Why buy in Costa Rica?
Costa Rica is rapidly becoming one of the most popular locations for those looking to retire or relocate in Latin America. Each year, thousands of Americans, Canadians and Europeans make the move to Costa Rica to enjoy the easy pace of life, low cost of living and warm climate.
Costa Rica is also a very popular retirement and investment destination for its stability. Costa Rica offers a very stable economy which depends largely on tourism, agriculture, and electronics Trees on a hillside overlooking Lake Arenal in the mountains of Costa Rica.exports. The government of Costa Rica is a democratic republic and very stable by regional standards. Lastly, Costa Rica has no formal military and is seldom involved in disputes with other nations.
As you can see, the word that best describes Costa Rica is stable. Stability in government and economy are the key to real estate value growth with very low risk. When combined with great weather, solid economy and a low cost of living, Cost Rica is an excellent choice when considering a move or retirement in Latin America.
Costa Rica Property Ownership
Costa Rica’s Constitution grants the right of property ownership to all. As such, foreign nationals have the same property rights as Costa Rican citizens. If there are no legal problems with a property, acquiring clear title is fairly simple process. The Title Registry system is fully computerized and one of the most highly developed in Latin America.
Once you have selected your property, it is important that a title search be performed before an offer to purchase is made. Properties in Costa Rica are recorded in the Folio Real system in the Public Registry Offices in San Jose. For the public’s convenience these records are available to search via the internet. Foreign investors in Costa Rica real estate should request a lawyer or qualified title insurance company that title searches are performed to ensure everything is in order with the land or property, that the seller has the right to sell, that there are no outstanding mortgages or claims against the property etc.
It is extremely important that correct and complete title searches are carried out before a Costa Rican investment in real estate is made. For a list of qualified title insurance companies, please visit our Latin American Insurance section on the site.
Costa Rica Purchase Process
The first step is to make offer on the Costa Rica property. If the offer is accepted by the vendor, the next step is to make your intention to purchase official by signing an ‘Offer to Purchase’.
A deposit is then due and the majority of transactions that take place in Costa Rica between local vendors and international purchasers are handled via an escrow account. A deposit made will be held in this secure escrow while the Costa Rica land purchase process proceeds.
If a title search has not yet been carried out, it will now be completed by the real estate investor’s lawyer and if no problems are found closing can take place.
At this point, final contracts are signed and money is exchanged, at which point the title deed transfer is executed. All fees and taxes are due at this time.
We cannot emphasize enough how important it is that you work with a qualified real estate expert. We encourage you to work with one of our listed Costa Rican Real Estate agents or complete our contact form to request that an expert in Costa Rican Real Estate contact you.
Financing
Obtaining financing for a property in Costa Rica is not as simple as in North America. Although some developers are offering financing, most purchases by foreigners are still paid in cash. A handful of banks are offering up to 80% LTV financing, however most require you be a legal resident to facilitate the transaction.
As usual, it is important to rely on a qualified Costa Rican expert. For more information on qualified financing options, please visit our Latin American Financing section.
