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5 Crucial Considerations to Make Before Investing in any Costa Rica Properties

Posted by Marketing Edge on April 16, 2024

Let RE/MAX guide your path to purchasing Costa Rica properties. The path to property ownership is an exciting endeavor full of optimism and enthusiasm; however, if you are unfamiliar with the process, there are a few crucial things to take into consideration. Unlike the United States, Costa Rica’s real estate market does not employ a multiple listing service (MLS). You don’t have to be anxious, though, since when you work with RE/MAX Costa Rica, you’ll be in the capable hands of experienced real estate specialists who understand the market’s complexity and can assist you in finding the appropriate home that matches your individual needs.

Comprehensive Market Guidance: 

Because Costa Rica lacks a Multiple Listing Service (MLS) database, RE/MAX real estate agents give tailored guidance to help clients navigate the market. An experience-based insight: If you want to learn more about the prospect of owning property in Costa Rica, consider taking a vacation first!

Legal Representation: 

It is vital to engage a certified bilingual real estate attorney who can also function as a public notary during transactions. This ensures that you obtain full legal aid, regardless of your citizenship status.While the procedures in the United States and Canada are comparable to those in Costa Rica, it is vital to grasp the specifics of the Costa Rican buying process. RE/MAX real estate professionals give skilled support throughout the process, from offer preparation to agreement formalization.

Deposits and Escrow:

In Costa Rica, deposits are typically roughly 10% of the transaction price and must be held in escrow before the purchase-sale agreement may be legally enforced.The buyer is responsible for paying the closing expenses, which are typically 3.6% of the total sales price and can be negotiated between the buyer and seller. The buyer is primarily responsible for the closing costs.

Commission Structure:

The property owner is responsible for paying the listing agent’s commission; however, if the buyer uses a buyer’s agency, they may incur additional charges.The next step is to register the property, which you may do in your own name or through a corporation with the assistance of your real estate attorney.Considerations for Taxes Costa Rica’s property taxes are quite low, often totaling to 0.25% of the property’s value. Furthermore, residences valued more than $200,000 are subject to an extra luxury tax.

Zoning and Title Rights to Property

It is critical to understand property zoning limitations, especially those affecting maritime zones and concessioned areas. The first 50 meters from the mean high tide mark are government property, so no one can build or encumber it. The next 150 meters in 95% of Costa Rica is the Maritime Zone, which can be developed with municipal “concessions.”. This means that the property is leased land from the government, so it is not fee-simple. The concession term is usually 20 years, with an annual fee. RE/MAX agents will ensure that the title is properly confirmed and help you through any zoning difficulties.

For more details on concession laws and the Costa Rica real estate buying process in general, click here

concession maritime zone costa rica real estate

To summarize, anyone looking to invest in paradise will find that purchasing Costa Rica properties presents them with an infinite number of opportunities. RE/MAX real estate specialists can make navigating the Costa Rican real estate market easier and more fun by sharing their experience and consulting with clients. Contact RE/MAX Costa Rica right away to start the process of becoming a homeowner in this tropical paradise.

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