Companies Resources Contact Us	Costa Rica Foreigners do not have to live in Costa Rica to own property here. In matters of land and property ownership, foreigners and Costa Rican citizens have equal rights under the law (unless the owner bought the land as part of a government program or concession property). In these cases, the land can be traded or sold to foreigners only after the original owner has held it for certain period of time. The closing costs will APPEAR to be a bit more for your Costa Rican property than what you are accustomed to in the US. However, in the US there are two sets of fees (buyers and sellers), and if you and the seller split the fees in Costa Rica, the buyers fees will be similar in amount to the ones in the US. It has been custom in the past for buyer and seller to split the closing costs, but the split may be adjusted up or down to fit the occasion or the buyer assumes all costs. Costa Rican “Sales Taxes" consume a large portion of the closing costs. First it depends upon how the property is transferred from one person to another. You must buy Documentary Stamps (Agrarian, Hospital, Municipal, Bar Association, National Archive and Fiscal) totaling 0.55% of sales price. You must also pay a Real Estate Transfer Tax at which is 1.5% of the sales price and a Registration Fee for the mortgage of 0.5% of sales price. By incorporating a company called a Sociedad Anonima (S.A., which is similar to an LLC in the USA), then the transfer tax can be avoided in Costa Rica for the specific purposes of owning land or property. And by doing this the investor may find the whole purchase process and ongoing ownership of real estate in Costa Rica to be simpler to manage including the sale of the property. The cost of setting the Sociedad Anonima up is around $1,000.00 (cheaper by far than the tax) Summary of Costs: Closing costs range from 7.00% to 9.00% of the sales price Legal/Notary fees – 1.25% of loan amount Banks fees vary depending on services they provide, but about 1.5%- 2.5 of the loan amount. (Which includes most of the misc. closing costs) ILG Loan Origination Fee: 2% to 2.5% of the LOAN amount (depending on the market). ILG Processing Fee $500.00 and $295 Doc Review/Closing Doc. Transfer tax – 1.5% of loan amount (avoided if transferred within a Sociedad Anonima) Document taxes and stamps mentioned above - 0.55% of the loan value Appraisal - $500 to $1200 depending mostly on travel distance Escrow Services - $400 POSSIBLE COSTS outside of the closing Hazard Insurance – 0.023% Life Insurance Policy Possible Title Insurance - 0.5% If you wish to buy land in Costa Rica it is wise to either hire a lawyer or go yourself to the Registro de la Propiedad to search the title and verify that there are no liens against the property or the property owner. Once you buy a property, you need to make sure the sale is properly registered at the Registro de la Propiedad, proof that you are the new legal owner. To register your transfer deed you or your attorney must bring to the Registro Publico (Public Registry) the following documents: A. Proof of payment of all taxes and registrations fees B. Certifications issued by: a) Finance Ministry, confirming that all seller's property taxes were paid; and, b) the local Municipality, stating that buyer and seller areup to date on municipal taxes. C. Proof that all prior mortgages, liens and judgments (if any) have been resolved Once all fees are paid, make sure that the attorney who drafted the transfer deed registered it in the Property Section of Registro Publico. It should be registered by the Registro Publico 45 to 60 business day after presentation. Check with the notary to make sure the deed has been properly filed. Down payments range between 15-40%. e-mail us