Reasons to Invest in Costa Rica Real Estate

Welcome to Costa Rica….                                                                                               

Costa Rica is located in the Central American isthmus between the Pacific Ocean and the Caribbean Sea. It is a privileged destination because of its location in the middle of the western hemisphere. Its varied landscapes and perfect climate make this small country the perfect getaway for a spectacular vacation or to relocate here and enjoy living in paradise.

Here is a list of great reasons to Invest in Costa Rica Real Estate:

-Construction Cost: A US quality home in Costa Rica typically costs $50/sq ft and up depending on materials, finishing details, etc. This is much cheaper than the cost of building in the United States. U.S construction cost could be more than 50%of those in Costa Rica. In some expensive areas the difference could be well over 100%.

-Location: Costa Rica’s natural and geographical diversity provides sound options for a wide range of luxury, retirement and vacation homes.  Record numbers of North Americans and Europeans are purchasing second homes as vacation getaways. Prime interest in Costa Rica real estate for sale has jumped in the last ten years due to its low cost living, leisure activities, excellent healthcare, and schools.

-Tax Incentives: This seems to be the one everyone loves! The Costa Rican government has created one of the most attractive investment environments in Latin America.
Capital Gains Tax= 0% in Costa Rica. The capital gains taxes are exempt for a business if the money is derived from an activity that is not the normal course of business for the company (This exemption is established through the use of SA, or Sociedad Anonima). Property Taxes in Costa Rica = .25%. This rate is significantly lower than most places in the world. As a result people are buying in Costa Rica which increases demand and ultimately increases value. There are not many places where you can buy a piece of property that has incredible appreciation potential with such low holding costs.

-Political Stability: Costa Rica is a democratic republic with three branches of government and has enjoyed one of the most stable  governments in Latin America. As of 1948, Costa Rica abolished its army and since 1949 has enjoyed its peaceful democratic existence, often being referred to as the “Switzerland of Central America”. Over the past few years the government has incentivized foreigners to come and retire in Costa Rica. Stable government ensures that the money you put into your property is safe. Political turmoil will never be a reason for illiquidity in your Costa Rican investment and also provides reason why Costa Rica is a great place to buy. There are many other locations around the world that investors think of to go and buy, but stability is very important and should play a huge factor in anyone’s investment decisions.

-Climate, Views and Nature: Costa Rica is one of the most beautiful countries in the world. This country contains 6% of the world biodiversity.  Central Valley in Costa Rica offers the best climate in the world. It has the same temperature all year around with two defined seasons: dry – from December to May and raining – from June to November. Central Valley is elevated 800m-1.5km (2,500-4,000 feet) above the sea level. Temperature during the day is 22-27C (70-80F) and 15-18C (59-66F) during the night all year around. Because of high elevation, you don’t get many mosquitoes or flies. Pacific Coast beaches are one hour drive away from Central Valley.

-Great Potential to Attract Foreign Investment:  Many important industries and companies have chosen Costa Rica to invest their money. Amazon.com, Proctor and Gamble, McDonald’s, Intel, medical technology companies and others have all poured millions of dollars into Costa Rica over the last decade. Now more big players are doing the same because of the country’s political stability, stellar international reputation and it’s highly educated work force.

-High Standard quality of life: According to a study by the Inter American Development Bank (BID), Costa Ricans are the most satisfied people in Latin America. The study is based on the country’s educational system, health care and employment opportunities. Costa Ricans value their high quality of life above materialism. Not only do Costa Ricans enjoy a great lifestyle but the majority of foreign residents here are very happy. It almost seems that the great quality of life is contagious.

-Cost of Living: When you compare living expenses between Costa Rica and the U.S, Costa Rica is 65% cheaper. This applies to all living expenses apart from gasoline. San Jose’s prices are among the second lowest of any city in the Americas, and the cost of goods and services is among the lowest in the world. You can hire a full-time maid for a couple hundred dollars per month and utilities run about 30 percent of their North American cost. A gallon of gas costs around $4 to $5, cars aren’t really required because of the low cost of public transportation. A couple can live very well on $1200 per month, and live quite luxuriously for $2000.

-No Ownership Restrictions:  Foreign Ownership is promoted in the country of Costa Rica. In many foreign countries a simple title is only available to locals, and without titled ownership your investments can be at great risk. All foreigners enjoy the same rights as Costa Ricans when it comes to real estate ownership. Titled, fee simple properties are all registered in the National Registry of Costa Rica properly protecting your ownership rights. Local Banks make financing available to qualified foreign buyers.

-Stable Currency: Investors want to know if their money is safe in Costa Rica
Stability of the government has helped to maintain a solid and stable currency.
The Costa Rican colon, also denoted as CRC is the official currency of Costa Rica. (Currently $1 USD = 510 CRC approx.). Colones come in notes of 1,000 up to 10,000.
US Dollars are also accepted as legal tender in Costa Rica. Both are widely accepted and exchanged throughout the country with approximately 90% of the places of business in the country accepting the US Dollar.

-Health Care in Costa Rica: Statistics from the World Health Organization frequently place Costa Rica in the top country rankings in the world for long life expectancy. By almost any standard, Costa Rica has some of the best health care in Latin America. Not only that, but the country’s public and private health systems are constantly being upgraded—new hospitals, new equipment, and improvements in staff training. Despite the advancements, costs are low in comparison to those in the U.S. and even some European countries. Health care costs are about a third of what you’d pay in the U.S. Doctors, for instance, rarely charge more than $60 a visit, and most of them charge less, even for house calls. Many doctors speak English and have received training in Europe, Canada, or the U.S. Pharmaceuticals are also much less expensive, especially at pharmacies outside the tourist areas of San José. More extensive surgeries? A facelift averages $2,800 to $3,200 in Costa Rica, compared to $7,000 to $9,000 in the United States. A knee replacement may cost $11,000 in Costa Rica, but can be as much as $45,000 in the United States.

-Costa Rica’s Government-Run Health Care System: With a government-sponsored network of more than 30 hospitals and more than 250 clinics throughout the country, the Caja Costarricense de Seguro Social (CCSS) has primary responsibility for providing low-cost health care services to the Costa Rican populace. Although sometimes overburdened, this system has worked well for Costa Ricans for the past 60 or so years. Open not just to Costa Rican residents, the CCSS provides affordable medical service to any foreign resident or visitor. Foreigners living in Costa Rica can join the CCSS by paying a small monthly fee–based on income–or they can buy health insurance from the state monopoly Instituto de Seguro Nacional (INS), valid with over 200 affiliated doctors, hospitals, labs, and pharmacies in the private sector. In 2010, the government made it mandatory for residency applicants to become members of La Caja. The agency has been slow to work out the exact fee structure, but the average price is generally less than $50 a month.

-Costa Rica’s Private Health Care System:  Many of the country’s highly trained physicians and some dentists work in the mornings for the CCSS and operate their own offices and clinics in the afternoons and evenings. While private health care in Costa Rica is more expensive than that offered by the same doctors and surgeons through the CCSS, the price is still far below that of the average office visit in the U.S. For example, a private office visit to almost any medical specialist costs around $40-$60. Continued treatments for diagnosed problems will vary, but will almost always be considerably less than comparable treatment in the United States. Dental work, too, is provided at a much lower cost than in the U.S.–prompting a phenomenon known as “health tourism.” More extensive surgeries? A facelift averages $2,800 to $3,200 in Costa Rica, compared to $7,000 to $9,000 in the United States. A knee replacement may cost $11,000 in Costa Rica, but can be as much as $45,000 in the United States.