What makes Costa Rica such an attractive real market for North American and European buyers? One of the main reasons behind this attraction is that real estate ownership in our country is mostly egalitarian and dynamic. For the most part, prospective foreign house hunters enjoy the same benefits as citizens of Costa Rica.

According to the staff of RE/MAX Ocean Surf & Sun, a renowned real estate franchise located in Tamarindo Beach, some of the most important aspects of property ownership that foreigners must keep in mind include:

Foreign corporations can hold title to property in Costa Rica after they register in our country as a branch entity; once this is accomplished, real estate can be titled to the domestic branch office. An alternative to registering title to the name of a business is to acquire the shares of a company that holds real estate; in fact, transferring shares at the closing table is a common real estate practice in Costa Rica.

When it comes to oceanfront land, foreigners have a bit of a restriction. Beachfront properties located within 200 meters from the shore can only be owned through a trust managed by the municipality, and only after approval has been granted by a couple of government institutions. In this case, foreigners require legal residence in Costa Rica for at least five years; if they want to assign title to a company, it must be domestic, and no foreigner should hold more than 50 percent of shares.

Acquiring the shares of companies that own real estate in Costa Rica is a common closing strategy in Costa Rica; however, it is important to note that this practice calls for another layer of due diligence. Aside from the usual property survey and title search, a thorough study of the corporation selling the property must be conducted; to this effect, a real estate attorney should check the history of the corporation, its transactions, minutes, outstanding obligations, and pending claims.

If you have questions with regard to real estate ownership in Costa Rica as a foreigner, please feel free to contact:

RE/MAX Ocean Surf and Sun
#1 Sunrise Center
Beach Road, Tamarindo
Toll Free: 1-866-976-8898
Local: 2653-0073 / 2653-0733
[email protected]