Here are a Top 10 of the Frequently Asked Questions most commonly asked about owning real estate in Costa Rica.

1.      Can a U.S. or Canadian citizen (or other foreigner) own property in Costa Rica?

Yes.  In fact foreigners have the same property ownership rights as Costa Rican nationals.

2.      How much are property taxes?

Property taxes are currently 0.25% of the recorded value + there are no capital gains taxes on appreciation when the property is sold.

3.      Is financing available?

Yes, although many Costa Rica purchases are done without transaction dependent financing.  Cash purchases using equity from U.S. property (ie: cash-out refinance or sale of a U.S. home) for the entire Costa Rica purchase amount are common.  If additional funds are required, both public and private banks do offer financing similar to U.S. mortgages.

4.      Is title insurance available?

Yes and although optional, it is highly recommended.  There are many title agencies including Chicago Title and Stewart Title who handle Escrow services and title insurance for Costa Rica purchases.

5.      Is it true that beach front land in Costa Rica is considered "concession land"?

Yes, concession land is located along the coast and is the area within 200m of the median tide level.  Concession rights may be acquired via a lease with the Costa Rican government.  The lease periods range from 20 to 40 years, and buyers may acquire multiple lease terms.  More information will be made available should you be interested in coastal property.

6.      Are there American corporations with offices in Costa Rica?

Yes.  Because of Costa Rica's political stability, low taxes, and high literacy rate (96%, 2^nd highest per capita in the world), Costa Rica is attracting many corporations.  Over a hundred companies from around the world, such as Pfizer, Firestone, and Glaxo Smith Kline, have operations based out of Costa Rica.  Intel's largest plant for the manufacturing of microprocessor chips is based out of Costa Rica and the company is expanding their in-country operations.  Wal-Mart is also expanding its retail network in the region.

7.      What is health care like in Costa Rica?

In a recent survey of health systems around the world, Costa Rica ranked just above the United States!  New hospitals such as the Cima-San Jose Medical Complex in Escazu (an extension of Baylor University and funded by Glaxo Smith Kline) are equipped with state of the art medical equipment and world-class specialists.  Many North Americans come here for dental care, plastic surgery and even heart surgery - being as the quality is comparable to North American health care, but prices are 50%-70% less.

8.      Are there schools that meet American standards with transferable credits?

Yes.  Contact me for a complete list of schools.

9.      Is the process for purchasing property similar to that in the U.S.?

Yes in that the key steps to purchasing property in Costa Rica are similar:

• A Buyer signs an option to purchase from the Seller.
• Deposit funds are placed into escrow account (if applicable).
• A title company, notary public or attorney performs a title search to ensure the title to the property is free and clear of any defects.
• The property deed is executed or transfered and the sale funds are disbursed.
• The property sale is recorded with the Costa Rican National Public Registry.
• However, no matter how similar purchasing in Costa Rica seems ... it still remains very different than making a U.S. purchase.  So as with anything else, education is very important!  A potential Buyer's best bet is to work with a reputable and licensed Costa Rica Real Estate Broker or Realtor to assist in explaining your financing (both U.S. and Costa Rican) options as applicable, locating your dream home in the area right for you, negotiating the price, explaining and coordinating the process with a reputable Costa Rican attorney, title company, etc.  Taking the right steps will ensure your purchase is both trouble free and in your best interest.

10. How do I insure my home in Costa Rica?

There are American and international companies that carry hazard, fire, and earthquake insurance policies for homes in Costa Rica.  You may also choose to insure your property through the Costa Rican government's national insurance agency at approximately 0.3% of the appraised value of the home.

Bill Clanton is a 10 year seasoned real estate investor and owner of a highly successful U.S. based residential and commercial mortgage company.  As a Costa Rica Real Estate Sales and Financing Consultant that is actually moving to Costa Rica, Bill is living the dream he is personally passionate about. 

Want to know more about living and buying in Costa Rica?!  Bill loves telling people all about it and can be reached at Bill@BienvenidosCostaRica.com.