Purchasing Property in Costa Rica

Buying property in Costa Rica is very easy and can be done in your own name or a corporation that you own unlike some countries where foreigners are not allowed to hold title to land.

All property in Costa Rica is registered in San Jose, the capital, at the National Registry. Each property is assigned a registration number or Folio number which can be searched online or at the Registry for clear title. Title insurance is also available through U.S. title companies such as Stewart Title or Fidelity.

Property tax in Costa Rica is very inexpensive compared to many other countries which is a great advantage if you own a vacation property or are speculating. At the present time the property tax rate is 0.25% of the appraised value. Another added benefit is that there are also no capital gains tax on your profits from selling your properties. Closing cost are normally split between the buyer and seller at time of closing.

These cost are of a nominal amount when compared to some other countries. A property with a sales price of $100,000 for example would normally have a closing cost of about $4250, not including the title insurance. And the annual property tax would amount too $250 per year.

Considering these favorable tax advantages with no capital gains tax, along with the political stability, diversity, beauty, weather and absence of hurricanes, you can see why so many people are moving too and investing in Costa Rica.