Why Costa Rica?
Costa Rica is rapidly becoming the center of commerce in Central America. Beauty & eco-tourism are attracting millions of people each year. American businesses are investing hundreds of millions of dollars because of the financial security of the country. Land is appreciating in value because of the continued growth of tourism, industry and retirement.
Is my investment safe?
Thousands of U.S. companies have seen fit to invest hundreds of millions of dollars. Costa Rica is non-political and has no armed forces. Costa Rica provides complete anonimity for foreign investors.
Why buy real estate in Costa Rica?
An influx of U.S. business has caused real estate values to appreciate rapidly. Costa Rica has set aside for ecological purposes 1/3 of all of its land – never to be developed. As always, coastal property, both on the Atlantic and Pacific, have become home for hotels, restaurants and casinos, thus reducing available property. The obvious result is higher prices based on supply and demand.
Why a corporation (S.A./S.R.L.)
Transfers between corporations have not resulted in increased taxes. Historically in Costa Rica, corporations have been used to buy and sell property. The term used is "S.A." which means "Sociedad Anonima" or "Anonymous Society", and S.R.I. means "Sociedad de Responsabilidad Limitada", or "Society of Limited Responsibility".
What is the process?
An International law firm headquartered in Costa Rica will create a Costa Rican Corporation for each parcel, and the corporation, holding the parcel will be transferred to, and registered in the name of, the buyer, in Costa Rica.
What is the tax benefit?
In the United States, increasing property values usually result in increased property taxes, whether or not the property changes hands. Some increases take place year-in and year-out. In Costa Rica, property which remains in a Costa Rican Corporation has not been reassesed for property taxes for more than 50 years.
Are there other tax advantages?
Because any sale is of the Costa Rican Corporation, rather than of the parcel it holds, there is no tax in Costa Rica on any profit. Check with your accountant or other financial professional for further information.
Have land values increased?
Since Costa Rica became a completely democratic society in 1949, property values have been on the rise. In the last five years property values have increased 30-fold and are expected to continue to increase dramatically as U.S. industry, tourism and retirement surges.
Why Costa Rica and not Mexico?
In Mexico you lease the land for 99 years. In Costa Rica you own it. Land ownership creates wealth and assets. Investors prefer to own rather than lease.
What about public utilities?
Water, electric and telephone service are available throughout all the cities in Costa Rica.
Water supply is abundant
Power – 92% Hydro, 6% geo and 2% other
Telephone – hard line and cellular are both available
