Is Costa Rica Real Estate a good investment?
Costa Rica is a peaceful country. There´s no army in the country, which makes it very stable and has democratic politics. Ticos are nice to people, regardless of where they’re from. In almost every zone of the country you can find bilingual personnel, you can hire a capable administrator for your properties that can manage everything related to renting and maintenance.
Costa Rica´s living cost is like half of some USA states. You can expect maintenance, salaries and bills to be cheaper in Costa Rica. As an additional benefit, Costa Rica also has a network of public and private medical centers throughout the national territory. The government is also investing in new technologies to be carbon zero in 2050.
Right now is a great time to invest in Real Estate in Costa Rica because the exchange rate between the dollar and the local currency is low but promises to rise in the near future. Plus, the labor force in Costa Rica is cheap and qualified, which is why the constructions are of high quality in the middle of an emerging market.
While in other countries you could expect different treatment for being a foreigner, Costa Rica legislations treat international owners the same way as local owners. The Civil Registry shows information about properties and their proprietors publicly online.
Development is also happening in airports and road infrastructure, new buildings, housing projects and hotels. Expenditure in high technology medical equipment has also been done. It’s an emergent nation full of opportunities for investments.
Costa Rica is known for being a jazzy tourist destination due to its natural tropical beauty and the easy going Pura Vida lifestyle and also for medical tourism because the procedures are cheaper but high quality. So it’s better to get a property in the touristic areas of the country. Not only for renting but also because expats also choose these zones to retire.
If you choose correctly the asset or property you purchase, your income can increase a lot by renting and, still, the tendency is that your investment is only going to improve its value.
You can get a second home in Costa Rica or get a lot and build a living complex with multiple houses to rent or an apartment tower, or a hotel. It really depends on your financial situation. But anything you can think about, you could build in Costa Rica.
How do I start my real estate inversion in Costa Rica?
- Get registered in the Ministerio de Hacienda as an individual (you will get a NITE identification) or create a Costa Rica based legal partnership.
- Be sure about your objectives and the kind of property you want to get. Make a business plan.
- Have savings prepared beforehand because taxes and fees will need to be paid before you can have a property in the country, even if you´re planning to finance the asset.
- Think about how much money is going to return to the investment.
- Get a good administrator for your property. If you don’t want to, you could purchase the property and then sell it to other investors and then do the same for other properties.
- Get as much information about the property as you can, walk the neighborhood, meet the people and the business surrounding the property you´re interested in.
Over all, what you really need is to dive in in the process of getting a property and follow the steps a local lawyer provides.