It is located in Central America, approximately a 2 hour flight from Southeastern United States.

In most parts of the country, there is a dry season that goes form mid December to May and a rainy season that covers the rest of the year. The variation in temperature from the rainy season to the dry season is not dramatic, being of approximately 5 degrees Celsius. In the Central Valley the average temperature is of 24 degrees, and in the coasts it is approximately 30 degrees.

Costa Rican economy is very stable, progressive and booming, with equitable laws that are foreigner friendly. Besides, Costa Rica has the oldest and strongest democracy of all the region; has a very strong middle class which prevents social conflicts; and has a long history of peace, consolidated with the abolition of its army more than 50 years ago. The last 20 years yielded changes in government policies toward foreign investments and overall economic growth. Because of its climate, natural beauty and the fact that it is close to the United States, Costa Rica has become one of the favorite places for people from all over the world, but mainly from the United States who wish to buy second homes or relocate outside of their country.

This high demand for real estate is one of the reasons why in the last years, in the best areas of the country the prices have increased in more than a 30% per year. But even after this rise in the price of land, there are still great opportunities and there are regions that haven’t experienced this accelerated rise in the price of properties but will surely do in the short and medium term. Even though Costa Rica has become a hot market in the last year, the prices of land in this country are still lower that other hot markets of the world with similar characteristics to Costa Rica. Investment in Costa Rica is also benefited by a large very well educated work force. This is a country with one of the highest literacy rates in the world. There are excellent medical services at very reasonable prices. Has a good economic condition and the exports have been growing, in areas such as medical devices, microchips, agriculture (pineapple, melon), biotechnologies and also there has been strong foreing investment and a lot of call centers have been established in the country

Having selected your ideal property in Costa Rica, you will want to be absolutely certain of the legal aspects of the purchasing process, and particularly your rights in a foreign country. When you have decided on a certain property the first step is to deposit a small amount in order to take the property off the market and reserve it until the remaining steps have been completed. The most common procedure is to establish a earnest money deposit agreement together with a down payment. This is usually 10% of the purchase price. Within this agreement you accept the terms and conditions to purchase the property.

Ask to see an official Costa Rican Registry Survey of the property. If one has not been completed, which can be common when purchasing a section of a larger parcel, request that any deposit be held by an escrow agent until an official survey has been provided. If this is the case, ask to review the official Registry Survey of the initial parcel.

Always be sure to include any obligations promised by the owner (water, road access, etc.) in the written agreement. If the promised time for completion of these obligations is considerable, request that an amount of the purchase funds to be held by an escrow agent until the obligations have been met. Check if all taxes, municipal services and other obligations such as condominium quotas regarding the property have been paid and are up to date.

These are the basic steps, but the process of buying property in Costa Rica requires further due diligence to do before you can close. Beachfront Costa Rica will work closely with the attorney and will do the follow up in order to have a smooth closing that will be completed to everybody's satisfaction.

Always be sure to meet with an attorney who can speak your language and answer your questions. In Costa Rica buying real estate, segregation of lots, constitution of mortgages, cancellation of mortgages or any kind of movement of land requires that the parties appear before a Notary Public of the Country, who in Costa Rica necessarily has to be a lawyer. The Notary Public in Costa Rica issues a public document or testimony which contains the intent of the parties, which is transcribed directly in the Notarial record book. Then the document has to be presented or annotated in the Public Registry for its registry, paying for this effect the tax stamps, transfer taxes (if applicable) and legal fees before purchasing the real estate.

The average time to register a document, which does not present any objections from the registry, is approximately one month. Once the document is registered, the Public Registry shows the new inscription for the benefit of the parties involved and any future relevance for third parties. Before entering into any contract involving land, it is very important to study the actual statement of the property which is being negotiated. These studies are carried normally by the same Notary Public, which can obtain a resume of the property through the Public Registry. From this point, the parties can determine if it is convenient to continue with the deal, taking into consideration any limitations and conditions that might affect the property.

When buying property in Costa Rica, the title is transferred from seller to buyer by executing a transfer deed before a Notary Public. Unlike common law countries, such as the United States and Canada, where the role of the notary is limited to authenticating signatures, in Costa Rica the Notary Public has extensive power to act on behalf of the state giving faith about the intent stated by the parties, as well as of several other facts and circumstances related to the parties and to the property. The Notary Public must be an attorney and she or he may draft and interpret legal documents, as well as authenticate and certify the authenticity of documents.

Once a transcription of the transfer deed, duly signed by the Notary Public, is accepted for registration, the Public Registry will return the original document with all the documentary stamps affixed to it and properly sealed. Assuming no defects in the transfer deed, it should be registered by the Public Registry within 30 to 45 days after presentation.

Financing through a bank is still kind of complicated since it is difficult for the Costa Rican banks to get financial information of foreign debtors. The interest rate is between 8.5% and 12% in a US$ loan, and the maximum term is 10 years for commercial properties and 20 years for residential properties. Most of the deals in Real Estate are cash deals or financed by the owner or seller, usually very short term with high down payments (like 30%-50%). Sometimes the buyer can get better rates and faster approval (or easier approval) using a first or second mortgage in their home country on property they have there, then the cash can be used for buying property in Costa Rica.

If the purchase price is financed, there are generally three alternatives for selecting the Notary/attorney. If the seller is financing a large percentage of the purchase price and a mortgage needs to be drafted to guarantee payment, then the seller may request that her or his Notary/attorney draft the transfer deed. If the purchase price is being financed by a bank, the bank’s attorneys will draft the transfer and mortgage deed.

If a property is purchased 50 percent cash and 50 percent financed, it is common for the buyer's attorney and seller's attorney to jointly draft the transfer deed and mortgage in a single document. This is known as co-notariado.

The general custom is for the buyer and seller to share equally in the closing costs. This can be modified by agreement and usually depends upon the particular transaction. Closing costs including the Notary fees are, based on the real sales price, are 1,25% of the amount.

Further the transfer land tax, legal fees, and miscellaneous fees which are about 3,6% of the declared value of the property. For the purpose of lowering the property transfer land tax, it is a common practice to lower the gross amount paid by declaring a much lower sum than the actual sales price. Be aware that acting in this manner could cause problems in the future. As always, it is recommended that you consult a lawyer about closing costs before buying property in Costa Rica.

Property taxes (Municipal Tax) throughout Costa Rica are very low when compared to the United States, Canada or Europe. The municipal tax is administered at the municipal level. Paid quarterly, the type of property, location and other factors contribute to the calculation of this tax.

The real estate tax is based on the declared value of the property, and the rate is of 0.25% per year.

If you buy just one property and you are not in the real estate business, there will be no taxes over the gain obtained by the sale of the property. On the other hand, if you are in the real estate business, you will have to pay income taxes as any other Costa Rican company or individual.

The income generated by a foreign company or individual from services rendered in Costa Rica or to Costa Rican companies or individuals, as well as any other income obtained in connection to assets located in the Costa Rican territory, is subject to a withholding tax.

The most common way is that the seller or owner pay the commission to the Realtor or Broker at closing. The Buyer or Purchaser does not have to pay any commission when buying property in Costa Rica, unless they specifically agreed to do so.

A property can be bought directly by a foreign individual o through a corporation. Acquiring property through a corporation has several advantages related to, asset protection, anonymity for the actual owner and disposition of the property in case of death of the owner.

You could either buy a shelf corporation from a Costa Rican attorney or hire an attorney to constitute a new corporation.

You can acquire either a sociedad anómina wich is similar to the corporations commonly known in the United States or a sociedad de responsabilidad limitada which is similar to a limited liability partnership. If you are acquiring a sociedad anónima, your will need to designate a board of directors composed of 3 members, a statutory auditor and a resident agent. All of these members may be foreign individuals, whith the exception of the resident agent which needs to be a Costa Rican attorney at law. If you are acquiring a sociedad de responsabilidad limitada you will only need to designate a general manager, which may be a foreign individual, and a resident agent which needs to be a Costa Rican attorney at law.

It is important that you or your attorney take the necessary steps in order to properly register the property, and more importantly, be assured that the property in question is free of all liens and encumbrances before buying property in Costa Rica. A title search at the National Registry would confirm good title and proper ownership. In the event that adjustments were made to any given title, these alterations must be recorded at the Registry. The Public Registry report (informe registral) provides detailed information on the property, including the name of the title holder, boundary lines, tax appraisal, liens, mortgages, recorded easements, and other recorded instruments that would affect title.

Ownership of real estate in Costa Rica by foreigners is fully guaranteed by the constitution. In addition, foreigners enjoy the same ownership rights as Costa Rican citizens, regardless of whether the property is placed in the name of a corporation or in the name of an individual. The only exception to the rule are the properties located in the Maritime Zone, which are owned by the government who grants concessions for their use in benefit of companies and individuals. This concessions may not be owned directly by foreigners and in case of ownership through a corporation, at least 51% of the stock of such corporation must be owned by Costa Ricans.

No, it is not necessary to have a residency to be able to buy property in Costa Rica. You can buy with your tourist status. Living here is another matter, as a foreigner and tourist you have to leave the country for 72 hours once every 3 months in order to renew your legal status in Costa Rica. Some of the foreigners without residency enjoy traveling and are visiting Nicaragua or Panama for some days or discover more of Central America in order to renew their visa.

There are many forms of residency available. we can help you to contact an attorney who can assist you in determining what residency status would work for you. If you plan on living here year round, you will find it easier if you have legal residency.

There are several ways to get a residency with a different status like “investor” or “retired”). We recommend consulting a lawyer regarding the residency.

There is a Maritime Zone composed of all the properties located within 200 meters form the high tide line. According to the Maritime Zone Law, the first 50 meters from the high tide mark are known as the “public zone” since they are destined for public use and may not be privately owned or used by anyone. The next 150 meters known as the “restricted zone” may be given in concession by the government. As an exception, there are some properties located within the “restricted zone” that were registered prior to 1973, , and as a consequence are titled and privately owned.

A concession is a type of lease granted by the local governments (municipalidades) to private individuals or corporations, with the approval of the I.C.T (Tourism Institute). These concessions normally run for a period of 20 years. At the moment of expiration, concessions can be renewed for a similar period of time. In the case of properties located in the Papagayo Peninsula, the concessions are granted directly by the I.C.T.

To legally lease concession property, the property must be subjected to a Plan Regulador (a type of zoning and approval plan). It is also required that you have a Costa Rican partner that owns part of the company that obtains it. A Costa Rican citizen is required to hold at least 51% of the corporation until the lease-concession is granted by the government. Most importantly, keep in mind that when you buy concession property you do not actually acquire title to the land, but rather the right to utilize it for a specified period of time.

An exception to the concession properties located inside the Maritime Zone is when the property was registered prior to 1973, in which case it has full title and can be transferred as such. No concession property can be converted to titled property.

Well, building is not easy, no matter where you are in the world. It is much easier to buy property already constructed. Costa Rica changed a lot within the past few years in terms of availability of good quality construction materials, reputable contractors and construction companies especially in more remote areas like on the beaches. An existing structure or an older home might not provide what is possible today. Let's put it this way, if you can't find what you are looking for out of the existing possibilities or you have to make too many compromises, we recommend that you think about building.

Fortunately, in Costa Rica there is a defined process through which an intelligent buyer and builder should proceed. In addition, there is a licensing body for architects and engineers, which also sets standards for fees should you decide to build.

The building costs are estimated per square meter and range between US$550 to US$1000 (and up) for a closed, good quality construction. This will include the walls, floors, windows, doors, roof, electric and plumbing. Excluding furniture, appliances and landscaping. These costs depend on the type and price of materials you use, construction style, the contractor you are using,the soil, the location and the area.

Beachfront Costa Rica will assist you in finding a reputable architect engineer or contractor. Based on our experience you will find easily the right company or person. You will make the final decision on examples that we can show you, depending on the style you like and the one you would like to work with.

This is a good question and is often asked after buying property in Costa Rica. If you have not bought a property within a complex like a condominium or gated community with administration on site, we recommend that you hire a caretaker, especially if it is a larger piece of vacant land and in more remote areas.

Beachfront Costa Rica can recommend you reliable people or services. We can also give you tips and hints depending on your individual situation and the type of the property.

If you still have some questions please don't hesitate to contact us, we will answer any questions about buying or selling property in Costa Rica as soon as possible.