Are you looking for an investment option with great growth potential? Costa Rica real estate is the right choice for you in 2023. Already one of Central America’s most promising countries, it offers abundant natural resources and is an attractive destination for business and tourism. With its stunning coastline, lush tropical forests, and eco-friendly cities making headlines around the globe, now could be the ideal time to invest in Costa Rica real estate. A thriving tourism market, warm weather year-round, and numerous other factors make this Central American destination one of the smartest investments.
In this blog post, you will learn why now might be a great opportunity to consider purchasing real estate in Costa Rica while exploring the types of properties sold around the country and why they may make such good financial investments over time.
Why Invest in Costa Rica Real Estate in 2023:
There are many reasons why you should consider investing in Costa Rica real estate in 2023. Here are some reasons why most people invest in Costa Rica real estate.
1. Low crime rates:
Costa Rica is ranked as the safest country in Central America, with a very low crime rate. Besides, the country comprises a few regions where you can enjoy total peace and safety. The security forces are well-equipped and know how to defend their territory. There is also a heightened police presence, discouraging any possible crime in Costa Rica.
2. A booming tourism industry:
Costa Rica is a popular holiday destination for locals and foreigners, with a growing number of tourists from the US, Canada, Europe, Asia, and Australia. The country is just now starting to benefit from the growth in tourism after being one of the poorest countries in Central America. Tourism generally follows economic growth in Costa Rica, with many people flocking to its beautiful beaches and natural landscapes. As such, there will be more demand for high-end hotels and real estate properties.
3. International investment partners:
Costa Rica is a member of the Central American Integration System (SICA), a regional trade bloc that includes 10 Central American countries, including Costa Rica. As such, it has a high level of economic integration and greater regional investment opportunities. Additionally, Costa Rica has established formal diplomatic ties with many countries, including China, France, Japan, and South Korea – making it an attractive foreign investment partner in years to come.
4. High GDP growth:
According to the IMF, Costa Rica’s economy is projected to grow by about 7% by 2023. Costa Rica boasts a per capita of $20,000 and a Human Development Index of over 90, making it one of the most prosperous countries in Central America. Real estate investing in Costa Rica aims to capitalize on this economic growth and benefit from the country’s relatively good political stability.
Costa Rica has a long history of peaceful and democratic government. The country is a member of many international organizations, including the Rio Group, the Association of Caribbean States, and the Community. It has also sought to become an observer of the Organization for Economic Co-operation and Development (OECD), which means that it is one of the few countries in Central America with full political, social, and economic control over its affairs.
5. Moderate taxation rate:
Costa Rica has a moderate tax rate, and all businesses operate easily. The constitution guarantees equal treatment under the law, which usually results in low taxes, so domestic and foreign investors have little difficulty with the tax system.
Costa Rica is located in Central America. It is bordered to the north by Nicaragua, to the east by Panama, to the southeast by the Pacific Ocean, to the south by Panama, and to the west by the Caribbean Sea. The country also faces many Central American neighbors, sharing a border with nine countries on three sides. This puts Costa Rica at an ideal location for travel between North America and South America, making it easy for tourists and ex-pats alike to visit.
Costa Rica boasts a highly accessible healthcare system. Many of its citizens can access private health insurance and public health coverage. Costa Rica has a very high quality of healthcare, with nearly 80% of the population having access to basic healthcare.
8. Good infrastructure:
Costa Rica is well-connected with many sophisticated roads, reliable internet and phone connections, modern airports, and high-speed train services. There is also a close relationship between the government and the people, which allows for little corruption. This makes it relatively easy for customers to receive service and complain when necessary.
9. Skilled Labour:
Costa Rica is one of the only countries in Central America with a fairly high proportion of highly skilled workers. This means a large pool of talent to hire and train professionals before they leave the country. Many jobs are well-paid and well-respected, making it easier for visitors and investors to find work in their chosen careers.
Best Type of Costa Rica Real Estate to Invest in 2023:
Investors can choose from many types of Costa Rica real estate. Here are some real estate types that are most popular among buyers and sellers.
1. Beachfront property:
Costa Rica is a beautiful tropical country with many beautiful beaches, making it a popular tourist destination. The best beaches in the country can be found on the shores of Lake Arenal, Playa Grande, and Jaco Beach. The area is comprised of several luxury beachfront hotels and resorts. Its popularity as a leading tourist destination is expected to continue, so many buyers will be looking for a property on the beaches.
2. Rental Properties:
Many real estate investors choose to rent their properties out to tourists and ex-pats. The Costa Rican real estate market is expected to grow, so there will be many opportunities for rental properties. Costa Rica has a fast-growing tourism industry, and it is projected to continue growing. This will increase demand for residential property, especially properties that are easy to rent out.
3. Commercial Real Estate:
The commercial real estate sector in Costa Rica is booming as foreign companies continue to look at opportunities in the country. There are many opportunities in real estate developments, office spaces, and industrial buildings – especially in the Central Valley. There is also a growing financial sector and increased interest from foreign banks wanting to establish in Costa Rica.
4. Luxurious Hotels:
Tourism is the top source of income for Costa Rica, so many hotel projects have already been launched. The hospitality industry is one of the fastest-growing sectors in Costa Rica, with dozens of hotels being built. It has also become an important economic hub for investors worldwide. Many investors choose to build or buy hotels as an option that allows them to benefit from tourism growth while they earn a steady income.
5. Retirement Home Investment:
Retirees looking for a tropical country with good health and amenities will find Costa Rica an appealing option for purchasing retirement homes. Many retirees choose to come to the country and live in the Central Valley, which is more temperate. This provides them with a more stable climate and less rainfall while they have easy access to activities, entertainment, and transportation within the city.
Costa Rica Real Estate -Buying Guide:
Finding and purchasing the best real estate in Costa Rica can be an overwhelming experience. For first-time buyers, there are many things to consider when buying property. Here are some tips for those thinking about purchasing Costa Rica real estate:
1. Consider the Location:
Costa Rica’s cities vary widely in terms of security, infrastructure, amenities, and access to natural resources. Many travelers prefer to buy properties close to a popular beach or golf course, which may be in a more rural or remote area.
2. Consider the Property Type:
There are many property types to consider when buying, including single-family homes, condominiums, and apartments. Some top real estate markets to invest in include Baru and Jaco Beach, Palmar Norte, and San Jose City Centre. Prices will vary according to the property type and location, but it is possible to find a good investment option that fits your real estate needs.
3. Consider the Size of your Budget:
Costa Rica real estate offers a wide range of properties, from high-end luxury homes to beachfront condominiums. However, affordability is a major consideration for many buyers. The Central Valley is generally more affordable than other areas in the country.
4. Consider the Financing Options:
Real estate sellers and developers often assist buyers with financing options, making purchasing property much easier. Many families in the Central Valley choose to buy homes and land through banks, which provide mortgage financing options. Some top lenders are Banco de Costa Rica, Banorte, Prospera, and Santander.
5. Get a Lawyer:
Buying property in Costa Rica is not as straightforward as in other countries, so it is a good idea to hire a lawyer to help you buy and safeguard your investment. An attorney will also be able to advise you of the legal requirements that are specific to Costa Rica.
6. Hire an Experienced Agent:
Most property sellers will only accept offers from licensed real estate agents and brokers. Many real estate agents in Costa Rica are not fully-licensed or have limited experience. The real estate market is still new, and many people tend to get involved in real estate even if they don’t have the experience to do so. It is best to seek out an agent who specializes in property investing and will be able to guide you through the process. Agents can help you find a property that meets all your requirements and find financing options for you, making it easier to buy a property in Costa Rica.
7. Visit in Person:
Visiting the property in person is the best way to get a feel for it and make a decision. Speak with neighbors to get a feel for the area. You can hire a leasing agent to tour the building if you are buying a rental property. It’s also important to check out schools, transportation options, and local amenities such as shops, banks, and restaurants.
8. Know the Transfer Tax and Fees:
After buying real estate in Costa Rica, you will likely have to pay several taxes and fees. Some of these include transfer taxes, property taxes, and other government fees. Consulting a lawyer will be able to tell you about all the costs involved in buying Costa Rica real estate.
9. Consider the Return on Investment (ROI):
Costa Rican real estate is a relatively expensive investment due to high prices and the lengthy process of building and selling homes. There is also the cost of property insurance and the maintenance of properties. This can make it more difficult to get a good return on investment (ROI).
What is Required to Invest in Costa Rica Real Estate?
There are few specific requirements to buy real estate in Costa Rica, but you must meet the following conditions while you own Costa Rica real estate:
1. Be of the legal age to own property in your own country
This often means you must be a minimum of 18 years old. You cannot buy real estate in your country if you are under the age of 18.
2. Have sufficient funds to support the property and its upkeep
Understand how and where you will be renting the home. In some cases, there may be an additional deposit or cleaning fee. Ensure you can afford the costs of owning a property in Costa Rica.
3. Have sufficient funds to support any mortgages associated with the property
Be prepared to pay regular mortgage payments on the home, even if it is not your primary residence.
Can Non-Citizen Invest in Costa Rica Real Estate?
Yes, non-citizens can purchase real estate in Costa Rica. Unlike most countries, Costa Rica does not require non-citizens to obtain permanent resident status. Non-citizens enjoy all the benefits and rights that Costa Rican citizens enjoy. Non Citizens are free to buy or rent real estate in Costa Rica.
Which is the Best Location to Buy Real Estate in Costa Rica?
The best location to buy real estate in Costa Rica depends on your situation. Many purchase property in places such as Jaco Beach, Playa del Coco, or Tamarindo. Other locations in the Central Valley, such as Escazu and Baru, are relatively more affordable for Costa Rica real estate investors. The key is considering your needs and deciding which area will work best for you.
Do I Need a Real Estate Broker?
A broker is often hired to help facilitate the sale process and collect the deposit from the buyer. However, many people can buy real estate without hiring one. When buying through a broker, the broker conducts all negotiations. When buying without a broker, both buyer and seller will be more directly involved in the process.
Investing in Costa Rica Real Estate can greatly diversify your portfolio and ensure long-term financial security. With Costa Rica’s stable economy, attractive tax incentives, low-interest rates, and high rental yields, now could be an ideal time for investing in property there in 2023. You must research thoroughly before making any decisions; talk to experienced professionals who are familiar with the local market and get advice tailored to your specific needs and goals before signing on the dotted line!
Whether you’re looking to buy a vacation home or an income-generating commercial property, there are plenty of investment opportunities in Costa Rica.
For further detail, Get your copy today on Amazon or at your favorite digital bookshop today of the book Costa Rica for Expats!