Misty Costa Rica rivers are one of the many natural attractions.
Unlike some of the other countries, foreigners have the same rights when purchasing land in Costa Rica as locals do. You can own property outright in your own name or in the name of your corporation. You do not need a local partner, except in cases of beachfront concession property, where special rules apply. There is absolutely nothing to prevent you from purchasing Costa Rica property in your own name, but the majority of buyers form a corporation with the help of a reputable lawyer and then purchase property through that corporation.
The reason for this is threefold. One – it may be more beneficial to have your income (from rentals) or capital gain (from sale of the property) taxed within a Costa Rican company rather than having it taxed as personal income. Of course, this depends on the tax laws of the country from which you originate. Two – it allows for simplified estate planning, whereby you can give or will shares of the corporation that owns the property to members of your family. Three – if you ever decide to sell your property, you can avoid paying property transfer taxes a second time by simply transferring the shares of the corporation to the new owner.
The Real Estate Registry
Another plus for property purchasers in Costa Rica is its central land registry which allows your lawyer to confirm that there is clear title to your property, as well as to discern if there are any restrictions on the property before the deal goes through. Further, if you would like to have the added protection of title insurance, the services of international title insurance companies such as Stewart Title are now available in Costa Rica. Also attractive are Costa Rica’s very low property taxes – 1/4 of 1% annually. That means if you buy a condominium or home with an assessed value of $200,000, the property taxes per year would be $500.
Lush Costa Rica forests provide endless exploring.
How to Make an Offer on Real Estate in Costa Rica
Like us, many foreigners who come to Costa Rica to look at property have already arranged their finances so that are ready to make an offer if they find what they are looking for. But what can you do if you happen upon the perfect property while on vacation? An offer can usually be written up with a small good faith deposit to be raised to 10% within a few weeks. Final closing would normally be anywhere from 30 – 60 days. If you need to borrow funds, it is far simpler and interest rates are usually lower in your home country. However, if your credit rating is impeccable, financing in Costa Rica may be available to you.
