Do You Have What it Takes to Make the Leap and Own Property in CR?

Chris and I have been living as expats here in Costa Rica since 2018, and while the process wasn't always smooth (we dove in head first and made some mistakes along the way) we have no regrets.

There is something innately soothing about waking up every morning to the sound of tropical birds and balmy verdant air.

When people hear our story, they often praise our bravery, or express envy for a financial freedom that we didn't have. The assumption in many cases is that only certain kinds of people have what it takes to buy property in a foreign country ...or pack up and move to another country...  even if it's only for part of the year.

Almost without fail, their next comment is, "I have always dreamt of living somewhere tropical but:

*     I don't have that kind of money.

*     I'm not that brave.

*     I don't speak enough Spanish.

*     It just seems so COMPLICATED."

And while not everyone is willing or able to dive headfirst the way we did (or should), making the leap doesn't have to be as complicated, or as expensive, as many people think. 

It is entirely possible to find your own slice of paradise. In some cases, buying a property is the kind of investment that will bring dividends (and great pleasure) for decades to come... even if you don't plan to live here full-time.

So, what DOES it take to own property in Costa Rica?

The quick answer to that is pretty simple. It takes the cost of the house, and all the associated lawyers' fees and transfer of ownership costs.

You don't need to be a resident, and your rights as a property owner are exactly the same as the rights of a Costa Rican citizen.

There are many different kinds of property, and even though Costa Rica's popularity and it's reputation as one of the best places to retire are creating a boom in tourism- the price of property is still extremely reasonable.

Once you own the property you are free to use it or rent it as you wish, and any investment over $150,000 can be used to apply for the Investor Residency status- if your plan is to live here and you choose to become a resident. 

The rental market (thanks to the boom in tourism that I mentioned) is going strong and growing annually, so with very little effort your property can earn enough to cover your carrying costs... or even make you a handsome profit.

What's the catch, you ask? You will be expected to pay taxes on your property. If you decide to rent that property, you will pay taxes on any rental income that you make. Absentee property owners pay a 15% tax on 85% of the rental income... as well as a property tax of 0.25% (meaning one quarter of one percent).

The best part about it however, is that you have a place to go and enjoy everything this amazing country has to offer- any time you wish- for the cost of a flight.

If you are anything like we were, and you start adding up how much you spent annually on vacations- owning a tropical property can even SAVE you money in the long run.

A Cost Comparison

As an example, I did a search on Zillow for oceanview properties in Florida. I found several 2 bed, 2 bath condos in the $600,000- $700,000. Here are a few examples.

https://photos.zillowstatic.com/fp/4d9f50de4f4233f467797669c39b945f-p_e.webp

https://photos.zillowstatic.com/fp/53826a0cfa9948157f82069ae0f9f57c-p_e.webp

Keep in mind that these properties are subject to some extreme weather patterns, and will likely incur higher than average insurance rates, as well as an average property tax of 0.80% (compared to the 0.25% Costa Rican Property tax).

Now let's take a look at what you can get here for between $600,000-$700,000...

https://www.jacocoldwellbanker.com/property/3-bed-condo-for-sale-in-jaco/8161

https://www.jacocoldwellbanker.com/property/3-bed-condo-for-sale-in-jaco/1804

Beautiful, right?

What about a condo for LESS than that?

How about right on the beach for $550,000?

https://www.jacocoldwellbanker.com/property/3-bed-condo-for-sale-in-jaco/7828

Prefer an oceanview townhouse? No problem!

https://www.jacocoldwellbanker.com/property/3-bed-condo-for-sale-in-playa-hermosa/7901

Sunset view 3 bedroom for $525,000?

https://www.jacocoldwellbanker.com/property/3-bed-condo-for-sale-in-jaco/735

Still above your budget? It's amazing what you can find when you look a little further from beach.

How about a 3 bed, 3.5 bath penthouse with more than 2000 sq feet of living space?

https://www.coldwellbankerjacobeach.com/property/21296/

So, What's the First Step?

No matter how biased I am, I will admit that buying a property in Costa Rica isn't for everyone. That's why the first step for any wanna-be property owner should always be a trip to Costa Rica.

This is not the USA, or Canada, or the UK. It has it's own unique vibe. Beyond that, there are 6 different regions within the country- each with it's own climate. Finding the one that suits YOU can't be done online.

Costa Rica has a vibrant and layered culture thanks to it's history. You will find remnants of the original indigenous peoples (who were heavily influenced by both the Aztec and Mayan cultures). 

You will find a strong Caribbean vibe on that side of the country, where slaves came to harvest coffee and fruit, gained their freedom, stayed and enriched the local culture. 

The Spanish conquistadors brought much of their culture- and their language- with them, but even that has been adapted over the generations so that the local Spanish has it's own unique dialect and slang.

What does it take to make the leap and buy a property here?

It takes a willingness to be open to a different way of living, it takes an understanding of your self, of what you truly hope to gain. It takes research. It takes the guidance and support of trustworthy locals- specifically a great lawyer and an experienced realtor...

But most of all- it takes love. This country can speak to you in ways I never would have imagined. It can seep into your soul and relax you, it can excite and amaze you, and it can show you what HOME really feels like.

And if that's what it does for you- then the rest is just a process like any other, and one that we can help you with.

We have been there, we understand the uncertainty that often comes along with stepping into the unknown. We experienced the ups and downs of adapting to a new culture, and the ins and outs of buying a property in another country, and a different language.

We have made our mistakes, and learned from them, and we use that experience to guide our clients through the process- so their experience is smoother than ours was.

So, if you are thinking about making that leap, why not do it with the help of people who understand what it takes... and maybe make some new friends in the process?

Give us a call (+506 8527 2954), send us an email cg.coldwellbankerjacobeach@gmail.com, or PM us on our Facebook group Costa Rica FAQ for Expats and Dreamers, and tell us all your dreams. We would love to help make them a reality!