Owning a property in Costa Rica entails constant supervision and active participation in the process. There are regulations imposed in the country’s Terrestrial Maritime Zone. In the U.S., zoning restrictions and purchase agreements are properly created and that’s why it is easier to acquire land there than in Costa Rica. However, these comparisons must not discourage your from acquiring property in Costa Rica because after all, you are living in a Latin American paradise.

In recent years, the Costa Rican government allowed foreign individuals great benefits, especially those who want to become legal residents of the country. The real estate boom only added the attractiveness of the country known for its beautiful beaches and friendly people. 

Purchasing Property

It is very important to go through proper registration when purchasing real estate in Costa Rica. There may be instances that the individual may have the title bearing his or her name but it may be found out under close scrutiny that the property had been sold a number of times, which means that several people have the right to own the land. This is an incident you should avoid. You need to hire a competent lawyer and real estate agent in order to make sure that no legal problems will arise. Please visit our Costa Rica real estate listings.

The country does have a civil law type of system rather than the common law system. This means that the former is much stricter and that can be seen on the processes being required of the buyer and seller to undergo once an agreement has been set into place.

All titled properties are registered at the Registro Publico (or Public Registry). It is a safe bet to go to this office to do the title search and determine if the land is free of any encumbrances and other liens. If a problem is encountered, then you can then decide not to proceed with the transaction before any documents and agreement will be made. 

It is therefore stressed to compare the information provided to you by the property seller and the information registered in the Public Registry. Two documents will legally define a legitimate property. These are escritura, a titled document that describes in detail how the property is placed with the registry. The second one is called a catastro map, a plotted survey of the documented property on file. The discrepancies take place if the local government failed to update its records on the latest survey made since most of the documents immediately proceed to the national agency. 

Hire an attorney

You need to get a reputable and competent attorney to take care of the legalities of the transaction. It cuts down the processing time because the attorney specializing in these transactions is already familiar with everything. This doesn’t mean, however, that you will entrust everything to the lawyer. You need to be familiar with everything as well so as not to be taken advantage when the time comes.

You need to make sure you get the following documents before the closing of the deal takes place. These are tax receipt copies and the municipal authority certificate from the local government where your land is situated.

Choosing property in Costa Rica

Foreigners are sometimes left with the choice but to choose between buying a property that already has a structure (house) or just a plotted land. If a structure has already been built, there may be other documents needed to be produced on the part of the seller, such as the utility bills and taxes that have been paid off.

If you are set to build a new structure on the property, you need to secure a construction permit and must also hire an architect that has a valid license issued by Costa Rican Association of Engineers and Architects. The architect’s fee may be expensive, but it will pay off in the long run because you are assured of the quality of the structure. It also pays to ask for professional advice as to what is the ideal structure to be built on the property. 

Establish legal residency first

If you want to live in Costa Rica for a extended period of time, it is logical to establish legal residency. Assuming that you really love living in this Latin American paradise, it’s not so bad at all. 

It can be easy to acquire residency in Costa Rica provided that you fall under the following categories: a.) pensioner, b.) a foreign individual with guaranteed income, c.) investor, d.) relative of Costa Rican resident and e.) an individual assigned in the country as part of international mission or foreign government assignment. You can refer with your attorney as to what would be the best program to avail. Here’s some of the useful information for each category:

• Pensioner: You must receive a pension amount of a minimum of $600 a month from a recognized retirement account or pension (like Social Security). Also, you must live in Costa Rica for at least 4 months in a given year.

• Person with guaranteed income: You must earn at least $1,000 a month and must have for the last five years. You must live in Costa Rica for at least 6 months in a given year.

• Investor: A foreign investor must at least invest a minimum of $50,000 in projects such as exports, tourism or reforestation. For other projects or businesses it must be $200,000 or more. Foreign investors must also stay in Costa Rica for at least 6 months in a given year

• Having a Costa Rican relative or being assigned for an international mission: Residency is easier to acquire for these foreigners because circumstances are special. However, several documents are needed to be presented. 

For both pensioners and those with guaranteed income, paying taxes is not required if the money received came from outside of the country. However, if there’s money earned within the country then that amount is taxable.