Buying Real Estate in Costa Rica

People from all nationalities are trooping to Costa Rica as the real estate business in the country is thriving. For the person that has their thoughts geared towards investing in Costa Rica real estate, the options abound. One can either buy land, houses, and condominiums for residential uses or buy hotels, resorts and vacation rentals for commercial purposes. They can buy these properties on the mainland or near beaches. Much as there are plenty of choices, land that is fifty meters from the high tide in beach properties is off limits for investors as it is public land. Land within two kilometers from the national frontiers cannot be purchased by foreigners as well.

Some people who go into Costa Rica estate investment usually buy their property from agents or from other people with the help of agents. Others go to the internet and find out what is available for sale, then go out and buy the property from the owner or from agencies. After the acquisition of the property, there is usually property transfer between the seller and the buyer. A tax of 1.5% is usually charged when transferring takes place. This tax combined with the total government tax and stamp and registration fees usually amounts to 3.5% of the property’s registered value. When a legal fee, which is 2% of the selling price of the property, is added to these costs, the total cost amounts to 5.5%. In Costa Rica real estate transactions, the legal and transfer costs are usually shared between the seller and buyer.

Proper registration of the property one has bought is very important when one buys real estate in Costa Rica as simply having the deed does not prove that they own the property. Not having registration for one’s property may expose one to con artists who might sell the same property to different people. Proper knowledge of the laws that relate to Costa Rica ocean front real estate as well as the general real estate business can help one have a smooth transaction and safe guard their property