Costa Rica Homes for Sale frequently asked questions
These are the most frequently asked questions related to homes for sale in Costa Rica:
Can a US citizen buy a house in Costa Rica?
What is the average cost of a home in Costa Rica?
You can buy a house in Costa Rica for a variety of prices, depending on your needs. You can build a house in Costa Rica with Finish Touch Enterprises starting at $115,000 for an economic yet beautiful starter design.
We also have Costa Rica houses for sale that can be fully customized for the perfect ex-pat lifestyle starting at $200,000. Build a home in Costa Rica and turn it into a profitable investment property, starting at $400,000.
Is it cheap to live in Costa Rica?
The average cost of living in Costa Rica is less than $2,000 USD per month. And, if when buying a house in Costa Rica, you pay in full, you can spend even less, because there are no housing costs associated with your monthly expenditures.
We can also help you build a home with windows located at special spots that allow for the natural flow of wind and sunlight, saving you money in electrical bills.
Is real estate expensive in Costa Rica?
It is far less expensive to live here and buy Costa Rica real estate than destinations such as Hawaii. And this is also one of the most politically stable countries in the Latin American region right now.
How much is the average rent in Costa Rica
Finish Touch Enterprises can build the perfect Costa Rica investment property so that you can earn as much as possible by renting it monthly to foreigners; or by offering it as a vacation rental at Airbnb Costa Rica.
You can expect a high ROI when you work with experienced Costa Rica custom builders.
Should I invest in Costa Rica real estate?
The quick answer is YES. This is a country where properties enjoy high, continuous appreciation.
Property taxes are very reasonable, and you can buy using just your tourist visa.
In fact, most of the coastal areas in the country are foreign-owned. And Costa Rica definitely encourages foreign investment.
Is now a good time to buy in Costa Rica?
You can sell high back at home and buy the same or a better quality home for half the price.
But, if you really want to get the best results, buying a house in Costa Rica that’s second-hand it’s not so much as good an option as to build one from zero to hero. And that’s exactly how our Costa Rica construction company can do for you.
Are taxes high in Costa Rica?
As an American citizen, you still need to file US taxes after moving to Costa Rica.
The reason is that the United States works with a citizenship-based tax system, instead of a residence-based tax system.
So, if you’re living in Costa Rica, you need to file a US tax return, that is if your global income exceeds minimum IRS thresholds, and for 2020 these are the following:
- Any income: $12,400 of
- Self-employment income: $400
- Americans married but filing separately to a foreigner: $5
Do ex-pats pay taxes in Costa Rica?
Yes, both locals and non-residents must pay taxes based on the current income that’s reported as earned within the country. The income that a foreign citizen obtains from offshore sources is not subject to Costa Rican taxes.
How much is property tax in Costa Rica?
The taxable value of the property in Costa Rica is 0.25% annually. And for a new homeowner, that value is the actual purchase price. You can pay these taxes in 4 installments: March, June, September, and December.
Is Costa Rica still a good place to retire?
Costa Rica is currently one of the best places to retire in the world. This is a very peaceful and affordable country, and natural beauty abound. In fact, Costa Rica has been one of the favorite destinations for American ex-pats searching to retire overseas for the past 40 years.
Is retirement income taxed in Costa Rica?
NO! You don’t have to pay any taxes on your Social Security income, investment property income, pension, etc. And, if you have a business abroad or work as a freelancer, you don’t have to pay income tax either.
What is required to move to Costa Rica?
If you’re looking to live in Costa Rica long-term, there are several visa options available, mainly the Rentista and the Pensionando programs.
First, the Rentista program requires proof of monthly income of $2500 for 2 years minimum, or a $60,000 deposit into a local bank. The latter, the Pensionado program requires proof of monthly income of $1000 from a pension source.
Where do most American ex-pats live in Costa Rica?
The simple answer is:
- Central Pacific coast
- Southern Pacific coast
And we have offices in both areas: Our main offices are situated in Jaco (covering Central and Southern Pacific), and we also have a second office in Playas del Coco (covering all the province).
Costa Rica Land for Sale Frequently Asked Questions
Can foreigners buy land in Costa Rica?
Yes, a foreign citizen has the same rights to buy and sell real estate property just as locals do. And these rights are guaranteed by the national constitution.
And they apply for properties that are under a person’s name or a corporation. So, buying land in Costa Rica will definitely add a lot of value to your current investment property portfolio holding.
Why are so many Americans buying Costa Rica land for Sale?
The simple answer is: Costa Rica is a beautiful country that offers stability and its economy is currently on the rise, with a lot of infrastructure investment.
The country also features a nice tropical climate that most Americans can appreciate, making the perfect choice for your second home.
And last but not least, the country has the most gorgeous beaches, perfect for both the person that wants to take the sun and read a book; and for those looking to do some extreme sports such as surfing.
Let’s also not forget the fact investment property is very affordable, and will definitely enjoy fast appreciation.
And let’s also mention that the local government encourages foreigners to come and stay for good in the country, or to buy local real estate as an investment property.
Is buying property in Costa Rica a good investment?
Yes, buying Costa Rica land for sale to build a home is a great investment. In fact, anything that can produce 8%+ it’s a no-brainer.
These are the reasons to invest in Costa Rica land for sale and Costa Rica Construction:
- Costa Rica is a beautiful, tropical paradise
- The country is currently one of the most politically stable ones in the region
- What’s best, property values tend to remain stable even in recession periods
- Costa Rica is part of the best international real estate market
With that on the side, it’s key that we can find you the best piece of Costa Rica land for sale that adjusts to what you actually require. For example:
- Buying Costa Rica land for sale to build a house to resell it
- To buy land for sale in Costa Rica to build a home to offer it as a vacation rental
- Buy Costa Rica land for sale to build your dream ex-pat home
Now, if you really want the best ROI, you need to invest in Costa Rica beachfront lots.
What’s great is that this is our specialty here at Finish Touch Enterprises as we have access to exclusive lots from past clients and our local contacts.
What do I need to buy Costa Rica land for sale?
First, find a reliable source that can get you access to exclusive properties. And that is definitely us. The reason is that we have the right contacts to get you the right property where we can build the home of your dreams for you.
What is the Traspaso or Escritura?
Once you find the perfect piece of Costa Rica land for sale, then we need to begin with the Traspaso or escritura.
The traspaso is the title change of property, and with this in hand, you have the right to buy or build Costa Rica houses.
How is the title transferred?
Once you’re satisfied and you’re ready to buy land for sale in Costa Rica, the title change of property must be executed using the traspaso or escritura.
This is for the full registration of the property.
This is a document that must be elaborated with the collaboration of a public notary.
This can be any lawyer as all of these professionals are also public notaries in Costa Rica.
Once the escritura or transfer deed has been evaluated and properly accepted by the public registry, then the original document will be fully stamped and validated.
How much are property taxes in Costa Rica?
When compared to the USA, the property tax or municipal tax in Costa Rica is very low.
As the tax is handed by each local municipality, the actual amount will vary from town to town and will be based on the property type and the declared value of the property. This is a tax that you must pay on a quarterly period
Do foreigners in Costa Rica pay taxes here and in the United States?
Here’s a great incentive that will encourage you to buy Costa Rica land for sale right now: Costa Rica has no capital gains tax.
The local government will not tax you when you sell a property unless this is undertaken as a means of business.
And, it’s also important to mention that you, as a foreign buyer are obligated to declare any profits that you are returning to your country of origin.
Who pays for the sales commission?
In this case, it can be either the seller or the buyer who pays this commission to the realtor or broker that closed the deal for the land for sale in Costa Rica.
With that said, the corporation or person that’s buying Costa Rica land for sale doesn’t have to pay any commissions unless he agrees to do so.
How can a foreign citizen make sure he really has clear title to the Costa Rica land for sale?
What you must do is pay a visit to the property registry or Registro de la Propiedad. This is the government department that can help you with the proper documentation.
Once you’re there, you must do a title search. This way you ensure that the land for sale in Costa Rica you want to buy is completely free of liens, allowing you to register the property the right way.
What’s great about the report you get from the Registro is that you get all the possible details related to that property, including:
- The name of the current title holder
- Tax appraisal
- Boundary lines
- Recorded easements
- Different recorded instruments that can affect the title of the property
What documents do I need to buy land in Costa Rica?
What’s great about this country is that all you need to buy Costa Rica land for sale is your updated passport, that’s it!
And you can buy under your personal name, or you can create a corporation, and buy Costa Rica houses for sale this way.
We encourage the second option because owning property in Costa Rica under a corporation gives you more flexibility and access to different legal tools.
Do foreigners need a Costa Rica address to buy Costa Rica land?
No, you really don’t have to be a Costa Rica resident to buy land here. All you need to do is to leave the country every 3 months so that your tourist status visa gets renovated.
And a lot of foreign citizens do this by visiting neighboring Panama or Nicaragua for 72 hours to then return home.
What are the regulations regarding Costa Rica beachfront property?
If you want to buy a Costa Rica beachfront lot, you must be aware of the fact that this particular land is regulated by the Maritime Zone Law. These are the first 200 meters measured from the high tide line.
The first 50 meters are not available as this is public beach/land. The following 150 meters can be acquired under a concession. And this is basically a long-term lease by the local municipality.