There are Three Main Categories of Residency in Costa Rica

The information below will help you decide which avenue works best for you.

This correct, professional and easy to undestand information is supplied by Immigration Lawyer Marcela Gurdian, owner of Immigration Experts, in Costa Rica.

Marcela is the attorney I trusted to help me receive my residency in Costa Rica. I highly recommend Marcela’s services to anyone that wants to reside legally in Costa Rica and have a smooth and easy experience. I know first hand!!!

To contact Marcela, Please email me at jaaechef@gmail.com and I will personally introduce you to her.

Residency as a Retired Person or Retiree

A foreigner and family (spouse, parents, single siblings and children) can only apply for this type of residency if he is entitled to a lifetime pension of $1000 per month in their country of origin. This could be from a US IRA program, or a 401K retirement plan or a certifiable pension from a corporation, from a union or the US Social Security. The same applies for Canadian residents with their RSP program .The foreigner must obtain a certifiable letter to prove life time pension and this letter must be authenticated either by a Costa Rica Consulate or through the “Apostille”Process. The foreigner will be given a temporary residency and can work in Costa Rica only if he has his own Costa Rican corporation / business and not work for another company. After 3 years of temporary residency, the foreigner can apply for permanent residency with no restrictions.

Residency as an Investor

A foreigner and their family (spouse, parents, single siblings and children) can apply for residency as an investor if the foreigner owns investments in Costa Rica valued over $200,000. USD$. The Investment should be in specific areas as tourism, reforestation, and share ownership in a Costa Rican corporation, properties and/or any other activity supported by the Costa Rican government. The foreigner will be given a temporary residency and can work in Costa Rica only if he has his own Costa Rican corporation/business and not for another company. After 3 years of temporary residency, foreigner can apply for permanent residency with no restrictions. This is one of the easiest ways to obtain and maintain residency in Costa Rica. A retiree can purchase a property as in a home, villa, condo or even a farm that they will retire to, as long as the property is held in a Costa Rican corporation that is legally registered in the National Public Registry showing a value over the $200,000. To maintain the temporary residency for the 3 years all that is required is proof of value and proof of property taxes being paid.

Residency as a Renter

A foreigner and family (spouse, parents, single siblings and children) can apply for residency as a Renter, if foreigner receives a certifiable monthly income of $ 2,500.00 USD$ for the following 5 years or has verifiable bank investments in Costa Rica of $150,000. USD$. To prove the income, the foreigner must get a letter from a Costa Rican Bank, financial institution, foreign bank, CPA or Law Firm certifying he will be receiving a monthly income of $2,500.00 USD$  for the next 5 years. If the letter is issued outside of Costa Rica, this document must be authenticated either by a Costa Rica Consulate or through the “Apostille" Process. The foreigner will be given a temporary residency and can work in Costa Rica only if he has his own Costa Rican corporation/business and not for another company. After 3 years of temporary residency, the foreigner can apply for permanent residency with no restrictions. . (The Immigration Law will change soon and required the bank investment in Costa Rica to be $60,000.00 USD$ for 2 years or the foreigner must prove he will also receive a certifiable monthly income of $2,500.USD$ during the 2 years) 

GENERAL REQUIREMENTS:

          Application Letter: This letter requires all the following information.

• Complete name of the person applying for the residency

• Nationality, marital status and occupation

• Passport number, date and place where it was issued and date it expires

• Name of any direct family member (children or wife) dependent on the income of the applicant who will also apply for residency

• Date in which the applicant entered Costa Rica

• A formal request of his/her desire of being a Costa Rican resident

• Specify the type of residency applying for

• Temporary address in Costa Rica or the address in the country of origin

• Must indicate a place or fax number to receive notifications

1. Birth Certificate:  Must be authenticated either by the Costa Rican Consulate located in the country where the document is issued or through “ Apostille”  Process. ( Referenc note below explains the process). This document expires after 6 months of being issued.

2. Marriage Certificate:  Must be authenticated either by the Costa Rican Consulate located in the country where the document is issued or through “ Apostille”  Process. This document expires after 6 months of being issued.

3. Police Record:  Must be authenticated either by the Costa Rican Consulate located in the country where the document is issued or through “ Apostille”  Process. This document expires after 6 months of being issued.

4. Finger Prints:  They need to be taken at the Ministry of Security in San Jose, Costa Rica and applicants must bring passport and 3 photographs of them selves

5. Certified Passport Copy:  copies of the entire passport (even blank pages).

6. Special Power of Attorney: Granted by the applicants to the attorney that will handle the residency application.

7. Photos: 8 passport size photographs or each person applying for residency

8. Fees to Costa Rica Government: The applicant is required to pay/ deposit $250 for each person applying for residency, in the following bank account that belongs to the Immigration department of Costa Rica: Banco de Costa Rica, Account # 242480-0

9. Embassy Registration: The Applicant must register their intentions to reside in Costa Rica, at the embassy of its origin country located in Costa Rica.

Reference:      What is an "Apostille" or "Authentication?"

 Since October 15, 1981, the United States has been part of the 1961 Hague Convention abolishing the Requirement of Legalization for Foreign Public Documents. The Convention provides for the simplified certification of public (including notarized) documents to be used in countries that have joined the convention. Under the Hague Convention, signatory countries have agreed to recognize public documents issued by other signatory countries if those public documents are authenticated by the attachment of an internationally recognized form of authentication known as an "apostille".

The Apostille ensures that public documents issued in one signatory country will be recognized as valid in another signatory country.

The sole function of the Apostille is to certify the authenticity of the signature on the document; the capacity in which the person signing the document acted; and the identity of any stamp or seal affixed to the document.

An Apostille issued by the Secretary of State is a one page document embossed with the Great Seal of a State. The Apostille includes the facsimile signature of the individual issuing the certificate.

There are currently over 60 member states of the Hague convention and in addition to those countries many other countries will also recognize an Apostille certificate. The Convention applies only to public documents. These are documents emanating from an authority or official connected with a court or tribunal of the State (including documents issued by an administrative, constitutional or ecclesiastical court or tribunal, a public prosecutor, a clerk or a process-server); administrative documents; notarial acts; and official certificates which are placed on documents signed by persons in their private capacity, such as official certificates recording the registration of a document or the fact that it was in existence on a certain date and official and notarial authentications of signatures.

The main examples of public documents for which Apostille are issued in practice include birth, marriage and death certificates; extracts from commercial registers and other registers; patents; court rulings; notarial acts and notarial attestations of signatures; and academic diplomas issued by public institutions.

Diplomas issued by private institutions may not receive an apostille (apostillised) directly; however, a "private" diploma may, however, bear an official certificate issued by a notary, Solicitor, Agency or any other person or authority competent under the law of the State of origin of the diploma to authenticate the signature on the diploma. This official certificate is a public document under the Convention and thus may receive an apostille. In such a case the Apostille does not relate to the diploma itself; instead it certifies the authenticity of the certificate on or accompanying the diploma.

NOTE: All documents written in a foreign language must be legally translated into Spanish.

Costa Rica is a unique tropical retirement paradise which offers inexpensive living and retirement, affordable first-world medical care, the opportunity to start over, gentle breezes, lots of great outdoor sports, every imaginable activity to stay busy and happy, stunning scenery with sun-soaked, beautiful beaches and spectacular mountains. Add to all this a peaceful nation with this political stability and year round warm weather, the friendly people who actually like North Americans and it is easy to see why Costa Rica has become topson the list of expatriate and Baby Boomer havens. More North Americans live here per capita than any other country outside of the United States. They can’t be wrong!

     About ten years ago, my wife and I began our quest for adventure.  Although we loved the United States, we wanted to add a little more adventure – and sunshine – to our lives.  We spent several wonderful months exploring Costa Rica and Central America, but when we hit Papagayo area Guanacaste, we knew we’d found what we were looking for. Spectacular beaches, friendly locals and great climate were a large part of the draw.  However, what clinched the deal were Costa Rica’s foreigner-friendly laws for purchasing property and for obtaining residency along with the low cost

Friendly Laws For Foreign Investors and Home Buyers

 Unlike some of the other countries In Central America, foreigners have the same rights when purchasing land in Costa Rica as locals do.  You can own property outright in your own name or in the name of your corporation.  You do not need a local partner, except in cases of beach front concession property, where special rules apply. There is absolutely nothing to prevent you from purchasing property in your own name, but the majority of buyers form a corporation with the help of a reputable lawyer and then purchase property through that corporation.  The reason for this is threefold.  One - it may be more beneficial to have your income (from rentals) or capital gain (from sale of the property) taxed within a Costa Rican company rather than having it taxed as personal income.  Of course, this depends on the tax laws of the country from which you originate. Two - it allows for simplified estate planning, whereby you can give or will shares of the corporation that owns the property to members of your family.  Three – if you ever decide to sell your property, you can avoid paying property transfer taxes a second time by simply transferring the shares of the corporation to the new owner.

The  Costa Rica Real Estate Registry

Another plus for property purchasers in Costa Rica is its central land registry which allows your lawyer to confirm that there is clear title to your property, as well as to discern if there are any restrictions on the property before the deal goes through.  Further, if you would like to have the added protection of title insurance, the services of international title insurance companies such as Stewart Title are now available in Costa Rica.  Also attractive are Costa Rica’s very low property taxes - 1/4 of 1% annually. That means if you buy a condominium or home with an assessed value of $100,000. the property taxes per year would be $250. Now that's what I am Talking About

Choose the Right Agent

The actual nuts and bolts of purchasing are similar to those in North America.  Dealing with a real estate company you recognize, As in RE/MAX, provides additional security, since international franchises are governed by standard rules and regulations and ethic codes.  More importantly, work with a Realtor with a good reputation.  One of the best ways to find someone you can trust is simply to ask around.  Given that most communities in Costa Rica are relatively small, it won’t take you long to come up with some names of reputable Realtors in the area.  Also, you should secure your own lawyer to represent your interests in a property purchase.  Your lawyer should check the title on your property in the central registry, and can also assist with forming corporations, opening bank accounts and doing other business related to land purchase.  

When you are Ready to Make an Offer on Costa Rican Real Estate

Many foreigners who come to Costa Rica to look at property have already arranged their finances so that are ready to make an offer if they find what they are looking for.  But what can you do if you happen upon the perfect property while on vacation?  An offer can usually be written up with a small good faith deposit to be raised to 10% within a few weeks.  Final closing would normally be anywhere from 30 – 60 days. If you need to borrow funds, it is far simpler and interest rates are usually lower in your home country. However, if your credit rating is impeccable, financing in Costa Rica may be available to you. There are also many new Mortgage Brokers doing great deals here in Costa.

Purchasing Property in Costa Rica: The decision to purchase real estate in a foreign country can at first be a daunting proposition.  However, it is possible to safely buy property in Costa Rica with the assistance of a reputable realtor and attorney.  Your realtor should be able to help you to locate property suitable to your needs, educate you as to property values and other considerations in your chosen area, and assist you with negotiating a fair price. You should also use an attorney (Certified Public Notary) with a good reputation who can handle the financial aspects of the transaction and ensure that you will have legal title to your property.

Title Insurance is available in Costa Rica through well-known international companies such as Stewart Title and Chicago Title and Trust. 

Ownership: It is possible to purchase real estate through direct transfer where one or more individuals acquire property in their personal name.  Purchasing properties through a new or existing corporation is also very common in Costa Rica.  The process of setting up a corporation is not complicated or expensive, but requires the expertise of your attorney to follow the legal protocols involved.

The Public Registry of Properties: All property in Costa Rica should be registered in the Public Registry of Properties, whether the property is fee simple or concession. By means of the Public Registry of Properties your attorney will be able to confirm that the seller possesses ownership of the property, and to discern if there are any restrictions on the property before the deal goes through. Avoiding the purchase of unregistered property is strongly recommended. 

Folio Real Numbers and Catastrals: Each property registered in the Public Registry of Properties has a Folio Real number, which is the unique number assigned to each property to identify it.  The number is comprised of three parts, the first number indicates the province, the second group of six numbers is the number of the property itself, and the last group indicates how many owners the property has.  All properties must have this number in order for clear title to be obtained. Each registered property also has a survey plan, or Catastral.  In order to transfer, mortgage, or acquire a property, the survey plan must be recorded at the Public Registry of Properties.

Property taxes in Costa Rica are very low, only ¼ of 1% of the registered property value.  Certain standard closing costs are required in Costa Rica to transfer the title of a property from the seller to the buyer, and this is always paid by the buyer.  Closing Costs include: (1) Real Estate Transfer Tax, which is 1.5% of the registered value of the property on the deed; (2) Documentary Stamps, which total approximately 1.25% of the registered value; (3) The Notary Fee, which is 1.5% of the first million colones and 1.25 % on the balance of the property sales price.  This means on the purchase of a $100,000 property, closing costs would be approximately $4,250, and property taxes $250 per year or lower. 

Financing: If you need to borrow funds, it is generally far simpler and interest rates are usually lower in your home country. However, if your credit rating is impeccable, financing in Costa Rica may be available.  Some banks, such as the Bank of Nova Scotia, offer financing to foreigners. Usually the bank will finance somewhere between 40 and 50% of the purchase. Certain projects and/or private owners may also offer some kind of financing arrangement. Your realtor should be able to tell you which projects and owners offer financing.  There are also the option of using a Mortgage broker and there are a few companies doing very well with assisting clients with their needs.

Allow me to answer your questions about purchasing property, and I am dedicated to helping you through the steps required to safely purchase your dream property in beautiful Costa Rica. 

If you should have any questions please feel free to contact me.

Ready to look at Great Properties and opportunities

 Click Here http://www.costarican-american-connection.com/Home/page_2137394.html

I look forward to working with you.

Thanks for stopping by,

Joseph A. Emanuelli
 

Jaaechef@gmail.com
RE/MAX Los Tres Amigos
#1 RE/MAX in Costa Rica
Playa Hermosa, Guanacaste
Costa Rica, Central America
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