Articles

The Basics About Buying Property Abroad That Every Foreign Investor Should Know

Buying Property Abroad

Published on August 12th, 2019

Peace of living is what attracts people to buy property in Costa Rica, the beautiful, safe, and stable country with a thriving economy and blessed enormously by Nature.

Located between the Pacific Ocean and the Caribbean Sea, the country with its dense jungles long stretches of pristine beaches and dotted with countless volcanoes is an epitome of beauty that inspires people to have a home there.

Interestingly, Costa Rica is a favorite destination for buying real estate that is quite affordable and appreciating fast.

The government too has taken steps to encourage foreign investment that holds good promise for business in real estate as admitted by the owners of Blue Water Real Estate Costa Rica, a real estate company that also operates as a tour agency and vacation rental company.

1. People Are Eager To Get A Slice Of The Promised Land

The Central American country proudly flaunts it bio-diversity backed by progressive economic policies that attract foreigners to invest in real estate to have a slice of the Promised Land.

The country has abundant potential in eco-tourism, and it gives enormous opportunities to explore the flora and fauna that attracts people across the globe. Costa Rica has become a popular name worldwide through its exports of pineapples, bananas, gourmet coffee beans, and other tropical fruits that give a taste of the country.

The country welcomes foreigners with open arms with the encouragement of investing in real estate. So it is only natural that more and more people from other countries are showing much interest to buy property there.

2. Have A Home In Costa Rica

The country can be the right choice for those looking forward to peaceful and comfortable living after retirement and equally attractive for relocating for some work or new business opportunity.

People who want to have a spectacular home to spend fun-filled holidays at home away from home would find the country most suited. There might be some others who would like to make their money grow fast by investing in real estate that holds good promise.

This article provides information about purchasing property in Costa Rica that should help people to prepare well before taking the first step.

3. Why Should You Buy Property In Costa Rica?

Buying Property Abroad

The relaxed and laid back style of living is the reason why people fall in love with Costa Rica. It holds people in awe with its spellbinding natural beauty amid the deep blue waters of the Pacific Ocean.

People, who once visit the country, whether for vacation or business cannot resist the temptation of coming back again and again and finally making a home there. The country never ceases inspiring as people discover new things every time they come back.

To experience everything at your own, buying property in Costa Rica become obvious. Moreover, expats can enjoy an exceptional lifestyle at this enchanting place by taking advantage of the low cost of living. The price you pay for living life king size in Costa Rica is much more economical and affordable to many.

4. Same Property Rights For Foreigners

The foreigners are at par with the Costa Ricans as they enjoy the same property rights as the country is eager to welcome foreigners to own property. Whether you buy land, real estate, or any other type of property, despite being a foreigner, you enjoy the same rights as local people.

The Costa Rican constitution guarantees the ownership right and applies it across the board for businesses as well as individuals. For land ownership, it is not required to have a citizenship of the country nor a residence or presence in that country.

English is the language most widely spoken that makes communication easy for foreigners. The property market offers excellent prospects for investment in both the short and long term, which is attracting developers and investors who want to get the most from it.

Coastal properties have high prospects for beach rentals, especially in the expat dominated northwest. With tourists flocking to the region, there is a broad selection of land and property in this area that has a growing demand.

5. Ownership Rights – Some Exceptions

The government allows individual ownership of land or property by foreigners just in the way done for Corporation or business. It means that you do not have to partner with a native person to own the property. Although the market is quite liberal in inviting foreigners, there are some exceptions too, but applicable only to a tiny fraction of land yet worth noting.

50-meter zone – The government prohibits property development up to a distance of 50 meters from the high tide line because it is public property. The restriction is in place to protect the coastal beauty of the country.

150-meter zone – The next zone comprising of 150 meters belongs to the municipality but subject to leasing on concession up to 20 years with the option of renewal on expiry of the lease term.

Foreigners who partner with a Costa Rican national who owns 50% of such land can become co-owners of the property.

Again there are exceptions to this rule for properties located in Potrero and Tamarindo where foreigners can become owners all by themselves.

6. Property Titles

Foreigners interested in buying property in Costa Rica would find the arrangement of awarding property titles quite attractive and advantageous. The majority of the property in Costa Rica is already having a title attached to it.

This makes it very easy to track and evaluate properties that have proper records, is fully legal and above board. That makes it imperative that foreigners should always look for properties duly documented and recorded by the government.

They should not ever consider any property that does not have a proper title. Properties that do not have the correct title are susceptible to real estate scams and best avoided.

Traditionally, the general custom in a property transaction is that the buyer and seller share the closing costs.

However, it is possible to alter it through mutual agreement and depends on the particular transaction. However, buyers must pay for legal fees, land transfer cost, and other fees together with the fees payable to the Real Estate Company or agent.