Q: Why invest in Costa Rica?

A: Costa Rica is an increasingly popular investment destination for a number of reasons. From its Pura Vida lifestyle to its stable political climate, from its stunning natural beauty to its commitment to sustainability, Costa Rica offers investors a unique and attractive set of opportunities. Whether you’re interested in vacation rentals, a new lifestyle, or other forms of investment, there’s something for everyone in this tropical paradise. So why not consider making your next investment in Costa Rica? With its strong economy, low crime rate, and natural beauty, it’s definitely worth a closer look.

 

Q: Can foreigners own property in Costa Rica? 

A: Yes, foreigners have the option to own property in Costa Rica, either under their individual personal names with their passport, or through a corporation.When it comes to regular property purchases in Costa Rica foreigners face minimal requirements, usually only needing a valid visa for Costa Rica.

 

Q: What is the standard process of buying land in Costa Rica? 

A: Usually the parties sign a pre-contract, outlining the terms to be expected from both ends. Once the terms are met, the parties formalize the pre contract with a contract executed by a Notary Public, and the document is registered at the National Registry.

 

Q: Confirming that in Costa Rica land is owned and not rented for 100 years like other countries? 

A: Yes, owned. Complete title is transferred to your corporation.

 

Q: Does Costa Rica require a real estate lawyer to close deals? 

A: It requires a notary public. 

 

Q:  What transaction costs should you expect

A:  These are:

(1). Transfer Taxes, stamps and legal fees for Notarization of Title Deed – this is set by law. Transfer taxes are 1.5%. Legal Fees for notarization of the transfer deed will be between 1% and 1.5% depending on the value of the transaction. Normally you would expect that the transfer taxes, stamps and the notarization of the deed will come out to just under 4 to 4.5% of the value of the purchase. 

(2). Legal Due Diligence – normally the lawyer will include the costs of the due diligence in the above fees.  However, for smaller transactions they sometimes add on additional fees.  

(3).  Survey of Land – approximately $500 to $1500 + 13% sales tax

(4). House Inspection – approximately $650 to $1000 + 13% sales tax

(5).  Any other due diligence that the buyer requires – this could include a quality or pump test of a well, a soil test. or anything else that the buyer wants to check on.  

(5). Escrow fees – these depend on the purchase value but can be anywhere from $400 to $1,200.  

(6). Set up a corporation – if you decide to own the property in the name of a corporation, your lawyer will charge you anywhere from $750 to $1,500 to set this up. 

 

Q: Where is the title recorded once it is closed?

A: At the Public Registry, a public database that serves as the ledger for property ownership.

 

Q: Thinking on a smart Investment?

A:  When buying for investment, our properties offer high rental potential, good location, and essential amenities. Choose properties that can serve as vacation rentals or future retirement but don’t lose sight of personal use. Ensure to build in order to meet your standards and needs.

 

Q:  What are the advantages of using an SPV to buy property in Costa Rica?

A:  Using an SPV can provide further advantages when it comes to property ownership. An SPV is a separate entity created solely for a specific purpose, such as holding and managing real estate. This is particularly useful when you need someone else to make decisions on your behalf, for example, when you are absent from the country.

 

Q: -What are the necessary permits and the process for obtaining them?

A: These are as follows:

Land Use permits to build a house

• Purpose: Determines the allowed use of the land (residential, commercial, industrial, mixed-use).
• Authority: Municipality
• Process:
  1. Submit a request to the local municipality with property documents.
  2. Municipality reviews zoning regulations and provides a resolution indicating permissible land use.

Environmental Viability permits to build in Costa Rica

• Purpose: Ensures the project complies with environmental regulations and assesses its environmental impact.
• Authority: National Environmental Technical Secretariat (SETENA)
• Process:
  1. Submit an Environmental Impact Assessment (EIA) to SETENA, prepared by a licensed environmental consultant.
  2. SETENA reviews the EIA and may request additional information or modifications.
  3. If approved, SETENA issues a Certificate of Environmental Viability (Certificado de Viabilidad Ambiental).

Water Availability for construction

• Purpose: Confirms that there is sufficient water supply for the project.
• Authority: Local water provider (municipal or ASADA)
• Process:
  1. Request a water availability certificate from the local water provider.
  2. Provider assesses the availability and issues a certificate if adequate water supply is confirmed.

Technical Approval to build a house in Costa Rica

• Purpose: Ensures the project meets technical and safety standards.
• Authority: Colegio Federado de Ingenieros y de Arquitectos (CFIA) through the APC system.
• Process:
  1. Submit project plans and specifications prepared by licensed architects and engineers to the CFIA.
     CFIA reviews and approves the technical aspects of the project.

Construction Permit to build

• Purpose: Grants permission to begin construction based on compliance with municipal regulations and building codes.
• Authority: Municipality
• Process:
  1. Submit the approved technical plans, land use resolution, environmental viability certificate, water availability certificate, and other relevant documents to the municipality.
  2. Municipality reviews the submission for compliance with local building codes and regulations.
  3. If approved, the municipality issues the construction permit.

Additional Permits (if applicable) to build a house in Costa Rica

• Fire Department Approval: Required for ensuring fire safety standards are met.
• Electrical Permits: Required for projects needing significant electrical installations.

 

Q:  Can I obtain residency as an investor?

A:  Buying property in Costa Rica opens the door to obtaining residency or investor status. In fact, Costa Rica offers a welcoming environment for foreign citizens looking to invest. Whether you choose to invest through a company or as an individual owner, the process remains open and accessible. Currently, there is a minimum investment threshold that applicants must meet of $150,000. Once you acquire the property, you can then take the necessary steps to apply for legal residency.

 

Q:  Obtaining Investor Status or residency by buying property in Costa Rica:

A: Obtaining an investor status or residency by buying property in Costa Rica is possible. The acquisition of a property of at least one-hundred and fifty thousand dollars in Costa Rica will allow you to opt for the resident investor visa category. This makes purchasing or investing in land in the country very attractive to international buyers.

The process begins after the property in question is already in the buyer’s name or the buyer’s company’s name. Once that procedure is concluded, an independent legal process begins before the Costa Rican immigration authorities. The objective of this is to file for a residency status.

Obtaining a residency visa by buying property in Costa Rica will take anywhere from 6 to 8 months. This depends on factors such as specific requirements and the authority’s work load. The residence status will allow expats the freedom to do almost anything that a Costa Rican citizen can.

 

Q: Is buying a car in Costa Rica a straightforward process?

A:  Take into account:

1. **Documentation**: Ensure you have the necessary documents:

   – **Identification**: A valid passport or residency card.

   – **Proof of Income**: Some sellers may require proof of income or financial stability.

2. **Legal Aspects**: 

   – **Transfer of Ownership**: You’ll need to complete a transfer of ownership at the Public Registry (Registro Nacional) and pay a small fee.

   – **Vehicle Inspection**: A vehicle must pass a technical inspection (RITEVE) to be registered.

3. **Insurance**: It’s mandatory to have at least basic insurance (SOA – Seguro Obligatorio de Accidentes de Tránsito) for any vehicle in Costa Rica. You can shop around for additional coverage as needed.
4. **Driving Rules**: Familiarize yourself with local driving laws, road conditions, and customs, as they can be quite different from those in other countries.  Your driver license is valid for a period of 3 months for non resident visitors.

 

Q: Health insurance in Costa Rica can vary based on your residency status and needs?

A:  Yes.  Are as follows:

1. **Public Health Insurance (Caja)**: 

   – Costa Rica has a public healthcare system called the Caja Costarricense de Seguro Social (CCSS), which provides access to medical services for residents and citizens.

   – If you become a resident, you’ll need to enroll and pay monthly contributions based on your income. This gives you access to public hospitals and clinics.

2. **Private Health Insurance**: 

   – Many expats choose private health insurance for quicker access to services and private hospitals.

   – There are various providers, including local and international companies, offering different plans and coverage levels. Popular options include INS, Blue Cross Blue Shield, Pnanmerican, BMI among others.

3. **Cost Considerations**: 

   – Public insurance is generally more affordable but may have longer wait times for certain procedures.

   – Private insurance can be more expensive but often provides better facilities and shorter wait times.

4. **Healthcare Facilities**: 

   – Costa Rica has a mix of public and private hospitals and clinics. Major cities have more options, while smaller towns like Santa Teresa have limited facilities.

5. **Travel Insurance**: 

   – If you’re visiting temporarily, consider travel insurance that covers health emergencies. This can be useful for tourists and short-term visitors.

 

 

Santa Teresa FAQ:

 

Q: Where is Santa Teresa located?

A: Santa Teresa is located on the Nicoya Peninsula in Costa Rica. It’s situated along the Pacific coast, approximately 150 kilometers (about 93 miles) southwest of San José, the capital. To get there, you can drive or take a bus or a plane to the town of Cobano and then continue to Santa Teresa. The drive will take about 20 minutes!

Q: Santa Teresa has a tropical climate, characterized by a dry season and a rainy season?

A:Here’s a breakdown of the weather throughout the year:

 

Dry Season (December to April):

– Temperature: Warm to hot, with average daytime temperatures ranging from 27°C to 32°C (81°F to 90°F).

– Conditions: Generally sunny with low humidity and little to no rain. This is the peak tourist season, making it a great time for outdoor activities.

Rainy Season (May to November):

– Temperature: Similar warm temperatures, but it can feel more humid.

– Conditions: Afternoon and evening showers are common, especially from September to November. However, mornings are often clear. The landscape becomes lush and green during this time.

 

Q: What are options for schools?

A: Depending on your children’s age and educational needs. Here are a few options you might consider:

1. Local Public Schools: These are available and generally free, but the quality can vary. It’s a good idea to visit and see if the environment feels right for your children.
2. International Schools: There are a few international schools that offer programs in English and often follow an international curriculum. Examples include:

   – Costa Rica International Academy: Offers a bilingual education and is popular among expat families.

   – Monkey School: A bilingual preschool that focuses on early childhood education.

3. Private Schools: There are private schools that offer more personalized education. They may have different curricula, including Montessori or alternative educational approaches.
4. Homeschooling: If you prefer a more flexible approach, homeschooling is also an option. There are resources and support groups in the area for homeschooling families.
5. Online Education: Some families opt for online schooling, especially for older children. This can provide a structured curriculum while allowing for flexibility.

 

Q: What if there is a river on my property?

A: The presence of a river can increase the perceived value of the property for many buyers. However, in Costa Rica there are strict set-back rules relating to water sources that it is very important to be aware of. In the Santa Teresa area most rivers are seasonal, only running during the rainy season each year (May to November). Regardless of whether the river is seasonal or not there will be setback regulations. Construction setbacks from a river will range from a minimum of 10 meters to a maximum of 50 meters. The river setback for a specific property is set by the INVU (the National Institute of Housing and Urban Development). The INVU will take into consideration the size of the river and the topography of the land when establishing the exact river setback. Where the land is flat, the setback from the river will be 10 meters in urban areas and 15 meters in rural areas. In Santa Teresa the general setback is 15 meters for flat land. However, where the gradient of the land is over 40% the setback will be 50 meters. By law, it is forbidden to construct any roads or buildings within the river setback area. It is also forbidden to excavate, modify, improve, grade or really do anything within the setback area. It is possible to build a retaining wall to protect your land from erosion at the riverbank, but ONLY with a special permit from the National Emergency Commission (the CNE). It is a good idea to have the surveyor stake out the INVU certified setback, so that you know exactly what your limitations are.

Other important water setbacks to consider are:

-Natural Springs – There is a setback of 100 meters radius for springs, and 200 meters when the spring is the water source for a community.

-Registered Wells – there is a setback of 40 meters radius from registered wells. This is the case whether the well is on your property or on the neighbor’s property. 

 

Q: What’s the lifestyle like in Santa Teresa?

A: Santa Teresa offers a laid-back, beach-oriented lifestyle that’s popular with both locals and expats. Here are some key aspects:

1. Natural Beauty: The area is known for its stunning beaches, lush landscapes, and vibrant sunsets. Outdoor activities like surfing, hiking, and yoga are prevalent.
2. Community Feel: There’s a close-knit community with a mix of locals and expats. It’s common to see people engaging in community events, markets, and social gatherings.
3. Relaxed Pace: Life in Santa Teresa tends to be more relaxed compared to urban areas. This slower pace can be refreshing, especially for families.
4. Wellness and Health: Many residents prioritize wellness, with numerous yoga studios, wellness retreats, and healthy dining options available.
5. Dining and Culture: The dining scene is diverse, ranging from local eateries to upscale restaurants. You’ll find a mix of international cuisines, reflecting the area’s expat community.
6. Cost of Living: While some things may be more affordable, others can be pricey due to the area’s popularity. Housing can vary widely in cost.
7. Education and Activities for Kids: There are various schools and extracurricular activities, including sports and arts, making it suitable for families.

Overall, Santa Teresa offers a vibrant, community-oriented lifestyle with a strong connection to nature. Would you like to know more about any specific aspect?

 

Q: What’s available regarding urgent care?

A: In Santa Teresa, healthcare options are somewhat limited, but there are a few facilities you can rely on for urgent care:

1. Clinica Santa Teresa: This is a local clinic that provides general medical services and can handle minor emergencies. They have English-speaking staff and are familiar with treating expats and tourists.
2. Hospitals in Cobano: For more serious emergencies, you might need to go to a larger facility in nearby Cobano, which is about a 30-minute drive away. The Cobano Hospital has more comprehensive services.
3. Ambulance Services: While there may not be dedicated ambulance services in Santa Teresa, local clinics can help arrange transport to hospitals if needed.
4. Pharmacies: There are several pharmacies in the area for basic medical supplies and over-the-counter medications.

5.Red CrossThe Red Cross has a diligent and state- covered ambulance and medical service available.  Just dial 911.

 

Q: What’s the difference between purchasing a lot that is located in front of a public road or an “agricultural parcel?

A:In Costa Rica, the terms “lot” and “agricultural parcel” refer to different types of land use and zoning:

1. Lot:

   – Definition: Typically refers to a small plot of land designated for residential or commercial use. Lots are often part of urban or suburban developments.

   – Zoning: Lots are usually zoned for building homes, and have a land use of 70%.

   – Size: They can vary in size but are generally smaller than agricultural parcels (-5000sqm.).

 

2. Agricultural Parcel:

   – Definition: Refers to land specifically designated for agricultural activities, such as farming, ranching, or growing crops, but in CR they also include private residences than need to keep 80% as a green area.

   – Zoning: These parcels are zoned for agricultural use and are subject to regulations governing  limited land use.

   – Size: Agricultural parcels tend to be larger and can include more expansive tracts of land compared to lots(5000+ sqm.)

 

 

Yoko Village; FAQ

 

Q: What is the Yoko Village mission?

A:We create environments that foster harmonious and balanced relationships between human beings and nature.

 

Q:What are our values?

A:We hope to become one of the premier developers in Costa Rica with an innovative collection of projects that stays true to our values. Our plan is to expand and build Yoko Village around Costa Rica first and later expand globally, projecting 10 communities built in 10 locations in Costa Rica by 2035.

Yoko Village Company Values

These are our operating principles on the day to day. The way we hire. The way we fire, the way to work in order to execute our mission.

• ⁠ ⁠Deliver Wow through service
  •⁠ ⁠Be passionate, Proactive and determined – move mountains
  •⁠ ⁠Build a positive team and family spirit
  •⁠ ⁠Be humble
  •⁠ ⁠Pursue growth through learning
  •⁠ ⁠Act with Integrity and Transparency
  •⁠ ⁠Demonstrate Environmental and Social Responsibility

Yoko Vision

As long as we stay true to our values and mission, our vision is to expand and build Yoko Village around Costa Rica first and later expand globally to Europe, Asia and the Mediterranean.

What is Yoko Village Doing
Yoko Village is creating a global community of eco-villages by establishing communal conscious spaces and second homes in rural areas.

 

Q: What is our vision?

A: We hope to become one of the premier developers in Costa Rica with an innovative collection of projects that stays true to our values. Our plan is to expand and build Yoko Village around Costa Rica first and later expand globally, projecting 10 communities built in 10 locations in Costa Rica by 2035.

 

Q: What are the unique selling points of Yoko South?

A: The most important selling point of Yoko South is its location being on the first mountain before arriving at downtown Santa Teresa, right in front of the Pacific Ocean.  This translates to paved access right from the main road, insuperable both mountain and ocean views and one of the few organized communities built according to current day building standards with amenities and high speed internet access in its co-working facility located at the YS Beach Club.

 

Q: Who are we technically buying the property from? Yoko Village? 

A: Yoko Village south is the name of the project. The seller is either Rosenfeld Limitada (Limited), corporate ID number 3-102-823784, or Slow Living Ventures SRL, corporate ID number 3-102-840700

 

Q: Once the land is purchased, what are the rules and regulations of Yoko Village that the property will be under?

A: The document covenants and restrictions are a series of commitments that we are requesting everyone to uphold, in good faith only since we are not a condominium so no HOA regulations can be imposed. The objective is to be a harmonious community so we request our new neighbors to uphold the agreement. Please check them out at the following links:

• On public road – no noise restriction
• Outside the public road – with noise restriction

These restrictions are only for Yoko South (not Yoko North).

 

Q: Are there any restrictions as to who we can sell the land to in the future? 

A: No.  If you have it in the name of a corporation you can either transfer the shares or sell the property to a third party being a physical person or a corporation.

 

Q: Are you able to send over the purchase contract for us to look at? 

A: We will send you at your request all legal documents needed in order to carry out your due diligence process. This includes, a use of soil for the lot which is an official document issued by the Municipality, the property certificate and official plot plan which are official documents issued by the National Registry

 

Q: How much is it to build on the land through your contractors? 

A-We do not have inhouse contractors but can certainly recommend you several that we have either worked with or done due diligence on.  The average price for high end finishes “all in” is about $2500.00 per sq meter of construction, and the building process should take between 9 and 12 months.  

 

Q: Confirmation that all of the utility’s setups are already connected to the land? 

A-Starting on November 2024, once the rainy season decreases, we will resume work on the main road.  Once this is on an advanced stage, both the water and the electric can be installed.  We are very excited since we expect to close an infrastructure contract with one of Costa Rica’s top construction companies very soon.

 

Q: What are the yearly costs associated with holding the land? 

A: 0,25% + municipal services (negligible) + corporation compliance ($902.5 with our Legal firm).  This last charge is a legal fee.

 

Q: How many parcels of land are currently owned by Yoko Village? How many are already sold to other participants? How many have already built on the land? 

A: Yoko has sold 46 lots on the South project and holds 167 lots including the protected areas.  No homes have been developed as of today.  In the North project, Yoko has sold 15 and holds 6 either in option to purchase or inventory.  3 houses have been delivered and 3 are currently under construction. 

 

Q: What lands are currently available at the sale price? Are you able to share a map of the land?

A: The current investment opportunity of a lot for $150K, is on our lower priced lots which have jungle or valley views.  If you are interested, please send us an email to mario@yokovillage.com  Jonah@yokovillage.com or  Liran@yokovillage.com and we will send you an updated inventory map. 

 

Q: Should Yoko Village have any financial implications in the future, does that pose any risk on the land? 

A: If the lot is in your name no in regards to the legal principle of “legitimation”.  Your title is totally separated from our legal obligations. If the property has not yet been transferred to you, then you are protected by the trust who holds enough inventory and value to assure your investment.

 

Q: Does the land come with all of the required permits needed to build? 

A: The “land use certificate” for Yoko is for a lot to develop, but in order to get final building permits you must submit for approval with the Municipality, the building plans in accordance with the mentioned land use certificate. 

 

Q:  Is there a yearly membership of any kind to be part of Yoko Village? 

A:  No yearly membership to be part of Yoko Village.  There will be a fee in order to be a part of the “Yoko Club” that will have a clubhouse, restaurant and some sporting and exercise facilities.  We will inform you about this shortly. Also, we will hire a local security firm like or similar to ADT (same as in the USA) to provide security within the community. Additional services like monitoring and camera installations can be contracted separately or ADT will provide them as part of the security contract.

 

Q: What is the occupancy rate you are seeing for the current short-term rentals at the property? What is the average rent? I believe Yoko Village can manage the rentals on behalf of the owners. What is the business arrangement there?

A:  Depends on the location and the house.  We expect Yoko South, since it’s a major community right off the main road, to have a high occupancy rate but we don’t have comparable yet since no homes are built. On neighboring houses the return is between 12 and 15% per year on average.  Either Yoko can manage the rentals or we can introduce you to some existing and very reliable property management offices.  Usually, these offices charge between 15 and 20% commission for the rental.

 

Q: Do you have a lawyer to recommend to help create a corporation in Costa Rica to buy the property under? 

A: Manuel Yglesias, myglesiasm@morayglesias.com, +50662589185, www.morayglesias.com.  Can certainly supply also other names so you can work with whomever you feel more comfortable.

 

Q: Who are the owners of Yoko Village? 

A: Either, Rosenfeld Limitada (Limited), or Slow Living Ventures SRL are the owners of the parcels.

 

Q:  How do I complete my payments?

A: The Costa Rican banking system is much in accordance with the international banking system.  Payments can be done either in USD or Euros by wire transfer.  We will supply the list of banks that work with ours in your country.  Crypto is also accepted with an additional charge of 5%.

Regarding future small payments, no need to carry cash, just about everyone accepts international credit cards.  Also, you can arrange for a local bank account to be established so you can pay minor bills like electricity, gardener etc.

 

Q: Thinking on a smart Investment?

A:  When buying for investment, our properties offer high rental potential, good location, and essential amenities. Choose properties that can serve as vacation rentals or future retirement but don’t lose sight of personal use. Ensure to build in order to meet your standards and needs.

Q: What if there is a river on my property?

A: The presence of a river can increase the perceived value of the property for many buyers. However, in Costa Rica there are strict set-back rules relating to water sources that it is very important to be aware of. In the Santa Teresa area most rivers are seasonal, only running during the rainy season each year (May to November). Regardless of whether the river is seasonal or not there will be setback regulations. Construction setbacks from a river will range from a minimum of 10 meters to a maximum of 50 meters. The river setback for a specific property is set by the INVU (the National Institute of Housing and Urban Development). The INVU will take into consideration the size of the river and the topography of the land when establishing the exact river setback. Where the land is flat, the setback from the river will be 10 meters in urban areas and 15 meters in rural areas. In Santa Teresa the general setback is 15 meters for flat land. However, where the gradient of the land is over 40% the setback will be 50 meters. By law, it is forbidden to construct any roads or buildings within the river setback area. It is also forbidden to excavate, modify, improve, grade or really do anything within the setback area. It is possible to build a retaining wall to protect your land from erosion at the riverbank, but ONLY with a special permit from the National Emergency Commission (the CNE). It is a good idea to have the surveyor stake out the INVU certified setback, so that you know exactly what your limitations are.

Other important water setbacks to consider are:

-Natural Springs – There is a setback of 100 meters radius for springs, and 200 meters when the spring is the water source for a community.

-Registered Wells – there is a setback of 40 meters radius from registered wells. This is the case whether the well is on your property or on the neighbor’s property. 

Q: Who can I contact at Yoko Village in regards to a specific issue:

A:  Contact our super administrator Cynara Kupferschmidt at Cynara@yokovillage.com and she will guide you in the right direction.

 

*Please be sure to check out our web page:  https://yokocompany.com

 

Follow our events on our Facebook and Instagram pages to stay updated on what we do in the community. As always, reach out to us if you have any questions or want to schedule a call with us. Stay tuned for more exciting developments happening at Yoko Village!