The Law and Investing In Costa Rica Real Estate

Even though you may be tempted to run and start investing in Costa Rica real estate since the property is low in price and promises a high return, there are a few things you should know before you actually purchase Costa Rica real estate. The law in Costa Rica can get very complicated, especially if you are a foreign investor or contemplating simply investing in Costa Rica real estate for your retirement. However, if you hire the chief ingredients, a lawyer and a real estate agent, then you will find investing in Costa Rica real estate to be much simpler and much safer.

A key law you need to be aware of is the Squatter’s Law when you finalize any Costa Rica real estate deal. The reason for this is that investing in Costa Rica real estate can get tricky if you do not reside in the country directly after your purchase because there are laws to protect squatters and allow them access to your land. Generally, you have three months to clear any squatters off your land by calling the police (but even they will not take you seriously if you are not in Costa Rica) and then they can file to the rights of your land they have been living off of.

Unfortunately, the courts will protect the squatter’s rights instead of yours. Therefore, you need to make sure if you are going to be investing in Costa Rica real estate that either you will be on the property physically to protect all your holdings, or that you have somebody trustworthy appointed to do this for you.

The other main law you need to be aware of when investing in Costa Rica real estate is that if there are unpaid tax liens the deal will not close and you will lose your deposit. This is where you need to have a lawyer and real estate agent to protect your interests when investing in Costa Rica real estate.