Why Costa Rica Is Ripe For Property Investment

Why Costa Rica Is Ripe For Property Investment



Costa Rica has a reputation for being an ideal location for beach bums, hippies and old retirees. At its core, the country is also one of the most stable and least corrupt in the world. The high quality of life has attracted immigrants from all parts of the world, and this has created a demand for housing.


Low Property Taxes



The Costa Rican government is especially generous when it comes to property taxes. Even as a foreigner, you will only pay 0.25% of the assessed value per year. The municipalities are also known for assessing properties at an unrealistically low value, so a $200,000 house may be only $50,000 within their books. It should be noted that local governments do not send out notifications of due taxes, so you will have to act on your own due diligence.


Increasing Rent Prices

Your ROI will make you feel like landed gentry.


Costa Rica is now more of a buyers’ market than renters’. Many foreigners are flocking to the country on a short-term or long-term basis, so the rent prices in certain areas of skyrocketed. Proportionately speaking, a well-informed investor can purchase a property at very low prices for a very quick return of interest with the current rental rates. Using properties for vacation rentals or the hospitality industry is especially lucrative.


Low cost of labor


Building a property from scratch can be very cheap in comparison to the United States simply because labor is cheap. The cost of concrete or other materials are relatively the same, but the construction team may only charge $20/day per person. The labor price makes constructing a new house cheaper than buying existing structures in many cases.


Stable Government

Like I had already mentioned in the introduction, Costa Rica has a stable government. Unlike some of the governments in Latin America, Costa Rica does not find excuses to sweep properties from under the feet of Spanglish-speaking Americans. Properties that purchased with the proper legal steps will remain in the name of the investor.

It should be noted that squatters have the right to claim rural properties that have been abandoned for years, so investors have the responsibility to make sure it is occupied by a renter or watched by a property management company.


Foreigners Do Not Need A License To Sell Real Estate.


Even if you do not have the capital to invest in your own luxury real estate project, you may test the waters by hustling for other investors. Costa Rica does not require any sort of licensing to sell real estate, so even a tourist may legally wheel and deal houses for a commission.



Any good property investor will scout out the area before making a purchase. It is highly recommended to visit the country, understand the culture, and most importantly —  enjoy yourself. Costa Rica is developing towards eventually becoming a first-world-like country, so now is the time to experience the country during this unique transition.