The Costa Rica Real Estate Market is Heating Up

October 23, 2014

Costa Rica is quickly becoming one of the newest hot spots for real estate investment and for many good reasons. The country has been nicknamed the “Switzerland of South America” thanks to its stable government and political scene. If year round beach weather and friendly locals aren’t enough of a reason to invest in Costa Rica real estate, we have compiled a few reasons that might make you give Costa Rica a second look.

Democratic and Stable Government

Costa Rica benefits from a stable democratic government and does not have a military, only local police forces and a Coast Guard. Their government is very similar to the United States’ with a constitution and checks and balances in place. The “army free” environment attracts clientele such as retirees and people that are searching for a more peaceful lifestyle. As a result, Costa Rica homes for sale make solid investments. No need to worry about instability here.

No Capital Gains Tax under Corporations

Unlike other countries, you do not have to establish citizenship or residency to start a corporation in Costa Rica. Therefore, many people who invest in Costa Rica real estate do so under corporations and then they are exempt from paying any capital gains tax, which is very important as the market is steadily increasing in price due to its popularity.

One of the “Greenest” Countries in the World

Costa Rica was ranked as one of the top 10 greenest countries in the world in 2013. Costa Rica has made great efforts to mostly use renewable energy sources to power day-to-day operations and has set a goal to become carbon neutral in year 2021. The country’s massive reforestation efforts have also paid off with the planting of nearly 5 million new trees in the past 3-5 years.

Tourism Market on the Rise

Tourism is the fastest-growing economic sector for Costa Rica and currently accounts for 12.5% of the nation’s GDP. As a result, the rental market in Costa Rica has seen an increase to accommodate all of the tourists needing places to stay. This is good news for investors who have properties and plan on renting them.