Costa Rica Land For Sale

Why is Purchasing Land so Popular in Costa Rica?

Lots for sale in Costa Rica have become quite a commodity over the last few decades, and for much good reason. This nation of around 4.5 million people is known for very progressive environmental policies, and for being an amazing location for surfers and lovers of the ocean.

The New Economic’s Foundation’s Happy Planet Index has twice ranked Costa Rica the best performing nation for environmental sustainability, and the climate is tropical year-round. National parks with high levels of biodiversity, mountain residences with cool breezes, and plots of land that are ripe for condo and gated-community development are all reasons why Costa Rica fares high for those looking to purchase land.

This is also the most visited nation in Central America, with 2.2 million foreign visitors coming here during 2011. Airports that are becoming more developed, roadways and other infrastructure having been upgraded over the last decade, and many who are reading about the booming yoga scene in areas such as Nosara are all fueling the desire for those interested in Costa Rica land for sale.

Regulations about Land in Costa Rica

The corresponding government authority in Costa Rica determines the criteria for entering into a concession or management plan based on soil or zoning. Individuals and companies who purchase land in Costa Rica can request a change of use for specific portion, and this request must be approved by the corresponding entity. This is a common procedure when it comes to farming, guided tours, or golf courses as well.

If the land or your selection of lots for sale is located in a shoreline zone, the master plan must be in accordance with the soil standards that have been set forth by the Municipality, and approval requires the existence of a concession agreement on the land located by the shore. If your plan for Costa Rica land for sale involves the use of condos, the preparation and recording of a condominium declaration is pretty standard: HOA declaration, rental pool, and fractional ownership are much the same as in the USA.

In Costa Rica, the first 50 meters from high tide at the beach is always considered public property. You can not erect a permanent structure on this land, but you can include landscaping or temporary structures, such as the front of a hotel.

The next 150 meters from this initial zone is owned by the municipality, and can only be leased. If a foreigner desires to lease this type of land, a Costa Rican native must own 50% of it. Hiring a very competent attorney can help in the process of setting up a company that will fully meet your purpose as an investor, and meet the requirements of local law.

When you are looking at lots for sale in Costa Rica that will meet your purpose, there may be the rare incident during which you look at land that is near a national frontier. The law regarding that states that only Costa Rican citizens can purchase land within two kilometers of what is designated as a national frontier.

As you look further into Costa Rica land for sale, issues of title can arise, and are very similar to what would occur in the states. A good lawyer can quickly check to ensure if the title is good, or for a minimal fee, it can be checked in the ARCR office via computer.

If any lots for sale in Costa Rica are titled or registered for the first time, claims can be made against the title for an entire ten years. If the title to the property is not registered, there are some cases in which it can be dangerous to purchase or even accept as security land that has been registered for less then a decade.

What are Property Taxes Like in Costa Rica?

Many moving to Costa Rica and looking at lots for sale wonder about property tax, an important issue for the eventual structure built, or the land itself. Property tax in Costa Rica is 0.25% of the registered value of the property, and there is a local community government charge based on the frontage of the property: it is not to be over $10 per month per residence.

Agricultural Advantages of Costa Rica Land For Sale

The incredibly delicious fruit that comes from this nation and perfect land in many areas for grazing provide those looking for a property that suits them for farmland. Many couples that are escaping from the effects of the “rat race” in other nations find that this is a bonding experience of hard work and production that is the perfect cure for retirement, or a mid-life re-assessment of priorities.

The climate and Tico vibe here make it a drastically different type of existence than perhaps having a farmland plot in the Midwest in the States. Many different elements in the plants and flora of the land, low-lying valleys and a very lush area for growing and production lure many here for farming purposes.

Option Agreements On Costa Rica Land For Sale

There are some cases where a buyer may want to make a down payment, essentially purchasing an “option” on a piece of land in Costa Rica. Even though there are many types of actual properties for sale here, the real estate industry does not have near the amount of regulation as one will find in the USA or Canada, and very experienced real estate agents are needed to navigate through the land purchase process.

Someday within the next decade, things may become more regulated, but for now, some boundaries are a bit blurrier than in other first world nations. Examples of things that can occur during an option are issues such as the land needing to be re-measured to verify boundaries, or the usual making improvements on a plot or property before the final sale.

Option money can be given directly to the seller, or a neutral party can be obtained to hold onto it. In Costa Rica, option contracts need to be notarized by an attorney, but are not officially recorded in the nation’s National Registry. Because of this slight difference in the structure of the deal, many recommend that the buyer put down a very minimal amount of money towards the purchase. If for any reason the potential buyer backs out of a deal, the option money is forfeited.

Some Other Essential Rules of the Road

When setting out to check out lots for sale here, references for a real estate agent can be fairly crucial. In the US, many local and national entities make getting a title, the loan itself, virtual tours, and closing a much swifter process. These entities have been working together for so many years in the states, that there is usually little question of the basic components of your deal moving through.

When you get into rural areas of Costa Rica, they are some of the most attractive types when it comes to farmland, and for those looking to truly escape from an urban environment or city. The real estate agents here are much more “full-service”, and if you find the right one, it’s a beautiful thing. They know everything from the beginning of the process to contact with lawyers, surveyors, and the National Registry.

Acquiring land in Costa Rica is really a dream come true in many ways: you may choose to construct a development that generates rental income, has a service such as a surf school, or a ranch to retreat to with your family. If you truly have a vision for a luxury property, condo development, or a plantation of sorts, you will be amazed at the variety of terrain available, lifestyle, and beachfront quality you can find in this diverse nation.

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.