Real Estate in Costa Rica

Ivan Granados - NOV 21, 2016
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Unlike some other countries, it is not required to have CR citizenship, CR residence, nor even have permanent presence in the country to own land in Costa Rica.

In Costa Rica, the Constitution and the Laws protect private ownership of land, and foreigners
enjoy the same rights as CR citizens, with the following exceptions: a) property given or sold to
CR citizens as part of government aid programs and b) the concession land.
All properties are duly registered within the Registro Nacional (National Registry) and all
relevant information about the title information and the survey maps must be duly recorded. Any
modification in the status of a title or any claims that might affect it must also be noted on the
title making possible to verify it.
Before buying land in Costa Rica you should get proper advice from a CR real estate Attorney,
who will conduct a proper “Due Diligence” within the National Registry, Municipality and other
Government offices. This is to verify that there are no liens on the property, the easements or
encumbrances that can affect it, and that any and all taxes and dues are duly paid and current.
Also will be checked if the property has legal access to water and electricity, if there are zoning
restrictions, conduct a house inspection and/or a survey verification, among other relevant
matters.
Although, as indicated before, foreign ownership is fully permitted, it is advisable to purchase
property through a CR corporation. Doing so, allows the purchaser to have flexibility, liability
protection, and can help with the following: i) Estate and tax planning (if ownership is properly
structured the foreigner can avoid for his/her heirs the probate procedure in CR.) Also the
regulations on corporate taxes, regarding write-off expenses, are a bit more flexible than the
personal ones) and ii) With representation, thru the corporate books the owner can grant a special
POA (Power of Attorney) for the diligences or acts required, thus not requiring the physical
presence in Costa Rica of the property owner.
With the current Immigration law, the property (condo, house or lot) you purchased allows you –
as well as your family – to apply for CR residency as an “investor”. The real estate investment
requires to be at least US$ 200,000.00 dollars and you must also comply with the other
requirements established in the Immigration law.
Ivan Granados is the Managing Partner at GM Attorneys, he specializes in real estate and
corporate law. Contact him at igranados@gmattorneyscr.com
GM Attorneys is a premium boutique Law Firm with offices in Tamarindo, Flamingo Beach and
San Jose. www.gmattorneyscr.com