Tips For Adquiring Properties In Costa Rica

 

Here you can find a quick guide for people who are foreigners and want to invest in Costa Rica.

If you are looking for a good real estate proyect.

 

Ownership of Land

 

Costa Rica laws and Constitution protect private ownership of land and foreigners enjoy the same rights as citizens. There are almost no restrictions to ownership of private land, except that given or sold to Costa Rican citizens as part of government programs, which can be freely trade or acquired by foreigners only after the original owner has held it for certain period of time. Neither citizenship nor residence or even presence in the country is required for land ownership.

 

Registration

 

Costa Rica boasts of a safe form of title registration to protect buyers from hidden claims. It is centered in the Registro de la Propiedad (Property Registry), where both title documents and survey palted for every property are recorded. Any change in the status of a title or any claim that might affect it must also be noted on the title registry page, thus making it easy to verify.

Those who want to buy land in Costa Rica should get professional advise, which include a search of the title in the Registry, so as to confirm there are not liens on it, and to establish its proper ownership. Once the deal is completed, you should also secure documents from a lawyer to prove that the sale was registered, for your own safety and to prevent to somebody else.

 

Financing

 

Practically no local financing at economically feasible rates is available for property purchases. This is the result of high yields and rapid increase in property value, due to a growing population and other factors. However, this in turn makes up for the lack of leverage in Costa Rica, as do the country’s stability and security, which makes its continued growth.

 

Regulations for Beachfront Property

 

When buying beachfront properties, one must be aware of regulations Costa Rica’s coastline is all public. By law, the first 50 meters above the mean high tide line are inalienable public, define by what is known as the 50-meter line. No one can restrict access or have a totally private beach. There are some exceptions, but they include port areas and old land grants.

On 80% to 85% of the coast, the next 150 meters are government owned lease and also known as the maritime-terrestrial zone (or just maritime zone). Restrictions on maritime zone land for foreigners are that one must establish five years residency to own more than 49% of the rights to a lease. Two loopholes include holding the lease with a corporation that is wholly owned by a foreigner, or by having a Costa Rican hold 51% of the lease in name only. Development of the maritime zone does not discriminate against foreigners. A regulation plan must exist for area where the land is or just for the parcel itself.

If one does not exist the developer must make one, then have it approved by ICT (the Tourist Board), INVU (the Urbanization Institute), and local municipality. Such a regulation plan will call for "zoning of land" includes public use areas, road, water, electricity and more.

The other 15% to 20% of the coast is land that is title to the 50 meters line. That is to say that no maritime zone exists and the landowner may develop without inconvenience of filing a regulation plan. Tourist development must, of course, be approved by ICT, but almost anything else would require only building permits.