How to Buy Costa Rica Real Estate
Once you’ve made the decision to buy Costa Rica real estate, you still have a lot to consider. There are many aspects of the process that are unique to the country. However, if you do your homework, you can buy Costa Rica real estate and avoid all the pitfalls of the market.
The first thing you must do to buy Costa Rica real estate is get some kind of residency status. Without it you can only stay in country for three months. If you are on a pension, you can get pensionado status. If you are living off annuities or investments, you can get rentista status. If you are investing enough money into the economy, you can get investor status.
Next you will need to go to a reputable Costa Rica real estate agent. There are always dishonest people trying to make a buck from a stranger. These people will often sell the same piece of land or home over and over again without legally changing the title into the buyers’ names. Century 21 and others have Costa Rica real estate offices.
Once you decide upon a home, there are many steps to take to make sure that your Costa Rica real estate becomes yours. One thing you might need to do is set up financing. A developer may finance your home especially if you are buying new.
Many Costa Rica real estate firms only work with national banks. The interest rates for Costa Rica real estate are not as low as those in North America. However, the price of your property will continue to rise. That will make up for any losses in your Costa Rica real estate interest rates.
Getting clear title is probably the most arduous and the most legally important part of the process of buying Costa Rica real estate. It takes a lot of work to prove that the property is not owned by someone, or more than one, else. You also need to show that there are no liens or encumbrances on the property.
Another important point when buying Costa Rica real estate is to compare the title description with the official map of the property. If these don’t match, your title won’t do you much good. A notary public will help you finalize the paperwork.
A notary public has much more authority in Costa Rica real estate than he/she would in the US. He/she has the power to give his approval to documents. He/she says whether they are legitimate documents. He/she is more than a person who verifies signatures.
Once you have your Costa Rica real estate financed and your title in order, it will be time to close the deal. Closing costs are generally about 3.785% of the total price of the property. Then, all you will have to worry about is taxes.
Property taxes are low at no more than 0.25% of the home’s value per year. You must declare the value of your home regularly every five years. Then, if you don’t pay your taxes, just like in the US, your Costa Rica real estate can eventually be foreclosed on for back taxes.
Buying Costa Rica real estate is not an easy task. It involves much research and the help of professionals in most cases. If you find that you are getting discouraged, think of the end result. You will have beautiful Costa Rica real estate to call your own. |