9 Tips that you need to know before investing in Costa Rica.

Costa Rica real estate reported a steady improvement since 2012 and I want to share with you some tips and tricks on buying and investing in Costa Rican properties.

The process of buying in Costa Rica doesn't have to be intimidating or confusing. By understanding all the stages of the process and possible pitfalls to avoid, a buyer can confidently invest into properties for years to come.
  1. For a foreigner who wants to buy a front beach property or within 500 feet of the beach, an effective way to purchase a property is buying on behalf of a corporation. 95% of properties are considered property in concession and are governed by the law of the sea land area and other specific regulations. A concession is a lease granted for a renewable period of 20 years. The owner of a franchise can builds, subdivide the concession with the permit from the municipality.

  2. There are several types of properties, including the following:
    1. Most of the properties are registered. Before you buy or consider making an offer to purchase, a search must be performed. Property rights are registered and equal to the notion of land ownership in the United States and Canada.
    2. Occupancy rights: Properties that are not registered, must go through a long process before they can be registered. Please avoid unregistered properties.
    3. Properties in co-ownership: Developers use condominium laws to allow them to build roads in a development when they have established architectural lines.
    4. Time Shared: Right to use a property for certain weeks of the year, rights are similar condominiums laws, except that at the time shared is very unusual in Costa Rica.

  3. The purchase or transfer of ownership: A lawyer/notary records the deed of sale signed with all of the provisions on the transfer of real estate with the information of the buyer, seller, and registered in the public registry.

  4. Some documents are important, among others a power of Attorney: this document allows a person to act on behalf of another to perform specific actions. It does not need to be registered in the public registry but must be signed in the presence of a notary of Costa Rica.

  5. Acquisition of property:
    1. Direct Transfer: Buying process by which one or more people acquire a property in their own name.

    2. Through a new or existing corporation that owns the interest property and if it buys through it, there are no taxes and transfer stamps to pay.

  6. Step by step through the process of purchasing:
    1. Make a purchase / sale option with the buyer
    2. Search titles through a lawyer / notary to confirm that the property is free of liens.
    3. Deposit of guarantee funds (If applicable)
    4. Closing - Execution Transfer.
    5. Register the new owner in the public registry.

  7. Fees:
    1. Taxes: Transfer, Stamps for the record of the ownership transfer: 1.5% of the purchase price, and 1% for the public register stamps.
    2. Notary: 1.25% for the legal fees.
    3. Costs for inquiries (In case needed) … The price depends on the location and the size of the property.
    4. Registration Mortgage fee: 0.6% of the value of the mortgage.
    5. Incorporation fees: Between $500 and $1,000

  8. To obtain a residency / citizenship in Costs Rica:
    1. Retirement: You need to have a minimum pension of $1,000 per month for a temporary residence permit.
    2. Investor: Need to have a minimum investment of $200,000, after three years you can apply for a permanent residence.
    3. Family link: Need to marry a Costar Rican or to have a child while in Costa Rica.

  9. 9- Green Garden Homes is the perfect place to obtain the best service for your future investment projects in Costa Rica.
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