Navigating the Jacó Real Estate Market: Frequently Asked Questions When Buying Property in Costa Rica.

Foreign Ownership Rights:
Contrary to common misconceptions, foreigners, whether residents or non-residents, enjoy the same rights as citizens when it comes to owning Costa Rica real estate. Yes, you can legally own your piece of paradise!

The only exceptions are 100% ownership of a property in the Maritime Zone and IDA (INDER) land donated to poor farmers.

Titled vs. Concession Properties:
Most properties in Costa Rica are titled, ensuring secure ownership. However, understanding the distinction between titled and concession properties is crucial. The Maritime Zone (ZMT), located within 50 meters of the high tide line, falls under concessions. While non-citizens can own up to 49% of a concession, the majority is public and protected.

National Registry and Legal Processes:
To maintain transparency, all titled, IDA, and concession properties are registered in the National Registry. Having a bilingual real estate attorney/notary is paramount, as only they can record a purchase in the National Registry through a protocolized deed. Visit http://www.rnpdigital.com/index.htm for digital certifications and powers of attorney.

Citizens, residents, and non-residents alike should hire an attorney for their real estate purchases. Don’t just hire any attorney for your Costa Rica real estate purchases. I recommend you hire your own bilingual real estate attorney/notary public and someone who specializes in real estate, so you are well represented. Only a notary public can record a purchase in the National Registry through a protocolized deed that will be registered in the National Registry. I can personally refer you to trustful and professional attorneys. Don’t hesitate to ask me.

Home Inspections and Insurance: While home inspections aren’t common, they are highly recommended. A trustworthy home inspector or contractor can evaluate your potential purchase thoroughly. And yes, you can buy homeowners’ insurance at reasonable rates, with options like earthquake or theft coverage.

As a foreigner, it is challenging to get financing through banks. Only Scotiabank will recognize your income from abroad. And interest rates in banks in Costa Rica are high, around 8–9%. However, many sellers offer partial financing, usually with a down payment of 50% and a balloon payment in 3-5 years at an interest rate close to what banks are asking for: 6–10%.

Costa Rica collects property taxes, though they are very low compared to Canada and the United States. Properties are taxed at 0.25% of the registered value at the municipality.

There is no central MLS in Costa Rica, and the most complete and best website to search in the area will be from RE/MAX. There is also Point2Homes.com which offers a variety of listings from different agents and agencies. The only thing with that last website is that it’s NOT up-to-date, so you might find properties for sale that are actually sold for a few months, even years.

Typically, the buyer is in charge of paying the closing costs, which are calculated as a percentage of the property’s value; registration fees, notary and attorney fees, documentary stamps, and transfer taxes will typically be 4% of the property’s declared value. Sometimes, buyer and seller can agree to split that cost.

In Jaco Beach and around, the real estate commission is 6%+tx of the purchase price. The seller is legally responsible for paying the entire real estate commission unless the buyer agrees to split that cost.

Reach out, and we’ll guide you through the intricacies of purchasing your dream property in Costa Rica. Your tropical oasis awaits!