It’s no secret that Costa Rica’s Peninsula Papagayo has become a tourist magnet. Located on the country’s north Pacific coast, only 30 minutes from Liberia’s international airport, the 2,300-acre peninsula is comprised of 15 miles of coastline, 31 distinct beaches that range from white to black sand and a number of five-star hotels and luxury real estate developments dotting the landscape.

With golf courses designed by Arnold Palmer and Jack Nicklaus, the first phase of the 350-slip Marina Papagayo slated to premiere in 2009 and 500,000 acres of surrounding eco-parks to explore, there’s something for everyone in this lush corner of Costa Rica.

Four Seasons Residence Club

At the tip of Peninsula Papagayo’s southern peninsula, the two- and three-bedroom ocean-view villas of the Four Seasons Residence Club Costa Rica feature large terraces and plantation style decor, accented with indigenous wood finishes. A one-twelfth fraction of a three-bedroom villa is priced at $225,500 and entitles its owner to 21 nights of use per year. A two-bedroom share is $169,500. Owners may enjoy all that the highly lauded Four Seasons Resort Costa Rica has to offer, as well as exchange privileges at other Four Seasons Residence Clubs.

Cacique

Revolution Places, America Online co-founder Steve Case’s development group, will unveil the first phase of the environmentally-friendly resort destination Cacique on 650 acres of the Peninsula Papagayo in 2010. The development will include a One & Only Resort, a Miraval Spa, a Tom Doak 18-hole golf course and an Agassi-Graf Tennis & Fitness Center; already, destination club Exclusive Resorts has 21 residences on the property. Additional real estate offerings are expected to include estate sites, custom and semi-custom whole ownership residences and resort-loft living. More details will be released in Summer 2008.

La Punta Papagayo

Minnesota-based development firm Kirchert Pakonen is building La Punta Papagayo, a mixed-use luxury resort on 60 acres of waterfront property overlooking the Gulf of Papagayo. Managed by Regent Hotels & Resorts and opening in 2010, the development will feature a hotel, spa, luxury villas, estate homes and a retail village. Sales will open in March 2008 when the development is expected to break ground; prices on a two-bedroom villa range upward from $1.6 million, with three-bedroom villas starting at $2.3 million.

St. Regis Residences

On the country’s central Pacific coast, the St. Regis Hotel and Residences Costa Rica, set to open in 2008, will include 49 one-, two- and three-bedroom condo hotel residences and 42 whole ownership private villas. Cheryl Rowley Associates, the acclaimed Beverly Hills-based design firm responsible for the Four Seasons Buenos Aires and the Mandarin Oriental in San Francisco, is designing the resort’s guestrooms, suites and residences.

Costa Rica ranks fourth place in the world as an ideal environment for foreign investment, because there are few restrictions on foreigners owning land in Costa Rica, foreigners enjoy the same rights as Costa Ricans and do not require any special conditions to purchase property within Costa Rica. The one exception is the Terrestrial Maritime Zone discussed below.

In Costa Rica, there are some restrictions for land use, so we recommend performing a due diligence over each property title to determine if the location, soil, easements, restriction zones, and other incumbent’s aspects do not affect the intended use. Advice from professionals on these subjects is recommended.

Required Documents to buy Costa Rica Real Estate

Foreigners must have a valid Passport or Proof of Residency card. Costa Ricans must provide their ID.

Corporations must be duly registered in Costa Rica and the legal representative must provide the corporate card and a certificate of incorporation in good standing.

A Municipal Certificate from the local Municipality must show that taxes are paid and that the seller has no debts within that municipality.

A Cadastral Survey, duly recorded in the National Register, is necessary for each Costa Rica real estate property transaction.

Real Estate Property Registry Report showing that the property is free of liens, mortgages, annotations and encumbrances.

A power of attorney may be used if one of the parties will not be present at the time of signing the sales documents.

Costa Rica Real Estate Information

Properties in Costa Rica are recorded in an electronic database operated by the Real Estate Property Registry, a section of the Costa Rica National Registry. The database provides public access and you can verify the information from any place in the world with an Internet connection.

The electronic report will show basic information regarding owner, location, cadastral survey number, boundaries and the area. In addition to that, the report will show if the property has easements, liens, annotations, mortgages and other encumbrances.

It’s recommends that the future buyer hires an attorney-at-law in order to make an historic due diligence over the property, in order to have a larger certainty about the origin and ownership of the Costa Rican property.

However, not all properties in Costa Rica are recorded in the Real Estate Property Registry. There are still some properties in Costa Rica, were the owners are not holder of a title. Instead, they have occupation rights and it is necessary to follow a procedure before a Courthouse in order to obtain an order from a Judge to record the property in the Costa Rica Real Estate Property Register.

Other exception is the Maritime Zone. Maritime Zone is defined as the seacoast area located two hundred meters from the high tide line. The Maritime Zone is divided in two sections: 1. Public area; and 2. Concession area. The Public area includes the first fifty meters from the high tide line. The Concession area is located between the fifty meters and the two hundred meters. The Municipalities manage concession areas and they can be granted in 20-year term leases (or concessions) to private parties, with several limitations.

Foreigners not familiar with Costa Rican Real Estate law would be well advised to seek the advice and support of a reputable Costa Rican law firm. We can recommend a number of attorneys who speak English and who will assist you in accomplishing your goal of owning and enjoying your Costa Rica real estate.

Costa Rica is a beautiful and peaceful place and you can enjoy a great vacation in Costa Rica at the beach or at the mountains; let yourself go with extraordinary ocean views, sunsets and beaches of white sand, as well as great weather. If you have the opportunity to come to Costa Rica and see what this paradise can offer you, then you will probably want to think further about buying real estate in Costa Rica; a little piece of heaven where you can feel at home. If that is the case, then this Costa Rica real estate guide will certainly be of benefit to you. It will help you understand a little better what it takes to invest in properties in Costa Rica, and will provide you with a guide to the steps you will need to follow in order to find the property that fits your needs and expectations in Costa Rica.

Can a foreigner own property in Costa Rica?

Unlike other countries, the law in Costa Rica makes no substantial differences between its citizens in Costa Rica and foreigners with regards to rights of ownership of any kind in Costa Rica. This means that it doesn’t matter where you come from. If you have a valid passport with you, you can purchase a car, a boat or a piece of land in Costa Rica just like any “Tico.” However, according to the law, there are a number of different designations/types of properties in Costa Rica for which some restrictions may apply and therefore, should be carefully considered.

What Kind of property is out there?

Registered property

All properties in Costa Rica that have an owner, according to law, must be registered in the public institution in charge of all related matters (i.e. owners of land, cars, boats, intellectual property in Costa Rica, corporations, powers of attorneys in Costa Rica and more). This institution provides public access to these registries which help to make buying real estate in Costa Rica and business in general more secure. It is called the National Registry (Registro Nacional) and there you can find all the information you need to know about any Costa Rica property you are interested in, such as: who is the current owner, the survey plan, the size and boundaries of the land in Costa Rica, if there’s a mortgage on the Costa Rica property, land segregations, etcetera. Within the registered properties in Costa Rica, there is a special classification:

Property in Condominium.

Condos in Costa Rica are subject to some different regulations that come with certain advantages, like the potential to enjoy common facilities such as pools, tennis courts or gardens depending on the Condo in Costa Rica. There are also some restrictions set by law and others set by the Condominium’s specific Internal Rules and Regulations. These types of properties usually have regulations governing security, moral code, and a common maintenance items. These added amenities typically add cost to the initial purchase prices of such properties in Costa Rica.

Maritime Terrestrial Zone (Zona Marítimo Terrestre or ZMT)

The Maritime Terrestrial Zone encompasses a coastal area of 200 meters (646 feet) from the mean high tide line and has special laws governing its use. This area is divided in two:

* The Public Area, which extends from the mean high tide line up to 50 meters (164 ft) inland. This area is public and there is no possibility of ownership of any kind, neither for Costa Ricans nor foreigners, and only approved ports and marinas in Costa Rica can be built there.

That’s why there are no private beaches in Costa Rica and if you are looking for a beach front property in Costa Rica you should be extra careful in your search, always seeking competent legal advice before committing to a purchase.

* The Restricted Area, extending from the end of the public area inland an extra 150 meters (492 ft). This is also known as the concession area. This area cannot be owned either, but the Government can allow you to build on this Costa Rica land for use and enjoyment for a specific term. This term, in most cases, can be renewed for equal periods (normally 20 years). If the “concession” is not renewed, the land and everything built on it reverts back to the Government. In order to obtain a concession in Costa Rica, an application must be presented to the local government. This process usually takes time and you must consider this in your plans. Maritime Zone properties in Costa Rica are one of those that come with limitations for foreign investors. By law, the concession cannot be granted to a foreigner alone; the concessionaire must be a Costa Rican or Costa Rican company that is controlled by Costa Ricans (at least 51% of the company’s shares). The exception to this rule is that a foreigner who has maintained permanent legal resident status for at least 5 years may also be granted a concession without the need for any Costa Rican participation.

Non-registered property

Almost all the land in Costa Rica is registered in the Public Registry (Regisro Publico de Costa Rica). There are however, properties in Costa Rica that have not yet been registered or are in the process of registration. These are typically found in rural areas. It is not wise to purchase unregistered properties in Costa Rica as the rights of possession could be contested. In these matters it is also wise to seek competent legal advice.

Public Property

There are some parcels of land in Costa Rica that belong to State institutions, Municipalities (local government), National Parks and reserves. These are public properties and are included under different special regulations. These public Costa Rica properties will remain public.

Time share or 4-Dimension Property

This is not strictly an ownership right, but is a figure that has become common in other countries as well as in Costa Rica. This is property in Costa Rica, usually with some sort of structure (a house in Costa Rica, a condos in Costa Rica or farms in Costa Rica), registered in the National Registry and owned by a company or a person. The owner sells the right of use of that land for a specific time period, usually one or several weeks per year. A person can buy a time share for particular time frame (i.e. week, weekend, specific days) for a limited number of years, and enjoy the property in Costa Rica while he/she has the right to do so, according to a contract. This kind of property is called 4 Dimension Property because you can enjoy the 3 Dimensions of the land (length, height and width) just for a limited time per year; “time” being the Fourth Dimension.

Time to make some decisions

The first thing you need to do if you want to invest in real estate in Costa Rica is to decide what kind of property you want. It might be a Costa Rica beach front property, ocean view property or the city.

Once you have figured that out, you will need to think about the type of climate you prefer: the Central and South Pacific is considered to be hotter than other parts of Costa Rica; if you like hot and dry weather you will probably prefer to be in Guanacaste and some areas of the Pacific like Playa Tambor, Montezuma, Mal Pais, Manzanillo, Coyote, or Costa de Oro; for cooler climes you would most likely seek refuge in San Jose or Escazu. Once you have decided where to invest in Costa Rica you must decide what to invest in. If you want to find a plot of land in Costa Rica on which to build your dream home in Costa Rica, be ready to be patient; it can take some time between the design phase, permitting and construction process.

There are many things you will need to consider, such as, but not limited to, finding good architects in Costa Rica or civil engineers who help you not only with the construction plans but also with the permits. In order to start a construction in Costa Rica be advised that you will need permits from several institutions and it always requires time and paperwork. This need not be too unpleasant when you have the proper assistance of a professional who can guide you and provide his/her expertise in helping you get the job done in the shortest time possible and complying with what you want. In some areas, there are additional requirements established by Environmental regulations.

If you are considering investing in rural areas with the intention of building, an Environmental Feasibility Study is highly recommended and/or required. If you decide to buy a condo in Costa Rica or a house already built, it will alleviate the worry of dealing with anything that has to do with permits, construction contracts and time issues. Nevertheless, you need to be aware that avoiding these little inconveniences will cost you some extra money.

Finding the place you dreamed of

Once you have decided either way, and you have chosen the area in Costa Rica where you would like to invest, you will need to narrow down your preferences to a specific kind of property or properties in Costa Rica. For this you can go two opposite ways: the first one is taking a ride around, basically window–shopping by yourself, answering ads in the paper or taking a car to see whatever you might find. This will end up being a very time consuming and exhausting experience and it will be very ineffective, since you probably won’t find the exact Costa Rica investment you are looking for. If you get extremely lucky you might find something that interests you, but since you may not have the chance to view a wide spectrum of the Costa Rica real estate market, that one perfect condo in Costa Rica could be waiting somewhere else without you even knowing about it!

The other way to go, which is highly recommended, is finding a competent Costa Rica real estate Broker. By enlisting the help of real estate brokers in Costa Rica who know the market, have all the information, the Costa Rica real estate listings and the necessary experience to guide you through the process of finding the perfect investments in Costa Rica in a smooth and efficient manner, you will spend less time searching and more time enjoying the benefits of that search. Equally as important, you will have been exposed to the widest selection of properties in Costa Rica available, which will hopefully result in locating exactly what you are looking for.

With the estimated arrival of nearly 2 million tourists to Costa Rica in 2008, and a projected income of nearly $3 billion for the tourism industry, it’s no wonder that luxury hotel and rental establishments are tripping over themselves to get in on the action.

Costa Rica Investment — Luxury Investments on the Rise

Last year saw an investment of $800 million in the tourism sector alone. The Doubletree by Hilton is one of the big newcomers this year, with two hotels recently opened under their name, and another on the way.

“Costa Rica is one of the top eco-tourism destinations in the world, with visitor arrivals growing more each year,” said Hilton Hotel Area Vice President Danny Hughes. “We want to support the country’s tourism growth and welcome guests to experience the biodiversity that makes Costa Rica such an amazing place to be.”

The Doubletree Cariari by Hilton San Jose and the Doubletree Resort by Hilton Puntarenas were Sol Melia and Fiesta hotel properties, respectively, that underwent extensive renovations and brand training to meet Hilton standards. The employees also received service training to offer the same upscale, full-service product that the Doubletree hotels are internationally known for. The Hilton Papagayo Resort will also open soon in place of the Premier Fiesta Resort, with its own private beach near the Four Seasons.

Multi-billion dollar corporations are not the only ones taking part in the fun. First time investors are flocking to the Costa Rican shorelines without batting an eye at the rising land and construction costs, drawn by stories of properties that pay themselves off after several years of rental. Luxury homes that far exceed the levels of what the country once knew are on the rise, and returns on investment are growing at nearly the same rate.

After years of marketing other people’s vacation properties to clients, Costa Rican Vacations’ co-owner Tony Silva and his partner Casey Halloran finally decided that building their own Costa Rica vacation rental was a no-brainer. They combined their favorite aspects of other homes into one, and ended up with a product that far exceeded their original expectations.

“We went all out with this property,” Silva said. “In the end, if you aren’t a superlative in the industry, you’re just another rental home. Vacationers aren’t concerned about the price if they can be assured they are getting the best product with the best service.”

Their product, Villa Buena Onda, located in Playa del Coco, Guanacaste, is one of the biggest homes in the region sleeping 23 people, and rents for a minimum of $9,000 per week, which includes all-inclusive meals, drinks and service. Their unique transparent policy lets guests and fractional owners know exactly how much was spent in the construction, and how much money they intend to make once the villa is sold in two years. If you do the math, you will understand why their plans include the construction of a second villa in 2009.

Known as ‘playas’ in Spanish, the beaches of Costa Rica are often referred to as the most idyllic and beautiful in the world. With a coastline that stretches over 1800 km (1100 miles), Costa Rica is home to a multitude of amazingly breathtaking beaches. From rocky shores to gorgeous palm tree lined white sand beaches, Costa Rica’s fantastic coast offers something for everyone. Golden sand beaches, gray sand beaches, black sand beaches, and pink sand beaches can be found dotted all along Costa Rica’s lush coastal plains, making this country a truly spectacular beach destination.

Bounded on the east by the Caribbean Sea and on the west by the Pacific Ocean, 65% of Costa Rica’s borders is a coastal belt. And since most of these areas have a sparse population, the beaches here offer plenty of privacy and seclusion for a tranquil and relaxing vacation.

With Costa Rica lying on the isthmus of Central America, the country itself is quite narrow, which means that the Pacific and Caribbean coast beaches are just a few hours apart. And while some of the best and most developed beaches are found along the Guanacaste coast, for a more remote beach adventure visit the secluded beaches of the south Pacific Coast for a memorable time. However, if all you want to do is have a really good time, then visit Costa Rica’s Caribbean Coast with its fun ‘Rasta’ culture and lush vegetation.

With an almost infinite number of beaches to enjoy, Costa Rica offers tourists a plethora of beach and water sports activities as well. From surfing to scuba diving, to sports fishing, deep sea fishing, snorkeling, swimming, kayaking and yachting, the beaches here have it all. For a more relaxing time simply soak in the rays sunbathing, take a leisurely stroll along the beach or go for a long horse back ride. And with near perfect weather all year round, the beaches especially in Guanacaste are a great place to chill and have a wonderful time.

For the best surf breaks and swells visit Playa Naranjo or Witches Rock in Santa Rosa National Park & Playa Grande, Playa Avellana, Playa Negra & Playa Santa Teresa on the Nicoya Peninsula. In the central Pacific area, Playa Hermosa and Dominical have the best surf beaches, while in southern Costa Rica, Playa Pavones & Puerto Viejo de Talamanca have awesome surf swells.

The most beautiful beaches are Playa Flamingo, Playa Conchal, Playa Ballena, Playa Grande, Playa Blanca, Montezuma, Playa Zancudo and Playa Santa Teresa. Along the Southern Caribbean coast, Gandoca Manzanillo Wildlife Refuge has the best and most beautiful beach.