Complete Guide for Buying Property in Costa Rica

Costa Rica, renowned for its breathtaking natural beauty and laid-back lifestyle, has become an increasingly popular destination for foreigners looking to invest in property, whether for vacationing, living, or retiring. The great news is that Costa Rica welcomes foreign property ownership, with no restrictions based on nationality. In this comprehensive guide, we’ll explore the three most common methods for acquiring property in this tropical paradise.

• Rent-to-Own: A Flexible Path to Ownership The rent-to-own method offers a unique opportunity to live in your dream home while gradually working towards ownership. This arrangement involves paying monthly installments for a predetermined period, as outlined in a contract, with the option to purchase the property at the end of the term. Although the rental fee is comparable to a standard rental agreement, a more substantial initial down payment is required, which is typically based on the property’s sale price and may replace the need for a security deposit. If the tenant decides to leave the property prematurely, they forfeit the down payment, ensuring the owner’s protection and demonstrating the tenant’s commitment to the purchase.

• Bank-Financed Purchase: A Traditional Approach For those who require financial assistance to buy property in Costa Rica, a bank-financed purchase is an ideal solution. However, it’s crucial to understand that securing a mortgage is a significant responsibility. The process begins by selecting a bank that best aligns with your needs, either through the bank’s guidance or with the help of a mortgage credit professional. Once you submit your application, the bank will conduct a thorough credit risk assessment, considering factors such as your credit history, proof of monthly income, current employment tenure, and other relevant criteria.

• Owner-Financed Purchase: A Direct Agreement While less common, an owner-financed purchase is a completely legal option that some sellers and buyers are willing to consider. This method involves a private contract between the property owner and the buyer, without the involvement of financial intermediaries. The owner agrees to finance the buyer, allowing them to pay for the property in installments. It’s essential to ensure that the private contract includes a guarantee, stating that if the agreed-upon payments and terms are not met, the property will be returned to the seller, and the advanced money will be refunded to the buyer, subject to pre-agreed penalties.

Limitations to Keep in Mind Although foreign property ownership is generally unrestricted in Costa Rica, there are two exceptions to be aware of:

• Agricultural Property: Properties donated to farmers in need by the Rural Development Institute (INDER) can only be sold after the farmer has maintained the land for a minimum of 15 years.

• Maritime Zone: The 200-meter strip starting from the mean high tide line is divided into two sections: a 50-meter public protected zone and the remaining 150 meters subject to concession rights. Concessions often come with higher taxes and more stringent zoning restrictions. Foreigners who have been residents of Costa Rica for more than five years can own up to 49% of a concession, either by purchasing shares in a company that holds the concession rights or through occupancy.

Required Documents and Recommendations To purchase property in Costa Rica, you simply need a valid passport and a valid entry stamp, confirming your legal status in the country. Payments can be made from accounts in your country of origin, as long as you comply with the tax laws of both nations.

To ensure a smooth and secure property buying process, consider the following recommendations:

• Investigate whether the property has any encumbrances, such as mortgages or usufruct rights.
• Verify copies of the cadastral plan and sales contract with a trusted lawyer.
• Ensure the legal transfer of the property by signing the sales contract.
• Request a purchase contract if the sale process extends over a longerperiod.
• Conduct transactions either as an individual or jointly with others in thename of a corporation.
• Jointly choose an authorized notary to handle the sales contract.

Discover the Exceptional Opportunities at Nya

For those seeking a luxurious and sustainable living experience in Costa Rica, Ciudad Nya offers an unparalleled opportunity. This eco-friendly condominium development, nestled in the heart of Guanacaste, combines modern amenities with the breathtaking beauty of the surrounding natural landscape. At Nya, you can choose from a range of carefully designed 1, 2, and 3-bedroom condominiums, each provide the perfect blend of comfort, style, and functionality.

To make your dream of owning a piece of paradise even more attainable, Nya offers attractive financing options, tailored to suit your individual needs and circumstances. Our dedicated team of professionals is ready to guide you through the process, ensuring a seamless and stress-free experience from start to finish. By choosing Nya, you’re not only investing in a remarkable property but also in a lifestyle that embraces the essence of Costa Rica “Pura Vida” philosophy.