Buy Property in Costa Rica: Relatively Easy
As we’ve said elsewhere, buying property in Costa Rica is a relatively easy process.
It is very similar to the land buying process in the USA or Canada.
Basic Guide To Buying Land In Costa Rica
This page has the basics of what you need to know.
For More Details On Buying Property in Costa Rica, Click Here
Certified Title & Property Survey
Keep in mind that a certified title (“escritura” in Spanish ) and a survey of the property (“plano” in Spanish) are required for most transactions.
Property Ownership Types
3 Main Property Ownership Types
1) Titled. Titled property is similiar to titled property in the USA. There is always a paper trail of ownership with titled property.
If you are buying titled land (as opposed to Right of Possession or Concession land) you should perform a title search.
This will ensure that it does, in fact, have a title.
Most titled property should be registered with Costa Rica’s Folio Real system.
Owners of titled properties in Costa Rica have the same rights that titled property owners in the USA or Canada.
2) Concession land. Consession property is similar to the government granting you a lease to use the land for a specific period of time. It is usually waterfront property.
The concessions’ registration system is different than the one used for titled land. It also has its own specific requirements regarding zoning, terms, occupation, and related items.
3) ROP property. This type of property is often referred to as ROP, or Right of Possession or derechos de ocupación. You can also think of ROP land as a lease from the government.
Many people, locals and expats, own ROP land. It is often bought and sold much like titled land.
However, it is technically owned by the government The government retains the right to take it back.
Financing
Increasingly there is financing available for both mortgages and projects. The rules for these are still evolving.
Give us a call and we can help you explore your financing options.
Forming A Corporation
Expat buyers often form and purchase property in Costa Rica via a Limited Liability Corporation, or a Sociedad Anónima.
Only two people are needed to form a corporation in Costa Rica (plus a board of directors). Once a corporation is formed it’s easy to transfer assets to other members.
Although it is not always necessary, the LLC corporate structure can help smooth the buying process and help to avoid various fees.
Environmental Regulations
When building and developing land, keep in mind that Costa Rica has some strict environmental regulations.
This is a very good thing for both investors and residents.
It is one of the reasons that Costa Rica is such a good investment.
Costa Rica pro-actively preserves their natural environment and avoids harmful development.
This means your investment will not lose value due to overdevelopment of the area.
Costa Rica is doing a splendid job of ensuring it remains a beautiful destination.
According to a new joint study by Columbia and Yale Universities, Costa Rica is ranked the 5th greenest country on the planet.
Costa Rica was the only country in the America’s to rank in the top 10. The only countries that have a higher “Green” ranking than Costa Rica are Austria, France, Sweden, and Norway.
To Look At Costa Rica’s Green Properties, Click Here.
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