Envision yourself owning a piece of paradise?
At this point there are many questions that provably come to your mind, here we put together few of the most common ones that we have been answering for our clients through the years.
Is it safe to buy property in Costa Rica?
Unlike some of the other countries, foreigners have the same rights when purchasing land in Costa Rica as locals do. You can own property outright in your own name or in the name of your corporation. You do not need a local partner, except in cases of beachfront concession property, where special rules apply.
Closing costs on Costa Rica property, how to calculate and who pays?
When you purchase Costa Rica property, the most customary means of transferring the title of the property from the seller to the buyer are
1.If the property is owned by a corporation like a Sociedad Anónima (S.A.) or a Limitada (LTDA), the closing attorney can either transfer the title out of the corporation to the new owner (in the buyers’ personal name or in a new corporation) or transfer the shares and powers of attorney to the buyer and change the board of directors.
2.If the property is owned by a person(s), the title will have to be transferred from this person(s) to another person(s) or to a corporation.
Who pays the closing costs on Costa Rica property?
The closing costs on Costa Rica property title transfer are usually shared 50/50 between buyer and seller unless negotiated differently. This makes the closing costs a negotiable part of the offer process. The buyer pays the mortgage fees when the purchase price is financed.
If there is an existing mortgage on the property, the closing attorney will hold the balance owed on the mortgage. The attorney will then pay it off and make sure the title is cleared in the National Register.
The costs of clearing this mortgage have to be paid by the seller as it is important the buyer receives a clear title.
How much are the closing costs?
In the first case, the costs of transferring the corporation to the new owner depend on the attorney you choose. Some attorneys will charge you a fixed fee, others a 1%.
When you transfer the property, closing costs on Costa Rica property is totally different. The closing cost of just over 2,31% of the sales price includes transfer taxes, a national registry stamp plus documentary stamps and duties.
The Colegio de Abogados de Costa Rica dictates the notary registration fees: 2% on the purchase.
To make the calculation of closing costs on Costa Rica property effortless. Visit Attorney Property Services closing cost calculator. Make sure you set the dollar exchange before starting your calculation.
Building Costs in Costa Rica
In general, materials costs in Costa Rica are roughly equivalent to those in North America, while labor costs will be significantly less. Total building costs vary a great deal depending on materials used and salaries paid, with estimates ranging from us$450 per m2 ( US$45 per square foot) for simple construction to up to US$1000 per m2 ( us%100 per square foot) for a luxurious house.