March 14, 2025 in Life in Costa Rica, Tips for Buyers, Real Estate in Costa Rica

Costa Rica, with its stunning natural landscapes and tropical climate, offers a unique living experience that blends indoor comfort with outdoor paradise. When purchasing or building a home in this Central American gem, certain design features can significantly enhance your lifestyle and property value. This comprehensive guide explores the essential design elements to prioritize in your Costa Rican home search or construction project.

January 31, 2025 in Life in Costa Rica, Tips for Buyers, Discover Costa Ballena, Discover Costa Rica

With 123 homes currently listed for sale at over $1 million, the area has quietly become a retreat of choice for high-net-worth individuals who crave privacy, connection, and a lifestyle that cannot be replicated elsewhere. But what makes homes here truly worth a million dollars—and more?

October 31, 2023

The Single-Family Luxury Homes Market in Costa Ballena. A Glimpse into Today’s Trends and Tomorrow’s Trajectory. In the stunning regions of Dominical, Uvita, and Ojochal, Costa Ballena’s luxury single-family home market is experiencing a dynamic evolution. With the enchanting backdrop of mountains meeting oceans, these areas have witnessed a significant uptick in property development between 2021 and 2023, indicating a recent building boom. Particularly noteworthy is the surge in popularity of homes constructed post-2021, pointing towards a discernible trend among buyers leaning towards modern amenities, the latest building regulations, and contemporary architectural designs.

May 13, 2023 in Discover Costa Rica, Life in Costa Rica, Real Estate in Costa Rica

Escaleras, Costa Rica is a place that promotes a sense of wellbeing, deep relaxation, and helps you attune yourself with the natural world. This is a popular community in the South Pacific that exudes architectural grandeur blending elegantly with the exotic landscape. Those who have searched Costa Rica’s coastlines for the perfect location to begin the dream of living in a tranquil, natural, and breathtaking location will often conclude that Escaleras is it.

The Escaleras Environment

The mountainous community of Escaleras begins at around 1000ft elevation, with homes nestled amongst old growth rainforest and its abundant wildlife. This region of Costa Rica is home to families of sloths, toucans, monkeys, exotic insects, and enchanting birdlife. Wildlife corridors have been preserved as much as possible in the developed regions of Escaleras, where large acreage properties are left mostly forested for privacy and maintaining a connection with the local wildlife. Living in Escaleras can often elicit the feeling that you are living up in the tree canopy as you see the stunning wildlife pass by at eye-level daily. The select tracts of land that were cleared for development are open to the full magnificence of the hillside jungles, untouched by man, as well as the jaw-dropping ocean view reaching out below. The ruggedness of nature becomes a gentle blanket of green stretched out as you look down towards the rolling Pacific Ocean. This area is known for its dramatic views of the dynamic coastline, including the world-famous Whale’s Tail beach formation, Caño Island, and the Osa Peninsula. The mountainous terrain in Escaleras is home to an abundance of winding rivers and some of the most sensational waterfalls in all of Central America. Several properties in Escaleras have rivers and waterfalls within walking distance of their front door with picturesque backdrops and serene, ambient sound. In this sensational environment, hardly a sound other than nature’s cacophony can be heard. 

Envision lounging on your elevated terrace while monkeys and toucans visit travel across the treetops above you. The sounds of the rain forest in perfect harmony with the ocean below. *Click the image to visit this Escaleras listing for sale.[/caption]

Homes in Escaleras

The incredibly pristine environment around Escaleras is decorated mainly with the type of homes that blend seamlessly with the surrounding nature. Houses in Escaleras sit high on the cliff sides, positioned in reverence of the coastal views. Infinity pools merge cool water with the ocean view sunsets on the horizon. Bedrooms and living spaces are built to face the gorgeous Pacific Coast and the green valley below. Large glass sliding doors allow breezes to filter through homes and remove boundaries between the home’s interior and the natural exterior landscape. Homes in Escaleras are built for living life to the fullest. Large, sun-soaked terraces with ample room for lounge chairs, BBQ areas, and dining spaces under the stars are essentials for unforgettable family gatherings or elegant soirees. Gourmet kitchens with intelligently utilized spaces and extras such as walk-in wine cellars are the details that make Escaleras homes the pinnacle of luxury living in Costa Rica. Locally-sourced natural materials like cedar wood and river stone are popular aesthetic choices reflecting the majesty of the surrounding environment. Building materials are carefully selected for their natural beauty in the luxury homes in Escaleras. Green/eco-friendly architectural designs are also immensely popular, fostering a peaceful and tranquil atmosphere while maintaining a small environmental footprint. The goal for many is to create a space to live in harmony with the land and nature that is designed well to last in this environment.  Landscaped entrances to Escaleras properties welcome you home with swaying palms fronds and perennial colorful flower blooms. Most homes and condos in Escaleras are gated for your protection, although most properties are so ample that they do not feel at all confined. Escaleras estates often have additional spaces for development and plenty of room for parking and stretching out. Properties are designed with an emphasis on privacy and space for life to flourish. Whether you are stargazing from your tub on the balcony at night or spending your morning searching for whales breaching the coastal waters during calving season, Escaleras homes allow you to live close to nature while being safely tucked away in immaculate structures. 

From its picturesque perch in coveted Escaleras, the Jade House brilliantly blends naturally inspired materials with state-of-the-art amenities to guarantee the highest standard of tropical luxury living in Costa Rica. *Click the image to visit this Escaleras listing for sale.

Lifestyle in Escaleras

Escaleras is conveniently located between the coastal towns of Dominical and Uvita, making it centrally located while being out of the main bustle of tourists. Life in Escaleras is all about feeling like you are in a remote location that is actually just a short drive to everywhere you want to be. This is the ideal location from which to embrace doing what you love doing and living life to the fullest.  Living in these coastal mountains can feel like one of life’s greatest thrills. Unforgettable views span the stunning coastline and remind you that you are within easy reach of the fantastic beaches and exciting adventures in the area. Escaleras has the best of everything for avid adventurers and world travelers who want to surf, zip-line, river raft, hike, and search for wildlife. 4×4 vehicles open the door to driving up the windy, mountainside roads that lead to incredible precipices that overhang jaw-dropping coastal views from high up in the mountains, as well as "secret" river and waterfall spots that are off-the-beaten-path but well worth the journey. 

4x4 trails above Escaleras will lead you on wild adventures to some epic roadside waterfalls and lookout spots high in the mountains.[/caption] Mornings have never been so exquisite as day breaks through large windows in your Escaleras residence. Every day brings close encounters with nature and healthier indoor living. Architects strive to make the interior and exterior landscapes feel as one so that residents can feel immersed in the vibrant blues and greens in the day and cotton candy colored sunsets in the evening. Escaleras is home to some of the most high-end estates in the region and is therefore blessed with amenities like high-speed internet, robust security, and solid infrastructure. There are quality services available like concierge, spa and massage, and private chef catering. This is the home of modern luxury living in a dream come true location. Try upscale gourmet restaurants, gorgeous jungle-enveloped cafes, and shop at boutique stores carrying high-quality, Costa Rican made products all located within the community of Escaleras. Life here combines the comforts of modern, upscale living with the creative flow of the jungle. Outdoor spaces on Escaleras properties are perfect for yoga or bird-watching. It’s easy to reconnect with nature as toucans soar lazily overhead while you meander through courtyards surrounded by tropical gardens, where coconuts and bananas are almost always within reach.

Market Report on Properties in Escaleras

The way things are going in today’s Costa Rica real estate market, if you don’t buy that Escaleras estate you have been eyeing, someone else will. There are only so many homes and land for sale in this tiny Costa Rican town. There are currently 15 homes and lots for sale in Escaleras totaling around $22 million in value. The average price for a lot for sale in Escaleras is around $400,000 for just under 2 acres of land. The average home price for sale in Escaleras is about $1,580,000 and most homes are high-end luxury estates. So far in 2022, 17 homes and lots have sold in the area since the start of the year. Of those that sold, the average sale price was about $1,792,133 and properties sold for around 95% of asking price. While many purchase real estate in Escaleras to live in an exceptional location, others use their Escaleras residence primarily as a lucrative rental property. According to AirDNA, an average night’s stay on Airbnb for an Escaleras rental is around $372/night with many homes renting for over $1000 per night. There are many smaller homes for rent and some fantastic mansions that compare to the top luxury properties in the world. There may not be any five-star, all-inclusive resorts in the area but there are a number of super-luxury vacation home rentals available that are booked at a high occupancy rate throughout the year. Escaleras is the home of yoga retreat centers and boutique homestay experiences. Visitors choose Escaleras vacation home rentals because there are many concierge services in the area and property managers are ready to curate an entirely unique luxury vacation experience for their guests, including personal chefs, spa services, and boutique tours. This is the perfect destination for wedding celebrations and honeymoons because of the availability of numerous luxury multi-home properties in this spectacular region. Experienced local property management companies make rental income an easy and almost effortless pursuit.

This multi-home, luxury Dominical property features a prime location in the upscale Escaleras neighborhood, near Playa Dominical, that is great for rentals. The detailed wood interior makes for impressive listing photos. *Click the image to see more listing details.[/caption] People come from all over the world come to Escaleras to explore the wonders of this serene landscape. Escaleras’ luxury views and community amenities increase the profitability of vacation rentals that are turnkey income producers. Customers who rent properties in Escaleras return yearly to experience more of the magic, reliving in a new way each time, because why go somewhere else when you’ve found a place that speaks to the depths of your soul? This is the kind of place you visit and create memories that last a lifetime.

May 13, 2023 in Real Estate in Costa Rica, Discover Costa Rica, Discover Costa Ballena, Life in Costa Rica

Costa Rica luxury real estate and luxury homes in Costa Rica are hot in 2022. We are currently in the season when tropical tourism slows down but interest in Costa Rica continues to grow. People are re-evaluating their lives and those who can afford it are choosing to not wait for retirement and are following their dreams today. Owning luxury property in many international real estate markets has become a big tax burden, especially in key areas of the United States. Many of our luxury buyers are deciding to pack up their businesses and their lives, or at least scale back significantly, and they are moving to Costa Rica to live in the moment.  The luxury market is in high demand and a host of luxury developers are buying up the best ocean view properties and building in this region. Ocean view properties—both with existing homes and vacant lots—are very scarce in the non-luxury market in 2022. Buyers are gradually moving up the pricing ladder and high-end buyers are finding themselves in good company when looking at luxury ocean view homes in Dominical, Uvita, and Ojochal.  An increasing number of international property investors have found their way to Costa Rica and fallen in love with the culture, lifestyle, attitude, and luxury rental income. And as the scarcity in the non-luxury ocean view market grows, the interest in the luxury market expands with it.

Luxe Appeal

Costa Rica offers a layered experience that discerning people crave. This is the place for people who want it all: community and nature in harmony. Luxury home buyers are seeking out Costa Rica to be a refuge from their stressful lives. People who make the journey to this more remote destination are looking to leave their stressors behind and tackle life at their leisure. Costa Ballena’s tranquil environment allows for the space to do this.  Centered around the Marino Ballena National Park, Costa Ballena is a natural wonderland with vast areas of untouched wilderness among the high-end homes that dot the hillsides. Adventure and leisure co-exist peacefully in this exotic landscape that feels like home more quickly than we realize, drawing us in at the first gasp we emit in awe of the pristine beauty of nature that is found here. Costa Ballena is the gateway to the Osa Peninsula, which is known as the jewel of Costa Rica for its immaculate nature. This area is all about private, unique living in the remoteness of nature but with many if not all of the luxury amenities that discerning clientele seek. Dominical, Uvita, and Ojochal are the three main towns that make up this region and they are home to just a few thousand international expats and locals living together. This is the home of world-class surfing and rainforest-covered mountains that rise up from the ocean. It is peaceful, friendly, and far from crowded. And it is home to a new class of luxury property buyer who wants the option to live in this incredible scenery and lifestyle.

Eco-Luxury in Costa Rica

According to Architectural Digest, Costa Rican architects are moving towards sustainable designs with a contemporary, luxury twist. Costa Rica is the world’s happiest and greenest nation and it is often hailed as the birthplace of ecotourism. Pristine environments are fast becoming scarce in our developing world and rare experiences are what the world’s elites seek out. High-end residences in Costa Rica are being built to look great without damaging the environment. They are increasingly using recycled wood and stone, and some luxury homes are even built without cutting a single tree. Modern high-end architects in Costa Rica are becoming more plentiful and they bring with them the knowledge and resources to create the most unique and special refuge in this unique and special location. Building a luxury home in the middle of the jungle with an eco-ethic will likely include lots of glass, allowing for the sensation of being in the jungle without the jungle being in your home.  Modern mansions are fast becoming the norm with high-end investors who tend to like to include infinity-edge pools, outdoor kitchens, and floor-to-ceiling glass walls in their build for maximizing ocean views.  

Costa Rica Luxury Amenities

Lavish homes showcasing a union between luxury and nature are drawing international visitors who want access to both adventure and relaxation to want to buy their own luxury property in Costa Rica. With over 70% of the country preserved in protected lands and national forests, there is no shortage of natural wonders for visitors to enjoy, and increasingly wealthy travelers are bringing with them the expectation of luxury amenities. Luxury, adventure, and sustainability coexist in Costa Rica. People with high purchasing power want to experience and explore attractions and have the comforts and services that best suit their lifestyle. High-powered people like CEOs and celebrities love Costa Rica and come here to escape their busy city lives and to relax in nature. Recently, Reese Witherspoon visited a resort in the mountains near Perez Zeledon (the biggest city in the Southern Zone of Costa Rica).  "I feel like a new person!" Reese Witherspoon wrote on Instagram after enjoying a girls' trip to Hacienda AltaGracia in the rainforests of Costa Rica. Her visit included a hike through the rainforest, swimming in the river, a visit to the spa, and sampling some local coffee. Some of Witherspoon's celeb pals reminisced about their own recent Costa Rican getaways in the comments section. "We just went—the coffee!" wrote Adam Scott. "I'm still dreaming about it all," Karlie Kloss commented. Costa Ballena is home to numerous luxury resorts and vacation rentals, which bring with them a high-end selection of wellness amenities and local sites to explore. Properties here feature spacious patios and terraces, as well as sweeping window walls that welcome the beautiful nature indoors. This is a place to take a dip in a panoramic pool or take advantage of holistic treatments for some much-needed pampering. Luxury home owners in Costa Ballena can travel here on private flights, enjoy gastronomic services of the highest level, and obtain extraordinary and unique experiences, all while having access to the latest communication technologies. Visitors to Costa Ballena are often awestruck that such a place like this can exist so far from their everyday lives. No pictures or videos can prepare you and it’s something you have to experience for yourself. The sheer presence of such nature from the unobstructed panoramic views from luxury properties in Costa Ballena is overwhelming. The incredible panoramic views make you feel like you are on the edge of nature while still basking in the excesses of comfort that civilization affords us. It’s time to make your dream luxury home in Costa Rica a reality. Tranquility awaits you. You will thank yourself later.

May 13, 2023 in Tips for Buyers, Real Estate in Costa Rica, Tips for Sellers, Life in Costa Rica

It is tax season here in Costa Rica and we are fielding a lot of questions from our client base and others who look to us for information (want to join our weekly newsletter to stay current on news and properties in South Pacific Costa Rica, sign up here).

Annual Property Taxes In Costa Rica 

Taxes in Costa Rica are relatively low when compared to many other places around the world, including other expat havens. Simply put, the annual property tax is 0.25% in Costa Rica. However, there is something called a luxury property tax that can elevate the tax rate on your property if your property is valued over a certain amount. Global annual property taxes compared:

• Costa Rica: 0.25% - 0.8%
• Mexico: 0.1%
• Panama: 0.5% - 1%
• United States: 0.5% - 1.5%
• Canada: 0.25% - 1.3%
• Indonesia: 0.3%
• Spain: 0.4% - 1.16%

How to Pay Taxes in Costa Rica

Property taxes in Costa Rica are administered by the local municipal government where the property is located and can as such be paid locally. This can be paid annually, biannually, or every trimester. Every five years, a property owner in Costa Rica must file a Property Declaration Form with their local municipality declaring the value of their property, based on the purchase price or an appraisal. This value is reviewed by the municipality, which may audit the filing if they deem the value to be lower than their established parameters dictate within their database.

What do property taxes in Costa Rica pay for?

According to Costa Rica Law, the breakdown of how taxes are used is:

• 1% goes to pay the appraisal training that the National Revenue Department provides to the local Municipal governments.
• 3% goes to the National Property Registry
• 10% goes to the Board of Education for each regional Canton
• 10% is earmarked for Administrative expenses in collecting the tax.
• 76% which is the balance does directly to the Local Municipal government.

Luxury Property Tax in Costa Rica

The luxury property tax applies to houses, condos, and apartments with a construction value beyond $215,000 USD (as of 2021). This value is determined by the municipality, as described in the previous section. Depending on the declared value of your property’s construction, this tax rate can be anywhere between 0.25% and 0.55% (a tiered tax with seven rates). This tax is in addition to the annual property tax of 0.25%. This equates to roughly $250 to $500 per $100,000 of your declared property value.

How the assessed value is calculated can depend on who does the evaluation, which makes this tax quite nuanced and based on the specific characteristics of your property. Generally, the property will be modern or have an ocean view to be classified as a luxury property. The luxury home tax is paid in the first half of January for the previous year. The market value is reassessed every three years. Raw land with no legal dwellings, agricultural land, and commercial properties are exempt from this tax. This tax is officially called the Solidarity Tax for the Strengthening of Housing Programs in Costa Rica and goes towards subsidizing low-income housing in Costa Rica.

Annual Corporation Tax in Costa Rica

Since most expat homeowners in Costa Rica have their assets held in a Costa Rican corporation, the corporate tax is important to mention. Inactive corporations (those simply holding assets and not generating an income) pay a fixed annual rate of $120. Active corporations pay an annual fee of between $120 and $380, depending on generated income. To learn more about how Costa Rica real estate works, contact our expert team at info@osatropicalproperties, or sign up for our informative weekly newsletter below.

May 13, 2023 in Buying Process, Real Estate in Costa Rica, Tips for Buyers

Why are expats buying rental property in Costa Rica in 2021? Read on to find out about income, future planning, and the other reasons why Costa Rica rental properties are hot this year! A trend that we have seen in recent years is the rise of the income property. More often than not, Costa Rica property buyers are looking for something they can use for rentals. More than 50% of the buyers who have come through our real estate office this year are buying rental properties in Costa Rica that they can use for at least part of the year, or possibly live on the property and have rental cabins. Is this the right choice for you? Here is a list of questions that our rental property buyers ask us all the time.

“Can expats own property in Costa Rica?”

Can Americans and other foreigners legally buy property in Costa Rica? Absolutely! The great part about Costa Rica is that foreigners and locals have the same ownership rights when buying property. Foreigners can purchase property on a tourist visa without the need for residency or citizenship. Any foreigner, resident, or non-resident has the same rights as a citizen in Costa Rica, except for voting rights in presidential and municipal elections and can, therefore, purchase and own Costa Rica real estate legally. However, the one exception is that a foreigner can only own 49% shares in a property in a Maritime Zone (within 200 meters of the high tide line).

“Who else is buying rental property in Costa Rica?”

In our experience of working with Costa Rica real estate buyers in 2021, this year, people are looking for a back-up plan. They have been thinking for some time about getting out of their current scenario of stress and overconsumption, and the Covid pandemic has presented a few new opportunities and reasons to want to branch out somewhere less crowded and more beautiful.  These people may be close to retirement age but the majority of rental investors in Costa Rica are still working and raising families. They are looking to secure a safe investment and a possible place to live outside of their country while they keep working. Those who are able to work remotely tend to look for properties with multiple housing options so that they can live on the premises and rent out the vacant spaces. Life coaches, yoga instructors and practitioners of all types of therapeutic modalities are finding that Costa Rica provides powerful settings to host healing retreats. Many have chosen properties where they can grow food and invite guests into a beautifully organic living experience. There may not yet be any large, all-inclusive hotels in our South Pacific region of Costa Rica but there are an increasing number of investor groups who are scouting our region for income property opportunities to meet the growing demand.

“Where do most Americans buy rental property in Costa Rica?”

Expats generally want to be near other expats. This is not the case for everyone because there is a significant population of foreigners who move to Costa Rica to get away from everyone and enjoy living a simple life in a small Tico community. However, the majority of people want to live near people who are familiar to them in language and values. Towns that are populated with expats will attract more products and services that cater to expats, with international products, cuisines, and high-end services. Coastal communities like the Costa Ballena towns of Dominical, Uvita, and Ojochal are popular with expats who love nature, adventure, and peaceful living. There is not much traffic here and life is generally slower, which brings in a growing amount of local and international tourism from people looking for that type of escape into nature.

“Who rents property in Costa Rica?”

Costa Rica is frequently ranked in the top 10 fastest growing tourism markets for a variety of reasons that include politics, environment, ease of travel, wildlife, and friendly people. All types of people are looking to spend time in this enlivening part of the world whose message of ‘pura vida’ (pure life) draws people in like magic.  Digital nomads are a growing group of visitors to Costa Rica. The country’s government has recently passed a new law that allows Digital nomads to stay in Costa Rica for up to two years if they earn a foreign income of at least $3000 USD per month. Young entrepreneurs and families love this part of Costa Rica because the individualized rental opportunities have many value adds that make renting here unique. Maybe it’s a yoga pavilion, a five-star ocean view from bed, or a private waterfall on the property - these extras wow guests into wanting to stay as long as possible.

“Is owning rental property in Costa Rica actually profitable?”

When people first start thinking about buying property in Costa Rica, they will typically book a trip to visit. Oftentimes, people will visit more than once before committing to a location and a property. And those who have been visiting in recent years will note that rental prices in Ballena have gone up and rental availability is more and more scarce.  Rental properties in Costa Rica can and do generate a net income but it is important to note that the return on investment doesn't typically happen right away. Unless you are buying a turnkey rental property at a premium price, you can expect to spend money on renovating to your standards and taste as well as upgrading the property’s amenities to current rental standards.

“How much profit can I earn by owning a rental property in Costa Rica?”

We are in a strange time in the rentals market in Costa Rica because at a point in the year when it would normally be quiet, most rental homes in Costa Ballena are filled. They are, however, filled with long term tenants, most of whom are looking to stay for a while. Recent buyers who have purchased homes in Costa Rica are making 0.5% to 0.9% monthly return (6%-10% annual return on investment) on their purchase price at this time. One home recently bought for $450,000 is renting for $4000 per month to long-term renters. Another home purchased for $285,000 is charging $1500 to long-term renters. These rentals would normally cater towards short-term renters but because the pandemic has put a damper on international travel, rental home owners are not counting on intermittent traffic and would rather secure long-term renters for a lesser monthly income. When borders finally open, many rental home owners are likely to switch back to focusing on short-term renters. In recent years, rental property owners have netted an average return from long-term rentals. These figures can easily climb as high 8 – 10% ROI or more in the premium short-term rentals market. 

“How much does it cost to buy a house in Costa Rica?”

Although there are a few ambitious property buyers who want to build their dream property, most foreigners wanting an income property in Costa Rica are looking to buy something that they can use right away. A lot of homes on the market in the $200,000 - $400,000 USD price bracket will be looking at some renovations but you can still find ocean view homes with a pool in this price range if you are willing to put in some elbow grease. Simple cabina properties without too many frills can also be found in that bracket. When you move into the $400,000 - $600,000 USD bracket, you will find the conventional family vacation rentals that have a decent view, large and airy rooms, and a nice terrace with a pool. These types of homes are the bread and butter of our market today. From $600,000 USD and up, you start to get into the luxury property market. These are the fully-equipped homes with lavish amenities like a spa bath, infinity pool, gorgeous floral landscaping, and ocean views from every room. As you scale up the price ladder, the finishes become more refined, the spaces more grand, and the sky's the limit for how much luxury you can pack into a Costa Rica property. Most turnkey hotel properties start at over $1 million USD in Costa Ballena.

“What are the common expenses when owning a rental in Costa Rica?”

Vacation rentals in Costa Rica come with many common expenditures that are important to take into consideration when investing.

• • Maintenance: General property upkeep is important in a jungle environment where plants and water are significant forces on construction.
  • Gardening and landscaping: A bi-monthly expense that includes mowing, trimming, clearing leaves and other garden waste.
  • Pool maintenance: Cleaning the pool as well as paying higher electricity and water bills to run the pool pump regularly.
  • Cleaning: Regular maid service.
  • Utilities
  • Guest amenities
  • Insurance

“Do expats pay taxes in Costa Rica?”

When it comes to Costa Rica taxes for Expats, both residents and non-residents are subject to taxation on the income they earn within the country. This means that any rental income you earn from a rental property in Costa Rica is subject to a 13% VAT tax. You will also have to declare your income in Costa Rica to the IRS or any other foreign revenue body that you are subject to. Income from foreign sources is not subject to Costa Rican taxes. Annual taxation on a property in Costa Rica includes the not high payment of property tax which is calculated at only 0.025% of property value. To learn more about taxes in Costa Rica for U.S. citizens, click here.

“What regular tasks need to be done when owning a rental property in Costa Rica?”

Owners will quickly discover there are two roles that need to be filled—the property manager and the rental manager. Often, they are one in the same. The property manager deals with daily life on-site. They coordinate with the cleaning crew, the gardener, the pool service, the maintenance man, and everything else house related and local. The rental manager deals with the online listing across various vacation rental websites, the inquiries (the most important component), booking reservations, receiving funds, and potentially offering luxury services like organizing a personal chef and a masseuse. They may also arrange shuttle services and book excursions and tours. Many semi-retired owners or remote workers manage their own rentals in Costa Rica. It is easy to live comfortably on a Costa Ballena property and share it with renters and many people opt for this style of living to earn additional income.

“Should I buy a condo in Costa Rica or a house to use as a rental?”

Those who choose to own a condo over a private residence in Costa Rica are looking for ease of ownership. They want to minimize maintenance costs and to have increased security. Many renters enjoy staying in a condo; however, this type of property is less popular with buyers who envision themselves eventually moving into the property. Condos simply are not representative of what makes life in Costa Rica extra special, which is primarily about living surrounded by nature.

“What are my options for residency if I buy a rental property in Costa Rica?”

Costa Rica offers a program that grants residency through overseas investment, whether or not you plan to live here full-time. With an investment of at least $150,000 in local assets (this number decreased from $200,000 in 2021), foreigners can easily qualify for residency. This investor status also allows you to import up to two cars and a one-time shipment of household goods tax free.

“Can I get financing to buy property in Costa Rica?”

The short answer is no. The long answer is yes, but it’s not as straightforward as people are used to. Savvy investors will use a cash-out refinance, which involves pulling money from other investments they own to buy property in Costa Rica property. Others choose to use self-directed IRAs. These options are not available to everyone and require a large amount of preparation but they are successful.

“Is it hard to buy and own property in Costa Rica?”

You may be anxious about not knowing the local culture and the language. But when you work with a great real estate team, you can expect that the process will be smooth and easy and that all of the most challenging parts will be explained thoroughly by your realtor who will guide you through the entire process.

“Is investing in Costa Rica vacation property a good idea?” 

Buying property in Costa Rica is not the best kind of investment for highly leveraged and cash poor buyers. However, it can be a very good long and medium term investment for a more experienced and economically-stable buyer looking for rental income, long term price appreciation, and a lovely tropical family getaway or retirement home to sweeten the deal.  Costa Rica is a very credit poor country and real estate therefore favors cash deals. Cash buyers with patience have access to rewarding investment opportunities with potentially high yields and value appreciation through renovation and remodeling.

“What are the pros and cons of owning rental property in Costa Rica?”

Pros

• Living in one of the most biodiverse countries in the world
• Owning property in a less expensive place taking the pressure off future living expenses
• Spending more time abroad
• International diversification for your investment portfolio
• Ticking boxes on wish list
• Good return on investment
• Interest in Costa Ballena real estate market is still growing

Cons

• Less privacy
• More wear and tear on the property
• Can't enjoy the property whenever you want

May 12, 2023 in Discover Costa Ballena, Discover Costa Rica, Tips for Buyers, Real Estate in Costa Rica

Mexico used to be the favored place for Americans to expatriate. It was the 1980s, the peso was significantly devalued, and the cost of living was cheap.

May 12, 2023

Luxury homes in Costa Rica are all about enjoying the very best environment for relaxing with family and friends in truly magnificent surroundings. Costa Rica is one of the most attractive Latin American countries in terms of security and quality of life and this country has much to offer in terms of variety and prestige. Costa Rica luxury homes feature intriguing architecture with eloquent finishes that are accompanied by captivating views of rolling emerald mountains, thick green valleys and the royal blue ocean. 

In recent years, Costa Rica has become one of the most popular places in the Americas among people looking to buy luxury real estate as a second home or vacation getaway. Luxury property prices continue to rise and the top homes and condos in Costa Rica are becoming ever more extravagant. Luxury developers in Costa Rica are meeting the expectations of the discerning millionaires who come looking for their eden.

Luxury real estate in Costa Rica is widely available in select areas across the entire country. San José, Escazú, Santa Ana, Curridabat, Guanacaste, Costa Ballena and the Caribbean are all popular areas for luxury properties in Costa Rica. The Costa Ballena in particular offers the perfect intersection of ambiance, services and leisure for a high quality lifestyle. In this region of the South Pacific coast, it is still possible to invest in quality agricultural land for development that you cannot find as abundantly in other luxury communities around Costa Rica. 

Why Buyers Choose Luxury Homes Costa Rica

It is no surprise that after sailing the magnificent eastern shores on his final voyage in 1502, Christopher Columbus referred to this magnificent landscape as la costa rica, or “rich coast.” Costa Rica possesses an innate wealth that extends far beyond its neighbors. This is a land filled with rainforests, rivers, lakes, waterfalls, volcanoes and some of the world’s best beaches. 

Regardless of economic climate, luxury real estate in Costa Rica continues to be built and sold every year. While millionaires tend to be just as careful and conservative as everyone else in difficult times, most will make a huge exception when it comes to their home. Buyers of luxury homes in Costa Rica can find a large choice of properties that live up to the standards of the most exclusive addresses in the United States in a more relaxed and pristine environment. When money is no object, architects and designers of luxury real estate in Costa Rica create outstanding works of art in the most stunning settings.

Costa Rica’s real estate investment environment offers tremendous opportunities for those looking to buy. While small in size, Costa Rica is incredibly diverse in regards to ecosystems, climate, infrastructure, amenities and lifestyle. This is a country whose people are consistently ranked as the happiest on the planet. Those who choose to live here enjoy a warm tropical climate and easy direct flights. This is truly a rich coast that is filled with opportunities for an enjoyable life.

Luxury Properties in the Costa Ballena

The Costa Ballena region of Costa Rica is a place where you can stay for a little or a lifetime. High-end buyers choose this region for their vacation home if they want to be in a very private setting, away from the public eye and noisy roads. Location is the added value in luxury Costa Ballena real estate. Not only can you live in what feels like a remote corner of the world. You can also be minutes away from gourmet restaurants, banks, stores and supermarkets and some of the most magical beaches in Costa Rica. 

Luxury homes in the Costa Ballena are built to create experiences and memories. Imagine starting the day with a super fresh organic orange juice from the garden to accompany your breakfast. You walk with the dogs around organic gardens and collect some fruits, veggies and flowers. You are in a clean environment, surrounded by evergreen forest. You take a deep inhale of fresh air, feel the breeze on your face and listen to the waves crashing against the rocks. 

In Costa Rica, high end homes are often an expression of our love for nature. Terraces, decks, and balconies are essential for taking advantage of the indoor/outdoor lifestyle. These areas in Costa Rica’s luxury homes will often capture views of the lush Talamanca mountain range, colorful sunsets over the Pacific Ocean and the famous Whale’s Tail at Marino Ballena National Park. 

Well maintained gravel roads lead upwards to private concrete roads in Costa Ballena luxury developments. They have manned gates with full security features, underground electricity, and beautiful tropical gardens. And the luxury homes you find within will be anything but ordinary. 

Within the Costa Ballena, there are several different environments. Rainforest, beaches, mangroves and the largest coral reef on the Pacific Coast of Central America are some of the natural wonders that draw thousands of high-end visitors each year. Tucked along the green mountains in the South Pacific are the luxury developments of the Costa Ballena. Gorgeous estates, eco-lodges, vacation rentals and upscale hotels are hidden from plain view. Strips of soft sandy beaches are home to a few high-end hotels and eco-friendly resorts. 

The expat population here continues to grow steadily each year, creating a strong and vibrant international community. Even so, this region is protected by law from over-development. It is one of the few unspoiled places left that is also fairly accessible from an international airport. As a result, luxury properties in the South Pacific are a rare commodity that will only continue to grow in buyers. 

What to Expect From A Luxury Home Costa Rica

For investors interested in tourism or a second house, the South Pacific coast has many wise choices. Costa Ballena’s luxury real estate market begins at around $750,000 USD in this region’s most popular and beautiful areas. Turnkey luxury villas can be found in both colonial and modern style. 

Luxury home prices are founded in expensive finishes such as imported marble and exotic wood and stone, as well as the very latest technology systems installed for your complete security and comfort. In our exclusive beach destination, you can expect to pay between $1000 to $10,000 per square meter of finished property for a true luxury mansion. Land prices in some of the most sought-after gated compounds are around $200 to $1000 per square meter. And both sets of prices depend largely on location.

Costa Rica is one of the most expensive luxury rental markets in Latin America. Spectacular beachfront mansions and opulent mountain estates can be rented for as high as $2,000 per day. Hoteliers in our region have serious competition from the growing market of privately-owned luxury homes for their added privacy in exceptional settings.

When it comes to property taxes, Costa Rica is comparatively low to luxury home taxes in Europe or North America. As an example, a luxury home in Costa Rica worth around $3,000,000 can expect to pay around $2200 for annual property tax and $6,800 for annual luxury tax.

Trust Our Team Of Luxury Real Estate Experts

Our goal at Osa Tropical Properties is to ensure that our luxury buyers make the finest acquisitions possible. Finding a great property is just a small part of the process when investing in Costa Rica. We place our clients and their luxury properties into expert hands when it comes to pricing, placement and marketing.

Our luxury real estate professionals are committed to maintaining the highest level of customer service. We offer the confidentiality that buyers are looking for and we get to know the unlisted exclusive luxury properties to share with our qualified buyers. We are constantly updating our inventory database to bring you only the most unique, exclusive and up-to-date luxury real estate in the Costa Ballena.

"We could not have had a better agent for our search. We put Rebecca Rowntree through her paces and she never got tired of our questions or evolving requirements. There is so much to see there that it takes someone with patience, fortitude and most importantly – insight and knowledge – to get the job done and she did it with a 5 star rating on all fronts. Thank you again! We’ll see you there soon!"

Mike and Elisa S.

May 11, 2023 in Buying Process, Discover Costa Ballena, Tips for Buyers

In this week's article, we want to share with you some common questions that we get asked about life in Costa Rica by our clients who have just begun their property search. We love getting asked these questions because we get to flex our knowledge a little and also share the things that we enjoy most about living in the Costa Ballena. This is a really special part of the world thanks to our vibrant local communities and culture, plus the spectacular show that nature puts on for us every day. And as always, let us know if you have any other questions that you might like to have answered in the comments section below.

What are houses like in Costa Ballena?

With a large population of expats migrating here from around the world for many years, there are a variety of styles that architects are able to emulate in this region. As the number of expats grows, the quality of materials and the caliber of talent among the architects in this region grows, too. There are many American and European style homes, with a large number of modern, open-concept, Bali-influenced homes being built at the moment. Good, solid construction can be expected, in spite of the regular tectonic activity. The best options for a solid home is concrete block construction, but concrete sheet and stud is also popular and lasts well.

Most properties are mountainside and can be ocean view, mountain view, tucked in the jungle, or all of the above. The better the view, the higher the price will be. Many properties are nicely manicured, with lovely floral gardens and numerous fruit trees. Properties can be very private and remote or nearby to neighbors. This all depends on your preferences.

What are the different seasons like?

Many people want to know what it’s like to live here in the rainy or green season (May to November). Most of us who live here full-time love the rainy season. It can be a bit much at times, though, like when you want to dry something that doesn’t fit in the dryer. But the rainy or green season is special because it brings out the vibrance in jungle life. Flowers bloom and turn to fruit. Baby animals are born. And the fruiting trees bring more animals to our yards if we are cultivating them.

The dry and high season is from December to April. It is hot, clear and breezy basically every day, making it a great time of year for construction and maintenance to take place. Tourists prefer this time of year because a) they are getting away from cold weather and b) they can pre-book tours and expect that it will most likely be a nice day.

What is the internet like?

Fiber optic cable is increasingly available in our Costa Ballena region. With it, many homes and businesses are achieving speeds of 10-20 mbps download speeds with some of the newest providers offering 20+ mbps, and 4-6 mbps upload. Where there is no fiber optic cable, most providers offer 4-10 mbps download speeds, which tends to be enough for video streaming, video conferencing and other things that the majority of people expect to do online for work or fun.

Are there a lot of power outages?

Before we started burying power lines in this region, there were many more power outages due to animals getting into the transformers or falling branches taking out power lines. There are still many suspended power lines, but Ice, Costa Rica’s power company, has vastly improved their maintenance and response time for the majority of issues that arise. We have not had any remarkable power outages lasting longer than a couple of hours, and most last only a few seconds.

How much can I buy ocean view real estate for?

Ocean view real estate is a depleting commodity. New luxury developments being built are pushed further up the mountain with a further back view than many existing ocean view homes that tend to be closer to the coast. As a result, there are very few ocean view homes under $500k left on the market. Ocean view lots in the Costa Ballena tend to begin at the $100k mark, with some small properties available for less.

How much can I earn by renting my property while I wait for retirement?

The rental market in the Costa Ballena region is hot. There are hundreds of vacation rentals on the market and it appears to be the preferred way to experience this region of Costa Rica. It is almost a necessity for tourists to rent cars when traveling this area and this type of trip is more conducive to renting a whole home rather than staying at a hotel. As such, the return on investment for a typical VRBO rental is around 6% with luxury rentals often taking in more. There are a number of homes that rent for more than $500 per night in this region of Costa Rica.

How do people move their things to Costa Rica?

International moving companies are a growing business in Costa Rica with good reviews from customers. Many people choose to ship their household goods and vehicles to Costa Rica by container ship, especially if they have recently sold their family home in their country of origin. Keep in mind that there are many diverse local options for purchasing most things you could want for your home. Often times, locally made products last better in this environment than things that were made for an entirely different climate.

How much does it cost to live here?

The cost of living in Costa Rica is often quoted as higher than many of its neighboring nations.  considering the stunning, protected environment here, the quality of social care, and the stable, democratic government—added to the fact that Costa Rica is far less expensive to live on the whole than the places that expats come from—it’s easy to understand why Costa Rica is the third most expat populated nation in Latin America.

May 11, 2023 in Tips for Buyers, Buying Process, Real Estate in Costa Rica

Been thinking about buying a luxury property in Costa Rica but not yet ready to retire? Luxury rentals in this region are hot, especially in the high season. You don’t have to move in full time yet. While you continue working and raising the next generation of your family, your Costa Rica home can work for you.

Some of our readers are ready to invest in Costa Rica’s luxury real estate market in the Costa Ballena. They either have real estate assets in another market that they want to liquidate to lessen their property tax burden; they already have cash ready to invest; or they have IRAs that they want to diversify. These buyers are not yet ready to retire. Even though they’ve been to Costa Rica a number of times and have fallen in love with the South Pacific, they are not sure if they should or shouldn’t take the plunge.

Today’s question that we want to answer is one that is burning on a lot of minds recently: is now the time to invest in a luxury property in Costa Rica? 

High-end investments in Costa Rica

Here’s what we can tell you with confidence: ocean view listings—both existing homes and vacant lots—are very scarce in the non-luxury market. This has boosted the price on a few listings in that market and buyers are gradually moving up the pricing ladder. As a result, the luxury market has begun a small incline in demand as well, including a host of luxury developers beginning new projects in this region.

Our office has seen a rise in buyers shopping for homes between $500k-$800k, sometimes going above the million dollar mark. Our region is experiencing growth in the luxury real estate market coinciding with international financial indices growing and with Costa Rica's environmental acclaim growing, too. An increasing number of international property investors have found their way to Costa Rica and fallen in love with the culture, lifestyle, attitude, and the luxury rental income. And as the scarcity in the non-luxury ocean view market grows, the interest in the luxury market expands with it.

Diversifying into luxury Costa Rican real estate

Owning luxury property in many international real estate markets has become a big tax burden, especially in key areas of the United States. Many of our luxury buyers are deciding to pack up their businesses and their lives, or at least scaling back significantly, and moving to Costa Rica. Here, they can live a luxury lifestyle for far less and their home is much less of a property tax burden, paying a property tax of only 0.25% of the value of the home annually, and 0.25% luxury tax if it applies to their property. That is a maximum of 0.5% of the property value annually in taxes.

And any rental property in Costa Rica is IRA eligible as long as you are not intending on using the property for your own purposes. A good possibility to circumvent this stipulation is to purchase a property with a guest house that can be subdivided, meaning that you can purchase the guest house with your own finances while you use your IRA to purchase the main home as a rental.

Luxury rental performance in Costa Ballena

Out of hundreds of rental homes, there are about 80 luxury rentals active in the Costa Ballena on the popular rental home site, VRBO. The luxury rental home rate is at least $300/night with more than half of the luxury homes renting for over $500/night in the high season.

Local property management expert, Christine Schiferl, from Jaguar Property Management, says that the Costa Ballena region has great rental occupancy rates. According to Christine, as a rule of thumb for Costa Rica vacation rental properties, you can expect an annual net return of 4%-6% on your investment. Don't forget this income is incremental to the enjoyment you receive during your own personal use of the property! On average, a good rental property will rent about 65% of the year.

At least half of Costa Ballena’s luxury rental homes on VRBO are booked in April, at the tail end of the high-season (December-April). This trend continues as I search through the months of the rainy season. It appears that luxury renters don’t mind coming for a week in June if that’s when they can take a holiday, even if it means a bit of rain in the afternoon. Those who are a bit more savvy when it comes to the jungle know that the rainy season is a great time to get your fill of fresh fruits straight from the trees and plenty more animal sightings in honor of the fruit.

Depending on the features of the property, the average rental home in the Costa Ballena can expect occupancy rates of:

• 75 – 100% December – April
• 25 – 50% May – July
• 10 – 25% August – September, and November
• 0 – 10% October (a great time to schedule annual maintenance)

A recent luxury property sold through our Osa Tropical Properties office currently makes around $90k per year, which is a 6.6% return on investment. The new owners even plan to increase the nightly rental rate due to great occupancy. This four bedroom luxury rental is out of a “major” town center but it is luxuriously situated in the jungle with an incredible view of the dynamic Playa Ballena coast. Currently, they rent for $360/night in the low season and $450/night in the high season.

Elite expectations

When it comes to luxury, people expect the best quality experiences. Incredible ocean and/or mountain views, beautiful floral landscaping, and modern or artistic contemporary design is the preferred aesthetic for clients in this region. Luxury renters want to see high-quality brands in the fixtures and appliances, and they want hand-crafted, high-end finishes in the furniture and details. Local stores like Naluri Collection in Uvita and Royal Palm Interiors provide special options for decor, with much more available around the country.

Media and entertainment spaces must be plentiful and well-stocked with fast internet speeds, and the outdoor area needs a gorgeous pool with shaded lounge spaces. Costa Rica is all about living outdoors and taking in the incredible natural sights and sounds. And when it comes to luxury, nature must also be experienced in style and comfort.

You might not personally need to live as lavishly. However, if you want to attract luxury renters, you must be prepared to cater to their tropical fantasies. The best way to do this is to hire a a great property management team who can give your guests the full package experience beyond just the comforts of your luxury rental home. (Contact us if you'd like help finding a trustworthy property manager for your Costa Ballena home and we'll be happy to help.)

Costa Rica's elite revelers

Looking for a bigger incentive to invest in a rental luxury property in Costa Rica? Celebrities love to vacation in Costa Rica! Most recently, these Pacific shores have seen the likes of Demi Moore, Sharon Stone, Catherine Zeta Jones and Michael Douglas, Selena Gomez, George Clooney, Rafa Nadal, Leonardo DiCaprio, Mel Gibson, Usher, Miley Cyrus, Beyoncé and Jay-Z, Chris Hemsworth, Matt Damon, Lady Gaga, Giselle Bundchen and Tom Brady, Bono, the Kardashians, Keylor Navas, Rafael Nadal, and Jamie Oliver.