Below are frequently asked questions that we receive from clients when buying property. We’ve compiled this essential information to help guide you through the property buying process.
How much do I have to invest in a property to be eligible for residency?
To apply for Costa Rican residency, you must invest in a property of at least $150,000 USD. If your property costs less than this amount, there are other legal ways to make you eligible.
- Appraise your property if it is valued above $150,000 USD (this may increase your property taxes a lot if your property is undervalued)
- Add more construction to the property if it’s valued less than $150,000 USD
A good residency lawyer would be able to help you navigate these situations.
What makes a property attractive for income?
Most tourists stay in La Fortuna for 2-3 days, often drawn by the area’s famous hot springs, making proximity a key factor for rentals.
Rental properties in high demand are typically modern, elegant, and well-designed, with features like a pool or jacuzzi, and located within 5-20 minutes of La Fortuna’s center. Properties closer to town (within 5 minutes) see notably higher reservations. For those further out, offering unique amenities or an elevated experience becomes essential to attract guests.
Should I use a private lender to finance my property?
We do not recommend private lenders due to their high interest rates, which can reach up to 18%, plus a broker fee of 3-4% of the loan amount. Additionally, these loans place a lien on your property, giving the lender rights to seize it if a payment is missed.
Instead, we suggest seeking seller financing, as some sellers may offer terms of 5% interest over three years for up to half of the asking price. Alternatively, if the property has an existing mortgage, the buyer may assume it as a favorable financing option.
What happens when there is a mortgage on the property?
If a property has an existing mortgage, the seller has two options: they can pay off the mortgage upon receiving payment from the buyer, or the buyer can assume the mortgage and continue payments under the seller’s name. In Costa Rica, an unpaid mortgage results in a lien on the property; once ownership transfers, this lien becomes the buyer’s responsibility.
Assuming a mortgage can be advantageous, especially if it’s a long-term bank mortgage. However, non-residents are not eligible for Costa Rican bank mortgages, limiting their options to private lenders or owner financing, which typically only extend terms up to three years.
What does the lawyer check in the system when I’m interested in a property?
The lawyer checks the plano catastro number or property number in the government system for clean title, mortgage, defects, liens, concessions, etc, to make sure that a property is safe to buy.
Do I have to use a Costa Rican lawyer?
Yes, in order to purchase a property in Costa Rica you must use a local registered Costa Rican lawyer. Only they have access to the system to register your property.
How much is Escrow fee?
Escrow fee is normally a flat rate of $1,000-$1,500.
How do I bring my money from my country to Costa Rica safely?
To bring money to Costa Rica, buyer must use a third party Escrow, who will verify that your money is clean (request for legal document inheritence, sold property, income, etc). Escrow holds the money until purchase document is signed and releases funds to seller, agent, lawyer.
Who pays the real estate agent?
Seller pays real estate agents usually as most of them will pay a 5-8% referral commission; this commission is shared among agents. Buyer is not responsible for this fee.
How much are closing costs and who pays for it when buying a property?
Closing fees (lawyer fees, government taxes & stamps, escrows) are usually 4% of the property price; the buyer is responsible for paying this.
How is the weather in La Fortuna?
La Fortuna is a rainforest on high altitude – it rains at least 3 times a week, which keeps the temperature cool. Normal temperature is 23-30C (73 to 82F). This weather is ideal for growing all kinds of fruit trees!
Where is the nearest airport near La Fortuna?
There is a local Airport (Sansa) that flies from both Liberia and San Jose Airports – the La Fortuna airport is a 15 minute drive from La Fortuna. La Fortuna is 2.5 hours drive from both San Jose Airport and Liberia International Airport.
Where is nearest hospital near La Fortuna
There is a hospital being built in La Fortuna centre, which will raise the price of the land by a lot!
Where is the nearest border from La Fortuna?
The closest border to La Fortuna is Los Chiles, the Nicaragua border, which is about 1.5 hours drive away. You can go get entry/exit stamped at Nicaragua border and re-enter Costa Rica within the same day (or hour).
How long can I live in Costa Rica without residency?
Technically you can live in Costa Rica indefinitely as long as you do a border run every 6 months.
Do you need residency to buy property in Costa Rica?
No, foreigners do not need residency to buy property in Costa Rica – just cash!