||Adapted from the real estate section of The Golden Door to Retirement and Living in Costa Rica.Home prices begin at around $ 100.000. Banks in Costa Rica will finance up to 70% of the appraised value of your real estate purchase. Monthly payments may not exceed 30% of your monthly income. Repayment terms, depending on the bank, vary from 15 years up to 30 years. However, paying cash will usually result in a better deal with the seller.
Legal residency is not a requirement in Costa Rica to own property. Foreigners are entitled to the same ownership rights as citizens of Costa Rica.
Unlike Mexico, some beachfront property may be purchased. However, the 200 meter strip of land along the seacoasts is owned by the government and for public use. It is prohibited to build anything within the first 50 meters of the high tide line. This zone is for the public and cannot be turned into a private beach.
Beachfront property is being bought up fast, and the price of this and other prime real estate is soaring — with much of it overpriced. There are also condominiums, farms, lots and ranches for sale at reasonable prices, depending on location.
You will be pleased to know that no capital gains taxes on real estate currently exist in Costa Rica, so it is an excellent investment. You do have to pay yearly taxes, but they are low by U.S. standards.