Planning to Invest in
Costa Rica
The basis
of property investment includes the proper understanding and knowledge of ABC
analysis, incorporating, buying a given property and becoming a resident. This
is the general list of queries amongst most people. A “typical investment package” incorporates these three
primary elements and your venture to Costa Rica can be a success if you simply
follow some basic steps regarding these.
Incorporating
in Costa Rica
A
standard limited liability organization demands incorporation by a minimum of
two people before the Notary of Costa Rica. After carrying out the
incorporations, legal provisions are there to transfer the corporation to the
name of a single person and it is credible enough for an individual to hold all
the shares.
You must
choose a name as incorporators, which should be unique and not one already
taken. Then you have to appoint a board of Directors, which legally should have
at least three members, namely President, Secretary and Treasurer. You also
have to appoint a comptroller. Different people should take each one of these
positions, although the preliminary incorporators may engage in them.
Among
other crucial issues are deciding on the capital of the corporation
(registration taxes are directly proportional to the amount of capital); the
quantity of shares compiling the capital (single shares are not divisible as
par the Costa Rican law, that is, fractions are not considered; therefore, you
should have number of shares that will permit further distribution of company
participation); allotment of a company representative (there should be one to
represent the corporation with attorney rights, however the rights must be
taken away or be limited to certain actions and amount during the time of
incorporation).
Costa
Rica has somewhat a “hybrid” system of corporation. Whereas the company’s
incorporation deed and all changes done to its By-Laws appear in the Public
Registry and is accessible by anyone. However, the Shareholders Registry Book
records any transfer in the company’s shares and is accessible by only the
shareholders and the company officials. Other parties may review it with proper
court orders.
Therefore,
while venturing to buy real estate in Costa Rica, you should do it in a
corporation’s name. This makes the transfer a very easy process and the
transactions and organizational matters become highly flexible.
Buying
Real Estate
A
computer system, known as “Folio Real” registers most Costa Rican properties.
The program is centralized and is operated from the Public Registry offices,
San Jose. Therefore, if you are buying a property, or even considering the
thought, it is advised that you perform a title in “Folio Real”.
This
system search will provide you all the details regarding the property, its
owner(s), area, location, boundaries, mortgage facts and all other liens.
Though a few properties are not yet entered in the “Folio Real”, all the data
about them are maintained in special books at the Public Registry offices. They
can, thus, be searched effectively in the Public Register.
While
planning to buy a certain property, you have to enquire whether you will get
complete ownership or occupation rights over it. If you are considering
occupation rights (derechos de ocupación) over a property, it implies that
it is not registered, and that may mean undergoing a troublesome process to
accomplish. However, in case you are interested in owning a property (derecho
de propiedad), it includes a simplistic process and can be comparable to
getting ownership rights in Canada or U.S., and the property is already
registered.
Another
common situation that one may have to face regarding land is the concession,
which is most common in beaches. Here, the government agrees on giving land
possession to a private party for a specified period, somewhat like a lease.
The registration system of the concession is different from regular
registration system of lands. It requires particular specifications regarding
terms, zoning, occupation, etc.
Therefore,
in order to save yourself money, time and a lot of effort, you should always
perform a title search while buying, selling or even considering a piece of
land. This will not only get you best deals but also make your investing in
Costa Rica worthwhile.
Residency
Investing
in a place as beautiful and exquisite as Costa Rica happens to be a good enough
a reason for thousands of people leaving their “everything” behind and starting
with life anew. An obvious purpose is to settle in Costa Rica and obtain
residency.
Immigration
laws in Costa Rica allow foreigners to get residency in specified cases ranging
from a relationship with Costa Rican, to instances when the aspirant can
demonstrate that he or she will not become a national burden. The latter may be
accomplished by exhibiting resources, adequate to be established in Costa Rica
and for certain instances to set a business. The regimes that we will recommend
are the resident annuitant and the resident pensioner status. The Tourism
Board, Costa Rica, or the I.C.T. administers both of them.
The
status of resident pensioner is employed for foreign citizens, retired from
specific private organizations or from government service. It is also essential
to receive an enduring retirement income from them, which should be more than US$600
a month. Such amount demands periodical transfers in to Costa Rica and their
exchange to local currency into Colones (standard currency of Costa Rica) has
to be shown.
The
Resident Annuitant status holds good for all foreign citizens. The status is independent
of age, but the applicant should satisfy the criterion of receiving at least
US$1000 as monthly income. The deposit-fund can be acquired from abroad or
locally and the demonstration of them being transferred into Colones is to be
displayed.
To invest
in Costa Rica can be your life’s greatest decision. In Costa Rica, there is a
lot to experience and lot to discover. Therefore, planning your investment well
will certainly turn your venture into an unsurpassed achievement.
