Ownership of Land - The Costa Rica Constitution and Laws protect private ownership of land, with foreigners enjoyinh the same rights as citizens. There are no restrictions to ownership of private land. Neither citizenship nor residence or even presence in the country is required for land ownership.
Registration - Costa Rica boasts a safe form of title registration to protect buyers from hidden claims. It is centered in the Registro de la Propiedad (Property Registry), where both title documents and survey palted for every property are recorded. Any change in the status of a title or any claim that might affect it must also be noted on the title registry page, thus making it easy to verify.
Those who want to buy land in Costa Rica should get professional advise, which include a search of the title in the Registry, so as to confirm there are not liens on it, and to establish its proper ownership. Once the deal is completed, you should also secure documents from a lawyer to prove that the sale was registered, for your own safety and to prevent sale to somebody else.
Zoning - Knowledgeable lawyers agree that zoning regulations in Costa Rica are reasonable and logical, although far less stringent that in countries such as United States. A registered local engineer must sign all building and subdivision plans and they also require approval by the local municipality, the Ministry of Health, and the government Housing Department.
Taxes - The taxes paid on properties in Costa Rica are very low. Yearly property taxes vary from 0.5% to 1.5% of the declared value of the property. This declared value is a common law practice in which a property’s value according to the government very low, almost always lower than the sales practice.
Closing Costs - Closing costs for a sale include a transfer land tax, a stamp tax, and legal fees. Closing costs typically run 5% to 6% of sales price and are usually split 50/50 between buyer and seller. The transfer and land taxes are assessed based on the declared value, while legal fees are charged based on SALES PRICE of the property.
