Flamingo Property Costa Rica

US citizens are allowed to own property in Costa Rica. In fact, with minor exceptions for specific properties, foreigners have the same rights as Costa Ricans when it comes to owning property.

All foreigners may own property in Costa Rica. In virtually all situations, foreigners have the same rights as Costa Ricans regarding the ownership of property.

Generally, there are no limitations. However, when acquiring property between 50 and 200 meters of the high tide line on a beach, in what is considered the maritime zone, a Costa Rican national may be required.

Our beachfront land in Flamingo is one of only 5% in the country that is titled to the 50-meter line.

The purchase process in Costa Rica is not complicated.

1. Once you and your real estate agent have found a property. Submit a Letter of Intent, which is basically an offer to purchase to the seller.
   
   
2. Once the offer is accepted, a Costa Rican real estate attorney will draft a legally binding agreement for the sale and purchase of the property that stipulates all the conditions for the transfer of the deed. 
   
   
3. There is a period of Due Diligence to complete legal research of the property to ensure the title is free of liens and legal issues, complete home inspections, surveys, soil studies, etc. 
   
   
4. A Costa Rican Notary Public will oversee the Closing and register the property to the new owner and if applicable, changes will make changes in the National Registry.
   
   
5. The new property must be declared in the corresponding municipality for tax purposes.

Absolutely. The real estate market is booming and many people from the United States and Canada purchase a home or land in Costa Rica. This incredible Central American country is peaceful with one of the most stable governments in Latin America. Tourists from around the world visit to experience its natural beauty. This continuous influx of tourism presents tremendous commercial and residential investment opportunities. Many, buy a home and use it as a vacation rental to finance the purchase and upkeep so it serves as a future retirement home.

Buying land or a home can be risky anywhere. However, Costa Rica’s laws are very protective of an owner’s land. However, a real estate transaction can be a significant purchase and you should always do your due diligence as well as work with an experienced real estate agent to help you through the purchasing process.

The country has a healthy property market with an abundance of wonderful places where you can find homes or land. However, choosing where to buy, comes down to personal preference. Do you prefer remote areas away from cities, loud noises, and surrounded by nature? Do you love coastal communities with the sun and ocean of the beach? Do you prefer the convenience of the city in the central valley with easy access to grocery stores, banks, schools, hospitals, etc.?

Before making a purchase, make sure you visit and tour the neighborhoods and cities so you can get to know your surroundings.

Annual property taxes are calculated at a rate of 0.25% of the registered value. Luxury homes will also incur a luxury home tax that changes slightly every year. You can check with your lawyer whether your property will have to pay this additional tax.

Closing costs can vary slightly but are typically about 3.5% – 4.5% of the real estate purchase price.

A good reputable lawyer will investigate the property to its original owner regardless of how many times it’s changed hands. Furthermore, they do this more affordably than title insurance companies. It’s for this reason that title insurance companies closed their operations many years ago.

Money transfers larger than $10,000 go through SUGEF. SUGEF is essentially a banking and financial regulatory department. They ensure that your funds are protected while in the due diligence phase of the contract. We work with several reputable escrow companies and would be happy to recommend one to you.

This varies depending on the materials and finishes you use to build. However, a rough estimate is about $1,200 per square meter. In addition to materials, this cost can also increase for landscaping or implementing a swimming pool. We work with some of the best construction companies in the country and can recommend one depending on where and what you’d like to build.