YOUR IDEAL HOME IN GUANACASTE

Yes. Foreigners have the same rights as Costa Rican citizens when it comes to purchasing real estate. Legal residency or citizenship is not required to acquire property.

Exception: The Maritime-Terrestrial Zone (the first 200 meters from the high-tide line). The first 50 meters are inalienable (public property), and the following 150 meters may be concessioned, but this requires legal residency and municipal authorization. Foreigners cannot hold the majority ownership in these concessions unless they are legal residents.

The property tax is annual and equivalent to 0.25% of the registered fiscal value of the property, paid to the corresponding municipality.

Additionally, high-value homes (currently those with a fiscal value over ₡147 million, though this may vary) may be subject to an additional "solidarity" tax, which can reach up to 0.55%. It is important to conduct an accurate appraisal and keep the fiscal value up to date.

When purchasing property in Costa Rica, common closing costs include:

• Transfer tax: 1.5% of the property's value.

• Notary fees: 1.25% to 1.5%.

• Government stamps: Approx. 0.5% total.

• Legal and corporate structure costs, if purchasing through a corporation.

• Due diligence expenses: title verification, inspections, translations, etc. In total, closing costs typically range from 3% to 4% of the property’s value.

There are several options, though most transactions are cash-based due to banking conditions:

• Costa Rican banks (public or private): Require legal residency, good credit history, and considerable bureaucracy.

• Seller financing: Some owners offer installment payments or private mortgages with competitive rates.

• International financing: Some buyers opt for loans in their home countries, especially if they can use property there as collateral. It’s always advisable to evaluate the real cost of credit, including insurance, rates, and taxes.

Before purchasing, it is essential to perform thorough legal due diligence, including:

• Verifying the title in Costa Rica’s National Registry.

• Confirming the property is free of liens, mortgages, easements, or legal disputes.

• Ensuring access to water, electricity, and land use permits.

• Considering title insurance, especially for complex histories or large/rural land purchases. A trustworthy real estate attorney is key to protecting your investment.

• Define your goals and budget

• Search for properties with an experienced agent

• Make a formal offer

• Sign a purchase agreement

• Conduct legal due diligence

• Sign the deed before a notary public

• Register the property in your name or in a company at the National Registry

• Make final payment and receive the keys

The best approach is to build a team with local experience and reputation:

• A trustworthy real estate agent who understands both the market and the legal process.

• An independent attorney specialized in real estate.

• In some cases, an accountant or tax advisor if you plan to generate income or make complex investments.

• A full-service advisor like Yuga Advisors, who supports the entire process from search to closing, with a personalized and transparent approach.

In Costa Rica, it’s common to purchase property through a corporation (S.A. or S.R.L.), for several reasons:

• Asset protection and privacy

• Easier property transfer through share transfer (can reduce costs and taxes)

• Better management for rentals or inheritance An attorney can help create and manage the right structure based on your goals.

A Sociedad Anónima (S.A.) is a Costa Rican legal entity that can hold assets, open bank accounts, and sign contracts. It is commonly used in real estate because of:

• Legal and fiscal flexibility

• Protection from personal liability

• Ease of transfer (you can sell the company instead of the property) However, it must stay up to date with registry filings, annual taxes, and declarations, so proper accounting support is important.

Some of the fastest-growing areas in Guanacaste and beyond include:

• Tamarindo, Langosta, Playa Grande, and Avellanas: strong international demand, tourism, and development

• Santa Teresa and Nosara: steady growth and wellness-focused lifestyle

• Playas del Coco and Flamingo: infrastructure investment (marina, hotels, services)

• Central Valley (Atenas, Grecia, Escazú): attractive for retired expats due to climate and services Choose an area based on your purpose: retirement, investment, vacation rental, family residence, etc.

Costa Rica offers several advantages:

• No capital gains tax on resale of personal property (under certain conditions)

• Relatively low property taxes

• Incentives for tourism projects and free trade zones If structured correctly, you can optimize your tax burden both locally and internationally. Consult with an accountant who understands both Costa Rican law and your home country’s tax regulations.

Yes. Through the Investor Residency category, you can apply if you invest at least $150,000 USD in real estate (or in registered tourism/productive projects). Benefits of this residency:

• You can apply with your immediate family

• Access to public services, a bank account, and eventually permanent residency

• The process may take several months, so it's best to start with specialized legal advice

If you plan to build or remodel:

• You will need municipal permits, approved blueprints, and to comply with regulations from INVU, SETENA, or MINAE, depending on the case

• Legal access to potable water is essential (often a challenge in coastal areas)

• Maritime zone laws and land use regulations are strict Always work with a local architect and engineer, and have legal guidance to avoid costly mistakes.

Common errors or risks include:

• Buying property without verifying its registry status

• Relying solely on verbal promises

• Not reviewing building permits, easements, or water access

• Buying in restricted or protected areas unknowingly

• Not accounting for taxes, hidden costs, and legal fees With the right guidance, these risks are easily minimized. That’s why working with professionals who know the local market and legal framework is key.