Douglas Soto, Lawyer
Legal Affairs Advisor
Zürcher, Odio & Raven
San José, Costa Rica, Guachipelín de Escazú
Centro Corporativo Plaza Roble, Edificio Los Balcones, cuarto piso.
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www.zurcherodioraven.com
September 2009

If you have decided to invest in Real Estate in Costa Rica, you have probably made one of the best investments in your life. Costa Rica is not only a tropical paradise, as it is also one of the nicest places in America to enjoy vacationing, living, retiring or traveling.

Among our experience giving legal advice to our clients, we have selected a few subjects of general interest for real estate foreign clients, hoping to provide you with an initial outline of important items to be taking care of when coming to Costa Rica to invest.

Real Estate in Costa Rica

Purchasing Real Estate in Costa Rica is a very safe and formal transaction, which ensures foreign investors their acquisition. Properties in Costa Rica are registered through a computerized system, providing an enrollment number to the property called “Folio Real”. Under this Folio Real the property title is registered in a centralized registry (Public Registry) in San José and this property title will record all the information of the property, such as: area, ownership, boundaries, location, mortgages, and other liens.

When purchasing Real Estate in Costa Rica, (or even when considering an offer to buy land) it is best to perform a Folio Real research of the property to double check that the information included in the Folio Real, is correct and that all aspects of the property are in order. (property rights in Costa Rica are very similar to the concept of owning land in the U.S. or Canada)

Property rights in Costa Rica may be owned personally or through a corporation. If you are considering real estate investment in Costa Rica, it is advisable to do it through a Costa Rican corporation (that will be owned and managed by your appointed designees).

Special cases may apply on certain properties, for example, forest, natural resources or biodiversity protection, or concessions land regime, where special regulations may apply for the property in order to be owned or acquire. There are also cases when properties have not been included as Folio Real in the Public Registry and they need a long judicial process in order to become a recorded property right; this could be detected at an early stage with an adequate study of the property to buy.

Real Estate purchasing in Costa Rica can be a very interesting and rewarding experience when you have the proper counseling. When a new client contacts us, we enjoy providing the best options through highly qualified counseling.

Costa Rican Corporations

Costa Rican corporations are also registered in a Public Registry. They are formed by two persons as founding shareholders. Costa Rican regulation allows Stock Corporations (Sociedades Anonimas or S.A.) and Limited Liability Corporations (Sociedades de Responsabilidad Limitada or S.R.L.) Both types of corporations are commonly used for commercial purposes in Costa Rica.

On a S.A. or S.R.L., a board of directors and a comptroller shall be appointed and it is recommended to appoint also a resident agent who will monitor the legal and administrative aspects in cases needed. Other aspects such as capital stock distribution and incorporation, representation and faculties of the appointed designees, name of the corporation (subject to availability), are among others important aspects of discussion with your advisor when creating a corporation in Costa Rica.

One of our goals when advising our clients is to give them as much clear and accurate information as they require, regarding their new corporation.

Providing an ongoing advisory for their corporation management in Costa Rica is also important for us. This ongoing service includes: managing taxes, legal books custody and advisory on shareholders assemblies, legal books management and legal duties of the corporation, among many others.

Residency and Immigration

Investing in a foreign country may lead you to love that land. Costa Rica has that special charm with its visitors, thus, Residency and Immigration aspects are always among the top interest subjects of our clients.

Costa Rican Immigration Laws allows foreign citizens to become residents only in specific cases and by fulfilling properly the dully requirements. The most common categories for residency applicants are the “Annuitant Resident Regime”, “Pensioner Resident Regime”, both regimes are legal ways according to Immigration Law to apply for a Costa Rican Temporary residence and each regimen has specific requirements. (Permanent residence may also be applied after three continuous year of temporary residence in Costa Rica).

“Annuitant Resident Regime” applies for all foreign citizens, on the special condition of receiving a fixed monthly income of no less than US$1.000, 00. The income may be generated locally or abroad and shall be demonstrated through designated institutions in order to be verified by the Immigration authorities. (for this verification it would be enough to demonstrate that income is bonded on a Costa Rican Bank account).

“Pensioner Resident Regime” applies for foreign citizens who have retired from government service or from selected private entities in their country, and receive a permanent retirement monthly income of no less than US$600.00. Such amount must be transfer periodically to Costa Rica in order to have a verification of the income, similar as the annuitant residency situation.

Residences are also applied by family relationships (Marring a Costa Rican and parental relationship with a Costa Rican Citizen) and by investing in business in Costa Rica, but these cases are strictly verified by the Immigration Department.

When our clients ask our advisory to obtain a temporary residence or a permanent residence, our first goal is to provide them with a satisfactory application to initiate the process before the Costa Rica’s Immigration Department, and then monitor the process all the way through until the residence is properly given.

If you are planning to visit Costa Rica, considering investing opportunities, looking for a retirement option, or simply have a holiday paradise to run out from the daily routine, Costa Rica may be the option you are looking for. We will be more than glad to advise you in investing in Costa Rica, and let you have Costa Rica’s experience as one beautiful and unforgettable adventure.

Please do not hesitate in contacting us if you want more information or need further assistance. Our law firm is located in San José, Costa Rica, Guachipelín de Escazú, Centro Corporativo Plaza Roble, Edificio Los Balcones, cuarto piso. You may also reach us through our web site www.zurcherodioraven.com or contact us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or (506) 2201-3889 or (506) 2201-3871.