Costa Rica ranks fourth place in the world for foreign real estate investments with foreigners enjoying the same rights as Costa Ricans when purchasing property within Costa Rica.
Reasons to Invest in Costa Rica:
- 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.
- 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.
- Tax Incentives: The Costa Rican government goes to great lengths to encourage investment within its borders. It offers up a host of incentives to investors such as no capital gains taxes on real estate, minimal business taxes, and very low property taxes. Capital Gains Taxes = 0% and Property Taxes in Costa Rica = .25%. These rates are 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.
- 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. US construction cost could be more than 50% of those in Costa Rica. In some expensive areas the difference could be well over 100%.
- Great Foreign Investment: According to a survey in the Robb Report of potential foreign investment/retirement areas, Costa Rica surpasses all other developing countries, including Mexico, Panama, the Caribbean Islands, Puerto Rico, Portugal, Australia, and Greece. It is not surprising that there are more Americans, Canadians, and Europeans living in Costa Rica than any other country in Latin America.
- Rental Income Producing Property Potential: One of the hottest trends in the real estate market in Costa Rica is rental income producing properties. With tourism numbers at an all time high, and international brand hotels such as the JW Marriott, Hyatt Regency, Four Seasons, the Rosewood, Ramada purchasing parcels for flagship resorts, confidence in Costa Rica among investors and tourists is tremendous.
- High Standard Quality of Life: As reported by CNN, Costa Rica lands at Number 1 on the New Economics Foundation’s “Happy Planet Index”. Costa Ricans report the highest life satisfaction in the world and have the second-highest average life expectancy of the new world (second to Canada). Costa Rica is the safest country in Central America, where family values and respect are forthright. Costa Rica boasts a higher literacy and life expectancy rate than that of the United States, and is a peaceful progressive country where democracy and stability are hallmarks. Although it is a country of small farms and businesses, there resides an air of prosperity and a feeling of equality among all of its citizens.
- Low 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 couple can live very well on $1200 per month, and live quite luxuriously for $2000.
- Political Stability: The only country in Central America with a stable and long standing democracy, Costa Rica eliminated its army in 1949, often being referred to as the “Switzerland of Central America”. 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.
- 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. as CRC is the official currency of Costa Rica. (Currently $1 USD = 510 CRC approx.). 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.
- Excellent Health Care: 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 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.
- Ease of Travel: Facilitating business and leisure in Costa Rica is the increased air travel both within the country and internationally. International flights are continually opening and expanding everyday and the newly inaugurated International Airport welcomes all visitors.
- Perfect Climate, Beautiful 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. Temperatures range 70-80F consistently throughout the year.