The Republic of Costa Rica (meaning "rich coast" in Spanish), is a country in Central America, bordered by Nicaragua to the north and Panama to the southeast.
The population is about 5 million, with 350,000 living in San Jose (the capital).
The country is a unitary presidential constitutional republic with a stable democracy. There has been uninterrupted democracy dating back to 1948 and it is the region's most politically stable country.
There is a highly educated workforce and many people speak English even though the offical language is Spanish.
Citizens of the USA, Canada, UK, EU countries, and most Commonwealth & South American countries can stay on vacation in Costa Rica for 3 months on a tourist visa which is automatically given on arrival.
Visitors wanting to stay longer than 3 months can apply for an extension of 3 months.
Individuals who are retired from work, financially independent and a person of good character can apply for Costa Rica permanent residence.
Individuals who have permanent residency and have resided in Costa Rica for 7 years or more are eligible to apply for citizenship by naturalization.
Costa Rica permits dual citizenship and encourages living abroad to have dual citizenship.
There are no restrictions on foreign buyers acquiring real estate in Costa Rica. The Government of Costa Rica welcomes investment from overseas investors.
In Costa Rica, there is no multiple listing system (MLS) or certified real estate agents. Be careful when purchasing property as there is little protection against fraud.
Search for your perfect property.
Make an offer to purchase the property with the Real Estate Agent.
Engage a lawyer to perform a title search and land survey.
After signing the Agreement for Sale, pay a 10% deposit.
On settlement pay all taxes and fees.
Pay the balance of the purchase amount.
Please seek the advice of a local lawyer. Legal fees depend on the complexity of the transaction and the amount of work performed.
Annual property tax in Costa Rica is 0.25% of the taxable value of the property. For a new owner, that value is the purchase price. The taxes can be paid in four installments.
Transfer tax on purchase of a property is 1.5% of value or amount of gross consideration.
The tax is split 50/50 between the buyer and seller.
Costa Rica imposes 15% capital gains tax on the sale of a property.
Costa Rica imposes 15% personal income tax on earnings.