A Guide To Costa Rica Real Estate

A wonderful mix of nature and culture, Costa Rica appeals to many foreigners seeking to relocate on retirement or just looking for a vacation home. Unlike most other countries, you don’t have to be a resident of Costa Rica to own property e, and foreigners have the same ownership rights as citizens of Costa Rica. The constitution fully guarantees ownership of real estate so any purchase is completely safe.

Compared to real estate prices in U.S.A. and Canada, property rates in Costa Rica are a bargain, and transactions can be conducted in U.S. dollars. Though prices vary according to location and amenities, a decent home can be purchased for around $50,000, with financing options. A small house with a garden in a respectable neighborhood can cost $100,000. A farm of 100 acres or so will cost $100,000-200,000. The cost of building your own home will range $300 to $600 per square meter. Other expenses will include real estate taxes, land taxes and stamp duties at about 6% of the total investment, notary fees and a lawyer’s closing fee of about 1.5%. Usually property in Costa Rica is registered at a figure far lower than its actual sale price and all taxes and fees are a percentage of the reduced price!

The services of a reliable attorney are essential to ensure that the purchase of real estate goes smoothly and according to government regulations. The Registro Publico (Public Registry) will provide all relevant information including the name of the title-holder, boundary lines, tax appraisal, and mortgages. A Transfer Deed must be signed by the buyer and seller in the presence of an attorney, who will register the sale at the Registro Publico.

Zoning laws must be taken into consideration when buying real estate in Costa Rica. The country has very strict rules regarding the development of ocean front property. According to law, everybody has a right to use the beaches and the first 50 meters above the mean high tide line are deemed to be public land. Along a major portion of the coastline, 150 meters after the 50 first meters are designated as a Maritime Zone controlled by the government. Only foreigners who have resided in Costa Rica for at least five years can own more than 49% of a lease in the area.

Many Americans and Canadians have bought homes in Costa Rica and enjoy spending their winters in the infinitely more salubrious climate.