Building a home in Costa Rica can seem daunting, even for those familiar with the country. The idea of managing a construction project from afar can be particularly intimidating due to the many uncertainties involved. However, with the right contractor, the process is much more manageable than you might imagine.
It might sound like a lofty goal, but building a home in Costa Rica is both achievable and rewarding. I can attest to this firsthand, having built two homes in the Playa Hermosa area myself. There's a unique satisfaction in completing your home and being able to proudly say, "Look at what I've accomplished!"
Alright, let's dive into the process, starting with the first step:
Step 1: Find the Right Property for You
The initial step is to find a property that suits your needs and desires. Are you dreaming of a property with a sweeping ocean view, where you can watch the sunset over the water every evening? Or perhaps you envision a country-style setting with ample land for fruit trees and a vegetable garden. Everyone has their own vision of the perfect location, and this is where I can help. Take a look at my blog post about buying land and building in Costa Rica for more insights. You can also explore the various residential building lots in the Playa Hermosa area area. If you find something you like, shoot me an email, and I'll provide you with all the information you need.
Step 2: Choose a Builder
Once you've secured your lot or land for building, the next step is to select a builder. Costa Rica is home to many skilled builders and tradespeople. I can recommend at least six, most of whom are fluent in English. Personally, I have experience working with both Costa Rican builders and foreign nationals who are legal residents and speak English fluently.
Step 3: Design Your Home
Now for the exciting part: designing your dream home. In the Playa Hermosa area, I've seen everything from traditional Spanish colonial designs to ultra-modern contemporary homes. The style you choose is entirely up to your personal preference. The design process typically ranges from 2 weeks to 3 months, depending on your specific needs and vision.
Step 4: Finalize Your Plans
All the builders in the area have architects and engineers on their staff who will work directly with you to finalize your plans. They will coordinate the entire process, so there's no need for you to find them independently. However, if you already have plans from an architect in your home country, they can be localized to meet local building codes.
Step 5: Obtain Building Permits
Once you've settled on the final design, navigating the process of obtaining building permits in Costa Rica may seem overwhelming. However, most builders will manage this process for you. Nonetheless, I'll provide you with a list of the necessary requirements:
What You'll Need to Obtain Building Permits in Costa Rica
A) Copy of the Plano Catastro or legally registered land survey.
B) Proof of property ownership, such as a "certificacion literal" from the government.
C) Original "Carte de Aqua Disponible," a water availability letter from the local water supply.
D) Original blueprints approved by the "Colegio de Ingenieros" (College of Engineers), ensuring compliance with all structural, electrical, plumbing, and sanitary codes. Your builder or architect will handle this.
E) A signed letter from the electricity provider confirming legal electricity at the property.
F) Proof of compliance with personal taxes in Costa Rica from "Hacienda," the local tax authority.
Step 6: Obtain Approval from the Local Municipality
With all your permits and paperwork in hand, it's time to submit everything to the local municipality's engineering department for approval. This process typically takes about 2-4 weeks, depending on their workload. It's crucial to ensure you have all the required paperwork and everything in order before submitting. It's wise to consult with your builder beforehand to double-check.
Step 7: Build Your New Home in Costa Rica
Congratulations on receiving your building permits! You're now on your way to building your new home in Costa Rica.
The exciting part begins now. Even if you're not physically in Costa Rica during the construction, most builders will send you progress photos weekly. Of course, being present during the construction is ideal, but it's not a requirement.
From my experience building homes both here and in the United States, it's wise to budget an extra 15%-20% on top of your initial budget. This additional amount accounts for any changes or upgrades you might decide on once the building process is underway. While some might attribute this increase to builders' extras and hidden fees, it often reflects the evolving nature of your vision for your home.
It is also important to know that in 2019 the Costa Rican government passed a law stating that all services used in the construction of a home are required to pay the mandatory 13% VAT, or value added tax.
Builder Responsibilities and Legalities in Costa Rica
Several entities are involved in your construction project, starting with your realtor. It's crucial to work with an experienced professional vested in the country who can help you find the right property. The architect will design your home according to your wishes and site conditions. The general contractor, known locally as the "maestro de obras," will oversee construction, following the blueprints and directing workers. Additionally, a civil engineer may be involved, depending on the project's nature and scope.
According to Costa Rica's building regulations, each individual or company is responsible for the integrity of their work. Negligence or poor workmanship that leads to partial or total project loss holds them accountable. This is outlined in the Costa Rica civil code, section 1185. Section 1186 specifies that when multiple professionals are involved, each is responsible for their part in the project.
An official construction logbook, or "bitacora," is maintained for the entire project. The architect or engineer, usually in charge of construction, conducts regular inspections and updates the logbook. This ensures clarity regarding who performs each task and when.
Liability associated with building in Costa Rica is mandated by law, not just the contract. Legal action is possible if defects in construction or materials, negligence, recklessness, or lack of supervision occur. However, damage from an "act of God" or force majeure is exempt.
Costa Rica's civil code sets a five-year statute of limitations for lawsuits related to construction defects, starting from project completion. A 10-year statute applies to breach of contract lawsuits. Builders typically have insurance for their workers, required for obtaining a building permit. Homeowners can obtain fire and civil liability insurance after construction completion.
It's vital to choose a reputable builder and obtain written agreements to ensure legal recourse if needed. Ask for references and verify them to ensure you're working with a reliable professional.
When contemplating building a home in Costa Rica, don't be daunted by the idea. It's actually quite straightforward. If you're considering finding the perfect spot in the Papagayo area of Costa Rica, just drop me a note. I can help you locate the right spot and introduce you to six different builders for interviews.
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