Property Registry Program Needs New Financing
Date: 11/09/2007
November 9, 2007
San Jose, Costa Rica
Thinking of buying property in Costa Rica? The new Property Registry Program aims to make it easier for you to get a fair deal. But due to delays, the program's benefits may not be apparent for a few years.
The local Finance Ministry is trying to assess and update values for all property nationwide. The goal of the Property Registry Program is to update the nation's central listing of property cadastres (the official records of property boundaries, features and values). A searchable database and standardized price comparisons will make it easier to judge property values. This will help municipalities assess property taxes…and it'll help you research your next property buy here.
The government says it must re-evaluate the program budget in light of new considerations. Organizers say the government underestimated how many property values need to be assessed. Delays have also eaten away at funding. Apparently only half of the project will be completed by the time the financing contract runs out in 2009.
Funds for the contract came from a $65 million loan from the Inter-American Development Bank (IADB) and a $27 million allotment from the government. The government has already spent $10 million on interest for the IADB loan because the project is taking longer than planned.
The government has yet to announce new financing for the Property Registry Program. The delays may be good news for property owners who will soon be paying slightly higher property taxes. But tax rates are still low in Costa Rica, and having a searchable database will be a boon for potential buyers. We'll keep you posted on this and other property considerations as information becomes available.
Your Latin America Insider,
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