What Every Costa Rica Real Estate Buyer Should Know
There Are No Restrictions on Foreign Property Ownership
However, no one can own property within 50 meters of the ocean, and for the next 150 meters, real estate comes under maritime zone laws. These laws permit development only under government “concession.” This means that anyone shopping for property should be doubly cautious about buying oceanfront real estate, including condos. Before entering into a transaction, insist that your attorney assures you that the title is legally consistent with the concession laws.
Title Issues
Though Costa Rica’s property regulations are steadily improving, some buyers still wind up with real estate that has a lien or title that can be challenged. For that reason, it’s also essential to have your lawyer make a thorough title search and to assures you that when the transaction is completed, you will have a clear title to the property.
Never rely on a seller’s assurance or retain an attorney recommended by the seller. Instead, choose your own attorney, one with specific experience in real estate transactions and title searches. To find an attorney, ask for recommendations from your U.S. lawyer, Americans living in Costa Rica, or members of an expat organization such as The Association of Residents of Costa Rica Residents.
Residency Requirements
Depending on how often you plan to visit or live in Costa Rica, it can be necessary to establish legal residency. (Tourist visas are valid for 90 days.)
Many owners of second homes choose either pensionado or rentista status. For pensionado status, you must show proof of monthly income from a qualified pension plan or Social Security benefits of at least $600. For rentista status, you must show proof of at least $1,000 monthly income, as well as evidence that the income will continue for the next five years.
Financing
Many owners and developers will finance up to about 70% of your real estate purchase, as will a few international banks in Costa Rica. The rate is usually about two or three points above what you’d pay in North America. The best move is to consult with your U.S. accountant or financial adviser before deciding on how to handle financing.