​FAQ ABOUT PURCHASING IN COSTA RICA

​1. Can foreigners buy property in Costa Rica?

• Yes, foreigners can purchase property in Costa Rica without any restrictions, except for properties within the Maritime Zone, where special rules apply.

2. What is the Maritime Zone, and how does it affect property ownership?

• The Maritime Zone is the area within 200 meters of the high tide line. The first 50 meters are public land, and the next 150 meters are subject to concession leases, which can only be held by Costa Rican citizens or corporations.

3. Do I need a real estate agent to buy property in Costa Rica?

• While it's not legally required, it's highly recommended to use a reputable local real estate agent who can help you navigate the market, find suitable properties, and negotiate the best deals.

4. What is the role of an attorney in the property purchase process?

• An attorney conducts the title search, drafts and reviews the purchase agreement, handles the escrow process, and ensures the proper transfer and registration of the title. Their expertise is crucial for a smooth transaction.

5. What are the costs associated with buying property in Costa Rica?

• Closing costs represent about 5% of the purchase price and include legal fees, transfer taxes, and notary fees. There may also be additional costs for surveys, inspections, and escrow services.

6. How does the escrow process work?

• An escrow account is opened with a local bank or escrow service to hold the funds until the transaction is completed. This ensures that the buyer's money is secure and only released once all conditions of the sale are met.

7. What is due diligence, and why is it important?

• Due diligence involves verifying the property's legal status, conducting a title search, inspecting the property, and confirming the boundaries through a survey. It ensures that the property is free of legal issues and accurately represented.

8. Can I finance my property purchase in Costa Rica?

• Financing options are available, though many transactions are cash-based. Local banks and international lenders offer mortgages, but the terms may vary, and it's advisable to explore all options.

9. What should I look for in a purchase agreement?

• The purchase agreement should include the purchase price, payment schedule, closing date, property description, and any conditions or contingencies (e.g., financing, inspections). Have your attorney review it to ensure your interests are protected.

10. How long does the property purchase process take?

• The timeline can vary, but typically it takes about 30-60 days from the acceptance of the offer to the closing date. Factors such as due diligence, financing, and negotiations can affect this timeline.

11. What taxes do I need to pay when buying property in Costa Rica?

• Transfer taxes are approximately 1.5% of the purchase price. Additionally, annual property taxes are around 0.25% of the property's registered value.

12. How is property ownership registered in Costa Rica?

• Property ownership is registered with the National Registry (Registro Nacional). Your attorney will handle the registration process to ensure the title is properly transferred and recorded.

13. Are there any ongoing costs after purchasing property?

• Yes, ongoing costs may include property taxes, utility bills, maintenance fees, and any homeowner association (HOA) fees if applicable.

14. Is property insurance necessary in Costa Rica?

• While not legally required, property insurance is highly recommended to protect your investment against natural disasters, theft, and other risks. Local insurance providers offer various coverage options.

15. Can I rent out my property in Costa Rica?

• Yes, you can rent out your property. Many buyers purchase properties as vacation rentals or long-term rentals to generate income. Be sure to comply with local regulations and tax requirements.

By understanding these FAQs, you'll be better prepared to navigate the property purchase process in Costa Rica and make informed decisions.