Purchase real estate in Costa Rica.5290293

Many of those who want to purchase real estate in Costa Rica opt not to purchase houses or condominiums that are already built, rather, the purchaser wants to buy a plot of land and erect a new home.

One crucial intricacy of purchasing Costa Rica real estate is the Terrestrial Maritime Zone regulation. If purchasing beachfront property, it is crucial to consult this law before purchase. The maritime zone is a 200 meter (656.2 feet) strip of land that runs alongside the coast. It starts at mean tide. Within this 200 meter strip of land, the 50 meters (164 feet) closest to the shore is the inalienable zone. This means that absolutely no development can happen here. The balance of the zone, 150 meters (492 feet), can be leased from the respective municipality. A formal regulatory plan must be filed with the government before developmental construction can begin. This is known as a concession and is the most time and cost consuming process in any beachfront property purchase in Costa Rica. This law exists to maintain the ecological and aesthetic properties of the Costa Rican coastline.

Another requirement for purchasing property in Costa Rica is the replanteo. This is a survey confirmation completed on a specific plot of land. It costs roughly $300 USD, payable by the buyer. This process proves that the markers on the survey match the actual markers on the tract of land.

Taxes are extremely low in Costa Rica. Annual property taxes in Costa Rica are based on 0.0025% of the declared value of the property. Additional closing costs include a land-transfer tax and a stamp tax. These are based on the declared value of the purchased property. Closing costs usually range from 3-5% of the actual sales price, this includes attorney fees. The custom is to split this between the buyer and seller 50/50. Costa Rica Properties

Also, title insurance is different in Costa Rica than it is in the United States. Often an option to purchase can be obtained when purchasing real estate in Costa Rica, this usually ranges from 30-90 days. The fees are to be paid by the buyer. However, most real estate purchases in Costa Rica are due 100% at the time of purchase. It is advised that any mortgage a potential buyer will obtain should be completed through a bank in their country or origin. Rates and availability are not friendly in Costa Rica.

All real estate investors should consult an experienced real estate agency and attorney before purchasing property in Costa Rica.