Foreigners who want to own property in the lush expanse of Costa Rica should first become familiar with the country’s real estate laws. As with any foreign real estate purchase, understanding the country’s particular rules, regulations and procedures is invaluable in buying real estate. To help future buyers in their endeavors, we are going to pen a regular series about navigating the Costa Rica real estate laws to tackle topics such as titles and transfers, ensuring a clear title, closing costs, mortgages, property taxes and utilities and corporate property. Today we’ll begin the series with a brief background on Costa Rica real estate titles and transfers for foreign buyers.

Costa Rica Titles and Transfers

One of the first processes encountered in purchasing a Costa Rica property is titles and transfers. In Costa Rica, real estate is transferred through the execution of a property transfer deed. The fee simple deed involved is very similar to real estate ownership in the United States, which is likely why so many Americans are comfortable owning real estate in Costa Rica. The property transfer must be done in the presence of a Costa Rica notary public who is also an attorney and has the power to draft and interpret legal documents as well as authenticate and certify them.

To close on the sale of the Costa Rica real estate property or home, the deed transfer and sale must be registered in an office known as the National Registry, where all Costa Rica real estate deeds are filed. Costa Rican real estate can be purchased in one person’s name, jointly with other individuals, or under the name of a corporation. Deciding what is best for your situation can be done by consulting with an attorney who is versed in Costa Rican real estate laws. Once you have the title for your new Costa Rica dream home, you are one step closer to living in paradise.

Source: Roger Peterson, San Jose-based lawyer specializing in foreign real estate purchase in Costa Rica

We recently came across a fascinating article about purchasing real estate in Costa Rica, and wanted to share the exciting information for those interested in owning a gorgeous property there. The article discusses Costa Rica’s rating as the #2 most attractive country in Latin America by Foreign Direct Investment Magazine.

Visitors and expatriates now have another compelling reason to visit Costa Rica: The blissful country ranks #1 on the Happy Planet Index, created by the New Economics Foundation. The Happy Planet Index measures how well a country uses its natural resources to create long and happy lives for its citizens. Costa Rica’s abundant natural resources enable its people to live happily and healthily to the average ripe old age of 79 (National Geographic). Read all about why Costa Rica is such a great place to live in the original article on the Happy Planet Index website.

A model home under construction in Kalia's Black Beauty Village in the area of Playa Ostional in Guanacaste, Costa Rica.

Imagine waking up every day to the sound of ocean waves laced with distant calls of the macaw in the rustling of the rainforest. In this beautiful land, your schedule for the day might include a dip in the ocean, hiking beneath majestic canopies of flora and catching a nap beneath a banana tree. If this scenario sounds too good to be true, you haven’t lived in Costa Rica.

After visiting Costa Rica, the pristine beaches, rainforests and happy locals are like a siren song calling you back again and again. A growing economy, political stability, and the tourist-friendly people are a few more reasons Costa Rica is becoming an increasingly popular place for foreigners to own a home. Owning a home in Costa Rica offers a welcome refuge from the daily rat race of working a 9-5 job in the United States or Europe. Whereas Americans and Europeans tend to focus on getting ahead and acquiring physical possessions, the people of Costa Rica place an emphasis on enjoying life’s simple pleasures and the beauty of being immersed in nature. University of Washington studies have shown that being in natural greenery for just twenty minutes at a time substantially lowers stress levels, which perhaps accounts for why Costa Rica residents are ranked among the happiest in the world. (Source: www.happyplanetindex.org)

Surprisingly, owning a home in Costa Rica is easier than one might think. A whopping 20% of Costa Rica’s population is currently comprised of foreigners living abroad, of which one third is American. Financing a home is similar to the mortgage structure in the United States, although financing rates are typically a few percentage points higher. However, land taxes are substantially lower, enabling Costa Rican home owners to save a lot more on taxes than they would through buying a home in the U.S. Another allure to becoming a home owner in Costa Rica is the ease with which a foreigner can do business. Travel visas allow people to conduct business for three months at a time, and once they are ready to establish a full time business they can file for a temporary residency permit. (Source: www.costarica.com) Many popular eco-tourism companies, hotels and restaurants are run by expatriates who have joined the leisurely, enjoyable pace of life that Costa Rica has to offer.

One of the best and easiest ways to buy and own a home in Costa Rica is to find a housing development built by an American-based company. This gives foreigners the hands-on guidance and help they might need to navigate through local laws, financing and regulations, ensuring that they have a smooth, positive experience purchasing their Costa Rican dream home.