Purchasing Real Estate in Costa Rica
Basics: Costa Rica's business environment welcomes and fosters foreign investment, whether in real estate or other business pursuits. There are generally no restrictions for foreign entities or individuals in acquiring property or conducting business in Costa Rica. A foreign investor is free to enter into local contracts and enjoys the same protection as any national citizen. For real estate purchases, this essentially means that everyone, Costa Rican nationals, foreign residents and even non-residents can own property in Costa Rica.
Types of property ownership: As in the United States, Canada or Europe, there are different types of property available to buyers, which can be owned on a personal capacity or through a corporation; regardless of the owner's nationality. Following is a summary of each type of property ownership available inn the country.
Fee Simple: The most common and comprehensive form of real estate ownership in Costa Rica is fee simple ownership. The conditions and regulations for this type of ownership are the same for Costa Rican nationals as they are for foreigners. The notion of fee simple ownership is the same in Costa Rica as in the United States, Canada or Europe; namely, fee simple ownership gives the owner of the property the absolute right to materially own the property, use it, enjoy it, sell it, lease it, improve it, among other things, subject only to conditions outlined in Costa Rican Laws, such as zoning regulations.
Condominiums: Condominium property ownership is another form of fee simple ownership, but usually carries it a few additional restrictions set forth by the developer, such as architectural guidelines, land use restrictions, and other limitations that may be placed on branch property. For the most part, condominium laws are designed to protect integrity of a development and maintain the "look and feel" of the project. Most residential gated communities and residential buildings in Costa Rica are organized as condominiums. Typically, each Condominium development has its own by-laws containing all applicable conditions, restrictions and regulations applicable to owners in such developments
Concessions in the Shoreline Zone: All land up to 50 meters (about 55 yards) from the ocean tide line is public property and thus can not be sold or purchased. Land from 50 to 200 meters (about 220 yards) is concession land, which is not owned, but leased from the local municipality. This is governed by the Shoreline Zone Law (Law No. 6043) and other specific regulations from local municipalities and the Costa Rican Tourism Board(ICT). These legal provisions establish f the conditions under which foreigners and local residents can lease concession property.
The Government grants this right by means of a private agreement between concessionaire and municipality that is recorded in a Public Property Registry. This agreement also establishes a yearly concession fee that is paid based on an appraisal performed by the Government. Most concessions and management plans are granted for 20 years. Renewal for equal and consecutive periods is negotiated between private parties and the corresponding government authority; such renewal is usually based on the concessionaire's ability to comply with its original commitments and obligations during the previous agreement.
Types of property ownership: As in the United States, Canada or Europe, there are different types of property available to buyers, which can be owned on a personal capacity or through a corporation; regardless of the owner's nationality. Following is a summary of each type of property ownership available inn the country.
Fee Simple: The most common and comprehensive form of real estate ownership in Costa Rica is fee simple ownership. The conditions and regulations for this type of ownership are the same for Costa Rican nationals as they are for foreigners. The notion of fee simple ownership is the same in Costa Rica as in the United States, Canada or Europe; namely, fee simple ownership gives the owner of the property the absolute right to materially own the property, use it, enjoy it, sell it, lease it, improve it, among other things, subject only to conditions outlined in Costa Rican Laws, such as zoning regulations.
Condominiums: Condominium property ownership is another form of fee simple ownership, but usually carries it a few additional restrictions set forth by the developer, such as architectural guidelines, land use restrictions, and other limitations that may be placed on branch property. For the most part, condominium laws are designed to protect integrity of a development and maintain the "look and feel" of the project. Most residential gated communities and residential buildings in Costa Rica are organized as condominiums. Typically, each Condominium development has its own by-laws containing all applicable conditions, restrictions and regulations applicable to owners in such developments
Concessions in the Shoreline Zone: All land up to 50 meters (about 55 yards) from the ocean tide line is public property and thus can not be sold or purchased. Land from 50 to 200 meters (about 220 yards) is concession land, which is not owned, but leased from the local municipality. This is governed by the Shoreline Zone Law (Law No. 6043) and other specific regulations from local municipalities and the Costa Rican Tourism Board(ICT). These legal provisions establish f the conditions under which foreigners and local residents can lease concession property.
The Government grants this right by means of a private agreement between concessionaire and municipality that is recorded in a Public Property Registry. This agreement also establishes a yearly concession fee that is paid based on an appraisal performed by the Government. Most concessions and management plans are granted for 20 years. Renewal for equal and consecutive periods is negotiated between private parties and the corresponding government authority; such renewal is usually based on the concessionaire's ability to comply with its original commitments and obligations during the previous agreement.
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