Sombras
Can I buy property in Costa Rica?
Can I obtain title insurance?
What is the Public Registry of Properties?
What are folio real numbers and catastrals?
Is financing available?
Will I own my condo or is it a lease?
Can I buy a condo with other people?
Will I have to pay property taxes on my condo?
How are the closing costs figured?
Will I have to pay property taxes on my condo?
Can I rent my condo to other people?
Can I bring my own furniture and other large items to my condo in Costa Rica?
Can I retire in Costa Rica?
Do I need a visa to live in Costa Rica?
Can I bring my vehicle to Costa Rica?
Can I buy property in Costa Rica?
The decision to purchase real estate in a foreign country can at first be a daunting proposition. However, it is possible to safely buy property in Costa Rica with the assistance of a reputable realtor and attorney. Your realtor should be able to help you to locate property suitable to your needs, educate you as to property values and other considerations in your chosen area, and to assist you with negotiating a fair price. You should also use an attorney (Certified Public Notary) with a good reputation who can handle the financial aspects of the transaction and ensure that you will have legal title to your property.
It is possible to purchase real estate through direct transfer where one or more individuals acquire property in their personal name. Purchasing properties through a new or existing corporation is also very common in Costa Rica. The process of setting up a corporation is not complicated or expensive, but requires the expertise of your attorney to follow legal protocols involved.
Can I obtain title insurance?
Insurance is available in Costa Rica through well-known international companies such as Stewart Title and Fidelity Life.
What is the Public Registry of Properties?
All property in Costa Rica should be registered in the Public Registry of Properties, whether the property is fee simple or concession. By means of the Public Registry of Properties your attorney will be able to confirm that the seller possesses the ownership of the property, and to discern if there are any restrictions on the property before the deal goes through. Avoiding the purchase of unregistered property is strongly recommended.
What are folio real numbers and catastrals?
Each property registered in the Public Registry of Properties has a Folio Real number, which is the unique number assigned to each property to identify it. The number is comprised of three parts, the first number indicates the province, the second group of six numbers is the number of the property itself, and the last group indicates how many owners the property has. All properties must have this number in order for clear title to be obtained. Each registered property also has a survey plan, or Catastral. In order to transfer, mortgage, or acquire property, the survey plan must be recorded at the Public Registry of Properties.
Is financing available?
If you need to borrow funds, it is generally far simpler and interest rates are usually lower in you country. However, if your credit rating is impeccable, financing in Costa Rica may be available. Some banks, such as the Bank of Nova Scotia, offer financing to foreigners. Usually the bank will finance somewhere between 40 and 50% of the purchase.
Will I own my condo or is it a lease?
Yes, you will own your condo. No, it isn't a lease.
Each owner has a deeded interest and right in perpetuity to occupy their private condominium residence. Coupled with that interest is a membership in the Condominium Owner's Association and the right to use the common areas owned by the Association, such as the pool, spa and courtyard. You may use, rent, mortgage or sell your property or will it to your beneficiaries.
Can I buy a condo with other people?
Yes. There are many ways you can own condos: individually, in partnership with friends or relatives, or in combination with your company. Here are some examples:
- Suppose you have a group of friends with whom you enjoy vacationing. You could buy a condo in partnership and arrange between yourselves how you would like to share it.
- Suppose you own a company called My Enterprises. You could buy a condo owned 50 percent by you and 50 percent by My Enterprises. The 50 percent owned by My Enterprises could be used as an employee incentive and depreciated for an income tax benefit.
Will I have to pay property taxes on my condo?
In Costa Rica are very low, only 1/4 of 1% of the registered property value. Certain standard closing costs are required in Costa Rica to transfer the title of property from the seller to the buyer, and this is always paid by the buyer.
How are the closing costs figured?
Closing costs include: (1) Real Estate Transfer Tax, which is 1.5% of the registered value of the property on the deed; (2) Documentary Stamps, which total approximately 1.25% of the registered value; (3) The Notary Fee, which is 1.5% of the first million Colones and 1.25% on the balance of the property sales price. This menas on the purchase of a $100,000 property, closing costs would be approximately $4,250, and the property taxes $250 per year or lower.
Can I buy a condo as an investment?
Yes. The Guanacaste Penninsula area is becoming increasing popular as a tourist destination. As a result, property values have risen significantly in recent years. You can sell your condo at a future date and realize any financial gain that results from property appreciation.
Can I rent my condo to other people?
Yes. While Sombras does not provide rental services, you can arrange to rent your condo through a local real estate agent.
Can I bring my own furniture and other large items to my condo in Costa Rica?
Yes, you can arrange a one-time shipment of your belongings. It's important to make a full and accurate declaration of the items you are shipping, including new items on which you will be required to pay import duties. Shipping arrangements can be made in Costa Rica prior to shipping your belongings.
You can also buy furnishings in larger cities such as Liberia and San Jose.
Can I retire in Costa Rica?
Yes. An increasing number of people from the United States, Canada and Europe are choosing to retire in Costa Rica. To obtain your immigration status as a retiree takes a few days and costs approximately U.S. $500 if you hire a legal firm.
Do I need a visa to live in Costa Rica?
U.S. citizens do not need visa to visit Costa Rica and may stay up to 90 days. Please visit the following website for more information:
Can I bring my vehicle to Costa Rica?
Yes, you can bring your car with you. There are many respectable private moving companies to assist you with just this situation. Please visit this website to learn more.