What are the steps to purchasing property in Costa Rica:
• Select a property. Often the most difficult part.
• Select an attorney. Your attorney will then verify the deed and title of the property.
• Check you finances. Depending on your situation prepare your financing options.
• Make an offer. Typical purchase offers include some sort of down payment.
• Schedule to close (30-60 days). While it is not always required buyer and seller be in Costa Rica, it is typical for both parties to come down to close on the transaction.
Selecting an Attorney
Because of our CENTURY 21 Name, you can be assured that our office can help you find a trustworthy and professional attorney.
Closing Costs
Typically costs are split between the seller and buyer, running 3% - 4.2% of the total purchase price. Here is a sample of costs and fees.
What are my Financing Options?
Financing options within Costa Rica are increasing. If you need to borrow funds, it is generally far simpler and interest rates are much lower in your home country. Another option is Developer Financing, which select projects may offer. Please contact me regarding additional lending options in Costa Rica.
Property Taxes
Under Costa Rican tax law, you must declare the value of your home to the Costa Rican Municipal Government every five years. An annual flat rate of 0.25% is charged, calculated on the combined declared land and construction value. Owners of homes within the Maritime Zone or on concessions near national parks pay property tax only on the value of the house, not the land itself. For example, property taxes on a home in Dominical outside the Maritime Zone, with a combined land and house value of $300,000, would be approximately $750.
Can Foreigners Securely Buy Land?
Foreigners have the same absolute right to own real property in Costa Rica, as do citizens. Many countries have restrictions on foreign ownership of real estate but not Costa Rica. Here all people, Costa Rican or otherwise have the same legal rights, which are protected by the Constitution and reflected in the laws.
Title Insurance
If you are working with a reputable real estate office title insurance is not usually recommended, as the title company simply goes over the same due diligence as the lawyer and realtor. However, if you would like the added security and assurance C21 works closely with Stewart Title and Chicago Title and are happy to provide you with that option.
Do I Need A Realtor, I’m Just Buying a Condo?
ABSOLUTELY! Don’t be misled, a reputable real estate office is important for your protection. When looking for a condominium it is important to consult with us first because many times there is info the developer fails to mention. There are also re-sales often available that are priced less. Going directly to the project wont save you money, remember commissions are always paid by the seller, and we present YOU not the project.
Beachfront Zoning
To begin with, not all beach property is maritime zone property. You can purchase fully titled land in front of the beach or overlooking the beach or within walking distance to the beach and never have to worry about the Maritime Zone.
However, if you want to purchase land ON the beach, it will not be titled (as a rule). As in nearly every country in the world, Costa Rica’s beaches are public property. So, if you would like build or buy a beachfront home or business, you should familiarize yourself with the special rules regarding beach property in Costa Rica.
The Maritime Zoning Law for Beach Property
The 1977 Maritime Zoning Law regulates the ownership and usage of beachfront property in Costa Rica. The law creates two zones along Costa Rica's Pacific and Atlantic coasts. Islands are also subject to this law. The national government owns this "Maritime/Terrestrial" restricted zone and local governments(municipalities) administer it. You measure from the high tide mark inland.
1. The two zones total a width of 200 meters along the beach: The Public Zone (Zone Publica): a 50 meter wide strip of beach between the high tide line and the outer line of the "Restricted Zone" (Zona Restringida). This beach zone is open to the public. Private possession or occupation of this area is strictly prohibited. However, no one may trespass private property or the restricted zone in order to reach the public zone.
2. The Restricted Zone (Zone Restringida): a 150 meter wide strip of beach from the limit of the Public Zone inland. The law allows the government to grant leases called concessions for the occupation and use of this area for terms that range from 5 to 20 years. This is the beachfront land that homes or business may use for personal or monetary gain. Certain buildings are allowed in this zone, but these will revert to the municipalities (local Governments) at the termination of the lease, unless the lease is extended. How the Concessions Work for maritime zone beach property. The National Geographic Institute (Instituto Geográfico Nacional) marks the maritime zone. If the zone is not marked and a development plan has not been drafted and approved, the authorities are unable to grant building permits for development of the area.
The Instituto Costarricense de Turismo (ICT) authorizes leases on the Restricted Zone, but the local Municipal government grants and administers the government concession for possession of land in the maritime zone. The Registry of Concessions in the Public Registry in San José records all concessions. Before a concession can be granted, the particular beach where the property is located must have an approved Zoning Plan (Plan Regulador) in place. Only the actual Concession will clearly define the rights and terms of ownership that the occupant has to the property.
These concessions or leases are granted for five to twenty year terms. Once the concession (lease) has been approved, it is registered in a special Concession Registry in the Public Registry. A yearly fee must be paid to the municipality for the duration of the lease to keep it current. Failure to pay may terminate the lease and result in the loss of any buildings on it. The lessee applies for an extension of the lease concession at the Municipality. Extensions are normally granted with the previous approval of the ICT.
Please Contact:
David Karr - Sales Associate
Century 21 - Jaco, Costa Rica
Cell 011.506.308.8958
Free 877.746.3868