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Plans for International Airport in the South
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San Jose---- http://bbpuertadelsol.com/

Parrita, central pacific---- http://www.laislahotel.com/

Golfito, southern pacific---- http://www.hotelsierra.com/

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Costa Rica Real Estate Information

Ownership of Land
Costa Rica laws and Constitution protect private ownership of land and foreigners enjoy the same rights as citizens. There are almost no restrictions to ownership of private land, except that given or sold to Costa Rican citizens as part of government programs, which can be freely trade or acquired by foreigners only after the original owner has held it for certain period of time. Neither citizenship nor residence or even presence in the country is required for land ownership.

Registration
Costa Rica boasts of 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 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 to somebody else.

Financing
Practically no local financing at economically feasible rates is available for property purchases. This is the result of high yields and rapid increase in property value, due to a growing population and other factors. However, this in turn makes up for the lack of leverage in Costa Rica, as do the country’s stability and security, which makes its continued growth.

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.

Brokers
The Ministry of Economy issues real estate licenses on recommendations from the Chamber of Real Estate Brokers, which is dedicated to raising standards of both competence and ethics.

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.

Currency Law
Costa Rica has recently made a radical change, for the better, in the currency law. While until recently sales negotiated in dollars had to be written in colons, it is now possible to have contract in dollars give both buyer and seller a peace of mind previously unavailable. There need be no worry with regard to serve devaluation of the colons for example, or other difficulties introduced by having to translate back and forth between dollars and colons. Another major effect is the possibility of having mortgages in dollars. This mortgages are still seller-leveraged more often than not, but can be written by another attorney and guaranteed by the property. Once sellers understand the implications of being able to offer this type of mortgage, it will likely become the most common type of financing, tempered by the buyer’s desire to keep his property taxed lower, as a mortgage will automatically raise the declared value of the property to the amount of the mortgage.

Regulations for Beachfront Property
When buying beachfront properties, one must be aware of regulations Costa Rica’s coastline is all public. By law, the first 50 meters above the mean high tide line are inalienable public, define by what is known as the 50-meter line. No one can restrict access or have a totally private beach. There are some exceptions, but they include port areas, old land grants, and some title prior to 1973.

On 80% to 85% of the coast, the next 150 meters are government owned lease and also known as the maritime-terrestrial zone (or just maritime zone). Restrictions on maritime zone land for foreigners are that one must establish five years residency to own more than 49% of the rights to a lease. Two loopholes include holding the lease with a corporation that is wholly owned by a foreigner, or by having a Costa Rican hold 51% of the lease in name only. Development of the maritime zone does not discriminate against foreigners. A regulation plan must exist for area where the land is or just for the parcel itself.

If one does not exist the developer must make one, then have it approved by ICT (the Tourist Board), INVU (the Urbanization Institute), and local municipality. Such a regulation plan will call for "zoning of land" includes public use areas, road, water, electricity and more.

The other 15% to 20% of the coast is land that is title to the 50 meters line. That is to say that no maritime zone exists and the landowner may develop without inconvenience of filing a regulation plan. Tourist development must, of course, be approved by ICT, but almost anything else would require only building permits.

History of Costa Rica

The first European explorer to encounter Costa Rica was the Great Navigator himself, Christopher Columbus. The day was September 18, 1502, and Columbus was making his fourth and final voyage to the New World. As he was setting anchor off shore, a crowd of local Carib Indians paddled out in canoes and greeted his crew warmly. Later, the golden bands that the region's inhabitants wore in their noses and ears would inspire the Spaniard Gil Gonzalez Davila to name the country Costa Rica, or Rich Coast.

Archaeologists now know that civilization existed in Costa Rica for thousands of years before the arrival of Columbus, and evidence of human occupation in the region dates back 10,000 years. Among the cultural mysteries left behind by the area's pre-Columbian inhabitants are thousands of perfectly spherical granite bolas that have been found near the west coast. The sizes of these inimitable relics range from that of a baseball to that of a Volkswagen bus. Ruins of a large, ancient city complete with aqueducts were recently found east of San Jose, and some marvelously sophisticated gold and jade work was being wrought in the southwest as far back as 1,000 years ago. Some archeological sites in the central highlands and Nicoya peninsula have shown evidence of influence from the Mexican Olmec and Nahuatl civilizations.

By the time Columbus arrived, there were four major indigenous tribes living in Costa Rica. The east coast was the realm of the Caribs, while the Borucas, Chibchas, and Diquis resided in the southwest. Only a few hundred thousand strong to begin with, none of these peoples lasted long after the dawn of Spanish colonialism. Some fled, while many others perished from the deadly smallpox brought by the Spaniards. Having decimated the indigenous labor force, the Spanish followed a common policy and brought in African slaves to work the land. Seventy thousand of their descendants live in Costa Rica today, and the country is known for good relations among races. Regrettably, only 1 percent of Costa's Rica's 3 million people are of indigenous heritage. An overwhelming 98 percent of the country is white, and those of Spanish descent call themselves Ticos.

Of all the Spanish colonies, Costa Rica enjoyed the least influence as a colony. It was initially a tough and unpopular place to settle, with few valuable or easily exploited resources. The Spanish were far more interested in developing their holdings in Mexico and Peru, where vast amounts of silver and gold were being obtained. The early hapless settlers who came to Costa Rica were left largely to their own devices, and the first successful establishment of a colonial city was not until 1562, when Juan Vasquez de Coronado founded Cartago.

When Mexico rebelled against Spain in 1821, Costa Rica and the rest of Central America followed suit. Two years later, a faction in Costa Rica even opted to become part of Mexico, sparking a civil war in the country's center between four neighboring cities. After the republican cities of San Jose and Alajuela soundly defeated the pro-Mexican Heredia and Cartago, sovereignty was established.

The first head of state was Juan Mora Fernandez, elected in 1824. Best remembered for his land reforms, Fernandez followed a progressive course but inadvertently created an elite class of powerful coffee barons. The barons later overthrew the nation's first president, Jose Maria Castro, who was succeeded by Juan Rafael Mora. It was under Mora's leadership that Costa Rican volunteers managed to repulse a would-be conqueror, the North American William Walker.

Walker was a disgruntled southerner who thought that the United States should annex Central America and turn it into a slave state. He was a lunatic, and a dangerous rather than charming one. With a piecemeal army of about 50 men, Walker had earlier invaded Mexico, where he had been captured and then released back to the States. Not to be discouraged, he next invaded Panama, where he briefly seized control before being forced to flee--into Costa Rica. After his bid for despotic rule there was defeated by Mora's forces, the indomitable Walker turned his attentions to Honduras. The Hondurans, unlike their predecessors on Walker's list, captured him, and Walker was finally and summarily executed.

Military rule has reared its head in Costa Rica from time to time, though it has not been marked by the sort of violent extremism that has occurred elsewhere in Central America. In 1870, when General Tomas Guardia seized control of the government, he made some of the country's most progressive reforms in education, military policy, and taxation.

The Costa Rican civil war erupted in 1948, after incumbent Dr. Rafael Angel Calderon and the United Social Christian Party refused to relinquish power after losing the presidential election. An exile named Jose Maria (Don Pepe) Figueres Ferrer managed to defeat Calderon in about a month, and he later proved to be one of Costa Rica's most influential leaders, as head of the Founding Junta of the Second Republic of Costa Rica.

Under Ferrer's leadership, the Junta made vast reforms in policy and civil rights. Women and blacks gained the vote, the communist party was banned, banks were nationalized, and presidential term limits established. Ferrer was immensely popular, creating a political legacy that firmly cemented Costa Rica's liberal democratic values.

In 1987, Costa Rican President Oscar Arias Sanchez garnered world recognition when he was awarded the Nobel Peace Prize for his work in ending the Nicaraguan civil war. During that conflict, both the Sandanistas and the Contras set up military bases in the northern area of Costa Rica, and Arias was elected under the promise that he would work to put an end to this situation. He was able to get all five Central American presidents to sign his peace plan, and Nicaragua is now experiencing relative stability.

Useful external links

Costa Rica Post Office
MINAE
http://centralamerica.com/cr/index.htm
http://www.bahiaescondidacostarica.com/
http://www.marriott.com/hotels/travel/sjols-los-suenos-marriott-ocean-and-golf-resort
 

Costa Rica Real Estate

This web site last updated on 20 March, 2008