Are there any restrictions on foreigners owning property in Costa Rica?
Foreigners have the same rights as Costa Ricans when it comes to owning real estate. This is not the case in other Latin American countries. Regardless of your nationality, we always recommend that you take title to your Valencia property through a Costa Rican corporation (in Costa Rica, it’s known as “Sociedad Anonima”, or “S.A.”). We have found that this method of ownership offers many advantages: For example, there is no sales tax on the purchase of a corporation, which will save you thousands of dollars. Additionally, you’re protected from personal liability in the event of accidents or law–suits. Should there be a death in the family, the property is inherited by your beneficiaries, without the need to transfer title, and future resale offers the same benefit of allowing the transfer without costly title transfers. Our American clients can benefit by having their retirement plans (IRA/401k) own the corporation, thus creating a tax–deferred investment. One other important note–as a
