BUYING REAL ESTATE IN COSTA RICA

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Frequently Asked Questions

Why Choose Costa Rica for Property Investment?

Costa Rica is the epitome of the best and safest lifestyle in Central America. As a democratic nation without a standing army, it uniquely combines prosperity, rapid development, a robust healthcare system, and an exceptional 97% literacy rate. Recognized as one of the greenest countries globally, Costa Rica's commitment to environmental sustainability makes it a haven for nature enthusiasts. The country's dedication to progressive tax laws and financial security, backed by a vigilant government, establishes it as a secure and inviting destination for both investment and living. The unhurried pace of life and high quality of living contribute to longer life expectancies compared to its neighbors to the north or south. Choosing Costa Rica ensures not just safety and prosperity but also an opportunity to embrace a lifestyle harmonizing with the natural beauty and tranquility that define this remarkable country.

Can Foreigners Own Property in Costa Rica?

Absolutely, as a foreigner, you can own property in Costa Rica with the same rights as Costa Ricans. The rights associated with properties under Fee Simple Title are safeguarded by the Costa Rican Constitution. Property ownership in Costa Rica mirrors the processes and rights found in the USA, Canada, and Europe, offering a straightforward and secure experience for foreign investors. Whether you seek a permanent residence, vacation home, or investment property, Costa Rica welcomes foreigners to participate in its vibrant real estate market with confidence and legal protection.

Are There Restrictions for Foreign Buyers in Costa Rica?

No, there are no specific restrictions imposed on foreigners when purchasing property in Costa Rica. Unlike some other countries, such as Mexico, there is no requirement for a foreign buyer to have a local partner to buy and own property outright in Costa Rica. The process is designed to be accessible and straightforward for international investors, allowing them to fully enjoy the benefits of property ownership in this beautiful and welcoming country. Whether you are seeking a permanent residence, vacation home, or investment opportunity, Costa Rica provides an open and inclusive environment for property ownership.

How Do I Purchase Property in Costa Rica?

1. Selecting a Knowledgeable Real Estate Broker: Choose a real estate broker familiar with your area of interest. A seasoned agent with knowledge of available properties will guide you effectively.

2. Submitting an Offer: Once you identify the perfect property, your agent will submit your offer to the owner(s) using a Letter of Intent or Option to Purchase.

3. Engaging a Reputable Costa Rican Real Estate Attorney: Select an experienced Costa Rican real estate attorney to handle the legal aspects. Your lawyer will conduct due diligence, ensuring the property has Fee Simple Title and is free from liens or legal issues.

4. Due Diligence Period: Your offer typically includes a 30 to 90 day due diligence period. Your lawyer will use this time for a thorough examination in the National Registry to confirm property ownership and address any legal concerns.

5. Closing the Deal: The closing takes place with a Costa Rican lawyer who is also a notary public. The notary will register the property in the National Registry under your legal name or a Costa Rican corporation (Sociedad Anónima).

6. Registering the Property Locally: After the purchase, register the property in the local municipality for tax purposes. This straightforward process involves filling out forms, which can be done by yourself, your lawyer, or real estate broker.

Can I Own Property in My Name as a Foreigner?

Yes, as a foreigner, you can own property in your name, but it's recommended to use a Sociedad Anónima (S.A.). This structure helps separate you from potential personal liabilities and facilitates various services. Holding your property in an S.A. streamlines tasks like opening bank accounts and obtaining utilities. Exceptions include Maritime Terrestrial Zone (MTZ) land, which may have restrictions, and owning 51% of such property requires Costa Rican citizenship or legal residency. Possession Properties are untitled and may involve a complex legal process for obtaining title.

Do I Need to Be Present in Costa Rica for Closing?

No, you do not need to be physically present for the closing. You can grant your lawyer a Power of Attorney (POA) or sign documents at a Costa Rican Consulate.

What Are the Closing Costs and Legal Fees?

A 2.75% fee of the purchase price goes to the National Registry and government agencies. Legal fees for the lawyer/notary public are approximately 1.25%. Creating a new S.A. may cost $500 to $1,000.

How Do I Transfer My Deposit and Closing Funds?

Using reputable escrow companies like Stewart Title or Chicago Title is recommended for secure fund transfers.

Where Is Property Registered in Costa Rica?

All Fee Simple Title properties are registered in the Costa Rican National Registry in San Jose. The Plano Catastro (survey plan) and Folio Real number uniquely identify each property.

What Is a Plano Catastrado?

A Plano Catastro is the same as a survey plan or plot plan showing in detail the size of your property and the boundaries. It will indicate who the neighboring property owners are and their location in reference to your property. It will also show the Folio Real number of the property and the date it was registered. This will also be registered in the National Registry system.

What Is a Folio Real Number?

A Folio Real number is the ID number assigned to all Fee Simple titled properties in Costa Rica. This number will show the province in which it is located. If the property is a condominium then it will indicate that designation with an F for (Finca Filial) at the end of the number.

How Do I Check the Status of a Registered Property?

You can check the status of a registered property for free through the National Registry's online platform (www.rnpdigital.com). Click on Certificaciones y Consultas, located on the top left side of the page. Next, click on Consultas Gratuitas, and then Consulta por Numera de Finca. Enter the Folio Real number to view information on the property's status.

How Are Taxes Associated with Property Ownership Assessed in Costa Rica?

Municipal property taxes are 0.25% of the property's declared value, with an additional 0.50% for luxury tax if the value exceeds $250,000.

Travel and Residency Questions

• Do I Need a Passport or Visa? A valid passport is required, and a 90-day tourist visa is granted on arrival for Americans and Canadians.

• Customs and Immigration: Fill out customs and immigration forms; personal items are allowed, but limitations exist for alcohol and tobacco.

• Vaccinations: No vaccinations are required for visitors from Central America, North America, or Europe.

• Driver's License: A valid driver's license allows driving for 90 days; residency is needed for a Costa Rican driver's license.

• Best Time to Visit: Anytime is ideal; the dry season (December-April) is sunniest, while the rainy season (May-November) offers lower prices and a relaxed atmosphere.

• Currency: The official currency is the colon, but US dollars are widely accepted.

Miscellaneous Questions

• Getting Married in Costa Rica: Foreigners can get married in Costa Rica. You will need the following documents so a lawyer can execute the legal marriage contract:

  1. A certified copy of your birth certificate.

  2. A valid passport.

  3. If you are divorced, you will need a certified copy of your divorce decree. If you are a widow/widower, you will need a certified copy of your previous spouse’s death certificate.

  4. If you have not previously been married, you will need to make a statement to that effect before a notary who will certify it. Laws vary from state to state in the USA. Contact your county clerk’s office where you plan to live and ask what the procedure is in your state for your marriage to be recognized.

• Can I Get a Job in Costa Rica? Legal residency or citizenship is needed for employment, though exceptions exist.

• Packing for Vacation: Bring essential medications, adventure-appropriate footwear, sunscreen, sunglasses, and a hat. A pocket-sized English/Spanish dictionary or translator app can be helpful.

• Time Zone: The time zone in Costa Rica is - 6 GMT. Costa Rica does not use daylight savings time. So based on the season, the time is the same as either Mountain or Central time zones of the US and Canada.

• Bringing Pets to Costa Rica: To bring a dog, cat, or other pets to Costa Rica, contact the Costa Rican Consulate in your country. You will need a health certificate from your veterinarian stating that your pet was examined and found to be healthy and free of any infectious diseases. Dogs need to be vaccinated against distemper, leptospirosis, hepatitis, rabies, and parvovirus. Cats need to be vaccinated for rabies. Forms, such as VS Form 18-1, may be recommended. The rabies vaccination certificate should accompany the health documents. Take all of these papers to the Costa Rican Consulate where they will stamp and process these documents allowing your pet to come into the country.

So, Why Purchase Property in Costa Rica? Costa Rica, with its laid-back lifestyle, stunning beaches, and abundant wildlife, offers a friendly and ecologically conscious environment. Embrace the conveniences of a developed country, where every day is an adventure.