You may have heard say that investing in Costa Rica real estate is one of the best thing an American or Brit can do. Whether it’s for a retirement vacation property, a rental money-maker, a timeshare opportunity or a new residence, Jaco real estate agents say there is something for everyone – if you look smart!
“There have been increasing numbers of people buying [Jaco Beach real estate] through the internet or through magazines without coming down to Costa Rica and actually seeing the property with their eyes,” says Carlos Ayon, an attorney with Alfred Fournier & Asociados in San Jose. You can expect to pay around $1,000 for an independent legal report but the headache you may save is well worth it. “A lot of people don’t want to go to a lawyer (because) it’s expensive,” says Boulder real estate investor Jack Walker. “But believe me, the investment in the legal fees is absolutely going to be the best investment that they make. You’re a child in an adult world when you’re buying a home in a foreign country.”y.”
Another thing to consider before contacting Jaco real estate agents is the local building regulations. Sometimes investors will purchase a forested lot with the intention of developing it, only to find it’s illegal to build there! Strangely enough, it’s not so much Jaco real estate agents or Jaco Beach real estate agents that foreigners need to worry about, says Ayon. “We have seen Italians committing frauds with Italians, Canadians committing frauds with Canadians and Americans committing frauds with Americans,” he explains. “They have the advantage. They are here, and when new people come here they seek their own nationals. They find the first person here who’s very good with the locals and has contacts, so they believe they’re some sort of expert on the country.”
While American investors should be vigilant, aren’t kidding when they say Costa Rica is one of the safest countries for US tourism and investment. The majority of Costa Rica real estate transactions happen without a hitch and Americans have the added bonus of paying low property tax, bypassing capital gains taxes and getting extraordinary properties gauged by the American dollar but much lower in price.
Lastly, be sure to investigate US tax laws before meeting with Jaco real estate agents. “It’s very difficult to get out of the American system, which taxes you on your worldwide income,” Walker advised. “So if you’re thinking, ‘I’m just going to leave the United States and live in Costa Rica,’ you need to consult a tax attorney. You don’t want to be flying home to visit friends and relatives and be arrested because of failure to file tax returns or tax avoidance. It’s not a fun thing to do.”