Costa Rica real estate is by law registered with the Public Registry through a computer system known as the Folio Real. Costa Rica real estate investors should perform a title search in the Folio Real if they are considering any real estate in Costa Rica property purchase. The title search can also be done at the Public Registry office in San Jose. And for those who are uncertain about the trustworthiness of an unfamiliar title registry, there is an excellent alternative.
Costa Rica real estate now has about two or three different American companies that provide title guarantees, like Chicago Title and Stewart Title from Houston. Those corporations provide foreigners interested in purchasing Costa Rica real estate with a title land guarantee, so in case there is a problem with fraud or problems in the title then they can be identified and the buyer can be paid back, a process that makes Costa Rica real estate investments even more secure.
Most real estate in Costa Rica is fee simple, Costa Rica real estate property taxes are 0.25 percent of the property's registered value, and closing costs are approximately 3.5 percent of the purchase price. Foreigners' property rights on Costa Rica real estate are equal to those of Costa Rican citizens when purchasing fee-simple property, but there are restrictions for those interested in purchasing real estate in Costa Rica beachfront property.
In Costa Rica real estate, almost 95% of beachfront property is concession property and is regulated by the Maritime Zone Law as well as other regulations. The Maritime Zone in Costa Rica real estate is the first 200 meters from the high tide line, measured horizontally. The Public Area consists of the first 50 meters from the high tide line and cannot be purchased or owned by anyone. This is not a market for Costa Rica real estate as there are no truly private beaches in Costa Rica.
The next 150 meters is the Restricted Area. Many Costa Rica real estate properties in the restricted area are concession properties. The real estate in Costa Rica beachfront properties are areas that are owned by the government. They provide a lease to anyone interested in having one of this Costa Rica real estate properties, but only for Costa Rican nationals or a Costa Rican corporation.
Foreigners are unable to purchase a majority ownership of any Costa Rica real estate property in the Maritime Zone unless they have been a resident of Costa Rica for five years or longer. Restricted properties in real estate in Costa Rica are leased for a specific period of time, during which the owner can build or otherwise develop the Costa Rica real estate property according to the terms of the lease.
