Are there restrictions on foreigners owning land in Costa Rica?
No. Foreigners who buy land in Costa Rica have the same constitutionally protected rights as Costa Rican nationals. Some countries, like Canada, have Foreign Investment Protection Treaty programs that further protect investments in Costa Rica.

What are my property rights in Costa Rica?
Based on long-standing Democratic government, the Costa Rican laws and constitution guarantee secure property rights for the private ownership of land for all land owners. Neither citizenship, nor residency are required for land ownership.

What is Fee Simple property?
Fee Simple is defined the same in Costa Rica as in the U.S., Canada, and Europe. It gives the owner absolute right to materially own the property, use it, enjoy it, sell it, lease it, improve it, and more - subject to conditions outlined in Costa Rican laws.

What is the Public Registry of Properties?
This safe form of title registration protects buyers from hidden claims. The National Public Registry of Properties contains records for titles and surveys of properties. Records are kept in a central computer system, on microfilm, and in original form. Duplicates are updated daily and sent to separate locations for safekeeping. All property in Costa Rica should be registered in the Public Registry of Properties, whether the property is fee simple or another property type. Through this registry, your attorney can confirm that the seller has ownership of the property, and can determine if there are any restrictions on the property before your deal goes through.

What are folio real numbers and Catastrals?
Each property registered in the Public Registry of Properties has a unique property identification number or Folio Real number. The first group of numbers indicates the province, the second group of six numbers is the number of the property itself, and the last group indicates how many owners the property has. All properties must have this number for clear title to be obtained. Each registered property also has a survey plan, or Catastro. To transfer, mortgage, or acquire property, the survey plan must be recorded at the Public Registry of Properties.

Can I obtain title insurance?
International companies such as Stewart Title and Fidelity Life offer title insurance in Costa Rica.

Can I obtain property insurance?
Yes, it is easy to obtain property insurance in Costa Rica. There is only one insurance compancy, the INS (Instituto Nacional De Seguros - National Insurance Institute). This is mixed enterpise with majority government ownership. You can buy insurance directly from INS at various offices or from a registered agent. The cost is the same but a responsible agent can help with advice if you ever have to file a claim. It is also a good idea, if possible, to get insurance from abroad that will cover your Costa Rica real estate assets.

Is financing available?
Financing is typically easier and interest rates are lower in your own country. However, if you have excellent credit, you can find financing in Costa Rica. Some banks offer financing (typically between 40 and 50% of the purchase amount) to foreigners.

Can I get together with other people to jointly buy a lot?
Yes. There are many ways you can own a lot: individually, in partnership with friends or relatives, or in combination with your company.

Will I have to pay property taxes and closing costs on my lot?
Yes. Yearly property taxes in Costa Rica are very low, only 1/4 of 1% of the registered or declared property value (0.0025%). This declared value is a common law practice in which the value according to the government is almost always lower than the actual sales price. Also, certain standard closing costs are required in Costa Rica to transfer the title of property from the seller to the buyer, and this is always paid by the buyer. Closing costs include: (1) Real Estate Transfer Tax, which is 1.5% of the registered value of the property on the deed; (2) Documentary Stamps, which total approximately 1.25% of the registered value; (3) The Notary Fee, which is 1.5% of the first million Colones and 1.25% on the balance of the property sales price. This means on the purchase of a $100,000 property, closing costs would be approximately $4,250, and the property taxes $250 per year or lower.