Real Estate
Real estate discussions around the world constantly feature mentions
of Costa Rica’s advantageous real estate opportunities. Hopefully
we will explain the benefits of Costa Rica and why Costa Rican real
estate is so diverse, safe and lucrative.
Costa Rica is a country of microclimates and extremely distinct
regions. Almost unbelievably, most of these diverse regions are
extremely appealing to many individuals.
While some love Costa Rican beaches, others are attracted to the
cooler climates and nightlife of the Central Valley. Yet others
come to Costa Rica for natural wonders such as tropical forests,
volcanoes and waterfalls, and still others are attracted to the
island lifestyle enjoyed on the Caribbean Coast.
Major businesses are attracted by Costa Rica’s investor friendly
laws and government. A signer of CAFTA, Costa Rica is committed
to protecting investors’ rights and ensuring future free commerce.
Also, property taxes in Costa Rica rarely exceed 1% (very few beachfront
properties are subject to a different tax structure), and most properties
are usually subject to an annual .25% tax. When compared to tax
levels in vacation and retirement hot spots around the world, it
is no surprise that Costa Rica is booming.
While some areas have already seen double digit yearly value increases
over the past 5 years, Costa Rica still has immense tracts of virgin
land where the boom is only just beginning.
Costa Rican constitutional law ensures that all, citizens and foreigners,
have the right to own real estate in Costa Rica. While some foreigners
choose to own property in their own name, it is very common to open
a corporation and purchase property, with a lawyers help, in their
corporations name.
All foreigners should remember that Costa Rica does have squatter’s
rights, and landowners should always have someone go to their property
once every six months. While a corporation will do nothing to help
with squatter issues, it still may be very beneficial for foreign
investors.
Having a corporation with shares allows for easy transfer of property
ownership. Also, transferring your shares of a corporation, when
selling a property, is an easy way to ensure that you will not be
paying property transfer taxes. Finally, paying corporate taxes
on your property in Costa Rica may be cheaper than paying personal
income or gains tax on the property.
Costa Rica Real Estate Trends
A Panorama - By Thomas
A. Burke
Buying a Business in Costa
Rica - By Thomas A. Burke
Buying? Building? Here is
what you need to know - By Roger Petersen
Estate Planning in Costa Rica
- By Thomas A. Burke
Legal Tips, Tricks, and Traps
in Costa Rican Real Estate - By Thomas A. Burke-Maessen
Property Rights
and Foreign Investment in Costa Rica - Marie C. Wold provides
information about beachfront property, squatter issues and expropriation
risks.
Protecting Your Property Rights
- By Juan José Lao Martin
Purchasing Real Estate in
Costa Rica - Alvaro Carballo Pinto provides details of the real
estate purchase process in Costa Rica. [1994]
Reform of
Property Registration Systems - An in-depth report on structure,
organization, functions and operations. [December 1999, Adobe Acrobat
document]
Transactions and Financing
in Costa Rica - Roger Petersen introduces the reader to legal
aspects related to property ownership. [1998]
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