Investing in real estate in Costa Rica is a good idea as long as you are careful about picking the right property. As expected, many foreigners who choose to buy property in Costa Rica are looking to escape the harsh winter and the stress of their current life, and therefore look for places near the beach, a vacation or retirement home, but then of course, there are always some that moved to the country to start a new life and go for alternatives in the city. Regardless of your motivation, if you are buying real estate in Costa Rica it is of utmost importance that you take some things into consideration when your looking to buy.

About the location: If you have already made up your mind about the location where you are interested in buying, make sure to explore the area and communities close by, try to find out about the main problems the area has and the values of other property in the area. Get information on services available, security and other facilities. If they are important concerns for you they will be for others aswell.

Realtor: Get a real estate agent to help you, preferably someone familiar with the specific area where you are buying, tell them exactly what you are looking for and clarify what your budget is so they don’t waste your time and theirs. Going to see houses with a reputable realtor from  a professional agency. will give you some reassurance that your making the right investment. Like any where in the world Costa Rica has its fair share of “Real Estate” agents looking to make a quick buck on pushing you into a property that might not be the right fit for you.

About the house: If you find a house or property you like ask as many questions as you can about it, don’t just settle with the square footage, price and amenities, dig deeper. Visit the house at least two or three times and request legal documents, blueprints, construction information, anything and everything you can about it; in your second or third visit take an architect, civil engineer or home inspector with you that can help you inspect the house and point out things you may have not considered.

Don’t sign anything: Get a lawyer preferably one with experience in real estate transactions, and don’t sign anything until he/she has checked the information on the property and reviewed the documents you are being asked to sign, ask him/her to go over all important details with you and make sure the property is free of any liens or other legal problems and find out if there are any additional fees you may need to pay when buying the property.

Taxes: Inquire about property taxes with the local municipality. In Costa Rica “luxury properties” pay an additional tax to Hacienda which is calculated based on the value of the property. If the house is going to be registered under a corporation you must also consider the annual corporate tax.

About the developer: If you are buying a house or property directly from a developer (which is highly recommended), make sure you run a check on past projects they have handled, their current and past reputation along with experience will tell you all you need to know.

About the construction company: The developer is one thing and the construction company is another, sometimes they are one in the same, but this is not very common, get the information from the developer and do your homework.

Contract and Conditions: Go over the contract and conditions with your lawyer, don’t worry about asking too many questions, this is why you are getting the help of a professional, ask about hidden fees and be clear about the final amount you are going to be paying specially if you are financing as the banks have many “Hidden” charges that North Americans would not be used to.

Additional details: If your property is in a residential area or gated community be clear on maintenance fees, HOA and the rules of the condominium or residential community. Inquire about the warranty offered. If you are buying a vacation home check to see if the property developer also provides property management services, which is convenient for earning extra income.

The aftermath: After your purchase has been completed follow up with your lawyer on the process of registering the property under your name or corporation, confirm everything goes through and make sure to get a copy of all legal documents and keep them in a safe place. It is recommend to hold onto your corporations yourself and not leave them with an attorney.  Inquire about insurance to ensure your protected in the event of a natural disaster. Yes we have earthquakes in Costa Rica