Let's Clear Things Up

Costa Rica is an increasingly popular investment destination for a number of reasons. From its Pura Vida lifestyle to its stable political climate, from its stunning natural beauty to its commitment to sustainability, Costa Rica offers investors a unique and attractive set of opportunities. Whether you're interested in vacation rentals, a new lifestyle, or other forms of investment, there's something for everyone in this tropical paradise. So why not consider making your next investment in Costa Rica? With its strong economy, low crime rate, and natural beauty, it's definitely worth a closer look.

When buying for investment, our properties offer high rental potential, good location, and essential amenities. Choose properties that can serve as vacation rentals or future retirement but don't lose sight of personal use. Ensure to build in order to meet your standards and needs.

Yes, foreigners have the option to own property in Costa Rica, either under their individual personal names with their passport, or through a corporation. When it comes to regular property purchases in Costa Rica foreigners face minimal requirements, usually only needing a valid visa for Costa Rica.

Usually the parties sign a pre-contract, outlining the terms to be expected from both ends. Once the terms are met, the parties formalize the pre contract with a contract executed by a Notary Public, and the document is registered at the National Registry.

Yes, owned. Complete title is transferred to your corporation.

It requires a notary public.

At the Public Registry, a public database that serves as the ledger for property ownership.

Using an SPV can provide further advantages when it comes to property ownership. An SPV is a separate entity created solely for a specific purpose, such as holding and managing real estate. This is particularly useful when you need someone else to make decisions on your behalf, for example, when you are absent from the country.

These are: (1). Transfer Taxes, stamps and legal fees for Notarization of Title Deed – this is set by law. Transfer taxes are 1.5%. Legal Fees for notarization of the transfer deed will be between 1% and 1.5% depending on the value of the transaction. Normally you would expect that the transfer taxes, stamps and the notarization of the deed will come out to just under 4 to 4.5% of the value of the purchase. (2). Legal Due Diligence – normally the lawyer will include the costs of the due diligence in the above fees. However, for smaller transactions they sometimes add on additional fees. (3). Survey of Land – approximately $500 to $1500 + 13% sales tax (4). House Inspection – approximately $650 to $1000 + 13% sales tax (5). Any other due diligence that the buyer requires – this could include a quality or pump test of a well, a soil test, or anything else that the buyer wants to check on. (6). Escrow fees – these depend on the purchase value but can be anywhere from $400 to $1,200. (7). Set up a corporation – if you decide to own the property in the name of a corporation, your lawyer will charge you anywhere from $750 to $1,500 to set this up.

These are as follows: **Land Use permits to build a house** • Purpose: Determines the allowed use of the land (residential, commercial, industrial, mixed-use). • Authority: Municipality • Process: Submit a request to the local municipality with property documents. Municipality reviews zoning regulations and provides a resolution indicating permissible land use. **Environmental Viability permits to build in Costa Rica** • Purpose: Ensures the project complies with environmental regulations and assesses its environmental impact. • Authority: National Environmental Technical Secretariat (SETENA) • Process: Submit an Environmental Impact Assessment (EIA) to SETENA, prepared by a licensed environmental consultant. SETENA reviews the EIA and may request additional information or modifications. If approved, SETENA issues a Certificate of Environmental Viability. **Water Availability for construction** • Purpose: Confirms that there is sufficient water supply for the project. • Authority: Local water provider (municipal or ASADA) • Process: Request a water availability certificate from the local water provider. Provider assesses the availability and issues a certificate if adequate water supply is confirmed. **Technical Approval to build a house in Costa Rica** • Purpose: Ensures the project meets technical and safety standards. • Authority: Colegio Federado de Ingenieros y de Arquitectos (CFIA) through the APC system. • Process: Submit project plans and specifications prepared by licensed architects and engineers to the CFIA. CFIA reviews and approves the technical aspects of the project. **Construction Permit to build** • Purpose: Grants permission to begin construction based on compliance with municipal regulations and building codes. • Authority: Municipality • Process: Submit the approved technical plans, land use resolution, environmental viability certificate, water availability certificate, and other relevant documents to the municipality. Municipality reviews the submission for compliance with local building codes and regulations. If approved, the municipality issues the construction permit. **Additional Permits (if applicable)** • Fire Department Approval: Required for ensuring fire safety standards are met. • Electrical Permits: Required for projects needing significant electrical installations.

Buying property in Costa Rica opens the door to obtaining residency or investor status. In fact, Costa Rica offers a welcoming environment for foreign citizens looking to invest. Whether you choose to invest through a company or as an individual owner, the process remains open and accessible. Currently, there is a minimum investment threshold that applicants must meet of $150,000. Once you acquire the property, you can then take the necessary steps to apply for legal residency.

Obtaining an investor status or residency by buying property in Costa Rica is possible. The acquisition of a property of at least one-hundred and fifty thousand dollars in Costa Rica will allow you to opt for the resident investor visa category. This makes purchasing or investing in land in the country very attractive to international buyers. The process begins after the property in question is already in the buyer's name or the buyer's company's name. Once that procedure is concluded, an independent legal process begins before the Costa Rican immigration authorities. The objective of this is to file for a residency status. Obtaining a residency visa by buying property in Costa Rica will take anywhere from 6 to 8 months. This depends on factors such as specific requirements and the authority's work load. The residence status will allow expats the freedom to do almost anything that a Costa Rican citizen can.

Take into account: 1. **Documentation**: Ensure you have the necessary documents: – **Identification**: A valid passport or residency card. – **Proof of Income**: Some sellers may require proof of income or financial stability. 2. **Legal Aspects**: – **Transfer of Ownership**: You'll need to complete a transfer of ownership at the Public Registry (Registro Nacional) and pay a small fee. – **Vehicle Inspection**: A vehicle must pass a technical inspection (RITEVE) to be registered. 3. **Insurance**: It's mandatory to have at least basic insurance (SOA – Seguro Obligatorio de Accidentes de Tránsito) for any vehicle in Costa Rica. You can shop around for additional coverage as needed. 4. **Driving Rules**: Familiarize yourself with local driving laws, road conditions, and customs, as they can be quite different from those in other countries. Your driver license is valid for a period of 3 months for non resident visitors.

Yes. Options are as follows: 1. **Public Health Insurance (Caja)**: – Costa Rica has a public healthcare system called the Caja Costarricense de Seguro Social (CCSS), which provides access to medical services for residents and citizens. – If you become a resident, you'll need to enroll and pay monthly contributions based on your income. This gives you access to public hospitals and clinics. 2. **Private Health Insurance**: – Many expats choose private health insurance for quicker access to services and private hospitals. – There are various providers, including local and international companies, offering different plans and coverage levels. Popular options include INS, Blue Cross Blue Shield, Panamerican, BMI among others. 3. **Cost Considerations**: – Public insurance is generally more affordable but may have longer wait times for certain procedures. – Private insurance can be more expensive but often provides better facilities and shorter wait times. 4. **Healthcare Facilities**: – Costa Rica has a mix of public and private hospitals and clinics. Major cities have more options, while smaller towns like Santa Teresa have limited facilities. 5. **Travel Insurance**: – If you're visiting temporarily, consider travel insurance that covers health emergencies. This can be useful for tourists and short-term visitors.