Reprinted from Explore Costa Rica.com
All Rights Reserved
FAQ about Costa Rica Real Estate
By Explore Costa Rica Staff
Jul 9, 2006, 14:57
Explore Costa Rica.com is Costa Rica's online English language daily newspaper, featuring Costa Rica News, Costa Rica Events, Central America News, Costa Rica Weather, Costa Rica Travel, Costa Rica Business, Costa Rica Real Estate, Costa Rica Hotels, Surfing, Fishing, Golf Tournaments, for all those traveling or living in Costa Rica. Costa Rica Real Estate: Costa Rica Investments: Costa Rica General Info: Costa Rica Area Info: Central Pacific Costa Rica: Living & Retiring in Costa Rica
FAQ about Costa Rica Real Estate
As a foreigner, can I buy and own property in Costa Rica?
Ownership of real estate in Costa Rica by foreigners is fully guaranteed by the constitution. In addition, foreigners enjoy the same ownership rights as Costa Rica citizens, regardless of whether the property is placed in the name of a corporation or in the name of an individual.
Is financing available in Costa Rica?
Financing through a bank is still kind of complicated because of the bureaucracy. The interest rate is between 8.5% and 12% in a US$ loan. Most of the deals in Real Estate are cash deals or financed by the owner or seller, usually very short term with high down payments (like 30%-50%). Sometimes the buyer can get better rates and faster approval (or easier approval) using a first or second mortgage in their home country on property they have there, then the cash can be used for buying property in Costa Rica.
What is should I know about buying property in Costa Rica?
Ask to see an official Costa Rican Registry Survey of the property. If one has not been completed, which can be common when purchasing a section of a larger parcel, request that any deposit be held by the attorney until an official survey has been provided. If this is the case, ask to review the official Registry Survey of the mother parcel.
Always be sure to include any obligations promised by the owner (water, road access, etc.) in the written agreement. If the promised time for completion of these obligations is considerable, request an amount of the purchase funds to be held by the attorney until the obligations have been met. Check if all taxes on the property have been paid up to date. These are the basic steps, but the process of buying property in Costa Rica requires further due diligence to do before we can close.
How much are Costa Rica property taxes?
Property taxes (Municipal Tax) throughout Costa Rica are very low when compared to the United States, Canada or Europe. The municipal tax is administered at the municipal level and varies throughout the country. Paid quarterly, the type of property, location and other factors contribute to the calculation of this tax. Here's one of the real perks. Real Estate taxes here are painless. Taxes on a $250,000.00 home are about $250.00 per year, and includes the local municipal charges, trash, etc. as well.
The real estate tax is based on the declared value of the property. This tax is applicable throughout the country regardless of the properties location and payable when transferring title.
What about closing costs?
The government collects a 3% transfer tax on all Real Estate transfers. Not to worrry! A lot of homes are held in a corporation, so simply buying the corporation includes the Real Estate and no transfer tax, just a small attorney fee. Another good need for an attorney is to assure yourself that the only assets of the corporation are the Real Estate with no liabilities.
Attorneys will usually charge $50.00 or less for a title search. Title insurance is also available here, your attorney or realtor can advise on this option.
For the latest listings go to Costa Rica Classifieds.net.
Costa Rica Photo Gallery
Costa Rica News | Costa Rica Real Estate | Living & Retiring
Promote YOUR Costa Rica Business & Link to YOUR Website:Get A Business Information Page
Add Your Costa Rica Business, Costa Rica Tours & Costa Rica Hotel FREE!
©Copyright 2004 by ExploreCostaRica.com