Legal Information

A real advantage of making a real estate investment in Costa Rica is the equivalence between a costa Rican native and a foreigner in terms of buying or selling a property.

The following information will provide you with all the details related to the real estate business process:

The first step will be to visit a Notary Public with your Passport or Proof of Residency card for foreigners, in case of being a corporation, the company ID and a legal authorized representative holding a Personeria Juridica is required.

Visit the local municipality to do the necessary clearances concerning any previous debts and in order to pay municipal and property taxes.

Registration of your property

Folio Real: This is the title registration number of your property, and includes all the information regarding the title holder, boundary lines, tax appraisal, liens, mortgages, recorded easements, and other sensitive information concerning to the title. Costa Rican law requires you register this information in the public Property Registry, this infomation is available on the internet and it’s very helpful in order to obtain a complete study of the property.

Closing costs are shared by the buyer and the seller or modified by agreement, and includes Government transfer taxes and registration fees, Notary Legal fee, and mortgage costs, if any.

Impuesto de Traspaso: is a tax collected by the government which is equal to a 1.5% of the total value of the property acquired.

Legal Stamps: A transfer of the property will not be recorded unless the required documentary stamps have been paid, and it includes: Municipal Stamp: (Timbre Municipal) ;Legal Bar Association Stamp (Timbre del Colegio de Abogados); Agricultural Stamp (Timbre Agrario); National Archives Stamp (Timbre del Archivo Nacional); Fiscal Stamp:(Especie Fiscal). The Public Registry also imposes its own tax of .05% on documents presented for recordation to the Public Registry. (Derechos de Registro)

Another important document that you need to obtain is the National Survey map (Plano Catastrado), which contains information concerning the boundaries of your new property, it should be available also at the Public Registry.

The Notary that has been involved in the buying process is entitled to a fee equal to 1.5% of the first one million Colones of the actual sales price and 1.25% on the balance.

Please take note of this important information before you decide to buy a condo, luxury home or any other type of properties in Costa Rica, we’ll be glad to provide assistance.  Feel free to contact us by clicking here