Why Costa Rica Real Estate
- Stable government; Currency,Infrastructure,Values foreign investment, Protects foreign investment
- Investment security; excellent lending market, ROI, low tax rate, intrinsic value, insurable title/home
- Healthcare; high-quality, high tech, inexpensive, easy access, insurance
- Economic; stability, foreign investment, government, investment potential
- No ownership restrictions; valued by government, no restrictions, same rights as natives
- Proximity to the U.S.; 10 major North American cities with a 3-5 hour direct flight to Costa Rica
- Culture; high standard of living, friendliness to foreigners, education, low crime rate
- Nature; beaches, rainforest, protected lands and species, eco-tourism, diversity
The Buying process
- Finding a broker; certified, experience, track record, language, area knowledge
- Calculating value; comparative value, asking price, investment potential, true value, municipal
- Purchasing; incorporation, appraisals, home inspections, attorneys, contracts, survey map, registration, notary, taxes, titles, closing
- Financing; mortgages, documentation, banks, property protection, using retirement fund
- Types of properties; stand-alone house, apartments, gated communities, condominiums, timeshare
- Building; land & title, permits, size, utility of land, civil engineer, architect, construction, contractors
- Protecting the investment; insurance, making claims, property management
- Oceanfront real estate; defined, taxes, usage, foreign ownership
- Common & avoidable problems; liens & encumbrances, expropriation, environmental & squatters
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Why Costa Rica Real Estate?
Economic
Investment Potential
So the government promotes real estate in Costa Rica by supporting the local economy, social welfare and infrastructure improvements. Strong financial policies and low ownership restrictions further enable business in Costa Rica. These things set the stage for an excellent investment in an emerging market. What is the real potential? One must look at the natural gifts of Costa Rica for that answer. The most solid asset a country has is the intrinsic value of its real estate. The iron range, bread belt, rust belt, coal mines, copper mines, orange groves, ranches, port cities and size give the U.S. their most valuable and durable wealth. Costa Rica similarly has assets of this type. Coffee, bananas and other fruit, software, medicine, education and port cities give Costa Rica sustainable wealth as a growing nation.
The other asset is cheap tropical real estate in a safe and accessible country. Mountains with rainforests and jungles and unique wildlife make a wonderful place for a second home or a retirement home. Due to the proximity to the equator, they never have hurricanes. It is warm year round and with a little elevation, there is relief from the heat. Homes are insurable and so are their titles. Yachting, deep sea fishing, scuba diving, surfing and swimming are at your back door. Excellent terrain for ocean front golf developments is abundant. These are features that no country can create. Either you have it or you do not. With prices ten to forty times less that similar property in Florida, Costa Rica is the new frontier for snow birds, second home owners, real estate speculators, outdoor recreation enthusiasts and retirees. For those more familiar with Florida, one can equate Costa Rica's policy towards its nature to the attitude that developed Sanibel Island and the Captivas. Strict and strongly enforced rules will help Costa Rica avert the over saturation issues that most fantastic natural destinations incur and help them maintain the natural beauty for those who own homes and land much like this special area of Florida has done.
Costa Rica Real Estate FAQ Index Catalog
Why Costa Rica Real Estate?
Economic
Stability
Amidst the political and societal turmoil that troubles many of Latin America's countries, Costa Rica has been able to circumvent the trend. The economic, political and social stability of Costa Rica is the hallmark attribute that has distinguished this nation as a cultural and economic center of the region. As a beacon for freedom and stability, Costa Rica is achieving great success in attracting foreign investors.
Costa Rica's government has been a stable democracy since 1949. The country's success was recognized in 1987 when President Arias Sanchez was awarded the Nobel Peace Prize. The award was won for the president's elevated ethical principles and the representation that he was as an example for and of the Costa Rican people. Culturally this reflection is apparent.
Costa Rica was the first country in the world to constitutionally abolish its army. Following civil war in the 1940's, Costa Rica ended rule by armed forces and established a democratic republic. Since 1949, the Costa Rican government has been a stable democracy that is governed by a strong, democratic constitution. Even before the current democracy was established, the Costa Rican government adhered to a code that was rule by majority. Its government has also been able to work towards pacification and successfully avoid the widespread violence that occurs throughout most of Latin America. Costa Rica is one of the most stable governments in the region.
Stability in evident in the economic dealings and policies in Costa Rica Looking to the last 25 years, Costa Rica has not been saddled with a single macro-economic crisis. For a developing country, that is an outstanding achievement. Poverty has been reduced by 75% in as much time. The average economic growth rate of the country is a healthy 3% per year. Costa Rica has amplified their involvement in world trade during these years. Exports rose from 30% of the GDP in 1980 to 60% in 2008. The increase in trade has led to an expansion of the economy and greatly reduced the economy's vulnerability to financial crisis. As the Central American Free Trade Agreement (CAFTA) was implemented, Costa Rica was further integrated into the world economy and economic stability was further established.
With a $2.9-billion-a-year tourism industry, Costa Rica is far and away the most visited nation in the region. Most of the tourists come from the U.S. (51%) which facilitated a large expenditure per visitor of $1200 per visit. In 2007, tourism contributed with 9.1% of the country's GNP and represented 15.4% of direct and indirect employment. Ecotourism is extremely popular with the many tourists visiting the extensive national parks and protected areas around the country. Costa Rica was a pioneer in this type of tourism and the country is recognized as one of few with real ecotourism. The protection of the environment has also become a top priority to Costa Ricans and their government.
Why Costa Rica Real Estate?
Economic
Foreign Investment
For real estate prospectors, developers and investors, Costa Rica has facilitated the growth of foreign investment. Concessionary land on the ocean front is available in joint ventures to foreign buyers and developers. Low tax rates and a strong emphasis on infrastructure improvements have created a long and steady pattern of appriciation in Costa Rican real estate. The government has provided ways around title transfer fees and land improvement taxes. Under no circumstances has the government expropriated any land without it being in direct violation of the explicit Costa Rican national laws.
The Costa Rican government has introduced a wide variety of incentives to encourage foreign investment among international businesses. Among the most important is exemption from import duties, simplified procedures for accounting, special port tariffs, accelerated depreciation and tax credit certificates. These policies have given rise to a brisk rise in infrastructure, technology and quality of life in Costa Rica. There are no significant barriers to foreign investment and there are no restrictions on the repatriation of profits other than the deduction of withholding taxes which Costa Rica is considering abolishing.
The financial institutions and banks that deal with foreigners have strict codes to adhere to so that they ensure the financial security of their clients. Money transfers and other operations involved with real estate transactions and foreign investment are simple and inexpensive.
Why Costa Rica Real Estate?
Economic
Government
Costa Rica's government promotes social welfare, national security and infrastructure as their primary duties. Excellent social medicine and education has brought about a country of happy, healthy and culturally significant people. By abolishing the army and aligning the nation with the United States economically and politically have secured the boarders for Costa Rica. A strong local law enforcement program keeps the streets safe. Investments in roads, utilities, internet and institutions have increased the quality of life potential around throughout Costa Rica and have made exports and imports more effective. These factors give Costa Rica a great stat sheet for potential foreign investment: an intelligent work force, safe streets and of course great natural resources.
Costa Rica has created a fluid and active national financial system that emphasis conservative free market principles. Csta Rica has averted the bulk of the financial crisis that plagues the rest of the world through responsible lending and strong regulation. Today, the government, under these principles, continues to loan to and promote foreign real estate investors and developers. The government continues to make concessions and give tax breaks to those who choose to buy property in Costa Rica. Follow-through and active infrastructure improvements have allowed many foreign real estate investments to grow consistently and at fantastic rates.
