HOW TO BUY PROPERTY IN COSTA RICA : A COMPLETE GUIDE FOR FOREIGNERS

PURCHASING PROPERTY IN COSTA RICA CAN BE A REWARDING INVESTMENT, WHETHER YOU’RE LOOKING FOR A VACATION HOME, RETIREMENT PROPERTY, OR A LONG-TERM INVESTMENT. UNDERSTANDING THE PROCESS IS ESSENTIAL TO ENSURE A SMOOTH TRANSACTION. HERE’S A COMPREHENSIVE GUIDE TO HELP YOU NAVIGATE THE STEPS.

PRELIMINARY STEPS

1. FIND A LICENSED ATTORNEY
   SEEK RECOMMENDATIONS FOR A QUALIFIED AND LICENSED LEGAL PROFESSIONAL, SUCH AS A PUBLIC NOTARY IN COSTA RICA. YOU CAN VERIFY AN ATTORNEY'S CREDENTIALS THROUGH THEIR MEMBERSHIP WITH THE COLEGIO DE ABOGADOS DE COSTA RICA.

2. PREPARE FOR DOCUMENTATION
   ENSURE ALL DOCUMENTATION IS IN ORDER AND KEEP COPIES OF EVERY DOCUMENT YOU SIGN THROUGHOUT THE PROCESS.

STEPS TO PURCHASE PROPERTY

1. WRITING AN OFFER
   BEGIN BY SUBMITTING AN OFFER TO THE SELLER OUTLINING THE PROPOSED PURCHASE PRICE AND CONDITIONS.

2. FORMAL PURCHASE-SALE AGREEMENT (PSA)
   AFTER AGREEING ON THE PRICE, A PSA IS DRAFTED AND SIGNED BY BOTH PARTIES. DURING THIS PHASE:

• YOUR ATTORNEY CONDUCTS A BASIC DUE DILIGENCE TO VERIFY THE PROPERTY'S LEGAL STATUS AND OWNERSHIP.

• THIS INCLUDES CHECKING THE PROPERTY’S HISTORY, TITLE, ENCUMBRANCES, AND ZONING.

3. DEPOSIT PAYMENT
   TRANSFER THE FIRST DEPOSIT, AS AGREED IN THE PSA, INTO A GOVERNMENT-REGISTERED ESCROW ACCOUNT. THIS STEP ENSURES A SECURE AND TRANSPARENT FINANCIAL TRANSACTION.

4. CLOSING
   FOR THE TITLE TRANSFER, YOUR NOTARY ATTORNEY FACILITATES THE OFFICIAL SIGNING OF THE ESCRITURA DE TRASPASO (TRANSFER OF TITLE).

• BOTH PARTIES OR THEIR LEGAL REPRESENTATIVES (WITH POWER OF ATTORNEY) MUST BE PRESENT.

• THE ESCRITURA DE TRASPASO IS THEN SUBMITTED TO THE NATIONAL REGISTRY FOR OFFICIAL RECORDING.

5. FINAL TITLE VERIFICATION
   AFTER REGISTRATION, YOUR ATTORNEY CAN PROVIDE A DOCUMENT (ESTUDIO DE REGISTRO OR TESTIMONIO DE PRUEBA) CONFIRMING OWNERSHIP. ALWAYS VERIFY THIS INFORMATION THROUGH THE COSTA RICAN PUBLIC REGISTRY.

COSTS OF TRANSFERRING REAL ESTATE TITLES

EXPECT TO INCUR THE FOLLOWING APPROXIMATE COSTS DURING THE PROCESS:

• MANDATORY LEGAL STAMPS: AROUND 2.5% OF THE PURCHASE PRICE.

• NOTARY ATTORNEY FEES: APPROXIMATELY 1.5% OF THE PURCHASE PRICE.
  FOR EXAMPLE, IF THE PROPERTY COSTS $130,000, THE LEGAL STAMPS WOULD BE $3,250, AND NOTARY FEES $1,950. ADDITIONAL EXPENSES, SUCH AS TRAVEL COSTS, MAY APPLY.

CLOSING DOCUMENTATION AND VERIFICATION

• THE SELLER MUST PROVIDE A MUNICIPAL CERTIFICATION CONFIRMING PROPERTY TAXES ARE UP-TO-DATE.

• ENSURE THE PROPERTY'S REGISTERED VALUE REFLECTS THE ACTUAL SALE PRICE, NOT THE FISCAL (TAX-ASSESSED) VALUE.

• VERIFY THAT YOUR NAME AND PASSPORT DETAILS MATCH EXACTLY ON ALL LEGAL DOCUMENTS.

SPECIAL CONSIDERATIONS

• PURCHASING THROUGH A CORPORATION
  IF BUYING PROPERTY OWNED BY A CORPORATION, THE OWNERSHIP TRANSFER INVOLVES TRANSFERRING THE CORPORATION’S SHARES. THIS IS A DIFFERENT PROCESS REQUIRING SPECIALIZED LEGAL SUPPORT.

• DUE DILIGENCE CHECKLIST

• CONFIRM ZONING REGULATIONS AND RESTRICTIONS.

• CHECK FOR LIENS OR ENCUMBRANCES.

• REVIEW ENVIRONMENTAL IMPACT ASSESSMENTS IF APPLICABLE.

CONCLUSION

BUYING PROPERTY IN COSTA RICA AS A FOREIGNER IS A STRAIGHTFORWARD PROCESS WHEN YOU HAVE PROPER LEGAL GUIDANCE. WHILE THIS GUIDE OUTLINES THE GENERAL STEPS, IT IS NOT A SUBSTITUTE FOR PROFESSIONAL LEGAL ADVICE. IF NEEDED, CONSULT A LICENSED ATTORNEY TO ENSURE COMPLIANCE WITH COSTA RICAN PROPERTY LAWS.

THIS GUIDE AIMS TO HELP YOU UNDERSTAND THE BASICS, MAKING YOUR PROPERTY ACQUISITION PROCESS IN COSTA RICA SMOOTH AND TRANSPARENT. FOR PERSONALIZED SUPPORT, FEEL FREE TO REACH OUT, AND WE CAN RECOMMEND TRUSTED PROFESSIONALS TO ASSIST YOU.