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Is it safe to purchase land in Costa Rica?
Costa Rica has a very dependable system for title registration using the National Public Registry which is managed by the Ministry of Justice. All real estate titles must be systematically recorded in the Public Registry and include information such as location, boundaries, history of property, measurements, name and ID of owner. Anyone can access the database, but you should consult a lawyer about any annotations or liens on the property you are interested in.
How do you look for a property on my behalf?
We review qualified San Carlos cattle farms on several variables especially:
Forestry – topography, soil, water, location and access
Legal – title, liens, mortgages and plans.
Can I live on my reforestation land?
Yes! Definitely! (Contact us for more information if you are planning to use an IRA or other retirement fund to purchase this property because there are restrictions). For an additional fee we can recommend the contractor that built our own house and he can build you a beautiful country cottage similar to the one below.
What else can I build on my property?
You can build ponds, hiking trails, horse trails, swimming pools, small barns, and anything that you can imagine that flows reasonably with the betterment of the environment. If you want to build something that you may have a doubt about, you should consult with a forestry engineer, the department of environment and/or an architect. We can give you references of responsible professionals.
Can I cut down and utilize any existing trees on my farm?
Depending on if your farm has virgin rainforest, secondary forest or pastureland you may cut down and utilize a certain number and specie of tree on your farm. Any tree that is planted on your farm can be cut down in the future if included in forestry management plan but that is not a part of the 15 meters near a waterway.
What other costs will I need to pay when purchasing a property?
We can help you find your dream property in Costa Rica. Our main economic activity is reforestation services, but we do hear of many farms and quintas for sale. Normally a total of 8.75% of your purchase price will be paid in the following manner:
Transfer fees, taxes and official stamps 1.5%
Public Registry stamps 1%
Notary Fees 1.25%
Buyer’s Agent Fees 5% (for a property with a value of $40,000 or less we would charge a fixed fee of $2,000)
What are the municipal taxes in San Carlos?
Property taxes are relatively low and are based on reported values. The tax is paid three times a year and the municipality gives you 90 days to pay. Each payment is 0.025% of the declared value with a total of 0.075% of the declared property value per year. For example, if the declared value of your 20 acre property is $100,000 then you would be paying $250 every 4 months or $750 for the year. Your reforested property under the law 7575 could be exempt from municipal property taxes for the area that the reforestation is planted.
How do I start a business in Costa Rica?
There are 4 different business structures in Costa Rica but two of the most common are Corporations (Sociedad Anonima - S.A.) and Limited Liability Corporations (Sociedad de Responsibilidad Limitada). The main difference between the two is that in an LLC: to sell any stock you must have unanimous approval of all other partners, LLCs can have one or more managers where SA has only one president, and LLCs don’t need a Statuary Examiner. You may own property as a foreigner in your own name, but most recommend using a corporation because of more flexibility. In order to acquire residency you will need to start a corporation. A good handbook for starting any business in Costa Rica can be found here.
Is there financing available to purchase land in Costa Rica?
There are several banks that we've heard of that offer financing to international owners: Scotiabank and Banex are two.
Costa Rica Mortgage is a company that offers financing as well.
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