my first year here, I rented a house with a hill eroding behind it. Needless to say, landslides are not fun and VERY dangerous.

RAINWATER MANAGEMENT- Check out the rainwater management on and around the property. Make sure the water is being channeled properly, specifically away from the building area. This may require the installation of canals and culverts in some cases.

SOIL TEST- Get a soil test before purchasing property on a steep hill or with creeks or rivers running through the property. It usually costs the buyer $200-$300, but it could save you thousands.

RETAINING WALLS- Add gaviones (aka- secured rock baskets) or a retaining wall to exposed hillsides to hold the land before the rainy season. Another very common preventative measure is securing green mesh or netting (known as, cerran in Costa Rica) to hillside and planting deep rooting plants in regular intervals across the face of it.

As one couple in the Uvita area found out, there are specific things you DO NOT want to do when constructing your dream home. They purchased an ocean view property that wasn’t quite large enough to fit the building footprint, so they hired a backhoe and cut into an already steep hillside directly behind their home. Construction was nearing completion, and then the heavy rains came. The water saturated the hillside, and BAM, the landslide brought 3 feet of mud through the house, an event both heart-breaking and expensive. It is my understanding that poor water management above the property also played a role in the event.

In summary, be careful. If buying of a second home in the Caribbean is on your radar, keep the above Hurricane History Map in mind. If you have already been to Costa Rica and love the ‘pura vida’ lifestyle and investment opportunities, choose your property wisely. Selecting a property based solely on price can be a mistake that ends up costing you a lot more in the end.

by Rod Martin

There are many questions first time Buyers in Costa Rica may have and these are some of the most common we experience. This guide of Frequently Asked Questions will help first time Buyers become informed of the Buying Process and different aspects of owning property in Costa Rica.

What is the procedure to buy a Costa Rica property?

First: After you have found the right property with your Real Estate agent, have them submit an Offer to the Seller or the Seller’s listing agent in order to agree upon the sales price and terms of the deal. Second: Take this Offer to your Costa Rica attorney for them to write up the formal Sale Purchase Agreement or Offer to Purchase Agreement. This document is legally binding, registered, clearly states all conditions necessary for the conveyance of the deed, sets a time frame for Due Diligence, and a date for closing; thus officially taking the property off the market. It is also typical for the Buyer to send a deposit at the time of mutual signing of this agreement. Third: The period of Due Diligence, which is the complete legal research of the property to insure there are no liens, contingencies, legal issues, and that it has absolute fee simple title. If the property is being sold with an existing company, then the research of the company for any legal contingencies will also be completed during Due Diligence. Fourth: Closing or conveyance of the deed occurs before a Notary Public, who will register the property under the new company or owner. Alternatively, if the property is being purchased with an existing company, then the shares of the company are transferred at this time by a Shares Transfer Agreement. In this case the Notary Public will make the corresponding changes to the company’s ownership in the National Registry. Fifth: Declaring the property before the corresponding Municipality for property tax purposes by filling out a simple form and presenting it along with the some other documents either yourself or through your attorney.

Can I acquire a property under my personal name, even being a foreigner?

Yes, however, it is more common and recommended to acquire the property through a corporation in order to separate potential personal liabilities, facilitate the closing procedure, and allow for easier transfer to relatives in case of casualty. The Costa Rica holding company will also make it easier to obtain services such as electricity and cell phones, as well as, opening a bank account.

Exception: A foreigner can only own up to 49% of the concession rights for a Concession Property within the Maritime Terrestrial Zone (MTZ).

If I live outside of Costa Rice, do I need to be present to sign for the conveyance of the deed at closing?

This is not specifically necessary and can be executed through a Power of Attorney for a third party that you trust. This Power of Attorney can be very specific to solely the purchase and signing the closing document of the property in question. Another option that is costly and timely is DHL or FedEx the documents and signing them in front of a licensed Notary Public at your nearest Costa Rica Consulate. Considering the cost of the shipping and if the nearest Costa Rica Consulate is in another part of the country; then it can be more affordable to fly down and sign for yourself.

What are the taxes, legal fees, and closing expenses included in the purchase of property in Costa Rica?

Every property acquisition in Costa Rica has to pay the following National Registry Fees: Registry: 5 colones per every 1,000 colones of purchase price; Municipal: 2 colones per every 1,000 colones of purchase price; Fiscal: a maximum of 625 colones; Bar Association: a maximum of 10,000 colones; Archive: 20 colones. The Transfer Tax of 1.5% must be paid to the National Registry if the property is transferred from one owner to another. If a property is sold with an existing company and only the shares of the company are transferred, then this Transfer Tax does not apply. These costs are often split by the Buyer and the Seller.

Legal Fees for the purchase of property in Costa Rica are 1% to 2% depending on the sales price, complexity of the transaction, and the allotted time spent by the attorney on the deal. Additional legal costs may include the formation of a Costa Rica holding company of around $500 to $600 USD; drafting of any supplementary contracts or Seller Financing Agreements and registering of such contracts; and translation of contracts into your native language. The Buyer and Seller typically pat for the separate attorneys. If one attorney is used by both Buyer and Seller, then some for these legal fees can be split. However, the Buyer is usually solely responsible for starting a new company, any contracts for Seller Financing (if needed) and registration of those contracts, and translations if the Seller is Spanish speaking.

Other Fees may include topographer fees if you choose to re-mark the boundaries of the property; and any extra investigation you may choose to execute such as; soil tests. These items are typically paid by the Buyer.

A total property transaction costs about 4% of the property value and this can vary more depending on the amount of Due Diligence needed and less if the property is being sold with a current company.

How can I transfer funds for a property acquisition from my home country?

This can be accomplished by international wire transfer and the funds can be received by a recognized escrow company dedicated to protect funds and provide escrow services in Costa Rica. Direct wire transfer from the Buyer to the Seller can be done in certain cases, but should be done almost simultaneously as closing signatures; as many Sellers may not feel comfortable signing the closing documents until receiving a bank confirmation that the wire transfer has been completed.

Where and how are properties registered in Costa Rica?

All titled properties are registered in the “Registro Naccional” or National Registry located in Zapote, San Jose, Costa Rica. There are satellite offices of the “Registro” around the country in larger cities. This is a public record that anyone can research the owner of a property and any leans, loans, transformations, or damages against the said property. In order to transfer a registered property the recorded owner must appear before a Notary Public in order to grant a public conveyance of the property, which then must be presented and recorded in the National Registry. All registered properties have a folio real number (i.e. 6-123456-000) of which the first number represents the province where it is located, the second refers to the specific folio property number, and the third to the property rights as in number of owners (000 means only one owner).

Exceptions: (1) Concession property located in the Maritime Terrestrial Zone (MTZ); which is the 200 meters from the median high tide mark on both Pacific and Caribbean coasts. The first 50 meters is public zone and free for the public to enjoy, where as the remaining 150 meters is the restricted zone where concession property can be granted by the local municipality. Although there can be titled property with the MTZ, it is very rare and may have been titled since before the MTZ was put in place; but should be carefully investigated by your Costa Rica attorney to insure the validity and legality of the title. Concession property is registered in different section of the National Registry called the Concession Registry and has an independent registration number. Concession property is typically used for tourism and if this type of property is a consideration, then it is highly recommended your attorney review the concession and feasibility of your plans for the property before pursuing it further. (2) There are also Possession Properties, which are untitled and are not registered in the National Registry. These properties can obtain title through a lengthy process and if they comply with certain requirements; one of which is a minimum possession of 10 years. These types of properties are the most risky and professional legal counsel is needed in this situation to advise if receiving title is possible before even considering such a property.

How can I check the status of a property in Costa Rica?

Go to the following website of the National Registry: http://www.rnpdigital.com/index.htm where anyone can check the status of a property. Go to “Sistema de Certificaciones y Consultas Gratuitas” on the top left side of the webpage. A new tab will open and then first time users will have to go to “Registrarse por Primera Vez” in the top left hand portion of the page. After filling out the form you will receive an email and click on the link and enter your user email and password on the left hand side under “Ingreso para Usuarios Registrados”. Then go to “Consultas Gratuitas” on the left hand side and next you will see a list of all the types of “Consultas” you can do for “Bienes Immuebles” (Real Estate). To obtain a certified property report click on “Consulta por Numera de Finca”. After this, you will have to enter the number of the property’s province or “Provincia” (first number of the Folio Real number on the Plano), the folio real number of the property (middle numbers of the Folio Real number on the plano), and the number of the property right “dereccho” (which is the last 3 digits of the Folio Real number on the Plano). Once you enter the said information click on the “Consultar” (consult) button. A certificate with all the information of the property will appear on the screen.

How much are property taxes and other taxes associated with owning property in Costa Rica?

Property Taxes are 0.25% of the registered property value and are paid to the local Municipality for where the property is located. These taxes are paid every 3 months or can be paid in full for the year in advance. For example a $100,000 USD property pays $250 USD per year in Property Tax.

Corporation Tax is a fairly new tax passed in 2012 and is a fixed fee of $180 USD for inactive corporations and $360 USD for active corporations. Most properties are held be an inactive corporation and this tax is paid to the “Ministerio de Hacienda”.

Luxury Tax is tax levied against luxury homes valued over approximately $200,000 USD and is also paid to the “Ministerio de Hacienda”. This tax is around $2,500 and can be more depending on the registered value of the home.

Please feel free to contact us for any additional questions you may have about purchasing property in Costa Rica. We have created a valuable network of contacts over our many years of experience in Costa Rica Real Estate such as; lawyers, architects, builders, topographers, accounts, property managers, and more;