Let me start off by saying that there are two reasons why anyone buys a property anywhere in the world: to live on the property and/or to invest in the property by selling it at some point in the future, when they see the value of the property increasing over time. Let’s face it, the investment opportunities in the States are narrowing quite rapidly with equities, bonds, and real estate all in a spiral going the wrong direction. During this same time period, Costa Rica land investment growth has been double digits. It is not a hard equation to see, and with the Boomers seeking a place to retire with less money than they thought they would have, the influx is fairly obvious.
The real estate market in Costa Rica is thriving, and over the past years, the country has become more and more popular as a tourist destination. Costa Rica ranks fourth as the most ideal environment for foreign investment worldwide, and investors all over the world come here to capitalize on Costa Rica’s cultural and economic prosperity.
Americans, Canadians, and Europeans are wise enough to come here to invest, and there are plenty of reasons for them to do so. Costa Rica offers foreigners a real estate market that is more attractive and cheaper than that of the U.S. Land and home prices here are 20-25% cheaper than those in the U.S. The cost of property maintenance is very low, making buying and renting out properties a sound and profitable investment. As over 50,000 U.S. citizens live here, U.S. property brokers can arrange finances for Costa Rica real estate investment. What’s more, the cost of living in Costa Rica is much lower than that in the U.S., Canada, or most European countries.
Costa Rica is an ideal environment for business and real estate investment. There are no foreign exchange controls and no restrictions on capital or profit repatriation. Foreigners face no restrictions on owning a business or land in Costa Rica, and they enjoy equal property rights as local citizens. Business taxation and property taxation rates are very low. The Costa Rica real estate market is based on the U.S. dollar, and forming a company here is easy and inexpensive. Plus, investments in the business sector are expected to increase, as Costa Rica has recently agreed to the Central American Free Trade Agreement (CAFTA).
Unlike all other countries in Latin America, Costa Rica enjoys the greatest political, social, and economic stability. Costa Rica is a safe and peaceful nation that has been a democracy since 1949. The country has no standing army, and it was the first country in the world to constitutionally abolish its army.
Costa Rica’s compulsory free education system goes way back to 1869, and the country now has one of the highest literacy rates in the world (95%), a highly qualified workforce, and a strong and growing middle class. There are computer labs in most of the elementary schools and all of the secondary schools, and there are 67 university campuses and 81 technical high schools.
In Costa Rica, you will find excellent communication services (landline and cell phones and faxes) and high-speed Internet. In El Cajon de Grecia, where we live, we have a stable Internet connection as well as American television.
The country has a great transportation infrastructure. Travel plans from and to Costa Rica are simple. Daily international, 3-hour flights to the U.S. and an extensive road system are available.