Property Registration

Costa Rica welcomes foreign direct investors, who in most cases have the same rights as any local citizen. Any foreign investor can purchase properties or conduct business enjoying the same protection as locals.
When purchasing real estate the proper registration, not the deed, is of great importance. All properties are legally registered at Registro Publico ( Public Registry, thus, any one buying a condo, house or land should start the title search at the Public Registry to avoid later complications.)
This Public Office will certify the legal owner and will provide all the information needed to carry out any deal knowing the exact location of the property as well as its nature, measures, boundaries and plot maps. Thus, the Public Registry guarantees the security of registered property rights.

All property transactions have some taxes that need to be taken into account: Real Estate Transfer Tax or property transfer tax equal to 1.5% of the registered value of the property. These taxes need to be paid before registering the property with The Public Registry.

Steps for a Real Estate Transaction

• Identify the property to be purchased
• Sign an Sales / Purchase Contract
• Signed the title document (escritura)
• Complete the final payment at the same time as the title document.
• The title document is sent to the Public Registry to be registered
• Within a month time the Public Registry will transfer the title of the property to the

Business Organizations

Under Costa Rican law, there are three types of legal entities which offer limited liability to its shareholders. These are:
(1) The Limited Partnership (Sociedad en Comandita),

(2) Limited Liability Company (Sociedad de Responsabilidad Limitada) and,

(3) The Corporation (Sociedad Anonima).
The Costa Rican Corporation (Sociedad Anonima) is the most widely used corporate form of business organization in Costa Rica. The main feature of the corporation is that the liability of the shareholders is limited to their capital contributions and stock ownership in the corporation is easily transferable to third parties.
When choosing a business entity it is recommended to consult an Attorney to advice which of the above entities may suit best your business transaction or operation.