Purchasing property in Costa Rica requires experience and hard work to find the right one. It requires a complete survey of area under interest. It can also be one of the most stressful. In foreign countries such as Costa Rica, the normal stress of the purchasing process can be compounded with other risk factors, such as language barriers and unfamiliarity with local laws and procedures. That said, foreigners can and do legally and successfully purchase property in Costa Rica. In fact, Costa Rica offers potential buyers many types of real estate products including houses, condominiums, time-shares, farms, finished lots and beachfront property.
For purchasing property in Costa Rica real estate the buyer should know some rules and regulations. First one is property types and property rights. Just like in the US, Canada, and Europe, there are different types of property available to buyers. Understanding the various types that are available for purchase is critical in the evaluation process for the buyer. The buyer understands property options available for him. Second one is purchase process. It is further divided into three steps. a. Legal vocabulary of property purchase. b. Methods of Purchase c. Buying process step-by-step d. Fees. Third one is Investment Protection i.e. strategies and tools to protect property investment.
There are different purchasing methodologies following in Costa Rica real estate. For example: i) Acquiring Properties through direct transfer: A purchase process whereby one or more physical individuals acquire a property in their personal name. ii) Acquiring Properties through corporations: A common practice in Costa Rica is to acquire properties through a new corporation or through an existing corporation that currently owns the property of interest. The process of setting up a corporation is not complicated, but does require a knowledgeable attorney who understands the exact protocols and procedures necessary to properly set up the corporation. The advantage of this system is that it allows a buyer to protect their asset anonymously. Further, if a purchaser acquires a property through an existing corporation that already owns the property, there are no government transfer taxes and stamps to pay. The reason is that transfer taxes and stamps must be paid anytime that there is a change in the ownership of the property. If a buyer acquires the shares of an existing corporation, technically there is no change in the recorded owner of the property (i.e. the corporation still owns the property).