FAQS for Real Estate

Absolutely! According to Article 19 of the Costa Rican Constitution, both foreigners and locals enjoy the same rights and responsibilities. This means that regardless of your country of origin, you can purchase property in Costa Rica and embark on your real estate journey without any restrictions.

Yes, it is essential to hire an attorney when buying real estate. Your attorney will guide you through the entire process, ensuring that everything proceeds smoothly. It's crucial to find an attorney who speaks your language fluently and instills confidence in you throughout the property acquisition process in Costa Rica.

Yes! According to Costa Rican law, any individual of legal age is permitted to establish a Costa Rican corporation, become a shareholder, and be part of its board of directors.

Indeed, when opening a bank account in Costa Rica, you have the option to denominate it in either US dollars or Colones, the local currency.

Also, you can deposit the money in USD directly to an Escrow account from an escrow agency.

An escrow account is commonly used by foreigners in Costa Rica, allowing the buyer of a property to place an amount of money, which can be either a down payment or the entire purchase price, in the secure hands of a disinterested third party for a set amount of time. This serves not only to demonstrate to the seller the buyer's intentions but also their economic capacity to complete the property acquisition.

The escrow agreement is a contract signed between the buyer and the seller, outlining the conditions for the transfer of funds from the escrow account to the seller. It is only when these conditions have been met that the Escrow Agent is obligated to release the funds to the seller. Through this escrow agreement, both the buyer and the seller are protected.

An escrow agency functions as a mediator in financial transactions, serving as a neutral intermediary between the parties involved. Its primary role is to hold assets, such as funds or documents, on behalf of the parties until specific conditions are met. The agency ensures that neither party gains access to the assets until all agreed-upon terms have been fulfilled. This helps to mitigate risks and establish trust between the parties by providing a secure environment for the transaction to take place. Additionally, escrow agencies often offer services such as verification, documentation, and sometimes dispute resolution to facilitate smooth and fair transactions.

As per Law 7509, property taxes in Costa Rica correspond to 0.25% of the property's registered value at the corresponding municipality. These taxes are typically charged quarterly, but you have the option to pay for the entire year at once.

Yes, all Costa Rican corporations must pay an annual fix tax. The law on corporate taxes, in its article 3, subsection a, tells us that companies will pay annually a15% of a monthly base salary.

Yes! When considering the purchase of beachfront property in Costa Rica, it's important for buyers to take into account the Maritime Zone Law, which governs land within the initial 200 meters from the ocean's high tide line. This 200-meter stretch is delineated into two distinct phases.

The first phase comprises the initial 50 meters from the high tide mark, designated as public beach and prohibited from any construction. Beyond this public beach area, the subsequent 150 meters are subject to restrictions. While this land cannot be owned outright, it is available for lease through a concession granted by the local municipality.

It's worth noting that under Law 6043, commonly known as the Maritime-Terrestrial Zone Law, any concession obtained for this area must be granted for a period ranging from 5 to 20 years.

The article 2 of the Regulation to the Law on the Maritime Terrestrial Zone defines a concession as: The granting by the competent authority for the enjoyment or utilization of the maritime terrestrial zone of public domain. This grant is formalized between the concessionaire and the municipality through a contract.

Due diligence entails thoroughly investigating the physical and legal status of a property before committing to its purchase. This process ensures confirmation that the property aligns with the seller's representations and that there are no legal impediments to the intended use of the property. Should the due diligence reveal potential liabilities, a recommendation may be made to withhold a portion of the purchase price in escrow. This serves to safeguard the buyer from assuming any unforeseen liabilities.

Yes, and we will be more than glad to assist you. In our due diligence, we will conduct a comprehensive study of the property or properties you are interested in purchasing. This will include:

- Property title and survey matters

- Property ownership history

- Current property ownership details

- Municipal matters

- Public utilities

- Condominium matters (if applicable)

- Bodies of water

- Environmental claims

Each of these aspects will undergo thorough investigation and will be presented to you in a PDF document, along with any relevant annexes aimed at enhancing the property information. Additionally, this investigation will assess the level of risk associated with purchasing the property, providing you with a clear understanding of its current condition and any potential challenges.