Costa Rica Land for Sale FAQ’s
Can foreigners buy land in Costa Rica?
Yes, a foreigner has the same rights to own property in the country as local citizens do.
These ownership rights will always be guaranteed by the national Constitution.
And they apply in both cases where land or homes for sale in Costa Rica are under the name of a corporation or under your name.
Plus if you look very closely you will find out that most of the coastline in Costa Rica is foreign-owned.
So if you buy land with the purpose of buying a house in Costa Rica, then you can feel very confident and safe to know that you’re just adding value to your existing real estate portfolio holdings.
Factors to consider
First, you need to find a reliable source to get you in touch with an even more reliable seller, and that’s definitely us.
That’s because we have access to exclusive Costa Rica investment property that belongs to past and current clients and also to long-time associates.
Once we have found the perfect property for you, we begin with the traspaso.
And this is basically the title change of property that allows you to buy or build Costa Rica houses.
Good news for you as all you really need is an updated passport.
And we can put the Costa Rica real estate property under your name, or it can also be put under a corporation’s name.
Here at Finish Touch Enterprises, the best Costa Rica custom builders, we would definitely recommend you to go ahead and use the second option.
This is to incorporate. That way you get access to a bunch of features and tools that you wouldn’t have access to if you would add the property under your actual name.
Is buying property in Costa Rica a good investment?
No doubt, if you’re investing money you want to make a return.
And anything that can produce 8%+ it’s basically a no-brainer.
These are some of the reasons why we believe investment property in Costa Rica is the best idea:
- This country is a Tropical Paradise
- It’s completely safe and has the most stability in the region
- Property values remain the same even during recession times
- Part of the best international market
With this said it’s important that we find you a property base on what you actually want.
- Buy land in Costa Rica to build a home in Costa Rica for resale purposes
- Get Costa Rica land for sale to build a house in Costa Rica to offer it as a vacation rental
- Buy land for sale in Costa Rica to build your dream ex-pat home to retire in Paradise
And if you really want to invest your money wisely when it comes to Costa Rica land for sale you should go for beachfront lots.
Our Costa Rica Construction company works in the Guanacaste and the full Southern Pacific area.
And we know of exclusive properties that you can have access to so feel free to contact us right now for a free consultation.
Why are so many Americans flocking this country to buy Costa Rica land for Sale?
This is a beautiful and stable country with a prosperous economy.
It also features a nice tropical climate and the most gorgeous beaches and scenery you can think of.
Property is also very affordable, en enjoys fast appreciation.
Plus the local government encourages foreign investment and Costa Rica construction.
Do I need to use a broker or realtor to acquire property in Costa Rica?
When it comes to acquiring property in Costa Rica, using someone that knows about exclusive properties that are available and not always listed is definitely a premium choice
And you’re in luck because this is the case with Finish Touch Enterprises, the best Costa Rica construction company!
How is the title transferred?
When you buy a property in Costa Rica, the title is transferred from the person or corporation selling it to the person or the corporation buying it by executing an escritura or transfer deed.
And this must be done before a public notary.
Now, the role of the public notary in Costa Rica is different than the same role in the United States.
That’s because it’s not limited to just authenticating signatures as a notary here has a lot of power to act on behalf of the state.
Is important to consider that a notary in Costa Rica must also be an attorney.
This means that must know how to draft and interpret a legal document; just as he also must know how to certify the authenticity of documents.
Once the transfer deed or escritura has been accepted by the public registry, the original document will be returned properly stamped.
How much are the closing costs?
When it comes to real estate closing costs, the general custom in the country is for both the buyer and the seller to share the closing costs in an equal way.
This of course can always be out there when both parties come to an agreement.
Closing costs include the notary fees, the land transfer tax, legal fees, and other additional fees.
How much are property taxes in Costa Rica?
When you compare the property tax that you need to pay in the USA, the property taxes or the municipal tax are very low.
As this is a tax that is applied by each municipality, it varies throughout the country.
The municipal tax must be paid on a quarterly period.
The amount that you need to pay will be based on factors such as the location and the property type.
Now, it’s also important to notice that this tax is based on the actual declared value of the real estate property.
Are foreign buyers forced to pay capital gains tax in two countries, Costa Rica and their native country?
Well let’s start with a great incentive: Costa Rica has no capital gains tax.
The local government is not going to tax property owners when they sell a property just as long as this is not undertaken as a means of business.
With that said, a foreign buyer is obligated to pay taxes when he declares any earnings that are being returned to the country of origin.
Who is paying for the sales commission?
This is typically paid by the owner of the seller to the broker or realtor that’s closing the deal for Costa Rica land for sale.
With that said, the person or corporation buying land for sale in Costa Rica doesn’t have to pay any commissions; unless he specifically agrees to do this.
How can a foreign buyer ensure that he really has clear title to the land for sale in Costa Rica?
In this case, you must visit the Registro de la Propiedad or Property Registry, which is the government office in charge of these documents.
Once there, you can do a title search, to make sure that Costa Rica land for sale you’re interested in is free of all liens; allowing you to proceed with the proper registration.
The informe registral, or Public Registry report includes very detailed data about the land for sale in Costa Rica.
- Name of the current title holder
- Boundary lines
- Tax appraisal
- Recorded easements
- Other recorded instruments that might affect the title
Do foreigners need a Costa Rica address to purchase land for sale in Costa Rica?
Not at all. You don’t have to be a resident to buy Costa Rica land for sale.
In fact, all you actually need is your tourist status visa.
With that said, if you’re also interested in Costa Rica homes for sale as you want to stay in the country, all you’ll need to do is to leave CR for 72 hours and return.
A lot of ex-pats just leave for bordering countries Panama or Nicaragua, and then make the trip back home.
What are the regulations regarding Costa Rica beachfront property?
If you’re interested in the property located on the coast, you should be aware of the following:
Building a home in Costa Rica located in the coastal areas falls under the “Maritime Zone Law” category.
And these are the first two hundred meters of land measured exactly from the high tide line.
So, the first fifty meters can’t be built on because this is a public area.
From that point, the next 150 meters you can actually build on.
When you get a property under this category, you’re basically getting land leased by a concession from the local municipality.