3 frequently asked questions when buying a property in the coastal area of Costa Rica
Investing in Costa Rica Real Estate can be the best financial decision of your life or a real nightmare. It all depends on having the right legal advice and enough information to decide which property to buy, especially if it is located in a beautiful coastal area like Uvita or Tamarindo.
For that reason, today we decided to answer 3 questions that our clients (mostly foreigners) frequently ask us to secure their investment.
What are the legal requirements and procedures to invest in real estate in Costa Rica, in general terms?
1. First, the intent to purchase must be materialized through the necessary legal documents, such as a Letter of Intent (LoI) or a Purchase Option Agreement.
2. Initiate the Due Diligence process to identify any possible contingencies or risks related the property to be purchased, and thus define whether or not the property is suitable to be acquired and for the intended development, whether for tourism, commercial, residential, or rural purposes.
3. Make sure that you comply with all current regulations related to governmental permits or authorizations, depending on the intended use of the property. Some of these permits or processes may include: reviewing the zoning plan and permits from the Municipality, environmental impact assessment according to MINAE (if applicable), visiting AyA or the local ASADA to verify that the property has access to potable water, among others.
Once you have completed these steps, you can proceed to invest in that property in a secure manner.
How can I protect my investment and guarantee the legal security of my properties in Costa Rica?
We normally recommend that a corporation be set up to act as owner of the property, so that it may be separate from your other assets and also so that it is not unnecessarily exposed to external risks.
It is important to set up a Registry alert so that you are notified in the event that a third party tries to illegally assign or otherwise transfer your property.
But, in general terms, the key is to have the best legal and technical advice to prevent being a victim of fraud or to avoid future inconveniences. This is even more important if the property is located in a coastal area, because Costa Rica has specific legislation depending on how close the property is to the sea or to a protected area (such as a national park or an indigenous territory).
Are there any environmental regulations to consider when investing in coastal Costa Rica?
Definitely yes; Costa Rica has legislation applicable to sustainable development and respect for protected areas. For that reason, it is necessary to have a legal advisor who has experience and knowledge in real estate development.
This is especially important because in our country there is the so-called: maritime-terrestrial zone where most development activities are prohibited, without the proper legal authorization.
If you wish to invest in real estate in Costa Rica and have these or other doubts, contact us today. We will be glad to advise you and help you secure your investment.
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