Costa Rica Real Estate News – There are a number of common questions regarding buying and owning Costa Rican real estate. You will need to hire your own personal real estate lawyer to be by your side when going through either the purchase or sale of a property in Costa Rica to make sure all T’s are crossed an I’s dotted.
Is it advisable to participate in a partnership or limited partnership? It’s not recommended to go into business with anyone you don’t know. The best bet is to buy real estate in your own name or in that of your own company. The main reason is to be able to easily sell your investment at the time of your choice and in the way you prefer.
Is it necessary to visit the country before buying an investment property? Even if you don’t intend to live on the property you should be there to physically see it before purchasing. Take a look around the neighborhood to see whether potential tenants will feel safe renting there. Being in the country also allows you to meet face to face with multiple lawyers and find one you are comfortable with.
How can I make sure the title is clearly in my name? A Notary Public is involved in all real estate transactions. It is his or her job to do a title check and your responsibility to make sure he or she does it. Never take anyone’s word. Have him or her give you the official documents.
What closing costs are involved in Costa Rica? All closing costs together add up to 3.785% of the sale price. These fees include the property registry, agrarian tax, treasury department tax, municipality tax, lawyer’s association fees, and Costa Rican National Archive fees.
How long should it take to be the official owner? It takes around one month to be registered with the Real Estate Property Registry.
What’s the property tax in Costa Rica? The value of your land will be reevaluated every 5 years and the taxes are to be paid quarterly or annually. The maximum amount that can be charged is 0.25% of the property value. Municipalities can foreclose your property if you don’t pay the taxes.
How can I sell my Costa Rican property? Because you are the sole owner you can sell at any time. You may choose to list with a local Realtor or in international news sources.
Buying real estate in Costa Rica is a process and the decision to put money on a property should not be made overnight. If that sales person says that this deal will not last they are most likely just using sales techniques to put a sense of urgency into your mind…….take your time and be careful.