Costa Rica Real Estate Magazine

SINCE 1998

Investment-Real Estate-Retirement-Travel and Adventure-Lifestyle

Unique Opportunity to acquire the Best Ocean View House where the Jungle and Mountains meet the Sea. See Page 32-33

COSTA RICA REAL ESTATE MAGAZINE 1

Find Your Dream Home in Costa Rica

Just Listed!!!

Charming 2 Bed/2 Bath in gated Manuel Antonio community $429,000

3 bed/3 bath 12.5 acres Estate with producing cacao $1,675,000

Just Listed!!!

Lucrative business opportunity: Manuel Antonio with 7 condos, restaurant and reception $1,095,000

Gorgeous 3 bed/3 bath in Esterillos $697,000

Just Listed!!!

2 bdrm Condo in the heart of Manuel Antonio $229,000

8 bdrm Ocean View Manuel Antonio $750,000

I can guide you through the do's and don'ts of buying, selling or investing in this beautiful country. Whether you want to live in Costa Rica full-time or part-time, create a lucrative ROI through renting your home, purchasing land or a successful business. Let's connect! Melissa Klassen +506 8882 0009 melissapuravida@gmail.com

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Manuel Antonio | Quepos Dominical | Uvita | Jaco |

74 Stunning Acres, 20 minutes from Quepos $379,000

3 Bed/3 Bath home + 1.24 acre lot $432,000

Modern design 4 bdrm/4 bath on 10 Acres $1,249,000

170 Acres beach side Matapalo $1,495,000

5 bdrm/3 bath 2 Acre Equestrian Estate community $595,000

Chic 1 bdrm Mountain view, close to Quepos $199,000

Melissa Klassen +506 8882 0009 melissapuravida@gmail.com

COSTA RICA REAL ESTATE MAGAZINE 3

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COSTA RICA REAL ESTATE MAGAZINE 5 ARCHITECTURE BUILDING ENGINEERING SUPERVISION

Créditos | Credits

Contenido | Contents

Editor Hernán Carazo Bemúdez Publisher | F. Suyen Arvizu I. International Sales & Marketing Manager F. Suyen Arvizu I. Client Services Manager Steven León Solórzano Graphic Design Yendri Rodríguez C. Cover Photo By Brad Dean e. brad@jetpropelled.ca w. jetpropelled.ca Administrative Assistant Cid A. Carazo Arvizú Sales Patricia Smith Samantha Arías Contact Information: Marketing & Sales Cel: (506) 7130-2841 Tel: (506) 4419-0778 sales@costaricarealestate magazine.com Administrative mail: costaricamagazine77@gmail. com

06 COSTA RICA INVESTMENT TIPS 10 DISCOVER THE PEREZ ZELEDON AREA 14 BUYING PROPERTY IN COSTA RICA 16 DISCOVER THE CENTRAL PACIFIC COAST 20 ACQUIRING RESIDENCY IN COSTA RICA 22 MARINAS IN COSTA RICA 24 DISCOVER THE SOUTH PACIFIC COAST 32 FEATURED COVER PROPERTY 36 HAPPIEST COUNTRY IN LATIN AMERICA 42 CAPITAL GAINS TAX IN COSTA RICA 44 DISCOVER THE NORTH PACIFIC COAST 46 THE NEW DIGITAL NOMAD LAW

Costa Rica Real Estate Magazine

6 COSTA RICA REAL ESTATE MAGAZINE Más contenido y artículos en español disponibles en: WWW.COSTARICAREAL ESTATEMAGAZINE.COM sales@co staricarealestatemagazine.com 6 COSTA RICA REAL ESTATE MAG ZINE

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ARTICLE | REAL ESTATE

DISCOVER THE BEAUTY AND ATTRACTIONS

of Perez Zeledón in Southern Costa Rica

cific and has a lot to offer to both the visitor as well as to those looking for a place to call home. Lic. Herrera, please tell us what in your opinion are the must-see activities in this area? Possibly one of the most impressive places to visit is the Chirripó National Park area which is over 500 square ki lometers of land and has as its´ most prominent feature, Cerro Chirripó which at an altitude of 3,820 m above sea level, is the highest mountain in Costa Rica. At its highest point on a clear day, you can see both the Atlantic and Pacific oceans. The climb up from basecamp can take from 6 to 9 hours depending on your physical condition and allows you to see how the vege tation changes form as you climb. At times snow has fallen on the highest parts. Another must-see is the sugar cane plantations along with a visit to a local farm so you can see the process and the final products including sugar for export. You can see sugar mills that where operated by hand and later using horsepower. Tours of the local high al titude coffee plantations, both large and

small, allow you to see the production process and how various coffees are mixed to regulate the acidity and pro duce export quality world class gourmet coffee. Another excellent attraction is the large Farmer´s market which offers a large variety of fresh natural prod ucts but also includes artisanal prod ucts such as kombucha, falafel, goats milk products and others made by im migrants to Costa Rica of various na tionalities who now live in the local area and add to the cultural variety of our beloved area. Lic. Herrera, please tell us about the actual pluses of living in this unique lo cation . Perez Zeledón is in a privileged loca tion which has great weather year round, and you are also very close to the beaches of the South Pacific such as Dominical, Uvita, Ojochal and the amazing Osa Peninsula. You can also go from here to the border with Pan amá and take advantage of the duty free zones. Reaching here is a great adventure as you have two different routes to choose from: You can take the Pacifica Fernandez Coast Highway Continued Page 12

HERRERA & ASSOCIATES Office: (+506) 2770-4932 US Office: (+305)433-4290 rherrera@bhclawfirm.com www.bhclawfirm.com

We had the opportunity to meet with Lic. Rodolfo Herrera who is a principal Attorney and Notary Public with the firm of Herrera & Asociados and on a more personal note, we wanted to have him tell us about living in Perez Zeledón which is a beautiful and gener ally unspoiled but lesser-known area in the Southern part of Costa Rica. It is inland but less than an hour away from the beautiful beaches of the South Pa

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Peréz Zeledón Address: San José, Pérez Zeledón, San Isidro de El General, 150 meters West of the Cultural Complex, DEHEGASA Building

COSTA RICA REAL ESTATE MAGAZINE 11 Dominical Address: Puntarenas, Osa, Bahía Ballena, Dominical, across from Sports plaza, Plaza Solo Bueno, second floor.

which starts in Puntarenas and heads South to Jacó, Parrita, and past the Quepos/Manuel Antonio beaches con tinuing toward Playa Dominical where you can take the turn and head inland and upward and reach Perez that way. A second way and my favorite is to go via the Cerro Bella Vista also popularly known as the Cerro de la Muerte, the hills of death, named as such based on legends of many farmers who traversed it on foot and died from the extreme cold which they were not accustomed to. This highway comes from San José, past Cartago and heads up into the mountainous areas where at one point you are just 500 meters below the height of the Chirripó highest point and at cer tain times of the year you can see icing on the vegetation and at night the sky is so clear and free of light contamina tion that you can see a myriad of stars and even satellites going by! Also, at certain spots you can see the oceans in the distance and experience a variety of microclimates and see fields of colorful vegetation. You can also see a variety of animals along this road, and I have seen on various occasions large tapirs. I also have a memory from many years ago of going with my father and seeing something fall from a tree, as we looked closer it turned out to be a puma the size of a great dane which then proceeded to cross the road. So, as I mentioned it can be a very adventurous route and has several interesting businesses along the road including one that has many hummingbird feeders just outside its windows and you can see all types and sizes of these birds. So those are some of the reasons I consider Perez such a special place and since it is located far from the capital city and surrounding areas, our crime rate here is very low and we get our water from high altitude springs which makes it very healthy and good tasting. As you can see, I love liv ing here and recommend it to all. Another must-see is the sugar cane plantations along with a visit to a local farm so you can see the process and the final products including sugar for export. You can see sugar mills that where operated by hand and later using horsepower.

One of the most impressive places to visit is the Chirripó National Park area which is over 500 square kilometers

Article from page 10

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COSTA RICA REAL ESTATE MAGAZINE 13

Buying Property in Costa Rica 101-A Primer

ARTICLE | REAL ESTATE

You have visited Costa Rica, possibly several trips and you love it and you are ready to buy your own place in Paradise, great, you are making a wonderful decision!

14 COSTA RICA REAL ESTATE MAGAZINE Few places have all the pluses that Costa Rica can offer for retirement, re location and investment, so long as you do your homework properly! Do it right and you will be very happy but if you don´t do your due diligence and work with expert real estate and legal help to guide you, then you are basically rolling the dice and hoping to win. A big plus is that the foreign owner of property in Costa Rica has the same constitutional rights as Costa Rican citizens. One key piece of advice not usually given is that you should choose a good lawyer who will be the key person in getting things done correctly and safely in Costa Rica. Even before picking a Real Estate pro fessional, find a good lawyer, preferably one who works daily with the area you are interested in buying your property in, although some San José lawyers are also excellent real estate specialists. A good lawyer will advice you on any pit falls you might not have seen or even know about, and also knows who the reputable real estate firms or individuals in the chosen area are and can also help you to begin your residency application. In Costa Rica, mostly all land is titled, and those titles are registered and kept at the offices of the Public Registry in San José (the Capital city) in the Property Section (Registro de la Propiedad). Most titles are currently organized by means of a computerized system called the ¨Folio Real¨. A property ownership transfer re quires that both the buyer and the seller sign a deed before a Costa Rican Notary Public (whose concept is different from the ones in many other countries such as Canada and the United States and is re quired to formalize all transactions deal ing with real estate transfers) and that the deed is then recorded at the Public

Registry. Nearly all purchases require a due diligence period of 30 to 60 days so an Option to Buy-Sell is signed (Opción de Compra-Venta) where the key items are specified such as the property reg istry information, the price, the option term, broker commissions and the key due diligence points that must be met in order for the down payment (given with signing of option) to be released to the seller by the Escrow company. Do not give the option money (which is usu ally 10% unless agreed otherwise mu tually), to the seller or his lawyer. Your lawyer should have a reputable escrow company he or she works with that will act as the independent third party in the transaction and that will abide by the op tion to buy contract stipulations. For your protection always use your own trusted lawyer to look out for your interests and do not agree to use the seller´s lawyer as that opens you up to big potential trouble. All titled land in Costa Rica, whether it is registered following the newer ¨Folio Real¨ system or the older book/page/en try system, can be accurately and safely title-searched in order to determine all relevant aspects on the specific proper ty, such as ownership, mortgages, liens, annotations or other issues, that may af fect ownership rights or the possibility of transferring said property to a third party. Title searches on ¨Folio Real¨ proper ties may be initiated in the computer system, which is accessible online but will then possibly require a follow-up in the book/page/entry system, particularly when the computer search shows liens, encumbrances or other property charac teristics that were ¨inherited¨ from older transactions on that land before it was transferred to the ¨Folio Real¨ system. Additionally, although the computer sys

tem will indicate a list of liens and en cumbrances, in most cases a thorough and complete title search will require the review of microfilmed or scanned documents indicating the details of such finds, which are not accessible online and can only be obtained at the offices of the Public Registry. Although, as indicated, the ¨Folio Real¨ is accessible online, generally private parties do not have the legal training to be able to accurately interpret the in formation acquired, as well as to know how best to follow-up any required fur ther steps. This is why it is highly rec ommended that a knowledgeable legal professional be used to perform and re port on the title search. In addition to the title search, if the property is owned by a corporation, it is essential to undertake a corporate search at the Commercial Section of the Public Registry. Only by doing so, can you verify that this corpo rate entity transferring the property is in good standing and also that the pro posed signatory of the transfer deed ac tually does have the legal power to do this transfer. Another important item to keep in mind when buying a property is the USO DE SUELO (what you are allowed to build or do on that property). For example, if you are buying a lot or built property for com mercial purposes but the land is desig nated for residential use only then you need to know this. Or you want to buy a lot and put several units on it but are only allowed a single residence or you want to have a Bed & Breakfast, but the municipality does not allow it, etc., etc. All of these pitfalls can easily be avoided with the use of a good lawyer and proper due diligence and the additional help of a good real estate professional.

ID 22832

ID 22777

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COFFEE FARM WITH A HOUSE AND CONSTRUCTION AREAS.

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FARMWITHSTRONGPOTENTIALFOR INDUSRIALORRESIDENTIALDEVELOPMENT $1,690,000 US

CHARMING FARM SURROUNDED BY WATERFALLS $795,000 US

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EUROPEANSTYLEHOUSEWITH SWIMMINGPOOLANDLARGELOT $580,000 US

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JUNGLE FARM IN LA PENINSULA DE OSA $1,750,000 US

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COSTA RICA REAL ESTATE MAGAZINE 15

T he Central Pacific Coast ARTICLE | REAL ESTATE

By Hernan A. Carazo tourrificticotours@gmail.com

Extending from Tarcoles to Herradura Beach and then passing through Jaco beach, Esterillos, Parrita and continuing South to Manuel Antonio-Quepos, the Central Pacific beaches of Costa Rica have so much to offer.

16 COSTA RICA REAL ESTATE MAGAZINE

Photo by Hernan A. Carazo tourrificticotours@gmail.com

T his area is booming as it concen trates many of the top attractions including the most visited Nation al Park in Costa Rica at Manuel Antonio Beach. It was declared a National Park in 1972 and is a must see on any Costa Rica travelers list of places to visit and enjoy! Wåith a narrow peninsula and protected coves this National Park en compasses nearly 700 hectares chuck full of flora and fauna. Additionally, the Central Pacific offers world class aerial trams to view the treetops and canopy adventures with spectacular views of the forest canopy and the ocean as well as ATV tours, na ture treks, horseback rides to enchant ing waterfalls and natural pools and some of the best Sportfishing and Scu ba Diving on the planet. You can take

forget the active nightlife of Jaco Beach which is very popular with both visitors and locals from the capital city of San Jose as it is just over an hour away by car and offers many hotels, restaurants, and bars to choose from. The choices are yours and the Pura Vida lifestyle of endless summer is at your fingertips. Of course, with so much to offer this is an area that is perfect for a permanent move or for an investment in a vacation rental property with several very entic ing offerings that range from condomin iums in a beachfront or ocean view tow er to a custom home in the nearby hills with endless Pacific Ocean views. From Herradura Bay to Jaco Beach to Ester illos to Manuel Antonio and all the great beaches and towns in between, you are sure to find just the right place for you.

a Catamaran tour to the white sand and clear waters of Tortuga Island and enjoy an unforgettable sunset aboard as you head back to your port in the Central Pacific. Or maybe you prefer a day or several days tour aboard your very own chartered yacht departing from the Ma rina in Quepos. Or a relaxing stay at the Los Sueños Resort and Marina where you can enjoy the fine cuisine offered by restaurants at the marina or at the Marriott Hotel there and play a round of golf amid iguanas and monkeys. May be a horseback ride along deserted endless beaches returning to soak your body in a in a hot tub or pool and a cool fresh drink in your hand to watch that great sunset. Perhaps a full spa day to recover energies for more adventures is the way to go. And we should not

Photo by Hernan A. Carazo tourrificticotours@gmail.com

COSTA RICA REAL ESTATE MAGAZINE 17

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COSTA RICA REAL ESTATE MAGAZINE 19

ARTICLE | REAL ESTATE

Costa Rica Residency Requirements There are several ways a foreign citizen can obtain residency in Costa Rica.

O btaining residency is the way to go if you are serious about staying in Costa Rica, although some ex-pats who live in Costa Rica have become ¨perpetual tourists¨ and do a visa run to the border, mainly to Nicaragua every 90 days, this is a risky proposition because visas are renewed for ¨up to¨ 90 days but this is done at the discretion of the immigration person at the border who can give you less time on that visa renewal or even deny it and then you are in a bad position. There is of course a bureaucratic procedure to obtain your residency and of course there are the related expenses. How ever; the advantages far outweigh the disadvantages. For example, only with a legal residency can a foreigner get a driver´s license, or be allowed to work legally, or get a post pay cell phone, or not need to carry around a passport, or get local prices at many places versus tourist prices, etc., etc., so it all begins to add up. Let´s see some of the various ways you can obtain residency: TEMPORARY RESIDENCY: PENSIONADO: Requires a monthly income of US$1000 per month. This

would be from a permanent fixed in come like a pension like private sector, government or social security benefits. RENTISTA: Requires a monthly in come of US$2500 per month and in cludes spouse and children under 25 years of age. This category requires a permanent and stable source of in come equal to or above US$2500 for two years which equals US$60,000 and is renewable. An international and recognized bank or financial institution must issue you a letter that states this or you can deposit the US$60,000 in a local bank and can take out $2500 per month. SPOUSE: Granted to the Spouse of a Costa Rican citizen under article 73 of the Immigration Law. WORK RELATED: Technical workers, Managers, Executives, Specialized workers, etc. of a company established in Costa Rica. INVESTORS: Foreigners who pur chase Property for $200,000 or more can apply for the status of Investor by

presenting the proper documentation to Immigration. SPECIALIZED: Professional, Scientif ic, and other such specialized individu als deemed of value to the country. RELIGIOUS: Persons who are part of duly accredited religious orders and are so recognized by the Ministry of Foreign Relations and Culture. PRESS & SPORTS: International Press Correspondents & Recognized Sportsmen PERMANENT RESIDENCY: Permanent residency is a migratory condition that allows the person who obtains it, to remain indefinitely in the country and with the freedom to work. Persons eligible to apply for this type of residency are those whose parents or children are Costa Rican citizens. The other persons eligible are those who have had a Temporary Residency for 3 consecutive years. PLEASE VISIT OUR website for more details: www.costaricarealestatemagazine.com

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COSTA RICA REAL ESTATE MAGAZINE 21

ARTICLE | REAL ESTATE

By Hernan A. Carazo tourrificticotours@gmail.com

Costa Rica offers several Top Caliber International Marinas and some of the Best Sportfishing in the World! Costa Rica has several International Caliber Marinas and some National ones as well. Some of the best tournaments and Sports Fishing initiate from these marinas. Super Yacht Times named Costa Rica as the top spot for yachts to visit in 2021.

M arina development in Costa Rica is controlled by CIMAT (Inter Institutional Commission for Tourism Marinas and Docking Facili ties) which advises the municipalities on technical matters related to Marinas as well. The right to operate a marina in Costa Rica is regulated through a con cession agreement and in accordance with Law No. 7744 dating back to 1998. Marinas are in a Restricted Zone, which is an area that runs 150 meters inland from the water’s edge at mean low tide. The law allows the government to grant leases called “concession” in this area for periods with the new Law approved

in 2021 which allows for 40-year conces sions and 20-year renewal terms. This “Restriction Zone” is under the admin istration of the nearest Municipality with the supervision of the ICT (Costa Rican Tourism Board). Any improvements constructed in this zone will revert to the local municipality at the termination of the lease, unless said lease is extended. Upon your initial entry into the country, you will receive a Temporary Importation Permit for your boat, (Certificado de Im portación Temporal) from the Ministry of Finance and Customs (Ministerio de Ha cienda y Aduana). The new Law allows yachts to visit for 6 months instead of the

previous 90 days. Local law prohibits non-Costa Rican flagged boats from operating as com mercial charters and the government is very strict in this regard with regu lar inspections and a foreign vessel operating charters is subject to being impounded. However the new Law al lows foreign flagged non-fishing luxury charter vessels over 78 feet to receive an annual license from ICT to allow running high end weekly charters le gally. Also, yachts that are visiting for 6 months and chartering to bring in parts and do repair work in Costa Rica (Ship Spares in Transit).

22 COSTA RICA REAL ESTATE MAGAZINE

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COSTA RICA REAL ESTATE MAGAZINE 23

ARTICLE | REAL ESTATE

Discover Uvita-Ojochal Uvita and Ojochal along with Dominical are some of the top beach towns located in Costa Rica´s South Pacific Coast with endless beaches, stunning sunsets, and luxurious residences, hotels, and restaurants, making it a great area to explore on vacation but also convincing many to move here to live permanently. By Hernan A. Carazo tourrificticotours@gmail.com and T he South Pacific Beaches

24 COSTA RICA REAL ESTATE MAGAZINE

F urther south in this same area is Drake Bay, plus the Osa Peninsula and Golfito with its own ma rina and hotels. This long stretch of beautiful coastline is truly one of most natural and unspoiled ar eas of Costa Rica. The Bahia Ballena area known for its awe-inspiring whale and dolphin watching is a big attraction for visitors but there is so much to choose from including Yacht tours, Bird watching, Surfing, Na ture treks, Canopies, Sport Fishing, ATV and Horse back tours, and many more activities. A large part of Costa Rica´s natural beauty can be found along this stretch of coastline and inland rain-soaked forests and jungles. The Osa Peninsula´s Corcovado National Park for example, has been called by National Geo graphic ¨the most biologically intense place on Earth¨, the fauna and the flora and the amazing views make this a truly unforgettable must visit place and if you can manage to live here, well so much the better! As a visitor you have many options to choose from during your stay and from which to organize your vis its of discovery. Marenco Biological Reserve, Golfo Dulce Forest Reserve, and of course Corcovado National Park as well as Piedras Blancas National Park and the Golfito National Wildlife Refuge. Cor covado for example can get up to 25 feet of annual rainfall! At higher elevations and where there is lots of water there is also plenty of wildlife including Cen tral America´s largest population of scarlet macaws and over 155 reptile species and more than 400 spe cies of birds. With over 27% of Costa Rica´s national territory set aside as National Parks, Reserves and Refuges, both on land and in the sea, it is no wonder that it has so much to offer to the visitor. Naturally (no pun intended), an area with so much to offer is a real estate investor´s dream and new small and larger projects are getting underway as well as some one-of a-kind ocean-view and oceanfront residences which are either currently available or under construction, so now is a good time to get your own full time home or vacation rental property because as more and more people discover this little piece of heaven, the prices will definitely climb. So here you can enjoy the best that nature has to offer and get a great investment too. That´s a hard combination to beat.

“Costa Rica´s South Pacific beaches offer something wonderful for everyone”

COSTA RICA REAL ESTATE MAGAZINE 25

Blue Zone Realty International www.bluezonerealty.com ben@bluezonerealty.com Direct: +001 506 8318-7591 Cielo Azul Villa $2,450.000 From the multiple entertainment zones, the full bar and adjacent 10 person hot tub, to the expansive chef's kitchen and adjacent 14 person dining room. When you are ready to host in intimate dinner or a full-scale house-warming party for 50, this home can handle it all. The estate is an unsurpassed work of excellence sitting hillside in the Uvita area along the South Pacific Coast of Costa Rica.

26 COSTA RICA REAL ESTATE MAGAZINE C ontact Ben Rutherford, Senior Sales Consultant, of Blue Zone Realty Interna�onal, to arrange for your personal tour of Cielo Azul. Scan the QR Code to WhatsApp Ben Rutherford or email ben@bluezonerealty.com

COSTA RICA REAL ESTATE MAGAZINE 27

ARTICLE | REAL ESTATE

TIPS AND GENERAL GUIDELINES TO CONSIDER IF YOU ARE PLANNING TO INVEST IN COSTA RICA

28 COSTA RICA REAL ESTATE MAGAZINE It is possible to register the title of the purchase of real estate in the Costa Ri can National Registry either in the per sonal name or through a corporation. What’s required if the company holding the title is not running a business activ ity? It is only required to file the inactive corporation report informing the total value of the assets held by the compa ny. However if there is a business activ ity a D101 income tax has to be filed ev C osta Rica is an amazing coun try with a widely diverse culture, history, nature, activities, ge ography, friendly people and delicious typical foods. Coming to Costa Rica will be a great adventure and the charisma of its people will make you feel more than welcome. It is such a great des tination for vacationing but also if you are looking for a business opportunity. With a very reasonable value you will find real estate with an ocean, moun tain or valley views along with diversity of the perfect weather with an average of 22°C (71°F) and 27°C (81°F). English speaking professionals such as Supervised Escrow Agents, Law Firm, Public Accountants, Real Estate Agents and others, are able to assist you with the purchase process, before, during and after closing. Jeimy Quesada Delgado E & T Escrow and Trust Solutions www.EscrowTrustSolutions.com +506 27716789

tips and guidelines. Capital Gains Tax: Approved and im plemented since July 2019, with a rate of a 15% c apital gain tax applied to the gain. However, if the property was ac quired before July 2019, there is good news as well; Congress added a provi sion to protect the owner in such situ ation. This provision allows real estate owners (persons and corporations) in such situation to apply for a special rate when they sell the real estate. Instead of paying 15% of the net profits, the law allows them to apply for a 2.25% to the gross sale price. There are also yearly miscellaneous payments per corporation to consider:

ery year no later than March 15th.here are also yearly miscellaneous fees and taxes to maintain the corporations and title in good standings. It requires very little effort at low costs. In addition, because E & T Escrow´s team knows and understands how im portant it is for you to count on a reli able team to assist you after closing; our Payments Account service is an ex cellent solution if you prefer to delegate monthly obligations related to mainte nance, payroll, utilities, HOA, property taxes, insurance and any other items while the monthly obligation are in the hands of experts. If Costa Rica is your next investment destination, we want to give you some

porations or foreign corporations regis tered in the Costa Rican National Reg istry must pay a tax called “Timbre de Educación y Cultura” (Education and Culture stamps tax) and its amount is based on the registered social capital. Luxury Tax: (Due January 31st) Prop erties valued above $220.000.00 must file and pay this tax. It has a sliding rate ranging between 0.25% and 0.55% based on the value of the constructions and a portion of the land in use. Every three years, taxpayers must present a D179 form to update the value of the real estate. Property Taxes: It is the tax on the real estate and owed to the county where the real estate is located. The tax rate is 0.25% of the property value regis tered in the Municipality. Filed every 5 years or anytime the property changes ownership, the landowner must pres ent a value declaration to the Munici pality. Once approved by the Munici pality, such value is used as tax base. This tax is due quarterly: March, June, September, and December. However,

some Municipalities offer a discount if the whole year is paid in advance. Simpl ified D101): Declaration of As sets value. Due November 2022 for the first time after extensions approved by the Tax authorities. We recommend that you to keep good records of the property purchase and improvements to prepare and declare the correct amount every year. D140 : This form is filed at tax adminis tration to register the corporation once it is setup or when there are changes in legal presentation, business activity, or domicile. Tax for Nontraditional Rentals: We understand you may buy a house, villa or condominium with the inten sion to use it during a season but rent it while you are away. You must consider the obligation of collecting the added value tax “VAT” plus the payment of the income tax on rentals. Contact E & T now and learn more about the guidelines, we want to help you to keep all in good standing.

Registry of Transparency and Final Beneficiaries (Also known as UFO or Ultimate Beneficial Ownership Regis try): Ordinary reports are due in April of each year (for all the corporations and companies) and it requires to report the ownership of the company up to physi cal person. Corporate Tax: It is the annual tax on Legal Entities and must be paid no lat er than January 31 of each year. The amount is approximately $121 US (de pending on the dollar exchange rates) for inactive corporations and ranges between $121 and $360 depending on company activity and yearly income. Education and Culture Stamp Tax : (Due on March 30th) Costa Rican Cor-

COSTA RICA REAL ESTATE MAGAZINE 29

bakery pastry shop restaurant

lefrenchcafecr@gmail.com Plaza Bahia Moana, Bahia Ballena, Uvita

2201-8253

30 COSTA RICA REAL ESTATE MAGAZINE Don´t leave the South Pacific Coast area without tasting our Delicious and Authentic French Cuisine!

COSTA RICA REAL ESTATE MAGAZINE 31

Welcome to your New DreamHome in the Tropical Paradise we call Costa Rica!

Step into your Costa Rica dreams in this spectacular four-bedroom, 4 bath home on 2.75 acres of land located in Ojochal, Costa Rica. Extremely well-built and chec king off every high-end detail, this masterpiece home is a nod to everything that is the most dependable and ele gant in Costa Rican tropical architecture. Perched at the top of a secluded 360°-view ridge, this property drinks in the panoramic sunrises and sunsets from all angles. The home has two wings, each with a master suite and guest bedroom. The two wings of the home are separa ted by a great room, which has expansive frameless glass doors on both sides that are perfect for enjoying the pano

Mountains to the East. The impeccably landscaped grounds are packed with mature tropical plants that spaces and fantastic terracing and water drainage for easy property maintenance. Priced at 2.3 million USD.

Key Features • Custom-built electric gate at the entrance • 250-liter reserve water tank • 500-liter irrigation tank

• Expansive Nano glass doors opening to the mountain and ocean views • Hybrid Salt/Chlorine pool system which runs all day on solar • Private patios and gardens off of the 2 master suites • Over 20 different fruit trees and over 100 different species of plants on the property • European large-format tile throughout the house • Non-slip tiles on all terraces, in pool areas, and in showers • LED mirror lighting • Light dimmers throughout the home • Immense amounts of storage • Electric sunshades on the main terrace • Large bodega • Double carport • Brick paver driveway • Outdoor shower near pool • Security system

• Cloud-based satellite/internet

32 COSTA RICA REAL ESTATE MAGAZINE

COSTA RICA REAL ESTATE MAGAZINE 33

Well Priced Ocean ViewHomeWith Great Value Upgrades In Easy Reach

Brand New 2 BedroomHome In Quiet Area Of Ojochal

2 Beds | 1.3 Acres | Price $539,000 | ID 4406 | Town Ojochal | House

2 Beds | 1.24 Acres | Price $350,000 | ID 4803 | Town Ojochal | House

Tropical Villa On Sublime PropertyWith Spectacular WhiteWater Views

One-Of-A-Kind Oceanview 3+ BedroomHome

3 Beds | 2.07 Acres | Price $899,000 | ID 5394 | Town Ojochal | House

3 Beds | 0.21 Acres | Price $629,900 | ID 7007 | Town Cinco Ventanas | House

34 COSTA RICA REAL ESTATE MAGAZINE

Luxurious Private Rainforest Estate On AcreageWith Creek

5 Beds | 3.80 Acres | Price $1,500,000 | ID 5393 | Town Ojochal | House Stunning Modern Luxury Ocean ViewHome In Ojochal With Private River Trails

3 Beds | 9.58 Acres | Price $2,077,000 | ID 8113 | Town Ojochal | House

Yoga Retreat For Sale 50 Acres With Ocean Views AndWaterfall

13 Beds | 50 Acres | Price $2,100,000 | ID 9586 | Town Uvita | Hotel rȠȆ Ǩ˕Ǝƚ ƻȍ ǒǨƎűȗƚƔ ƻǞ rNJǨƎƶűǒ ۆ Ǩȍȗű ƻƎű ǨǞȗűƎȗ ǨȠȆ ȗƚűǛ Ǩƭ ƚȾȃƚȆȗ ȆƚűǒȗǨȆȍ ȗǨ ƍȠȿ ǨȆ ȍƚǒǒ ȃȆǨȃƚȆȗȿ ƻǞ $ǨǛƻǞƻƎűǒ ۆ ¨ȸƻȗű ۆ rNJǨƎƶűǒ ۆ ¡Ȇƚȍ ƻǨȍ ۆ űǞƔ ƶǨǞȗűǒƚȍ

ȍűǒƚȍ ݴ ǨȍűȗȆǨȃƻƎűǒȃȆǨȃƚȆȗƻƚȍ ۋ ƎǨǛ ȹȹȹ ۋ ǨȍűȗȆǨȃƻƎűǒȃȆǨȃƚȆȗƻƚȍ ۋ ƎǨǛ ]] ¨— ¡r$ Ç ۅ ًًًٍِِِّّْٓ

COSTA RICA REAL ESTATE MAGAZINE 35 SCAN THE QR

ARTICLE | REAL ESTATE

T he Happiest Country in Latin America By Hernan A. Carazo tourrificticotours@gmail.com )

Why is Costa Rica consistently ranked among the top of the happiest countries in the world and the top one in Latin America?

36 COSTA RICA REAL ESTATE MAGAZINE

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ID 23507

ID 23552

ID 23509

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m

e

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$1,400,000 US

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ID 23525

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COSTA RICA REAL ESTATE MAGAZINE 37

ARTICLE | REAL ESTATE

C osta Rica is the winner of many accolades, from the Happiest Country to the Best Place to Re tire, as well as the Best Place to visit Post Pandemic and the Top Eco-Tour ism destination in the World, among many other top designations’ year in and year out. This is a result of the many attractions the country has to offer to both Visi tors as well as to persons looking for a new place to live or to retire in and it also makes it very attractive for the new breed of Digital Nomads. Located less than 3 hours flying time from Southern Florida and under 4 hours from Central Texas is a very big plus. Being able to reach such a wondrous destination in such a short time allows vacationers more time to enjoy the ample flora and fauna and to see more tourism loca tions within the country. For those who choose to live here it makes it so much more convenient for those times when they must go back to North America, whether it is to visit family or attend an event or possibly to get medical atten tion that their specific insurance only

covers in the US. So, location is a definite advantage to living in or visiting Costa Rica. But location and beauty aside, what other elements combine to make this the Happiest Country in Latin America? A recent study sponsored by the United Nations, the 2021 World Happiness Report (covering the period of 2018 20 and the ninth report they have done since 2012) uses the results of the Gal lup World Poll team that look at the perception of happiness by the peo ple living in each country and Lloyd’s Register Foundation, which provides access to the World Risk Poll. These results are added to other country mea surements to come up with a ranking of the happiest countries. This last one placed Finland at the top and Afghani stan at the bottom and considered the effects on all countries of the Covid-19 pandemic. You can read the entire re port at: https://worldhappiness.report/ ed/2021/ These reports are launched annually on International Day of Hap piness, March 20th. Costa Rica was

ranked 16th, placing it at the top of the Latin American countries as well as above the United States and many oth er First World countries. Some of the items measured are Quality of Life and Length of Life. Costa Rica is again the leader in Latin America on life expec tancy and places 20 places above the US. When you combine World Class Medical and Dental care (both Public and Private) with easy and affordable availability of healthy foods and so many places to go and relax the mind, that are both affordable and spectacular and within easy reach, you get a popu lation that even in difficult times, has a perception of happiness and it shows in the friendliness and happy demeanor of the average Costa Rican. Ranking of Freedom to Make Life Choices places Costa Rica in 11th place worldwide. By comparison Canada is 19th, the United Kingdom is 52nd and the US is ranked in 62nd place. So, it is the sum of all these realities and perceptions that make Costa Rica so unique and such a good choice for both Visitors and those wishing to relocate.

38 COSTA RICA REAL ESTATE MAGAZINE

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COSTA RICA REAL ESTATE MAGAZINE 39 moravaldezdentistry@gmail.com www.MoraValdezAdvancedDentistry.com

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ARTICLE | REAL ESTATE

Leading real estate broker for the South Pacific of Costa Rica. We are passionate about real estate and our knowledge, professionalism and commitment ensures a conscientious and detail orientated service. From a secluded beachfront tropical estate to a luxury penthouse nestled in the foothills, the Coldwell Banker Vesta Group Dominical team has proven skills in fi nding the right property for the right client and at the best price.

Daveed Hollander

For more than two decades, Daveed Hollander, the present day president of the Master Franchisor for Coldwell Banker Costa Rica, Co-Founder and Managing Partner of Coldwell Banker Vesta Group, has clearly distinguished himself as a leading realtor in the South Paci fi c area with his proven dependability in the Industry. He delivers fi rst-class professional and customer-centered service to his clients on stipulated budgets, requirements and customer speci fi cations. Daveed has achieved top rankings internationally and locally for substantial and unique sales. His business model always includes the latest technology and systems to showcase his listings nationally and internationally thus ensuring wide customer choice and satisfaction.

James Drews

James moved to Costa Rica in 1996 and began his real estate career here by co-founding Dominical Realty. In 2001, the company obtained a Coldwell Banker independent franchise to become Coldwell Banker Vesta Group. James goes out of his way to seek out new frontiers that are ahead of the wave, and specializes in rural and remote farmland, developing land and collecting legacy type of properties.

Costa Rica does not require real estate brokers to be licensed and that is why it is essential to work with a broker who is professional and qualifi ed. We are active members of the National Association of Realtors®, Coldwell Banker International, and Global Luxury® Certifi ed, and designated as Certified International Property Specialists (CIPS). The experience and training donʼt stop there. We are also licensed by the two real estate boards of Costa Rica.

40 COSTA RICA REAL ESTATE MAGAZINE 7 ST RIC REAL ESTATE MAGAZINE

Finding the property of your dreams is closer than you think in this incredible location with the team at Coldwell Banker Vesta Group Dominical. Our brokers have decades of experience working and living in the local market and can help you every step of the way.

ID 11895 $3,900,000

ID 00425 | $2,950,000

ID 09403 | $2,900,000

ID 17312 | $2,200,000

ID 17230 | $1,595,000

ID 16399 | $1,495,000

ID 17141 | $1,350,000

ID 16362 | $1,150,000

ID 14980 | $1,150,000

ID 17017 | $849,000

ID 16288 | $899,000

ID 13831 | $890,000

ID 15345 | $799,000

ID 17193 | $750,000

ID 17263 | $749,000

CR +506 2787 0223 | TOLL FREE: +1 877 309 9238 | info@cbcostarica.com | www.dominicalrealty.com

COSTA RICA REAL ESTATE MAGAZINE 41

ARTICLE | REAL ESTATE

Capital Gains Tax In Costa Rica always important to check this situa tion with the tax advisor, for a donation made just to avoid the present payment of capital gain tax is not always a good idea because it may affect future trans fers. lows to apply a formula to compensate such inflation and convert the old price into a present value. It is better to ask your accountant to apply this formula since they are very knowledgeable about the specific point. Can I add other costs or taxes when calculating the real profit?

What is the rate to be paid for such tax? The rate is 15% of the Net profits. How ever, there is a kind of grandfathered clause in the law, which allows apply ing a different rate (2.25% of the Gross price) if the transmitter acquired the property before July 1st, 2019. How is the Gross Sale Price (transmis sion price) calculated for these purpos es? It is the real selling price minus: i) The costs of the investments and im provements made on the property sold ii) The transfer taxes and costs paid for the transfer of the property. iii) Notary fee and closing costs paid for the transfer of ownership. While the law does not state it specifi cally, in my opinion, a Real Estate Bro ker fee may also be deducted if it must be paid by the Seller. How must the Seller calculate the ac quirement price that must be deducted from the Gross Sale Price for the pur pose of defining the profit? To the real price paid for the property one should add the following: i) The costs of the investments and im provements made on the property now sold. ii) The transfer taxes and costs paid to buy the property. iii) Notary fee and closing costs for the transfer of ownership. Again, the law does not establish it, but in my opinion, a Real Estate Broker fee may also be deducted if it was paid when the property was bought or ac quired. Because of economic inflation, the acquirement value may be unreal and too low. Therefore, the law also al

No. Only the ones mentioned in the law, which are the ones I mentioned in the 2 previous answers. You may add other costs and taxes only if we are not using the capital gain regime, but the income tax regime. If one or both prices are in US Dollars, how must the calculation be made? The current regulations require in these cases that all prices be converted into Colones at the selling exchange rate of the Central Bank of Costa Rica. ( www. bccr.fi.cr ) for the respective date. Example: If the property was bought on July 1st, 2018, for a price of US$300,000, then this amount must be converted into CR Colones according to the selling ex change rate in effect on July 1st, 2018. If the property is sold later on May 15th, 2022 in the sum of US$450,000, then this amount must be converted into CR Colones according to the selling exchange rate in effect on May 15th, 2022. Based on these CR Colones val ues, we calculate the real profit. Once the property is sold, when must I pay the capital gain tax (if any)? The law requires that the tax be paid on or before the 15th day of the next month from closing date. It is important to mention that these answers are just a guide to have a better approach to the subject, but it cannot be taken as a le gal or tax advice since there are many small issues to take into consideration. Therefore, it is always important to check with your attorney, accountant and/or tax advisor.

By Casimiro Vargas Law and Notary Public CV Firm www.cvfirm.com

S hould I pay Capital Gain tax if I sell my real estate property in Costa Rica? That is a question that we need to an swer in detail. It all depends on the ac tivities your company runs. If you or the company owning the property is run ning some commercial activities and the property has been used in such ac tivity, then you don’t have to pay capital gain tax. However, you must include the proceeds of the sale as part of your regular income for the purpose of the income tax payment. If the property is not used in the com mercial activities (what is also known as “affected to such activity”), then you must pay capital gain tax if you get some profits when you sell it. Do I have to pay if I donate the prop erty to anybody else or if the property is transferred by inheritance to my chil dren or somebody else? The answer is NO. In such cases, this tax is not paid, but the future transfer of the property may be negatively af fected by the previous donation. It is

42 COSTA RICA REAL ESTATE MAGAZINE