The first step to buying property in Costa Rica is to find a reputable real estate agent who can guide you through the process. At GAP Real Estate, we can “hold your hand” through the entire process and make it easy for you. Once you find a property you like, the next step is to make an offer. Your attorney will then write up a purchase agreement. If your offer is accepted, you will make a down payment of 10% or what was previously agreed upon to the owner’s account or an escrow.

Yes, foreigners can buy and own property in Costa Rica and have the same rights as Costa Rican citizens. The Costa Rican Constitution guarantees the right to private property for both nationals and foreigners. The only exception is for properties located in the Maritime Terrestrial Zone, which have specific restrictions for foreign ownership.

Yes, it is highly recommended that you hire a qualified real estate attorney to represent you in any property transaction in Costa Rica. Your attorney will be responsible for conducting due diligence, drafting the purchase agreement, and ensuring that the property title is transferred correctly. GAP Real Estate can recommend experienced and trustworthy lawyers to assist you.

Working with a reputable real estate agent is the best way to find the ideal property for your needs in Costa Rica. An experienced agent will have a deep understanding of the local market and can help you find properties that match your criteria. At GAP Real Estate, we take the time to understand your needs and preferences to help you find your dream home.

Yes, it is possible to purchase property in Costa Rica while you are outside the country. This can be done through a power of attorney, which gives your lawyer the authority to sign legal documents on your behalf. However, it is always recommended to visit the property in person before making a purchase.

No, Costa Rica does not have a centralized Multiple Listing Service (MLS) like in the United States or Canada. This makes it even more important to work with a reputable real estate agent who has access to a wide range of properties and can help you navigate the market.

A “plano” or survey plan is a legal document that shows the exact boundaries and dimensions of a property. It is a critical document in any real estate transaction in Costa Rica, as it is used to verify the property’s size and location. It is essential to have a recent and accurate survey plan before purchasing any property.

Yes, it is highly recommended to get a professional house inspection before purchasing a property in Costa Rica. A house inspection can help you identify any potential problems with the property, such as structural issues, plumbing or electrical problems, or pest infestations. This can save you a significant amount of money in the long run.

This is a personal decision that depends on your budget, timeline, and preferences. Building a home can be a rewarding experience, but it can also be more complex and time-consuming than buying an existing home. Buying an existing home is often a faster and more straightforward process. It’s important to weigh the pros and cons of each option before making a decision.

Due diligence is the process of investigating a property to identify any potential risks or liabilities before making a purchase. This is a critical step in any real estate transaction in Costa Rica and should be conducted by a qualified attorney. Due diligence typically includes a title search, a review of the survey plan, and a check for any liens or encumbrances on the property.

A title search is a review of the property’s records in the National Registry to verify that the seller has a clear and legal title to the property. This is a critical part of the due diligence process, as it can help you avoid any potential legal problems in the future. Your attorney will conduct a thorough title search to ensure that the property is free of any liens, mortgages, or other encumbrances.

Liens and encumbrances are legal claims against a property that can affect your ownership rights. A lien is a claim for payment of a debt, such as a mortgage or unpaid property taxes. An encumbrance is any other claim or restriction on the property, such as an easement or a restrictive covenant. It is essential to identify and resolve any liens or encumbrances before purchasing a property.

A property survey is a professional assessment of a property’s boundaries and dimensions. It is essential to have a recent and accurate survey to ensure that you are purchasing the correct property and that there are no encroachments or other boundary issues. Your attorney will review the survey plan as part of the due diligence process.

Title insurance is a type of insurance that protects you from any financial loss due to defects in the property’s title. While it is not mandatory in Costa Rica, it is highly recommended, especially for foreign buyers. Title insurance can provide you with peace of mind and protect you from any unforeseen legal problems with the property’s title.

Closing costs in Costa Rica are typically around 4% of the purchase price. This includes:

• Property Transfer Tax: 1.5% of the purchase price or property tax value (whichever is higher)
• National Registry Stamp: 0.5% of the property value
• Other Registration Fees: Approximately 0.3% for stamps and government fees
• Legal Fees: Typically 1.5% to 2% of the purchase price

A purchase agreement is a legally binding contract that outlines the terms and conditions of a real estate transaction. It should include the purchase price, the payment schedule, the closing date, and any contingencies or special conditions. It is essential to have your attorney review the purchase agreement before you sign it.

An escrow account is a third-party account that is used to hold funds during a real estate transaction. The buyer’s deposit is typically held in an escrow account until the closing date. This provides a level of security for both the buyer and the seller. Escrow services are often provided by law firms or specialized escrow companies.

At the closing, the buyer and seller will sign all the necessary legal documents to transfer the property title. The buyer will pay the remaining balance of the purchase price, and the seller will transfer the property title to the buyer. The closing is typically conducted by a notary public, who will register the property transfer in the National Registry.

A notary public in Costa Rica is a lawyer who is authorized by the government to draft and register legal documents. They play a critical role in the closing process, as they are responsible for ensuring that all legal requirements are met and that the property title is transferred correctly. It is essential to work with a reputable and experienced notary public for your real estate transaction.

The closing process in Costa Rica can take anywhere from a few weeks to a few months, depending on the complexity of the transaction. It is important to be patient and to work closely with your attorney and real estate agent to ensure that everything goes smoothly.

There are several ways to own property in Costa Rica:

• Fee Simple Ownership: This is the most common form of ownership, where you have full ownership and control of the property
• Concession Property: This applies to properties located in the Maritime Terrestrial Zone, where you have the right to use the property for a specific period (typically 20 years, renewable)
• Condominium Ownership: This is a form of ownership where you own a specific unit within a larger development and share ownership of the common areas
• Corporation Ownership: Many foreigners choose to own property through a Costa Rican corporation for asset protection and estate planning purposes

Yes, foreigners can own property in their own name in Costa Rica and have the same rights as Costa Rican citizens. However, many foreigners choose to own property through a corporation for liability protection and to simplify the transfer of ownership in the future.

Owning property in a corporation offers several advantages:

• Asset Protection: It can help protect your personal assets from any liabilities associated with the property
• Estate Planning: It can simplify the process of transferring the property to your heirs
• Anonymity: It can provide a level of anonymity, as the property is owned by the corporation rather than by you as an individual

The Maritime Terrestrial Zone (ZMT) is a 200-meter strip of land along the coastline that is owned by the state. The first 50 meters are public and cannot be developed. The remaining 150 meters can be leased from the government through a concession. There are strict restrictions on foreign ownership of concession property, and it is essential to work with an experienced attorney if you are considering purchasing property in the ZMT.

Foreigners cannot be the majority owners of a concession in the ZMT. A foreigner can, however, enter into a partnership with a Costa Rican citizen, where the Costa Rican citizen owns the majority of the shares. It is also possible for a foreigner to own a concession through a corporation, as long as the majority of the shares are owned by Costa Rican citizens.

No, buying property in Costa Rica does not automatically grant you residency. However, it can be a key part of your residency application. There are several residency programs available for foreigners who invest in Costa Rica, including the Investor Visa, the Pensionado Visa, and the Rentista Visa.

The Investor Visa requires a minimum investment of $150,000 USD in real estate, a business, or other approved investments. This visa grants you temporary residency, which can be renewed and can eventually lead to permanent residency.

The Pensionado Visa is for retirees who have a lifetime pension of at least $1,000 USD per month. This visa grants you temporary residency, which can be renewed and can eventually lead to permanent residency.

The Rentista Visa is for individuals who have a steady income of at least $2,500 USD per month from a source outside of Costa Rica. This visa grants you temporary residency, which can be renewed and can eventually lead to permanent residency.

Having residency in Costa Rica offers several benefits, including:

• The right to live in Costa Rica full-time
• Access to the public healthcare system (Caja)
• The ability to open a bank account more easily
• The ability to get a Costa Rican driver’s license

Annual property taxes in Costa Rica are very low, at just 0.25% of the property’s registered value. This is one of the many reasons why Costa Rica is an attractive place to own property.

Yes, there is a luxury property tax for properties with a registered value of over a certain threshold (currently around $728,000 USD). The tax rate starts at 0.25% and increases for higher-value properties.

The property transfer tax is a one-time tax that is paid when a property is sold. The tax rate is 1.5% of the purchase price or the property’s registered value, whichever is higher.

Yes, Costa Rica has a capital gains tax of 15% on the profit from the sale of a property. However, there are some exemptions, such as for your primary residence.

Other taxes to be aware of include:

• Corporation Tax: If you own property in a corporation, you will need to pay an annual corporation tax
• VAT (IVA): A 13% Value Added Tax (IVA) applies to most goods and services in Costa Rica, including some real estate services

Yes, it can be difficult for foreigners to get financing from traditional banks in Costa Rica. Banks have strict lending requirements, and the process can be slow and bureaucratic. However, there are alternative financing options available, such as private lenders and owner financing.

Interest rates for loans in Costa Rica can vary depending on the type of loan, the lender, and the borrower’s creditworthiness. Traditional bank loans typically have lower interest rates than private loans. At GAP Equity Loans, we offer competitive interest rates on all our loan products.

The loan-to-value (LTV) ratio is the percentage of the property’s value that a lender is willing to finance. In Costa Rica, the LTV for traditional bank loans is typically around 70-80%. Private lenders may offer higher LTVs, but they may also charge higher interest rates.

Owner financing is when the seller of a property provides financing to the buyer. This can be a good option for buyers who are unable to get financing from a traditional bank. The terms of an owner financing agreement are negotiable between the buyer and the seller.

Private lenders in Costa Rica have more flexible lending requirements than traditional banks. They are often more willing to lend to foreigners and may not require a credit history in Costa Rica. However, they may charge higher interest rates and fees. At GAP Equity Loans, we have a simple and straightforward application process.

A home equity loan is a type of loan that is secured by the equity in your home. Equity is the difference between the market value of your home and the amount you still owe on your mortgage. Home equity loans can be a good way to access cash for a variety of purposes, such as home improvements, debt consolidation, or a major purchase.

You can use a home equity loan for a variety of purposes, including:

• Home improvements
• Debt consolidation
• Medical expenses
• Education expenses
• Starting a business
• A major purchase, such as a car or a boat

Interest rates for home equity loans can vary depending on the lender and the borrower’s creditworthiness. At GAP Equity Loans, we offer competitive interest rates on our home equity loans. Contact us today for a free quote.

The maximum loan amount for a home equity loan is typically a percentage of your home’s equity. At GAP Equity Loans, we offer home equity loans from $50,000 USD up to $1,000,000 USD and more.

The process of getting a home equity loan can be much faster than getting a traditional bank loan. At GAP Equity Loans, we can often close on a home equity loan in as little as 7-10 business days.

A commercial loan is a type of loan that is used for business purposes. Commercial loans can be used to purchase commercial property, expand a business, or for other business-related expenses.

The requirements to get a commercial loan can vary depending on the lender. At GAP Equity Loans, we have a simple and straightforward application process for our commercial loans. We will work with you to understand your business needs and help you find the right loan product for you.

Interest rates for commercial loans can vary depending on the lender and the borrower’s creditworthiness. At GAP Equity Loans, we offer competitive interest rates on our commercial loans. Contact us today for a free quote.

The maximum loan amount for a commercial loan can vary depending on the lender and the borrower’s needs. At GAP Equity Loans, we offer commercial loans for a wide range of purposes and loan amounts.

You can use a commercial loan for a variety of business purposes, including:

• Purchasing commercial property
• Expanding a business
• Purchasing equipment
• Working capital
• Inventory financing

A construction loan is a type of loan that is used to finance the construction of a new home or commercial building. Construction loans are typically short-term loans that are paid out in draws as the construction progresses.

A construction loan is paid out in draws as the construction progresses. The lender will inspect the construction site at each stage to ensure that the work is being done according to the plans. Once the construction is complete, the construction loan is typically refinanced into a traditional mortgage.

The requirements to get a construction loan can be more stringent than for other types of loans. The lender will want to see detailed construction plans, a budget, and a timeline for the project. At GAP Equity Loans, we have experience in financing construction projects and can help you through the process.

Interest rates for construction loans are typically higher than for traditional mortgages. This is because construction loans are considered to be higher risk. At GAP Equity Loans, we offer competitive interest rates on our construction loans.

The maximum loan amount for a construction loan is typically a percentage of the total cost of the construction project. At GAP Equity Loans, we can finance construction projects of all sizes.

Project funding is a type of financing that is used to fund large-scale projects, such as real estate developments, infrastructure projects, or new business ventures. Project funding can be complex and may involve multiple lenders and investors.

Getting project funding in Costa Rica can be a challenging process. It is important to have a well-developed business plan and to work with experienced professionals who can help you navigate the process. At GAP Equity Loans, we have experience in project funding and can help you secure the financing you need for your project.

The requirements for project funding can be very demanding. Lenders will want to see a detailed business plan, financial projections, and a strong management team. It is also important to have a significant amount of your own capital invested in the project.

Interest rates for project funding can vary widely depending on the project, the lenders, and the level of risk involved. At GAP Equity Loans, we can help you find competitive interest rates for your project.

At GAP Equity Loans, we can help you secure project funding from $1,000,000 USD up to $100,000,000 USD and even more. Contact us today to discuss your project funding needs.

Costa Rica offers a wide variety of residential properties to suit every taste and budget. You can find everything from single-family homes and condos to luxury villas and beachfront estates. There are also many options for those who want to live in a gated community or a more rural setting.

Pros:

• More privacy and space
• More control over your property
• Potential for a larger yard or garden

Cons:

• More maintenance and upkeep
• May be more expensive than a condo
• May not have the same amenities as a condo community

Pros:

• Less maintenance and upkeep
• Often have amenities such as a pool, gym, and security
• Can be a good option for those who want a lock-and-leave lifestyle

Cons:

• Less privacy and space
• Have to pay monthly HOA fees
• Have to follow the rules and regulations of the condo association

Gated communities are residential developments that have controlled access and often have amenities such as a pool, gym, and security. The benefits of living in a gated community include:

• Increased security and privacy
• Access to amenities
• A sense of community
• Well-maintained common areas

A “quinta” or “finca” is a rural property that is typically larger than a standard residential lot. Quintas and fincas are often used for agricultural purposes, but they can also be used as a weekend retreat or a full-time residence for those who want a more rural lifestyle.

Costa Rica has a growing commercial real estate market with a variety of properties available, including:

• Office buildings
• Retail space
• Warehouses and industrial properties
• Hotels and resorts
• Restaurants and bars

When buying commercial property, it is important to consider:

• The location of the property
• The zoning regulations for the area
• The condition of the property
• The potential for rental income
• The local market conditions

The best areas for commercial investment in Costa Rica depend on the type of business you are planning to operate. The Central Valley is a good option for office and retail space, while the coastal areas are popular for hotels, resorts, and restaurants.

Yes, you can buy land and build your own home in Costa Rica. This can be a rewarding experience, but it is important to work with experienced professionals who can help you navigate the process. You will need to hire an architect, a builder, and an attorney to help you with the project.

When buying land in Costa Rica, it is important to consider:

• The location of the land
• The zoning regulations for the area
• The availability of utilities, such as water and electricity
• The topography of the land
• The potential for appreciation

Yes, Costa Rica is considered to be a very good place to invest in real estate. The country has a stable democracy, a growing economy, and a thriving tourism industry. The real estate market has shown consistent growth over the years, and there is a strong demand for rental properties.

The most promising areas for real estate investment in Costa Rica depend on your investment goals. The Central Valley is a good option for long-term rentals and commercial properties. The coastal areas, such as Guanacaste and the Central Pacific, are popular for vacation rentals and tourism-related businesses.

The average return on investment (ROI) for real estate in Costa Rica can vary depending on the type of property, the location, and the market conditions. However, many investors have seen a healthy ROI from their real estate investments in Costa Rica.

Like any investment, there are risks associated with investing in real estate in Costa Rica. These risks include:

• Market fluctuations
• Changes in government regulations
• Natural disasters
• Currency fluctuations

It is important to do your due diligence and to work with experienced professionals to mitigate these risks.

The best way to find good investment properties in Costa Rica is to work with a reputable real estate agent who has experience in the investment market. At GAP Real Estate, we can help you find properties that have a strong potential for appreciation and rental income.

The Costa Rican real estate market is currently experiencing a period of strong growth. There is a high demand for properties in both the residential and commercial sectors. Some of the current trends include:

• An increase in demand for luxury properties
• A growing interest in sustainable and eco-friendly developments
• A rise in the popularity of remote work is driving demand for properties with home offices and reliable internet access

The COVID-19 pandemic has had a mixed impact on the real estate market in Costa Rica. While the tourism industry was hit hard, the real estate market has remained surprisingly resilient. The pandemic has also led to an increase in demand for properties in more rural and remote areas.

The outlook for the Costa Rican real estate market is very positive. The country is expected to continue to attract foreign investment and tourism, which will drive demand for properties. The government is also investing in infrastructure projects, which will further boost the real estate market.

The steps to selling a property in Costa Rica are similar to the buying process. You will need to:

• Find a reputable real estate agent to list your property
• Set a competitive asking price
• Market your property to potential buyers
• Negotiate offers with potential buyers
• Hire an attorney to handle the legal aspects of the sale
• Close the deal and transfer the property title to the new owner

Determining the right asking price for your property is crucial for a successful sale. Your real estate agent can help you by conducting a comparative market analysis (CMA), which will compare your property to similar properties that have recently sold in the area.

The costs associated with selling a property in Costa Rica include:

• Real estate commission (typically 5-7% of the sale price)
• Legal fees (typically 1-2% of the sale price)
• Capital gains tax (15% of the profit from the sale)

Yes, you can rent out your property in Costa Rica. The country has a strong rental market, especially in the tourist areas. You can choose to rent out your property on a short-term or long-term basis.

There are laws and regulations that govern the rental of properties in Costa Rica. It is important to have a written rental agreement that outlines the terms and conditions of the rental. You will also need to pay taxes on your rental income.

Hiring a property manager can be a good idea, especially if you do not live in Costa Rica full-time. A property manager can handle all aspects of renting out your property, from finding tenants to collecting rent and handling maintenance issues.

Property management fees in Costa Rica are typically a percentage of the rental income, ranging from 10% to 20%. The exact fee will depend on the services that are included in the property management agreement.