Frequently Asked Questions

The first thing to do is to determine the purpose of your purchase: investment, rental property, primary residence, etc. From the moment we know what is the purpose of the purchase, we can direct you to properties that meet your needs and budget. The price was, before Covid, usually negotiable, around 5%. Since Covid started, we have been in a seller’s market and negotiation is very little if not inexistant. 

It is important to know that it is very difficult to borrow funds from a Costa Rican bank. In general, most buyers who require financing either borrow funds in their home country or find a property where the owner is willing to finance. Terms vary with owner financing and can sometimes be negotiated. The typical owner’s financing is short term with 3 years maximum at an interest rate of 7-9%, with a 50% down payment. More information here: Financing for foreigners. Several structures exist that allow for owner financing in a manner that protects both buyer and seller.

Make an offer with your realtor. When the offer is accepted on a property, it is mandatory by law to have a notary to verify the transaction and be represented. The seller will be represented by his lawyer, and you with your lawyer. We, at RE/MAX, work with notaries fluent in English, Spanish, and even some who speaks French. Your realtor will guide you from the very beginning until the closing date, and even after. 

Not publicly. Some local associations have supported and/or are recommending certain systems, but participation is not required and there is no one system supported by all the associations. But at RE/MAX Ocean Surf and Sun, we do have an internal MLS and it is including all listings of other agencies, listed by the owners and Remax listings. Good agents will know the best deals in their market and will show you their own listings and those of other agencies that fit your parameters. With our unique tool, we are able to present you all of the options available to find you the perfect property.

The Buyer is usually expected to pay for the 1.25% plus tax notarial fee as this work is mostly on the Buyer’s behalf. The mandatory taxes and fees to pay to transfer a property are 1.5% (share transfer) or 2.4% (property transfer), levied on the highest of the fiscal value of the property or the purchase price. This tax is usually shared equally between the buyer and seller but it is subject to negotiation. The Escrow fees are also typically shared equally by the Buyer and Seller and are between 0.20% and 0.25% plus tax of the purchase price (with a minimum amount of a few hundred dollars per transaction). Closing costs are typically as follows:

• 1.25% plus tax for the notary to register the property in the National Property and perform closing duties. 
• 1.5% in goverment stamps and fees if you do a share transfer (that is, you assume the shares of an already established corporation that holds/owns a property). 
• 2.4% in government stamps and fees if you purchase a property in your own name or in the name of your own corporation. 
• 0.25% plus tax in Escrow fees commonly apply if you’re going to use a third-party escrow such as Stewart Title. 

Yes. We strongly recommend that you have your own representation in any transaction. The closing costs as noted above include the fees for your attorney.

Foreigners in Costa Rica can own property in their own names. Purchasing property through a new or existing company or corporation (Ltda or S.A.) is very popular. To buy a property, and even a car, we recommend that the transaction is carried out on behalf of a Costa Rican corporation owned by the buyer. It’s the notary who performs the opening of this company when purchasing a property or any other property of significant value. In this way, you are personally protected if there is a lawsuit of some sort. It is also a good way to save some taxes in your country. The cost is typically $800 to $1000 for the creation of a corporation. Note: corporations established solely to hold property are treated differently by the government than those set up to operate a business. Here is some information on operating and owning a business in Costa Rica. It s important you speak to a qualified attorney before setting up any corporation, and know the steps to create and maintain a corporation in Costa Rica. 

No. Foreigners in Costa Rica can own property in their own names. Purchasing property through a new or existing company or corporation (Ltda or S.A.) is also very popular. With titled Costa Rica beachfront property (available in about 6% of the country including Tamarindo and Langosta), foreigners can own property outright/fee simple. Special rules for foreigners may apply in Maritime Zones for concession property. 

When you buy a property, you generally have 14-21 days to transfer a deposit of 10 % of the transaction amount in an Escrow account. Escrow services are available through recognized companies such as Stewart Titled Latin America (STLA) or Geldstuck. Escrow accounts must be registered with SUGEF (Superintendencia General de Entidades Financieras). SUGEF is Costa Rica’s financial system regulator and is responsible for safeguarding the stability of the country’s financial system.

As mentioned above, fees for escrow services are commonly split between the Buyer and Seller as the escrow is to protect the interestes of both parties. This account is opened in Costa Rica for you and the seller, in order to proceed with the transaction. The balance of the payment of the property (including transfer fees, and notary trust account) must be transferred no later than 10 days before taking possession. If you change your mind and no longer wish to purchase the property, the seller is entitled to keep the 10% deposit. If the seller changes his mind and no longer wants to sell the property, you will receive 100% refund of your deposit without charge.

All property in Costa Rica (whether titled or concession) should be registered in the Public Registry, known here simply as the Registro. Your attorney will be able to confirm that the title chain is in order and will determine if there are any restrictions, encumbrances or liens. Avoiding the purchase of unregistered property is strongly advised.