Sketch of Costa Rican Real Estate

Costa Rica, a Spanish speaking country, between Nicaragua and Panama in Central America, boasts magnificent lengths of beaches, exotic wildlife and incredible lush scenery. Having a democratic society for over fifty years, the people of Costa Rica live peacefully and welcome foreigners both as tourists and residents. The government has readily encouraged tourism and the badly needed development that goes hand and hand with the trade. As a result of the booming economy and far reaching development, Costa Rican property has become profitable for investors. In addition to investors, everyday people wishing to relocate have found their dream home for much less than if they remained living in the US or Canada.

Non-nationals are permitted to invest in parcels of land, may have shares in developmental properties, hold titles purchasing homes outright, and also live in Costa Rica either renting or owning. These factors alone make Costa Rica’s real estate market highly desirable.

There is, however, one restriction on the type of beachfront property that foreigners may purchase. They may buy beachfront property on the mainland just the same as any other real estate but they may not buy an island in any of the waters that are deemed part of Costa Rica’s territory. The specific law is called “The Law of Terrestre Maritime Zone”. Apparently, the Costa Rican Tourist Board does offer an alternative for qualifying individuals, in the way of leases that range from five to twenty years and are very inexpensive.

In addition, other land restrictions are in effect but they apply to Costa Ricans and foreigners alike. Some areas have been deemed reserved territories for ecology while others are protected for the use of farming. When purchasing developmental properties, it would be in your best interests to find out whether the proposed development complies with these rules.

Since anyone can call himself a realtor in Costa Rica, home buyers are advised to deal with an agent from The Costa Rican Real Estate Association (also known as Costa Rica Real Estate Brokers Board) which was founded in 1974. They also have sister organizations throughout Costa Rica to whom one may be referred. The association includes appraisers, advisors, sales agents and rental agents who specialize in commercial and residential properties.

Like the States and Canada, Costa Rica uses the MLS (Multiple Listing Services) so searching for property would be quite easy. The MLS database is administered by the Costa Rica Chamber of Real Estate Brokers and provides the rules and regulations as they relate to real estate in Costa Rica. They are the official organization sanctioned by the government and they even offer a real estate arbitration court. It is highly recommended that when choosing a real estate agent, you choose one who is affiliated with the chamber.

Everything that is done legally and above board is properly documented and registered and can be accessed through modern computer systems. In regards to taxes, the system has an annual property tax administered by the locality and also a property transfer tax at time of sale.