Properties in Costa Rica Blog

Capital Gains in Real Estate: How to Optimize Your Transactions Under Costa Rican LawThe capital gains tax is one of the most relevant tax changes in the market

Capital gains tax is one of the most relevant tax changes in the Costa Rican real estate market in recent years. This legislative change has had a direct impact on the market, especially on activities such as quick remodeling and resales, known as “flip houses.” By taxing profits more strictly, investors now face tighter margins, which has reduced the profitability of this business model. In addition, it has generated a renewed focus on the importance of accurately reflecting the real value of the property in the deed of transfer at the time of purchase. This often underestimated detail can be key to avoiding tax problems in the future, as the tax is calculated on the difference between the declared purchase price and the final sale price.

II. Importance of Reflecting the Real Value in the Scriptures

One of the practices that has historically generated tax complications in the Costa Rican real estate market was that of recording undervalued values in transfer deeds. Although in the past it may have seemed like a strategy to reduce immediate costs, this practice has taken its toll in the long term, especially with the implementation of the 15% tax on capital gains in 2019. The law that established the capital gains tax implicitly recognized the existence of this practice of recording undervalued values. For this reason, taxpayers who own real estate acquired before the effective date of the law were given the possibility of choosing between paying 15% on the net gain or paying 2.25% of the total value of the transaction when selling their property. This provision offers some flexibility, especially favoring those who recorded undervalued purchases and the owners of properties with fiscal values that did not reflect the real value of the assets. In the case of real estate registered after the Law came into force, taxpayers are required to pay 15% on capital gains, which has created new challenges for buyers, sellers and investors.

When the actual value of a property is not reflected in the deeds, the capital gain calculation can be artificially inflated, significantly increasing the tax burden for the seller. Capital gains tax is calculated on the difference between the purchase price declared in the deeds and the sale price at the time of the transaction. If the purchase value initially declared is very low, the difference with the sale price will be considerably higher, which can result in a higher tax bill than necessary. For example, if a property purchased for an amount of ₡100 million is recorded at ₡50 million, the capital gain will appear higher than it really is, forcing the owner to pay additional taxes. This can be particularly detrimental to those investing in substantial renovations or improvements to the property.

To avoid these problems, it is essential that the real value of the property is clearly reflected in the transfer deeds from the outset. This not only ensures a more accurate tax calculation, but also strengthens the seller’s position in the event of a possible audit by the tax authorities. Recording the correct value from the outset may require a larger initial investment in terms of transfer taxes and notary fees, but in the long term, it protects the owner’s interests and facilitates any future transactions.

A practical tip for investors is to keep documentation supporting any improvements made to the property, such as invoices for materials and construction services. This allows for an updated value to be justified in the transfer deeds through an official revaluation. Working with a real estate attorney and a trusted notary can make all the difference in ensuring that the deed reflects the real value of the property, avoiding tax complications and maximizing the legal security of the transaction.

III. Impact on the Flip Houses Business

The market for flip houses and quick sales has been in decline since the implementation of the capital gains tax in 2019. This 15% tax on the net profit from the sale has discouraged many investors who previously saw this business model as an opportunity to obtain quick returns. By increasing the tax burden on perceived profits, flip houses and quick sales have become less financially attractive.

The problem is that high profits from an immediate sale after a renovation can result in a significant tax. For example, if an investor buys a property for ₡100 million, invests ₡20 million in improvements and then sells it for ₡150 million, the tax will be calculated on the difference between the purchase and sale price, i.e. ₡50 million. This results in a large tax burden, without taking into account other costs such as legal and notary fees, which significantly reduces the profit margin.

For those still looking for opportunities in this sector, there are legal strategies that can help mitigate this tax impact. One of the most effective is to request an official revaluation of the property after making significant improvements. This revaluation allows the value recorded in the deeds to be adjusted, reflecting the investments made and reducing the tax base for the calculation of capital gains. It is essential to document all renovations with invoices, contracts and other vouchers that support the costs incurred.

Additionally, it is advisable to plan transactions with specialized legal and tax advice. In some cases, structuring the purchase and sale through a legal entity can offer additional tax benefits, depending on the business model and transaction volume. Although house flipping faces challenges under the new regulations, careful planning and appropriate legal strategies can help investors adapt and continue to operate profitably in the Costa Rican real estate market.

IV. Property Revaluation in Costa Rica: A Key Tool to Optimize Tax Management and Attract Investments

The revaluation of real estate properties in Costa Rica is a fundamental strategy to maximize tax benefits and ensure the legal security of transactions. This procedure, regulated by Law No. 7509 on Real Estate Tax and its reforms, is designed to ensure that the fiscal value of a property reflects its economic reality.

a. Legal Basis: Appraisal and Valuation

Law No. 7509 and the General Regulations of the Real Estate Tax establish the bases for the appraisal and valuation processes:

● Appraisal: Article 10 Bis defines appraisal as a set of calculations and analyses carried out by professionals duly incorporated into the Federated College of Engineers and Architects or the College of Agricultural Engineers. This process aims to determine the real value of a property, considering factors such as location, use, construction materials and state of conservation.

● Valuation: This refers to the modification of the taxable base of a property carried out by municipalities, following technical criteria established by the Technical Standardisation Body (ONT). According to article 11, it is a non-delegable activity of the Tax Administration to supervise these changes.

b. The Technical Standardization Body (ONT)

Created by Article 12 of Law No. 7509, the ONT plays an essential role in the real estate tax system. Its main powers include:

1. Establish general valuation provisions:  The ONT provides the technical rules and criteria that municipalities must follow to carry out consistent and equitable valuations.

2. Coordinate with municipalities and the National Cadastre:  This coordination ensures that municipal and cadastral databases are consistent, improving the quality of valuations.

3. Provide technical methods and factors:  The ONT develops depreciation methods, useful life rates, values by type of building, and economic factors related to topography, location, urban equipment and public services.

4. Analyze and recommend corrections to municipal appraisals:  By supervising appraisals carried out by municipalities, the ONT ensures that they comply with established standards and applies corrections when necessary.

5. Publish general provisions:  To ensure transparency, municipalities must annually publish the criteria and methods dictated by the ONT in the Official Gazette La Gaceta and in a national circulation newspaper.

The ONT, as a mandatory technical advisory body for municipalities, reinforces the legal security of the Costa Rican real estate tax system by establishing a homogeneous framework for fiscal valuation.

V. Procedure for Requesting a Modification of the Fiscal Value

The procedure to modify the tax value of a property must be carried out through the Virtual Procedures Platform (TRAVI) of the Ministry of Finance. This process is supervised by the Tax Administration, which is responsible for reviewing and validating the documentation submitted.

1. Steps for the Procedure in TRAVI

● Access to the platform:

Enter TRAVI

Have an active account and digital signature to manage the process.

● Collection of documents:

Request letter: Addressed to the Tax Administration, signed by the registered owner or his legal representative. In the case of legal persons, include a valid legal entity no more than one month old. If the procedure is carried out by a third party, this must be authorized by a letter authenticated by a notary public.

Real estate declaration: Preferably updated within the last five years.

Municipal certification:  If the declaration is not available, a certification must be submitted indicating the date of the last declaration, homogeneous area used, total value recorded and the origin of the current value.

● Uploading documents to TRAVI:

Scan the documents in PDF format and upload them to the platform.

Verify that the files are legible and meet the established requirements.

● Review by the Tax Administration:

The Administration evaluates the documentation submitted and, if appropriate, requests additional information or carries out technical inspections to verify the condition of the property.

● Resolution and notification:

If the application is approved, the new tax value is registered in the tax system. The notification is made via TRAVI, and the modification comes into effect on January 1 of the following year, as provided for in Article 9 of Law No. 7509.

● Update in the National Registry:

Once the Tax Administration has made and registered the change in the fiscal value of the property, it must be updated in the National Registry system. This process is essential to ensure that the registered information reflects the updated value of the property.

According to the DGT-RN-001-2018 agreement signed between the Ministry of Finance and the National Registry, this update is carried out automatically every 24 hours. This automated system ensures that the data is synchronized, improving transparency and efficiency in registry and tax management.

VI. Reasons for Modification of the Fiscal Value

a. Automatic Modification: Article 14 (Law 7509)

The taxable base of a property may be automatically modified for the following reasons:

1. Higher value stated in a public deed:  This adjustment occurs when a transfer of ownership, such as a sale, reflects a higher value than that registered.

2. Creation of mortgage liens:  If the amount of the mortgage exceeds the registered value, the latter is automatically adjusted to reflect the new tax base.

3. Rectification of capacity and joining of properties:  These modifications are made when the dimensions of the property are adjusted or properties are integrated.

4. Formal recognition of higher value by the owner:  Allows the taxpayer to voluntarily declare a higher value.

5. Fractionation of properties:  The value of the new fractions must be recalculated.

6. Construction or addition of significant improvements:  If the improvements represent at least 20% of the registered value, the adjustment is mandatory. In agricultural or agro-industrial lands, improvements intended for the well-being of workers or production are not considered.

The principle of economic reality, contemplated in this article, ensures that the tax value reflects the real value of the asset, avoiding distortions in the calculation of taxes.

b. Other Causes: Article 15 (Law 7509)

The Tax Administration may adjust the registered value by means of an appraisal, ex officio or at the request of the interested party, in the following cases:

1. Public works: The construction of infrastructure, such as roads or highways, that increases the value of the property.

2. Damage due to causes beyond the owner’s control:  Such as natural disasters that reduce the value of the property.

3. Municipal assessments:  Based on ONT criteria.

These adjustments, although specific, are essential to reflect substantial changes in the conditions of the property and ensure a fair tax base.

VII. Validity

Validity of Modifications (Article 21)

Changes in the taxable value will only be effective from 1 January of the year following their notification and once they become final in the administrative process. This period allows taxpayers to plan their tax obligations in advance, ensuring transparency and predictability.

VIII. Incorporation of the Municipal Declaration and Real Estate Improvements

The process of revaluation of real estate properties in Costa Rica is based on updating the fiscal value of the properties, which directly impacts the tax base for calculating taxes. This procedure is carried out mainly through the municipal declaration of the property, the recognition of improvements made and the use of technical tools such as the value map published annually in the Official Gazette La Gaceta.

1. Municipal Declaration of Real Estate

The declaration of real estate assets is a fundamental step to update the fiscal value of a property and ensure that it reflects its economic reality. According to the applicable regulations, this procedure can be carried out in different ways, including assistance from experts, physical presentation or digitally through municipal platforms.

a. Options for Declaring Real Estate

The Municipality of San José, as an example, offers the following alternatives for making the declaration:

1. Professional assistance: You can request an assessment from a municipal expert (engineer or architect), who will prepare the declaration based on technical parameters from the Ministry of Finance and municipal tools.

2. In-person declaration by the owner: The taxpayer can complete the physical form and deliver it directly on the municipal services platform.

3. Digital declaration: Accessing the municipal website and completing the “Real Estate Property Information Declaration”, guided by a designated professional.

The administration analyses the data and may accept or correct the declaration within 10 working days. In the event of discrepancies, the municipality may carry out an ex officio appraisal, which may include visits to the site for inspection.

b. Importance of the Values Map

To determine the value of land and buildings, municipalities use the value map, which is published annually in La Gaceta, as a reference. This document is an essential tool that establishes homogeneous criteria for valuing land and buildings according to their location, use and characteristics.

2. Recognition of Real Estate Improvements

When a property owner makes significant improvements to his or her property, such as extensions or remodeling, these must be formalized in order for them to be recognized in the tax value. This process is particularly relevant, since it affects both the tax burden and the market value of the property.

(i) Procedure for Recognizing Improvements

A. Building Permits:

Before making any improvements, the necessary municipal permits must be obtained, which also serve as a basis for updating the tax value of the property.

B. Parallel declaration of improvements:

Once the construction permits have been granted, the municipality can automatically update the tax value, taking into account the impact of the works.

C. Technical documentation:

The owner must retain evidence of the improvements made, including:

● Contracts with suppliers.

● Invoices for materials and labor.

● Technical reports prepared by registered engineers or architects.

(ii) Fiscal Impact of Improvements

Formal recognition of improvements allows them to be incorporated into the taxable value of the property, adjusting its tax base. This is especially relevant for calculating property tax and capital gains tax in the event of a subsequent sale.

(iii). Technical Criteria

The estimate of the value of the improvements and the property in general is based on:

● Land value maps: Updated annually.

● Construction Typology Manual: Published by the Ministry of Finance, which details the construction characteristics and their impact on value.

IX. Tax Implications and Benefits for Investors

1. Capital Gains

Article 7 of the Law to Strengthen Public Finances establishes a 15% tax on capital gains from the sale of real estate. This tax is calculated on the difference between the sale price and the taxable value of the property, adjusted for documented improvements.

A proper revaluation allows:

● Reduce the tax base: By including improvements and reflecting the real value of the property, the tax burden is minimized.

● Optimize real estate transactions: Transparency in the tax value increases trust between the parties.

2. Benefits of the House Flipping Model

For investors who remodel and resell properties, a timely revaluation ensures that investments made in improvements are recognized for tax purposes. This is key to maximizing the profitability of the business by significantly reducing capital gains tax from the updated value of the property.

X. Legal Opinion: Property Revaluation and its Fiscal Impact in Costa Rica

The revaluation of properties in Costa Rica is a procedure that, beyond its technical component, has far-reaching legal, economic and social implications. This mechanism not only seeks to reflect the economic reality of a property, but also responds to fundamental principles of tax law, such as fiscal equity, legal certainty and respect for the tax-paying capacity of citizens.

1. Underlying Legal Principles

From a legal perspective, the revaluation of real estate is based on several key principles:

a. Principle of Economic Reality: Law No. 7509 establishes that the taxable base of a property must be adjusted when there are acts or circumstances that modify its real value. This principle requires that the fiscal value of a property reflect its true market value, thus guaranteeing a fair and proportional tax burden. This approach is consistent with the principle of tax capacity, which requires that taxes be calculated based on the taxpayer’s real wealth.

b. Horizontal Equity: Revaluation ensures that taxpayers with properties of equal real value pay equivalent taxes. Otherwise, fiscal inequities could arise, where undervalued properties contribute less than their fair share, affecting municipal and national revenues.

c. Legal Security: Current regulations establish a clear and transparent framework for the revaluation of real estate. This includes specific causes, well-defined deadlines and challenge mechanisms, as established by Law No. 7509. The predictability of this process is essential to generate confidence in investors and guarantee voluntary compliance with tax obligations.

2. Impact of Automating the Update Process

The DGT-RN-001-2018 agreement between the Ministry of Finance and the National Registry marks a milestone in the modernization of the Costa Rican tax system. The automatic updating of tax values every 24 hours has multiple implications:

● Efficiency and Error Reduction: Automation minimizes the possibility of discrepancies between tax and registry records. This system ensures that any change in the tax value of a property is reflected almost immediately in the National Registry, eliminating administrative delays that could lead to legal inconsistencies.

● Increased Tax Collection: By ensuring that tax values are updated in a timely manner, the State can collect transfer and property taxes that are more in line with the economic reality of the properties. This not only increases tax revenues, but also promotes greater equity in the distribution of the tax burden.

● Transparency in Transactions: For investors and owners, this system provides certainty about the registered tax values, facilitating negotiation and reducing possible conflicts related to the discrepancy of values in real estate transactions.

XI. Appeals Against Valuations and Appraisals

a. Right to Challenge (Article 19)

When a taxpayer does not agree with an assessment or appraisal, the regulations provide several resources to challenge the decision:

1. Appeal for revocation:  It must be submitted to the municipal appraisal office within 15 business days from notification.

2. Appeal:  If the appeal for revocation is rejected, the taxpayer may appeal to the municipal council within the following 15 business days.

3. Administrative Tax Court: As the final instance in the administrative process, the Court must resolve within a period of 4 months from the filing of the appeal.

Judicial route: If the Administrative Tax Court does not rule in favor, the case may be referred to the Contentious-Administrative Court, in accordance with the provisions of the Law regulating the contentious-administrative jurisdiction.

Access to these resources reinforces the principle of effective judicial protection and ensures that taxpayers can defend themselves against assessments they consider unfair.

Revaluation of the fiscal value and its correct management are central elements in the Costa Rican tax framework, especially in the context of the capital gains tax and other taxes related to real estate. This procedure not only ensures that taxpayers’ tax obligations reflect the economic reality of their properties, but also opens the door to legal and technical strategies to optimize real estate transactions.

The Costa Rican regulatory framework, supported by technical tools such as the map of values, the actions of the Technical Standardization Body and the automation in the updating of tax values, creates a solid environment for the development of the real estate market. However, the success of these initiatives depends on adequate planning, compliance with legal requirements and timely professional advice.

In a constantly evolving tax and legal landscape, understanding and strategically using revaluation procedures not only enables compliance with tax obligations, but also facilitates informed decision-making, promotes legal certainty, and maximizes benefits for both property owners and investors. This comprehensive approach reinforces the attractiveness of the Costa Rican real estate market, positioning it as a competitive and reliable environment for long-term operations.

Building your dream home in Costa Rica is an exciting journey, but one of the most crucial steps is determining your construction budget. To ensure a successful project that aligns with your vision, it’s essential to understand the factors influencing your costs. In this article, we’ll provide expert insights to help you navigate the budgeting process and make informed decisions, whether you’re planning to build in Pérez Zeledón, Guanacaste, or other regions of Costa Rica.

Key Questions Before Starting

Common questions arise when planning a construction project, such as:

• How much does it cost to build a house in Costa Rica?
• How much money is needed to build a 100m² house?
• What does an architect charge for a design in Costa Rica?
• How much does it cost to build a 4×4 room?

Here, we’ll address these questions and more, breaking down the critical factors influencing construction costs.

Factors Affecting Construction Costs

1. Location Matters
   The location of your home significantly impacts your budget. Regions like Pérez Zeledón or Guanacaste may have varying costs due to land prices, accessibility, and local regulations. Choosing the right location is key to balancing budget and lifestyle preferences.
2. Size and Layout
   The size (square footage) and layout of your home are direct cost drivers. Larger homes require more materials and labor, while well-planned layouts can optimize space and resources, making the most of every square meter.
3. Design Complexity
   Complex architectural designs or unique features often come with higher costs for materials, labor, and planning. Simpler designs can help keep expenses under control while still achieving aesthetic appeal.
4. Site Preparation and Infrastructure
   The condition of the land can impact costs. Site clearing, leveling, and connecting to utilities like water and electricity should be factored into your budget.
5. Material Selection
   Your choice of materials, from basic to high-end finishes, affects both aesthetics and costs. Flooring, wall finishes, lighting, kitchen cabinets, and bathroom fixtures can vary widely in price, so aligning your material choices with your budget is critical.
6. Permits and Regulations
   Local building codes and permits are essential for a smooth and legal construction process. While compliance might add to your expenses, it ensures your project adheres to government standards, avoiding potential fines.
7. Labor Costs
   Skilled labor availability can influence pricing. Architects, engineers, and construction workers charge fees that vary depending on their expertise and reputation.
8. Contingency Funds
   Setting aside contingency funds is wise to cover unforeseen changes or adjustments during construction without straining your finances.

If building a house isn’t what you’re looking for, explore our Homes for Sale section! We offer a wide range of options to suit your preferences:

• Ocean View Homes
• Homes in the City
• Condos
• Sea Side Homes
• Mountain Homes
• Eco-Friendly Homes
• Ocean Front Homes
• Lake Front Homes

If, on the other hand, you’re looking for land to build your dream home, visit our Lots for Sale section to find the perfect property!

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Cost of Construction Per Square Meter in Costa Rica

The cost of construction per square meter in Costa Rica can vary significantly depending on the project’s location, the type of construction, and the materials chosen. Here’s an overview of the general price ranges:

1. Urban or Tourist Areas:
   In popular urban or tourist destinations such as San José or Guanacaste, construction costs typically range between $850 and $1,300+ per square meter. These higher costs are influenced by factors such as demand, accessibility, and premium materials often used in these regions.
2. Rural Areas:
   Building in rural locations like Pérez Zeledón or less-developed areas can reduce construction costs, with estimates ranging from $550 to $850 per square meter. Lower land prices and reduced material transportation expenses contribute to these more affordable rates.
3. Commercial Buildings:
   Commercial construction, including office spaces, retail establishments, or multi-story buildings, generally incurs higher costs. These projects can range from $1,200 to $1,500 per square meter, influenced by specifications, infrastructure needs, and complexity.

Architectural Fees

Architectural services in Costa Rica are essential for designing a functional, aesthetically pleasing, and legally compliant structure. The cost of these services depends on the complexity and scope of the project:

1. Single-Family Home Plans:
   Architects generally charge between $3,000 and $10,000 or more for designing plans for a single-family home. The price can vary based on factors such as the size of the house, design intricacy, and level of customization required.
2. Commercial or Large-Scale Projects:
   For larger or more complex projects, such as multi-unit residential buildings or commercial properties, fees tend to be significantly higher. These projects demand additional time, detailed planning, and specialized knowledge, which increases overall costs.

Construction Supervision

Once the design phase is complete, professional supervision ensures that the construction adheres to plans, schedules, and quality standards. This service is typically provided by architects or engineers, and fees are calculated as a percentage of the total construction cost:

• 5% to 15% of Total Construction Cost:
  The percentage depends on the complexity of the project, the level of oversight required, and the experience of the supervising professional. This service includes regular site visits, progress evaluations, and problem resolution to ensure the project remains on track and meets quality standards.

Here are three examples of home construction in Costa Rica, based on different cost ranges and finish levels. These include estimates for architectural design, supervision, and construction costs per square meter:

1. Low-Cost House

Description: A basic 80 m² home designed for small families, with simple finishes and budget-friendly materials.

• Architectural Design: $3,000
• Construction Supervision: 10% of construction cost ($44,000 x 10%) = $4,400
• Construction Cost: $550/m² x 80 m² = $44,000
• Total Estimate: $51,400

Key Features:

• Basic ceramic tile flooring.
• Concrete or block walls with simple paint finishes.
• Zinc sheet roofing or similar material.
• Standard aluminum windows.
• Functional layout: living room, dining area, kitchen, 2 bedrooms, 1 bathroom.

2. Mid-Range House

Description: A modern 150 m² home with standard finishes and personalized design.

• Architectural Design: $6,000
• Construction Supervision: 8% of construction cost ($135,000 x 8%) = $10,800
• Construction Cost: $900/m² x 150 m² = $135,000
• Total Estimate: $151,800

Key Features:

• Porcelain or mid-range ceramic flooring.
• Concrete walls with more detailed interior and exterior finishes.
• Modern roofing designs with thermal insulation.
• Higher-quality aluminum window frames.
• Layout includes 3 bedrooms, 2 bathrooms, living room, dining area, kitchen, terrace.

3. Luxury Home

Description: A 300 m² luxury home in a prime location, with exclusive architectural design and high-end finishes.

• Architectural Design: $15,000
• Construction Supervision: 5% of construction cost ($390,000 x 5%) = $19,500
• Construction Cost: $1,300/m² x 300 m² = $390,000
• Total Estimate: $424,500

Key Features:

• Flooring made of marble, natural wood, or luxury porcelain.
• Walls with custom finishes like natural stone or decorative panels.
• High ceilings with architectural details.
• Panoramic tempered glass windows.
• Gourmet kitchen with high-end appliances.
• Pool, spacious terraces, and professional landscaping.

Costa Rica’s natural beauty, from its lush rainforests to pristine beaches, has made it a top destination for tourists and investors alike. But what truly elevates its status as a prime location for real estate investment is its exceptional connectivity, centered around Juan Santamaría International Airport (SJO). This key gateway doesn’t just bring tourists to explore the country—it also facilitates a thriving real estate market by connecting potential homeowners and investors from all over the globe.
Prime Location for Real Estate Exploration

Juan Santamaría International Airport, located in Alajuela, just outside San José, places travelers in the heart of Costa Rica’s real estate market. Whether you’re looking for luxury homes in the Central Valley, beachfront properties on the Pacific coast, or tranquil eco-retreats in the highlands, SJO serves as the perfect starting point for exploring diverse property options across the country.

Direct International Connectivity

For real estate buyers, accessibility is crucial. SJO offers direct flights to major cities around the world, ensuring seamless travel for property tours, relocations, and investment management.

Key Flight Connections Include:

North America: Direct flights from cities like Houston, Los Angeles, Miami, New York, Toronto, and Montreal.
Latin America: Easy access from Mexico City, Bogotá, Lima, and Panama City.
Europe: Direct flights from Madrid, Frankfurt, Zurich, and Paris.

These extensive international connections make it convenient for buyers to visit Costa Rica and for homeowners to manage their properties remotely with frequent travel.

Rising Tourism

The increase in passenger traffic at SJO mirrors Costa Rica’s growing popularity, not only as a vacation spot but also as a prime real estate destination. In 2024, the airport handled over 4.3 million passengers from January to August, marking an 11.5% increase from the previous year. This surge in tourism directly fuels the demand for vacation rentals, investment properties, and second homes.

Ricardo Hernández, Executive Director of AERIS, comments, “With connections to 39 direct destinations and 25 airlines, SJO facilitates the movement of both tourists and real estate investors, making Costa Rica more accessible than ever.”

Why Investors Love Costa Rica’s Accessibility

Investing in Costa Rica means owning a piece of paradise, and Juan Santamaría International Airport makes it easier than ever to enjoy or manage that investment. The airport’s world-class services enhance the appeal of Costa Rica as a real estate destination:

Seamless Travel for Property Buyers: Quick access to major cities ensures prospective buyers can easily explore properties across Costa Rica.
Booming Vacation Rental Market: As tourism increases, the demand for short-term rentals grows, providing investors with a steady income stream.
Cultural Connection: SJO’s vibrant cultural events, art installations, and “Pura Vida” atmosphere give visitors a taste of the lifestyle that comes with owning property in Costa Rica.

A Sustainable Vision for Growth

AERIS, the company managing SJO, collaborates with the Costa Rican Tourism Institute (ICT) to expand flight options and improve overall connectivity. This partnership ensures that the country’s real estate sector continues to grow alongside tourism. Additionally, SJO’s commitment to sustainability aligns with Costa Rica’s global reputation as an eco-friendly destination, making it even more appealing to environmentally-conscious investors.

The Real Estate Advantage

Costa Rica’s accessibility via SJO simplifies the process of buying, selling, and managing property. Whether you’re in search of beachfront land, a vacation rental, or a family home, the airport’s connectivity ensures your investment is always within reach.

Top Real Estate Markets Accessible from SJO

The central location of SJO provides easy access to some of Costa Rica’s most sought-after real estate regions. Here are a few of the top destinations:

Central Valley: Known for its ideal climate and proximity to the airport, the Central Valley is perfect for families and retirees.
– Key Cities: San José, Alajuela, Heredia, and Escazú.
– Property Options: Luxury condos, modern homes, and gated communities.
– Investment Appeal: Strong infrastructure, international schools, and shopping centers.

Pacific Coast: Famous for its stunning beaches, this region is a hotspot for vacation rentals and second homes.
– Key Destinations: Jacó, Tamarindo, Manuel Antonio, and Guanacaste.
– Property Options: Beachfront villas, eco-lodges, and resorts.
– Investment Appeal: High rental yields and strong demand for vacation properties.

Southern Zone: For those seeking a more tranquil lifestyle, the Southern Zone offers secluded beauty and slower pace.
– Key Areas: Dominical, Uvita, and Ojochal.
– Property Options: Ocean-view homes, rainforest retreats, and off-grid properties.
– Investment Appeal: Secluded yet accessible, perfect for eco-conscious buyers.

Northern Zone: Ideal for eco-tourism and adventure lovers, the Northern Zone offers properties surrounded by nature.
– Key Areas: La Fortuna and Arenal.
– Property Options: Boutique hotels, eco-lodges, and rustic homes.
– Investment Appeal: Proximity to volcanoes, hot springs, and outdoor adventures.

The Future of Real Estate in Costa Rica

With SJO’s continued expansion and Costa Rica’s growing appeal, the real estate market is primed for sustained growth. Key trends driving this expansion include:

• Increased Demand for Sustainability: Eco-friendly properties and renewable energy homes are increasingly popular.
• Vacation Rentals as Lucrative Investments: Short-term rental properties near tourist hotspots offer great returns.
• Remote Work Boom: With a growing number of digital nomads, Costa Rica sees increased demand for long-term rentals and co-living spaces.

Investing in Costa Rica is about more than just owning a property—it’s about embracing a lifestyle enriched by natural beauty, culture, and excellent connectivity. Whether you’re buying your first home or managing a vacation rental, SJO ensures that Costa Rica is always just a flight away.

Ready to Make the Move? Start your real estate journey today and explore Costa Rica’s vibrant market, easily accessible via Juan Santamaría International Airport. From luxury homes in the Central Valley to beachfront escapes along the Pacific, your dream property awaits in this tropical paradise.

Costa Rica is a slice of paradise that offers more than just breathtaking views and lush landscapes—it’s a lifestyle dream for those looking to invest in real estate. Whether you’re drawn to pristine beaches with golden sands, the cool tranquility of mountain retreats, the vibrant energy of city life, or the charm of quiet rural towns, Costa Rica has something for everyone.

For expatriates, the country offers a welcoming community, a stable economy, and top-notch healthcare, making it an ideal spot to retire or start anew. Investors are drawn to its thriving tourism industry and growing demand for vacation rentals, while locals value the high quality of life and investment opportunities close to home.

Ready to explore what makes Costa Rica a real estate haven? Let’s dive into the possibilities!

Factors to Consider When Buying Real Estate in Costa Rica

Location

Costa Rica’s diverse geography offers endless possibilities, making location one of the most critical decisions when buying real estate. If you’re drawn to the ocean, beach towns like Tamarindo or Jacó offer stunning coastlines, vibrant communities, and excellent opportunities for rental income. These areas are ideal for those looking to capitalize on the booming tourism industry.

For retirees or those seeking tranquility, mountainous regions like Atenas or Monteverde provide cooler climates, breathtaking views, and a peaceful environment. These areas are perfect for connecting with nature while remaining relatively close to urban amenities. Similarly, the Central Valley, including cities like San José and Escazú, caters to professionals or families looking for modern infrastructure, top-tier healthcare, and international schools.

Your choice of location should align with your primary purpose for purchasing the property. Are you looking for a vacation home, a rental investment, or a permanent residence? Each region’s appeal will vary based on your needs. Take time to visit potential areas and consider factors such as community vibe, weather, and proximity to points of interest.

Finally, think about long-term growth. Some regions, like the Southern Zone (Uvita and Ojochal), are emerging markets with significant potential for property appreciation. Researching trends and speaking with local experts can provide valuable insights to make an informed decision.

Budget

Costa Rica’s real estate market offers properties that range from affordable rural lots to luxurious beachfront villas. Setting a realistic budget is essential to narrow your options and avoid unexpected financial burdens. Begin by determining your purchase price range, and don’t forget to account for additional expenses like closing costs, legal fees, and property taxes.

In tourist-heavy areas, like Manuel Antonio or Playa Flamingo, properties tend to be more expensive due to high demand. However, if you’re open to less developed locations, you may find hidden gems at a fraction of the cost. For instance, towns like Sámara or Puerto Viejo offer affordable options with immense charm and strong community vibes.

It’s also important to consider ongoing costs beyond the purchase price. These can include maintenance, HOA fees (if applicable), and utility bills. For investment properties, think about costs for property management services or marketing if you plan to rent the property to tourists.

Lastly, having a pre-approved mortgage or liquid funds can help you act quickly in a competitive market. Working with local banks or private lenders familiar with Costa Rica’s real estate landscape will make the financing process smoother.

Accessibility

Accessibility is a major factor when choosing a property, especially in a country with such varied terrain. Properties near major airports or highways, like those in Guanacaste or the Central Valley, are ideal for frequent travelers or those who prioritize convenience. For example, Guanacaste’s proximity to Liberia International Airport has boosted its real estate value, making it a hotspot for investors.

If you’re eyeing a remote area for its tranquility, keep in mind the challenges of getting there. Mountainous or jungle properties may require navigating unpaved roads, especially during the rainy season. While these areas offer unmatched peace and natural beauty, accessibility may be a concern for daily living or if you plan to host guests.

Also, consider how close the property is to essential services. Hospitals, schools, supermarkets, and entertainment options should be easily reachable, particularly if the property is for permanent residence. In popular areas like Escazú, you’ll find a blend of luxury living and proximity to high-quality services.

Accessibility also impacts the rental potential of your property. Vacationers often prefer places that are easy to reach, with amenities like restaurants and tourist attractions nearby. A property with good accessibility will have a better chance of attracting short-term or long-term tenants.

Legal Regulations

Buying property in Costa Rica is straightforward for foreigners, but understanding the legal landscape is essential to avoid pitfalls. One of the first steps is ensuring the property has a clear and legitimate title. Properties should be registered in the National Registry, and hiring a trustworthy attorney to conduct due diligence is a must.

Foreigners have the same ownership rights as Costa Rican citizens, but there are exceptions for maritime zone properties (those within 200 meters of the high tide line). If you’re considering beachfront property, make sure you understand the concession laws and obtain all the necessary approvals.

Zoning regulations and land use permits are also important. Whether you’re buying a lot to build on or an existing property, confirm that your intended use aligns with local zoning laws. These regulations can affect whether you can build a residential home, a business, or even a tourist development.

Finally, familiarize yourself with the process of closing a deal. You’ll work with a notary public who acts as an attorney in Costa Rica. They will prepare the necessary documents, register the transaction, and ensure all fees are paid. Be aware of closing costs, which typically include legal fees, transfer taxes, and other administrative expenses, amounting to approximately 3-4% of the property’s value.

The Allure of Costa Rica’s Popular Beaches

Costa Rica is renowned for its stunning coastline, and beach properties are among the most sought-after investments in the country. In Guanacaste, towns like Tamarindo and Nosara stand out as premier destinations. Tamarindo, with its golden sands and lively atmosphere, is perfect for those seeking a balance between relaxation and vibrant nightlife. It’s a hotspot for tourism, making it an excellent location for vacation rentals or second homes. Just a short drive away, Nosara offers a more laid-back vibe, attracting surfers, yogis, and anyone looking for a tranquil escape without sacrificing modern amenities.

Meanwhile, Puntarenas province is home to popular destinations like Jacó and Manuel Antonio. Jacó, located just an hour and a half from San José, is one of the most accessible beach towns in the country. It’s a bustling hub for surfers, digital nomads, and investors looking for properties with strong rental potential. On the other hand, Manuel Antonio combines breathtaking natural beauty with luxury living. Known for its famous national park, this area offers high-end real estate options and consistent demand from tourists worldwide.

Urban Living with a Costa Rican Twist

If city life is more your style, Costa Rica’s Central Valley offers a mix of modern conveniences and cultural charm. San José, the capital city, is a bustling hub for business, education, and entertainment. Its central location provides easy access to the rest of the country, while its growing real estate market offers a variety of options, from high-rise apartments to suburban homes.

For those seeking a slightly quieter yet equally modern environment, Escazú is the place to be. Often referred to as “the Beverly Hills of Costa Rica,” Escazú boasts luxury homes, world-class shopping centers, and top-tier healthcare facilities. It’s a favorite among expatriates and locals alike, thanks to its cosmopolitan vibe and excellent infrastructure.

Nearby, Santa Ana offers a harmonious blend of urban and suburban living. This area has grown rapidly in recent years, attracting families and professionals who want a more tranquil atmosphere without straying too far from the city’s amenities. Santa Ana’s real estate market includes modern condos, gated communities, and properties with stunning valley views, making it a versatile option for buyers.

Escape to the Mountains and Nature

For those craving a deeper connection to nature, Costa Rica’s mountainous regions provide unparalleled serenity. In the Southern Zone, areas like Dominical and Uvita are havens for peace seekers. Dominical is a quiet surf town with a growing real estate market, offering a mix of ocean-view homes and jungle retreats. Nearby Uvita is famous for its iconic Whale Tail beach and close-knit community, attracting both expats and locals looking for an eco-friendly lifestyle. These areas are perfect for those who value privacy and natural beauty while still having access to modern conveniences.

Further north, Monteverde is a dream come true for ecotourism enthusiasts. Nestled in the cloud forest, this region is known for its lush greenery, cooler climate, and commitment to sustainability. Real estate here is ideal for those looking to invest in eco-lodges, vacation rentals, or personal retreats that emphasize harmony with nature. Monteverde offers a unique opportunity to live among one of the most biodiverse ecosystems in the world while enjoying a tranquil, community-focused environment.

The Allure of Limón’s Caribbean Coast

Costa Rica’s Caribbean coast, located in the province of Limón, offers a completely unique experience compared to the bustling Pacific. Here, the rhythm of life slows down, blending vibrant Afro-Caribbean culture with untouched natural beauty. From secluded beaches to lush rainforests, Limón captures the essence of a tropical paradise, making it an increasingly attractive destination for real estate buyers.

One of Limón’s most iconic areas is Puerto Viejo, a charming beach town known for its golden sands and turquoise waters. This destination is beloved by surfers for its world-class waves and by those seeking a bohemian lifestyle filled with reggae music, local art, and fresh Caribbean cuisine. The real estate market in Puerto Viejo is as diverse as its community, with options ranging from cozy jungle retreats to luxurious beachfront villas, perfect for vacation homes or rental properties.

Further up the coast, Cahuita offers a tranquil escape with a more traditional Caribbean vibe. Its proximity to the Cahuita National Park—a haven for wildlife and stunning coral reefs—makes it an ideal location for nature lovers. Real estate here is characterized by larger lots, perfect for creating private eco-friendly residences or boutique accommodations that cater to the region’s growing eco-tourism market.

For those seeking even more seclusion, Manzanillo, nestled within the Gandoca-Manzanillo Wildlife Refuge, offers an untouched paradise. This area is ideal for buyers who value privacy, serenity, and a strong connection to nature. Whether you’re envisioning a peaceful retirement home or an investment in sustainable tourism, Manzanillo offers endless possibilities.

Unlike the Pacific coast, Limón remains relatively undiscovered, which means real estate here often comes at a more affordable price. Its warm culture, lush landscapes, and tranquil way of life make Limón’s Caribbean coast a truly special place for those looking to escape the ordinary and embrace the extraordinary.

Real Estate Trends in Costa Rica

Costa Rica’s real estate market continues to evolve, driven by global shifts, local demand, and the country’s growing reputation as a desirable destination for living, retiring, and investing. Understanding the current trends is crucial for making informed decisions when purchasing property in this tropical paradise.

The Rise of Sustainable and Eco-Friendly Properties

Sustainability is no longer a buzzword in Costa Rica—it’s a way of life. With the country’s commitment to becoming carbon neutral and its rich biodiversity, there has been a noticeable shift towards eco-friendly developments in the real estate market. Buyers are increasingly seeking properties that align with environmental values, such as solar-powered homes, rainwater harvesting systems, and energy-efficient designs.

Regions like Guanacaste and the Southern Zone have seen a surge in eco-villages and sustainable communities that blend luxury living with environmental stewardship. These properties not only appeal to environmentally conscious buyers but also hold strong resale value due to their alignment with global sustainability trends.

Growing Demand for Retirement and Investment Properties

Costa Rica has long been a favorite destination for retirees, thanks to its year-round warm climate, affordable healthcare, and welcoming culture. This demographic, combined with investors seeking high returns, has fueled demand for properties tailored to these needs. Gated communities, homes in tranquil areas like Atenas or Escazú, and beachfront condos with resort-style amenities are particularly popular.

The country’s relatively low property taxes and stable political environment make it an attractive option for foreign buyers. Additionally, the rise of digital nomadism has brought in a younger, tech-savvy demographic interested in long-term rentals or homes that double as vacation properties and remote workspaces.

Tourism’s Impact on the Real Estate Market

Tourism remains one of Costa Rica’s main economic drivers, and its influence on the real estate market cannot be overstated. Popular tourist destinations such as Tamarindo, Manuel Antonio, and Puerto Viejo have experienced booming short-term rental markets. Properties in these areas often generate significant income during peak travel seasons, making them attractive to investors.

This demand has also led to an increase in boutique hotels, eco-lodges, and vacation rental developments designed to cater to the growing influx of international travelers. As tourism continues to thrive, owning property in tourist hotspots offers both lifestyle and financial benefits, whether for personal enjoyment or as an income-generating asset.

Conclusion: Investing in Costa Rica’s Real Estate Market

Costa Rica continues to be one of the most attractive destinations for real estate buyers, offering a diverse range of opportunities across its beaches, cities, and mountain retreats. Whether you’re looking for a sustainable home close to nature, a retirement property with all the modern comforts, or a profitable investment in a growing tourist market, Costa Rica’s real estate sector has something for everyone.

The country’s commitment to sustainability, the increasing demand for properties from retirees and investors, and the ever-growing impact of tourism make it an ideal place to invest in real estate. From the laid-back vibes of Puerto Viejo to the luxury communities in Escazú, each area offers its own unique charm and set of advantages.

As the market continues to evolve, it’s clear that Costa Rica’s appeal is not just about its natural beauty—it’s also about the opportunities for those seeking a high quality of life, strong returns on investment, and a connection to a rich, vibrant culture. With careful planning and an understanding of the trends shaping the market, purchasing real estate in Costa Rica can be a rewarding and fulfilling decision for years to come.

Whether you’re a first-time buyer or a seasoned investor, Costa Rica presents the perfect backdrop for your next real estate venture.

1. Playa Hermosa is less than 1.5 hours from Costa Rica’s #1 Int’l Airport SJO, driving on the relatively new highway 27, and is the closest Playa Hermosa to San Jose! The western suburb of Escazu has hosted Costa Rica’s #1 mall since 1995, called Multiplaza Escazu, and is conveniently located to 4-5 star hotels Marriott & the Intercontinental, and close by you’ll find ultra-modern Hospital Cima and a classy area known as Avenida Escazu featuring CR’s first IMAX theatre. Great events also surround this area like live music of all types at the Jazz Cafe or enjoying the many festivals/events nearby both outdoor and indoor, at the Costa Rica new Convention Center.

2. Best weather along the entire Central Pacific coast, with balmy breezes, and cooler temperatures than other Costa Rican beaches. Best beach air quality too, no sugar cane fields on fire here! NO tornadoes, no tsunamis, no volcanic eruptions, just lay in your hammock and enjoy! OR go outside and do many of your favorite tourist activities, like surfing in our famous World Surf Reserve, recently named in 2021.

3. Jaco Beach, Playa Hermosa, and Los Sueños offer businesses/services of all types: from medical clinics & lots of pharmacies; 4 modern grocery stores (AutoMercado & 2 by Walmart); lots of nighttime events; family activities of all types from outdoor concerts to daytime festivals in redesigned Jaco Johannes Central Park. The new Jaco Community Center with a library and activities from English lessons to a skater’s playground is now very popular. And now there’s even a miniature golf course in Jaco Walk.

4. Playa Hermosa and Jaco offer 100% Titled Beachfront in Costa Rica. Remember that only 7% of Costa Rica’s beaches are TITLED-fee simple property, and usually with a very low annual property tax. This is only what CR Beach offers to it’s clients: Titled Land!

5. The town of Playa Hermosa has lots of new businesses ( including Sunny’s Bowls & hostel, groceries & supplies from two different mini markets; 7 days a week, some excellent pizza places (pizza Pata), and lots of new tipico places also. Offering live music 4 nights a week are two of our favorite restaurant beachfront bars, Vida Hermosa, or Bowies Point. Every weekend there usually is live music and a surfing contest and holidays are celebrated righteously!

6. Los Sueños Marina & Golf Resort, only 10 minutes north of Jaco offers ultra-modern conveniences and fun activities. They put on the best fireworks display every year, offering kids great events like Halloween costume parties. Los Sueños info is covered elsewhere!

7. Surfers worldwide are aware of how great Hermosa Beach South, or Playa Hermosa de Jaco and Hermosa Central Pacific all are during the entire year. It’s a beautiful drive 10-minute drive south of Jaco, hugging the gorgeous coastline. Families know that Jaco is very close, but here in Hermosa, it feels worlds apart. Playa Hermosa offers beachcombers, joggers, and sunset strollers delightfully soft sand, and the visual artistry of the surfers enjoying our internationally famous surf breaks, all surrounded by beautiful green mountains.

8. If you are a “foodie” or gourmand, there are more options here for international dining at the right price points than any other beach area in Costa Rica. With the brand new outdoor shopping center called “Jaco Walk”, lots of restaurants and shops will be in one convenient area of Jaco. Our favorite restaurants have all decided to move here, including Graffiti, Tsunami, and very close by are the famous Lemonzest, the Green Room with nightly live music, and even an excellent MicroBrewery Puddlefish. Lots of sports bars are in Jaco offering games with fine food including the Public House, and the new Gringos’ Sports Bar!

9. Lifestyle: Our area has one of Costa Rica’s best cable TV & Internet companies, “Liberty” in Jaco, providing HD television and high-speed internet with speeds up to 200MB at very good prices!

Our famous farmers’ market (feria) happens every Thursday afternoon starting at 2 pm and Friday morning at 8, featuring fresh produce (some organic), range-fed chicken and beef (some of the best!) baked goodies of all types, handicrafts, fresh juices, book & CD seller, and much more!

There are two international schools offering U.S.-approved curriculum plus lots of bilingual nursery/Montessori schools. Several churches offer expat families and locals many options to worship and two have built beautiful places to worship.

Medical Services: Jaco has a local Red Cross, and 2 other private medical clinics offering emergency services and X-rays. Internationally renowned Hospitals are only 1.5 hours away, and yes we have helicopters too.

Dental Services: Jaco Beach is a mecca for Dental Tourism, and has many well-respected Dental clinics.

10. Security / Government services: This area has quite a few agencies, for traffic: CR Transito Police; plus Jaco Garabito Police-Fuerza Publica; OIJ-like the FBI; more than any other beach town in Costa Rica, because we are the biggest and closest to San Jose!

The Municipal Building of Jaco, Garabito is right in town, along with all the major government services – no need to drive 1.5 hours away to order a phone, go to the OIJ, or request a building permit as is required up north in Guanacaste.

This is the new Play Hermosa and Jaco Beach in the Central Pacific area of the province of Puntarenas. Playa Hermosa, Jaco Beach, Herradura and Los Sueños, are some of the most popular areas where expats live. After 30 years of living in Costa Rica, I do declare there is no finer place in all of Costa Rica, to invest, to live, to enjoy – of course, you have to love the beach!

The rainy season in Costa Rica generally spans from May to November. This time of year is marked by frequent rainfall, often manifesting as afternoon showers or thunderstorms. Despite the rain, the Green Season offers several benefits for visitors:

1. Lush Scenery: The landscapes transform into vibrant, green vistas with thriving rainforests and abundant wildlife.
2. Lower Prices: Many hotels and tours provide discounts during this period, making it a more cost-effective time to visit.
3. Fewer Crowds: Popular tourist spots are less crowded, offering a more peaceful experience.
4. Wildlife Viewing: Certain animals, like sea turtles, are more active and easier to spot during the Green Season.
5. Surfing: The Pacific Coast sees larger swells, creating excellent conditions for surfers.

Although some areas may experience heavy rainfall, especially in October, mornings are often clear and sunny, allowing for numerous outdoor activities. The Caribbean side of Costa Rica typically enjoys more consistent weather and can be a good option during the Green Season.

Photo by Pexels

Renowned actress and environmental advocate Alicia Silverstone has recently been spotted enjoying a serene holiday in the lush landscapes of Costa Rica. Best known for her iconic roles in films like “Clueless” and her dedication to sustainable living, Silverstone seems to have found the perfect getaway amidst Costa Rica’s natural beauty.

Silverstone, known for her passion for healthy living and eco-conscious lifestyle, has long been an advocate for environmental causes. Her choice of Costa Rica as a vacation destination aligns perfectly with her values, as the country is celebrated for its commitment to sustainability and preservation of its rich biodiversity.

Silverstone, known for her passion for healthy living and eco-conscious lifestyle, has long been an advocate for environmental causes. Her choice of Costa Rica as a vacation destination aligns perfectly with her values, as the country is celebrated for its commitment to sustainability and preservation of its rich biodiversity.

General Required Documents:

• Know Your Customer (KYC) form and Sugef form.
• Copy of Passport and Driver’s License.
• Complete Income Tax (Tax Returns) of the last 3 years.
• Value of the House or Condo.
• Credit Reports: Experian, Transunion, Equifax (At least 2).
• Only for Self-employed individuals: 6 months of personal and corporation bank statements.
• Only for Salaried employees: The last 2 months of pay stubs and 3 months of personal bank statements.
• Only for Retired individuals: Letter of pension/Security Benefits, and 3 months of personal bank statements.
• Pre-Payment Penalty (PPP): 3% on balance due before 5 years. After 5 years without PPP. Bank Commission: 1.5% of the amount to finance.

Life insurance is required: The bank provides it through an insurance company in Costa Rica.

Interest Rate: It is composed of the Interbank Reference Rate called the Tri Rate, which is variable throughout the term, plus another fixed percentage to obtain the Total Interest Rate of the Loan.

Tri Rate: It is the weighted average of the certificates of deposits (CD) in Costa Rica. A CD is a savings product that earns interest on a lump sum for a fixed period of time (3 months, 6 months, 12 months). We use the Tri Rate with reference to the CD for 12 months (Tri Rate 12 months). The Tri Rate is adjustable/variable monthly. To see the fluctuations of the Tri Rate, you can click on this link: https://www.camaradebancos.fi.cr/dolares/

Conditions and terms may change without notice.

As our global economy becomes increasingly interconnected, it’s no surprise that international real estate has become a popular asset class for investors looking to diversify their portfolios. Still, along with great potential rewards come significant risks. 

Investing in properties abroad exposes you to various risks, such as currency fluctuations, political instability and remote security challenges. To protect your investments in the international market, it’s crucial to implement robust security strategies. 

Here are eleven strategies that can help safeguard your international real estate investments:

1. Thorough Due Diligence

Before investing in any property abroad, it’s essential to conduct comprehensive due diligence. This involves researching the country’s political stability, economic conditions, and real estate market trends. Additionally, it’s crucial to understand the legal framework governing property rights and foreign ownership; familiarize yourself with the history and current condition of the property, while also identifying any potential for legal disputes.

2. Seek Local Expertise

Engaging with local real estate experts, such as lawyers, realtors, and property managers, can prove invaluable when navigating foreign markets; their insider knowledge will help you navigate complexities specific to purchasing and managing property in a foreign country.

3. Consider Political Risk Insurance

Political risk insurance acts as protection for your investment against risks like expropriation, political violence, and currency inconvertibility; this type of insurance becomes particularly crucial in regions with unstable political environments.

4. Diversify Your Investments

Avoid putting all your eggs in one basket by diversifying your real estate investments across different countries and regions; this approach mitigates risk in case one investment faces challenges due to local issues.

5. Manage Currency Risk

Currency fluctuations have a significant impact on the value of international investments, so utilize hedging strategies and consider investing in currency diversification to protect against unfavorable currency movements.

6. Carefully Structure Your Investments

Choosing the appropriate structure for holding your international real estate is vital. Whether it’s through direct ownership, a corporation, a trust, or a partnership, each structure has tax implications and liability considerations; selecting the right structure will offer the most protection for your assets.

7. Regular Monitoring and Management

Stay informed about market conditions and performance related to your international investments. Regularly review and manage your portfolio, paying attention to market trends, property conditions, and tenant issues.

8. Ensure Legal Compliance

Complying with local laws and regulations related to your international real estate activities is essential; failure to do so can result in some whacking great fines, legal disputes, or even the loss of your property.

9. Develop an Exit Strategy

It’s crucial to have a clear exit strategy for each investment you make, so be sure to understand the market conditions and legal processes involved in selling the property. Being prepared allows you to exit the investment quickly if necessary.

10. Prioritize Cybersecurity Measures

In today’s digital age, online communications and data storage play a significant role in real estate transactions and management. Protect sensitive information by implementing robust cybersecurity measures to prevent fraud and data breaches.

11. Get the Physical Security Right

While implementing financial safeguards is critical when protecting international properties, physical security measures are equally important for ensuring safety within the property and amongst its residents. Implementing robust home and multi-family residential security solutions is crucial in deterring crime, monitoring activities, and providing a safe environment for tenants. 

Here are key components to consider:

Access Control Systems

Implementing access control systems is a fundamental step in securing properties, particularly multifamily developments. These systems restrict entry to authorized individuals through key cards, fobs, or biometric scanners, as well as provide a record of individuals who enter and exit the building, adding accountability and traceability.

Surveillance Cameras

Closed-circuit television (CCTV) cameras act as a deterrent to criminal activity and enable monitoring of common areas, entrances, exits, and parking structures. Modern surveillance systems can be remotely accessed and managed, allowing for real-time management from anywhere in the world.

Intrusion Detection Systems

Intrusion detection systems, including door and window sensors, motion detectors, and glass break sensors, alert property managers and security personnel to any unauthorized access attempts. These systems can be integrated with the property’s central security system and monitored 24/7.

Lighting

Adequate lighting is a simple yet effective security measure. Well-lit exteriors, hallways, stairwells, parking lots, and other common areas significantly reduce the risk of crime; motion-activated lighting can also serve as an energy-efficient security measure.

Intercom Systems

Audio and video intercom systems allow tenants to verify visitors before granting access. This additional layer of security prevents unauthorized individuals from entering the property.

Security Patrols

Depending on the size and location of your property, hiring security personnel for patrols can be a valuable investment. Security guards can respond quickly to incidents, provide assistance to residents, and deter criminal activity through their presence alone.

Emergency Preparedness

Ensure that your property has clear emergency protocols in place. This includes evacuation routes, fire alarms, and emergency communication systems; regular drills and tenant education also help prepare everyone for unexpected situations.

Cybersecurity for Smart Security Systems

If your property employs smart security systems, it’s vital to protect these systems from cyber threats. Use strong, regularly updated passwords for all systems, and consider using a virtual private network (VPN) for remote monitoring.

Tenant Involvement

Engaging with tenants regarding security measures is essential. Well-informed, vigilant residents serve as additional eyes and ears, reporting suspicious activity and adhering to security protocols.

Regular Maintenance and Updates

Security systems require regular maintenance and updates to remain effective. Assess and upgrade your security measures regularly to keep up with technological advancements and emerging threats.

Incorporating these physical security measures is an essential aspect of protecting your international real estate investments. By combining financial risk management strategies with comprehensive security systems, you can provide a safe living environment for tenants and protect the value of your property against potential threats.

Final Thoughts

Investing in international real estate can be highly lucrative, but it does require a proactive approach to risk management. The key to success in international real estate investing lies in three things: knowledge, planning, and vigilance. It’s vital to safeguard your investments with a superior combination of strategies that are thoughtfully implemented to significantly reduce risks.

Costa Rica attracts our attention for many reasons. These include its magnificent nature, diverse cultures, and friendly people. This large Central American country, bordering the Pacific Ocean and the Caribbean Sea, offers a variety of opportunities for anyone considering it as a place of residence. From students looking for higher education to young professionals seeking career advancement. At the same time, it is also attractive to families looking for a better place to raise their children. In Costa Rica, every demographic group will find something to attract them to stay and never leave.

Costa Rica for Students

Benefits of Studying

Many students consider Costa Rica to be an ideal place for higher education. Costa Rican universities are famous for their quality of education. Also, they cooperate with universities abroad. Thanks to the friendly environment, students can develop their skills in peace. Besides, the vibrant and colorful culture makes studying even more exciting. The incredible landscapes make them want to explore this country deeper. And to enjoy life to the fullest.

That’s why students often don’t have enough time to keep up with everything and remain successful in their academic studies. This is where specialized services come in handy. Helping to write high quality research papers and essays. Among the proven and most professional ones, Edubirdie writes essays that will meet all the requirements. Namely, they will be structured, literate, and meaningful. Professional writers of such services will always provide students with qualified assistance. Thus, students can keep up with everything they have planned and enjoy life in Costa Rica as well as studying at the universities we will discuss below.

Universidad Nacional 

It is known for its emphasis on research and science. 

Universidad de Costa Rica

 It is the largest and most prestigious in Costa Rica. It offers a wide range of programs including humanities, science and engineering.

Instituto Nacional de Aprendizaje

This institute specializes in practical vocational programs, such as repair and construction. 

TEC (Instituto Tecnológico de Costa Rica) 

It is famous for its professional training in engineering, technology and science.

Instituto Tecnológico de Costa Rica

This institute specializes in computer science and technology. It also cooperates with numerous international universities.

Costa Rica for Young Professionals

Labor Market and Career Opportunities

Costa Rica is a rapidly developing country. Due to this, it offers a large number of opportunities for young professionals. 

• Costa Rica promotes business development, which attracts young entrepreneurs. 
• The country is open to foreign professionals and supports work visas for specialists. 
• The development of the environmental technology sector attracts professionals who want to work on projects aimed at preserving nature and creating a balanced environment.
• Costa Rica is a popular tourist destination. Young professionals can develop a career in the hospitality and tourism industry.
• The country also invests in education and research. 
• Costa Rica also attracts international corporations, which creates opportunities to work in large companies and develop a career in global business.

Costa Rica for Families

• It is famous for its friendly and hospitаble people. This makes it an ideal destination for families. The general atmosphere is conducive to the preservation of family values and strong familial ties. And the work environment in this country is rated as more favorable for work-life balance.

• The education and healthсare systems in the country are of a high standard. A large number of public and private schools offer quality education. Medical facilities take care of the residents’ health.

• The country is also famous for its entertainment, where families can enjoy their vacations together. 

Below we’ll talk more about entertainments. After all, they are certainly related to the country’s incredible nature.

The Natural Beauty of Costa Rica

It fascinates everyone who visits this country for the first time. Mountains, beaches, rainforests, and a huge number of natural reserves make this country an ideal place for outdoor activities and ecotourism.

Excursions to nature reserves. Here you can see majestic national parks, rainforests, volcanoes, and many other natural wonders.

Outdoor enthusiasts will discover zip-lining (skydiving on ropes), rafting, cycling, and hiking.

Water activities. A large number of rivers and lakes provide opportunities for fishing and kayaking.

Ecotourism. Іt is famous for its rich exotic flora and fauna. 

Gastronomic tourism. Costa Rica offers delicious cuisine, including traditional dishes. These are such as Gallopinto, Casado and other delicacies.

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As we wrap up our journey through Costa Rica, let’s emphasize once again that this country offers something special for every demographic. Its attraction lies in the diversity and wealth of opportunities it offers. Regardless of your age, interests or needs. From students to young professionals and families, Costa Rica impresses with its diversity and capabilities. Its natural beauty and diverse culture make it an attractive place to live and develop. Where every day is a new adventure. 

Cory Shilling

Traveler and researcher of interesting places on the planet. Author of a blog about the unique characteristics of various countries. Exploring new horizons, she describes them in her essays.

Photos: Freepik 1, 2 and 3.