Foreign Real Estate Investment & Estate Planning in Costa Rica: What To Know

The beautiful country of Costa Rica is nothing short of a paradise, so is it any wonder that people from all over the world flock there to live and invest in it?

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Costa Rica is the happiest and most sustainable country in the world to live in, according to the Happy Planet Index. The nation is part of a Central America isthmus and is rich with natural beauty, cerulean beaches, a tropical climate, vibrant wildlife, and exotic flora.

Combined with a stable democratic economy, a peaceful society, demilitarization, and 6 percent of the world's biodiversity, it is no wonder that people from all over the world are coming to Costa Rica to live and invest there.

One of the most lucrative investment opportunities in Costa Rica is real estate, particularly large-scale buildings, which offer low risk and high gains for investors. But before you take the plunge, there are some things you should consider when investing in Costa Rica.

Residency Status for Investing in Real Estate

It is not mandatory to become a resident of Costa Rica if you are looking to make a real estate investment in the country. However, a second residency in another country is always an excellent backup plan in case you want to have a vacation or live there when you retire.

A real estate investment in Costa Rica, however, can make you eligible to become a resident in the country as well. Once you have made an investment of $150,000 in a house or a property in Costa Rica, you can become eligible to apply for a residency permit as well.

The process itself is quite easy and involves submitting a few personal documents to the immigration department. It is required for you to hire a competent legal immigration lawyer who can guide you on the process and manage the residency application on your behalf.

Application for Residency

The application process is not complicated, particularly if you are working with an immigration attorney. You need to submit a few documents to the Puerto Rico Immigration Department, which will review them and then decide whether to grant you residency status or not.

The major documents that you will need to submit include your birth certificate, your marriage certificate in case you have a spouse, and also your criminal record from the country where you have lived for the past three or five years. It is important to note that it can take you time to gather these documents since you may be living in and applying from one country, but you might need to get your birth certificate from another country (the country of your birth). In this case, it is prudent to gather all these documents before you apply for residency to save time. If you have children who are under 25 years of age, they can apply with you for the residency visa.

It takes around 90 days to process the residency application; however, due to the greater number of applicants in Costa Rica currently, it can take about a year before your residency is approved.

Conditions for Keeping your Investment Safe

Once you have made an investment in Costa Rica, you can go back to your country of origin whenever you want. However, it is necessary that you come back to Costa Rica at least once every two years after your residency has been approved; otherwise, it will be canceled.

There is no time limit to how long you have to stay in Costa Rica as the government allows flexibility in these matters to attract more foreign investments.

Getting a Job in Costa Rica

Once you have filed the resolution for the residency but have not been issued your permanent residency visa, you will not be able to work in any Costa Rican company. Costa Rica gives strict priority to its citizens and will give them precedence in jobs unless you have a highly specialized skill that cannot be found anywhere in Costa Rica. However, you will still be able to employ yourself or work at your own business.

Types of Foreign Investors in Costa Rica

Interestingly, most investors who are looking to move in and invest in Costa Rica are Americans or Canadians, not Costa Ricans who have been settled for generations in western countries. In addition, these investors are mostly in a specific age group and comprise people who are looking for second homes or a place to retire.

Costa Rica is an incredibly US-friendly country, and locals welcome Americans who visit the country. As such, the country is quite familiar with American culture, which leads to better communication and connection between the people of these two nations.

Final Thoughts

At Profit Knocks, we have an experienced and multidisciplinary team who can provide you with assistance with the process of living and investing in Costa Rica.