Foreigners can own land or any other property in Costa Rica. There is no restriction on property ownership by foreigners. Properties are transferred between entities by executing a transfer or conveyance deed (escritura de traspaso) through a notary public.
The National Registry of Costa Rica reviews the deed and then registers the property in the new owner’s name.
The Costs Associated with Property Transfers
The various fees associated with property transfers are as follows:
- Transfer Taxes
- Fees for Document Stamps
- Public Notary Fees
Transfer taxes and document stamps are approximately 2.5% of the registered purchase price, and the law sets notary fees at 1.25% of the registered purchase price.
If you are a foreigner, it is recommended that you form a Costa Rican corporation (aka Sociedad Anonima). The property title will be transferred to your corporation. There is greater flexibility in estate and tax planning, liability, and overall property management when a property title is held in the name of a registered corporation.
We recommend that you obtain the assistance of an attorney experienced in corporation setup and, to form a corporation.
Grupo Gap can put you in contact with attorneys that have experience in corporation setup and property transfers.
IF YOU NEED ASSISTANCE, CONTACT US TODAY!