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.


Perspectives

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 Prices in Costa Rica - Prices of homes and condos. [January 2000 through June 2005]

Property Rights and Foreign Investment in Costa Rica - Includes information about beachfront property, squatter issues and expropriation risks.

Protecting Your Property Rights - By Juan José Lao Martin

Purchasing Real Estate in Costa Rica - 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 - Introduces the reader to legal aspects related to property ownership. [1998]


Real Estate Web Sites

MLS Costa Rica - Features real estate listings organized by property type and country regions.

Costa Rica, come visit and stay!