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Can a foreigner own property in Costa Rica? In matters of land and property, both Costa Rican laws and Constitution protect private ownership of land. Therefore foreigners and Costa Rican citizens enjoy equal rights in this regard. There are almost no restrictions to the ownership of private land, except for in the case of government owned property.
Back To Top Do I have to live in Costa Rica or have residency to purchase property? Foreigners do not have to live in the country to own property here. Purchasing property in Costa Rica is made rather easy by the fact that one is not require to have citizenship, residence, nor even a physical presence in the country to do so. However, if you are interested in applying for Costa Rican residency, this is something our office can help with. There are special immigration laws which allow people with fixed incomes over $600 USD to obtain residency permits. Other permits are available if you work with recognized companies or are a business owner or investor.
Back To Top Can I own a beach front property? In most cases, you cannot. Costa Rica has a strict maritime zone which marks the first 50 meters above the mean high tide line as inalienable to the public. This means that no one can restrict access or have a totally private beach. There are a few exceptions, but they include port areas, old land grants and some areas titled prior to 1973. The maritime zone also restricts the ability to own the next 150 meters above the high tide line (for a total of 200 meters from high tide). Eighty to eighty five per cent of this area is government owned lease. For a foreigner to own property in this area, they must establish five years residency in order to own more than 49% of the rights of a lease. There are loopholes to this, but they tend to be complicated. The other 15% to 20% that is outside of the maritime zone is hard to find. But a property investor who is lucky enough to find such a property will enjoy developing this property without the inconvenience of filing a regulation plan. The only exception to this is that a tourist development must be approved by the ICT (the Tourist Board), but almost any other form of development would only require building permits.
Back To Top What are the advantages of hiring a Real Estate Attorney? There are several advantages to hiring a Real Estate Attorney. We specialize in procedures with the National Registry, such as the creation of corporations and conducting land title and property research. We also specialize in the legal documentation associated with Real Estate Deals. We have the necessary experience and can assist with bylaws, drawing up deeds, building and sale contracts, and negotiations. Real Estate Attorneys also offer extensive practical and geographical knowledge of the various areas that you might be interested in. Therefore, they are well versed with the procedures regarding maritime zones and the administration of these zones before government entities. In other words, a Real Estate Lawyer can combine his extensive knowledge of an area and his ability to draft all your necessary documents so that your goals are achieved in the most streamlined manner possible.
Back To Top Do I need to use a realtor? Using a realtor offers many advantages. A reputable and well-respected broker can provide you with the information you need to make a legal and successful purchase. Your agent will help you avoid common pitfalls, build your knowledge of the area, and compare values of properties. However, it is possible to purchase property directly from the seller. If you opt to do so, be sure to consult your lawyer, before you make a deposit, to ensure a legal transaction. Your lawyer should check to see that the property is free of liens, mortgages or any other encumbrances and that the purported area of the property that is being sold is the same as the area on record with the National Registry. Most importantly, your lawyer should check to see that the seller has the legal jurisdiction to sell that property.
Back To Top Will I pay for my property in Colónes or Dollars? Because of the recent Currency Law, legal documents can now be written in dollars; which safeguards both the buyer and the investor against the devaluation of the colon or any other difficulties associated with converting between colónes and dollars.
Back To Top How much are property taxes & capital gains? Property taxes are very low when compared to Europe, the United States or Canada. A big incentive to investors is ZERO capital gains tax when you resell your property.
Back To Top What about building costs? Building costs average $500 USD to $1000 USD per square meter ($46-$90 USD/ square foot). It all depends on the fixtures and finishes that you choose. Homes built to U.S. and European standards start at $150,000 USD and can be even less in certain areas.
Back To Top What is a Corporation and how can it help me? For a foreigner, owning a corporation in Costa Rica provides many simple solutions. First of all, a corporation acts as a separate entity which protects you from personal liability. In Costa Rica it is possible for you to lose all your personal assets should litigation be brought against you; however, with a corporation, your personal assets are separate from those of the corporation. Owning a corporation also facilitates opening up a bank account in Costa Rica. In most cases, banks will only allow persons with citizenship, residency or work permits to open a bank account. An exception to this is the corporate bank account. Banks require only a few minor prerequisites, such as an electric bill and proof of the existence of your corporation to open such an account. A minimum deposit, which can vary from bank to bank, will also be requested. Finally, owning a corporation can help you get a phone line. ICE (the Costa Rican Electric Board) has passed a law which grants telephone lines to only Costa Rican Residents or Costa Rican Corporations.
Back To Top What is a shelf corporation? A shelf corporation is a corporation that has been constituted, that is to say started, and then set aside on a shelf where it waits to be purchased. These corporations have no recorded history other than when they were constituted. This is done with the sole purpose of providing them to our clients in order to save them time and money. We will then proceed to make the respective changes in the Board of Directors, the legal representation of the corporation, new emission of stock certificates, and changes to the corporation's name; that is to say, we will personalize your corporation. For this service we charge $600 USD per corporation.
Back To Top Who can sign in the name of a corporation? Within each Board of Directors exists the positions of President, Secretary, Treasurer and Statutory Examiner. When we constitute a shelf corporation, we start each corporation by giving the President and the Secretary both, Full Power with no Limit of Sum. This allows them to act either independently or together, to sign in the name of the corporation. When you purchase a corporation, we can accommodate any change to the Board of Directors, as well as desired changes in the distribution of power amongst the Directors.
Back To Top Can I close on a property if I?m not in Costa Rica? Yes. It is not necessary for you to be physically in Costa Rica while closing a property. By granting a Special Power of Attorney, you can appoint someone else to sign for the closing of a property on your behalf. We offer various levels of Power of Attorney to fit your needs.
Back To Top How much will I pay for property taxes? Property taxes generally range from .5% to 1.5% of the declared value of your property. We offer a service in our office that can as directed, maintain your paperwork and file your property taxes with the Costa Rican Tax Agency. Once declarations have been made and filed, we will contact to let you know exactly how much you owe in property taxes.
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