2CRRE Magazine | Mar-Apr 2023

What Transaction Costs Can I Expect When Buying

Fernández | Alonso Aguilar Lead Designer Copywriter

Todd & Scott Cutter Brokers

Laura Duran

Marketing Director

Marcela

WHAT TRANSACTION COSTS CAN I EXPECT WHEN BUYING PROPERTY IN COSTA RICA?

When purchasing property, it is important to factor in the transaction costs that you will need to cover as the buyer. It is standard practice here in Costa Rica for the Seller to pay the real estate commission and the Buyer to pay for the closing costs.

Below is a list of the costs that the buyer will be expected to cover and which must be factored in to the overall budget for the property. Approximately closing costs for a buyer will be about 4% of the purchase price. So if you are purchasing a house for $400,000, your transfer tax and notarizatino fees will be approximately $16,000.

TRANSACTION COSTS:

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.

6. Escrow fees - these depend on the purchase value but can be anywhere from $400 to $1,200.

7. Set up of 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.

Please feel free to contact us if you would like more information on the purchasing process!

TASTEFULLY DESIGNED TROPICAL MODERN HOME | Nosara

Villa Esperanza is a Fantastic luxury tropical home that stands out in Nosara for its modern and tasteful design, the perfect balance between wood and glass, between modern and cozy A home with open spaces, plenty of natural light and custom details that make it a special space that incites all your senses

1,000 m2 lot | 410 m2 | 4 beds | 3,5 baths | $2,950,000

FAMILY HOME IN GATED COMMUNITY

This development’s location is ideal, just minutes away from the best stores in the area, you can enjoy a thriving nightlife, restaurants, and great access to the Liberia International Airport which is only an hour away

Senderos, Tamarindo | 1,520 m2 lot | 249 m2 | 3 beds | 4 baths | $1,300,000

CASA FLOR | Escaleras, Dominical

The Escaleras mountainside is considered the nicest in the entire Southern Zone, with beautiful estate properties, stunning views, easy access to both Dominical & Uvita

1 35 ha lot | 340 m2 | 3 beds | 3 baths | $650,000

NEW HOME WITH EXQUISITE VIEWS

| Playa Negra, Tamarindo

5,700 m2 lot | 158 m2 | 3 beds | 2 baths | $495,000

The most stunning views of the verdant valley and a peek-a-boo ocean vista can be found at Casa Arcoiris, a New Home With Exquisite Views of Playa Negra

Daniel Buitrago, a local architect who founded Buitrago Architecture, gave meticulous consideration to the design of Casa Arcoiris He’s responsible for the successful design and construction of a number of homes in Finca Los Pargos and other regions around Tamarindo

LAGUNAS PARADISE MAIN & GUEST HOUSE

LAND FOR DEVELOPMENT

GOING NATURAL: DESIGN TRENDS FOR 2023

Interior design as an area of general interest really took off in 2020 with various simultaneous trends. First, there was Marie Kondo’s moment in the spotlight, where minimalism and austerity became synonymous with wellness and self-care.

These last two elements grew particularly important with the advent of the Covid-19 pandemic a couple months later, with essentially the whole world being stuck inside their living quarters, and finally facing the ecosystem they’d built around them throughout the years

After the well-trodden paths of minimalism and cottage core design blew up in social media, new trends started to emerge, now embracing a more conceptual undertaking and dialoguing with the current global situation in social, cultural and even political terms That’s why design and decoration in 2023 seem to be leaning towards the naturally-inspired

Sustainability and environmentalism have been some of the most pressing concerns for the last couple decades, and the growth of remote work has made many really look for a way out of the hassle of urbanity and concrete spaces With that in mind, 2023 design’s theming can be understood as an ode to nature

How this is represented is through the use of organic and rawer forms, materials like wood and vegetal prints, and a general aim for authenticity of textures These aesthetics, however, will also continue to be embraced by the reign of minimalism and functionality, which help showcase and exalt even further the richness and vibrancy of a nature-inspired decoration, and vividness of the raw materials and texture’s artisan feel

Between the growth of raw luxury and the stranglehold of minimalist design, natural decoration seems like an intuitive trend to represent 2023’s overall vision in terms of urban development and design So start thinking green, and spark a little life to your living spaces by coming closer to Mother Earth!

UNIQUE RAW LUXURY HOME

Despite its air of privacy, Unique Raw Luxury Home in Tamarindo is within walking distance of everything Tamarindo has to offer

This house, called Casa Agua, embodies the word “raw” perfectly It is surrounded by nature both inside and out, and it has furnished wood and concrete in its natural state, making the most out of Costa Rica’s opulent environment

370 m2 | 4 beds | 4,5 baths | $1,250,000

JUNGLE VISTA | MANUEL ANTONIO

Jungle Vista offers a very well designed layout focusing on the jungle views, with an alluring end of the road feel

OCEAN & SUNSET VIEW CONDO #4A

This is one of 114 units part of the larger Del Mar community Known as one of the most sought-after communities of Los Sueños, Del Mar has 3 pools and 2 jacuzzis, as well as a communal BBQ area, a lap pool, a large indoor gym

Del Mar Condos, Los Sueños | 144 m2 | 3 beds | 2 baths | $665,000

Soothing ocean breezes, ideal sunny afternoons, immersive tropical landscapes...

PANORAMIC VIEWS EXCLUSIVE HOME

The private community of Alazan is a gated development located approximately 40 minutes from Quepos and the world class Marina Pez Vela to the South, and Jacó and its always engaging nightlife about the same distance to the North

Manuel Antonio, Parrita | 1,35 ha land | 2 beds | 3 baths | $259,000

GUAYOYO COFFEE HOUSE

The business is being sold with the entire inventory, state-of-the-art kitchen equipment, top of the line coffee machines, marketing material, and website

GREAT FLAT LAND | HACIENDA ESPAVEL

The amenities of this community include a lap and children’s pool, tennis courts, a clubhouse with its own lounge, a BBQ area, a movie theater, a fully equipped gym, and a party room with a kitchenette

La Guacima, Alajuela | 606 m2 lot | HOA $190 00/mo | $105,000

IMPORTANT HOTEL DEVELOPMENTS ARRIVING IN PAPAGAYO IN 2023 AND 2024

A recent report by Costa Rica’s Tourism Institute shows that this coveted region amounts to an important percentage of the upcoming luxury developments in Costa Rica.

With the advent of remote work and the skyrocketing of tourism after the Covid-19 pandemic, Costa Rica has experienced an important peak in terms of visitation and

investment Its well-documented political stability, high education standards and stand-out tourism infrastructure have served as the perfect complement to this small Central American nation’s blessed natural wonders, with a particular emphasis being put on the paradisiacal beaches on the Pacific coast

A clear proof of the country’s effervescent current economy can be seen in the upcoming, high-end developments

recently announced 19 hotel and resort projects are currently in construction, which, in an estimate made by Costa Rica’s Tourism Institute (ICT) will mean nearly half a billion dollars in investment, as well as the generation of 2500 new job opportunities

From the developments to open in 2023 or 2024, 4 out of 19 (21%) are set in Papagayo or its whereabouts These are the much commented Hotel One Only Papagayo Bay, Playa Pochote Resort Peninsula Papagayo, Six Senses Resort and Spa Papagayo, and the Waldorf Astoria Cacique Guanacaste Given these names, the information immediately showcases an important influx of luxury and ultra-luxury offerings, and also an interesting diversification of the usual resort hotspots, with Cacique and Pochote shining as examples of a current trend towards lesser known and more “authentic areas”, where a personalized experience can be had

Given the projections coming from ICT for the 2022 end-of-year and 2023 summer high-season, there seem to be no signs of Costa Rica’s tourist sector slowing down anytime soon, with numbers rapidly approaching their pre-pandemic homologues

STUNNING OCEANVIEW CONDO FULLY FURNISHED , #8C

| Azul Paraiso, Ocotal

Ocotal is a peaceful town full of charm, known for its world-class diving and snorkeling

The architecture and design of these condos has the signature quality of the renowned Garnier & Garnier, using spacious layout, high-end finishes, and superior construction that sets the bar for any other condo complexes in the area Azul Paraiso is by far the best you will find in Ocotal

Each condominium in Azul Paraiso has its own luxurious, ocean view pool area with a complementary cabaña and lounge chairs perfect for enjoying Costa Rica’s sunny day All of this dream lifestyle for a VERY reasonable price This deal is something you do not want to miss out on!

207 m2 | 3 beds | 3 baths | $650,000

VILLA LOS MANGOS | PLAYAS DEL COCO

220 m2 | 3 beds | 4 baths | $475,000

Villa los Mangos is a boutique development located in one of the most peaceful corners of Playas del Coco, boasting a unique sense of privacy, charm, and tranquility

SPECTACULAR LUXURY HOME

Grande Salvaje, Playa Grande | 390 m2 | 4 beds | 3,5 baths | $1,199,000

Tropical Modern Bioclimatic Architecture Located at just steps to Playa Grande Beach, this residence will provide luxury while living in harmony with nature

ONE FARO ESCONDIDO

Playa Escondida, Jaco

Located within the exclusive community of Faro Escondido, just beyond and access through, the Los Suenos Resort, ample parking for residents and guests

Stunning covered and exterior patios and decks both off the bedrooms, as well as the pool deck, expansive, infinity edge pool, and reflection pools overlooking the Pacific Ocean

1,500 m2 lot | 1,400 m2 | 10 beds | 14 baths | $3,195,000

What better way to start the new year than having the experience of a lifetime?

WALK TO THE BEACH HOME

Playa Hermosa, Santa Teresa | 254 m2 lot | 3 beds | 2 baths | $750,000

This property is located in Playa Hermosa It is in a great location and only a short walk to the beach A yA water, electricity & shared high-speed fiber optic Internet

CASA ELEVADA

An irreplaceable architectural masterpiece, Casa Elevada has been awarded at an international tropical architecture symposium, the X11 Bienal Internacional de Arquitectura Victor Canas created a magical estate with Casa Elevada which brings together the modern style with the tropical rainforest and setting in a manner which will take your breath away

Manuel Antonio

PÉREZ ZELEDÓN’S REAL ESTATE POTENTIAL

This southern San José settlement bursts with opportunities given its strategic location and healthy local economy.

Costa Rica’s El General Valley lies between two of the country’s most relevant locations On one side are the misty mountains of el Cerro de la Muerte, offering a natural border with the Great Metropolitan Area and featuring refreshing climate, abundant forests and some of the best traditional Costa Rican cuisine around

On the opposite end is the tropical warmth and charming beach vibes of the Pacific Coast, perhaps the country’s most popular area thanks to its biological diversity and paradisiacal beaches Pérez Zeledón is then perhaps the nation’s most strategic setting, and one that has many perks of its own

Pérez Zeledón itself is a historic town in San José’s southernmost area Its rich land solidified its place as one of the agricultural and livestock hotspots of Costa Rica, a reputation that brought important economical development and all types of infrastructure and amenities

Given its important industry and growing fame as a tourist destination, there seems to be no better time to start mentioning Pérez Zeledón alongside Costa Rica’s top real estate destinations After all, this is an area on the way of the Pan American Highway, and the last big settlement before the legendary Chirripó National Park

Boasting great commercial appeal, alluring natural destinations, and a healthy environment for rental investment, Pérez Zeledón becomes a very welcomed addition to 2Costa Rica Real Estate’s growing roster of areas With our new agent Matt Casseday leading the way, we’re now fully equipped to help you find the perfect place for you in the restful El General Valley

GET TO KNOW YOUR AGENT!

MATT CASSEDAY

Matt Casseday has resided in Costa Rica since 1990 Originally from West Virginia, he also lived and worked in Ohio, Washington DC, New Orleans, and the US Virgin Islands before settling here His first job in Costa Rica was as an English instructor, and he also owned and operated a well-known home-based baking company known as Pan Mateo for almost two decades His diverse work background includes numerous years in the bar and restaurant business, as well as seven years as a Travel Consultant, where he planned over one thousand vacations for clients in the US and Canada From there he joined 2Costa Rica Vacation Rentals, where he worked as the Reservations Manager for two years, before transitioning to the Real Estate division of this company

With many years of experience in dealing directly with people and providing quality attention and service, combined with his extensive knowledge of Costa Rica, he is a professional and reliable source for anyone looking to invest in real estate Matt loves the Pura Vida lifestyle here, and considers it a privilege to help others complete their dream of owning property in our beautiful country

Matt lives in San Isidro del General with his wife Ana He is the father of four adult children between the ages of 23 and 31, all born in Costa Rica He enjoys writing, bicycling, swimming in the ocean, and hiking the scenic hills that surround his home

FINCA SHAKTI, LUXURY RIVERFRONT ESTATE

|

Perez Zeledon 7 6 ha lot | 1,000 m2 | 4 beds | 4 baths | $3,500,000

One-of-a-kind property in the entire region if not the entire country, Finca Shakti literally has it all for self-sustained luxury living The almost 19 acre riverfront property is located in a quiet rural area in the foothill mountains of Chirripó in the country’s Central Southern corridor

OCEAN & MOUNTAIN VIEWS LOT

Overlooking the valley across an expansive forest and the San Juan de Dios mountains on the way to the ocean, Tinamaste Mountain Ocean View shines as an outstanding rental property or family home

Tinamastes, Perez Zeledon | 927 m2 lot | $195,000

PANORAMIC VIEWS LOT #75

The community of Cerro Colon is an exclusive gated community with only high-end homes If you are looking for a lot with one of the best views in the country, this lot might be the option you’re looking for

Ciudad Colon | 1,128 m2 lot | $180,000

CAMINO AL CIELO INVESTMENT OPPORTUNITY |

Ciudad Colon, Mora

This property is offered as an enticing investment for anyone looking to purchase a large piece of land with 2 large homes on it The homes are already remodeled and present tremendous rental potential in what’s a very strategic area, boasting amazing city and mountain views

7,927 m2 lot | 6 beds | 5 baths | $800,000

SANTA TERESA MARKET UPDATE: WHAT IS GOING ON?

Just a few short months ago prices were soaring in the Santa Teresa market and the influx of home buyers from around the globe was unprecedented. With high demand and a true sense of urgency to purchase during the long months of the pandemic, quickly came low inventory and a strong seller’s market. Things have changed dramatically in the last 8 months as the market cooled considerably.

Inventory is on the rise again and we are starting to see a healthy correction in our market as things seem to be normalizing Buyers are around yet they are not willing to spend what many sellers are asking at the moment causing sellers to start to drop asking prices and negotiate down to get things sold

The rapid increase in real estate pricing was directly related to the urgency and demand during the pandemic as people from cities around the globe could only dream of relocating to places like Costa Rica Currently, as more listings continue to become available we should expect a leveling out of prices and motivated sellers cashing out quicker and setting the correction and comp data needed to set the new stage

It is no secret that worldwide prices dropped from the recent economic uncertainty, inflation and mortgage rates peaking Most

recently things are starting to look a bit more optimistic on a world economic level and overall market activity is starting to correct and pick up with rates coming down and inflation easing up All of which is good news for real estate markets heading into 2023

The Santa Teresa market is continuing its return back to a more normal-looking market after the pandemic-fueled frenzy And we have officially shifted back to a more balanced market in a few short months There is no shortage of buyers coming back out into the market but have replaced sense of urgency with the desire to find a balanced opportunity

Helping sellers price properties accurately is a critical aspect of our role as real estate brokers and agents Sales data, comps and an in depth understanding of our market will help us price things accordingly to actually get them sold

The first quarter of 2023 seems to be starting off with a busier outlook than the last quarter of 2022 Buyers are more confident to get back in the market but also understand there is no rush And sellers will me more flexible with not only pricing but also contingencies and negotiation terms in general

Costa Rica will continue to stand out internationally as a fantastic option for many buyers for many reasons This country offers a great alternative with natural beauty, steady and fast internet connections, easy travel access from the US and Europe, similar time zones as the US workdays, a steady and democratic government Another appealing factor that of course stands out is that when investing in real estate, when compared to other markets, your money goes a long way, it is good value for your money, with a higher and healthier quality of life, there are good international schools, and the list goes on

Whether you’re thinking of selling or buying, you can take advantage of the current trends by strategizing and partnering with a professional real estate agent who really knows your local market Working with a local real estate professional to learn about the opportunities in your area will give you valuable insight and leverage to make the best choices regarding your investment or sale

LUXURIOUS OCEAN VIEW VILLA

| Playa Hermosa, Santa Teresa

This home is located in the highly sought-after neighborhood of Playa Hermosa It is located only a 2-minute drive to the beach at Playa Hermosa and a 2-minute drive to the Hermosa Valley School

1,189 m2 lot | 5 beds | 5 baths | $3,975,000

OCEAN & JUNGLE HILLTOP VIEWS LOT

This property sits in the top of a hill with ocean, sunrise and sunset views, up the coast views of whitewater toward Carmen and Santa Teresa, plus wrap around valley and jungle views of Cabo Blanco

Mal Pais | 5,179 m2 lot | $595,000

OCEAN VIEW HOUSE WITH A POOL

Ocean view and 5 minutes to the beach in Playa Carmen There is also lots of additional land to build more casitas For guests or as rentals

Santa Teresa | 2,833 m2 lot | 200 m2 | 4 beds | 2 baths | $550,000

BEACHFRONT PROPERTY OPPORTUNITY

This amazing location combines fantastic privacy and easy access and is walking distance form many restaurants, shops, bank, grocery stores and pharmacy Is it truly the ideal place to develop a mixed use commercial project like a hotel, restaurant and shops or a high end family compound and estate

7,496 m2 lot | 800 m2 | 7 beds | 6 baths | $5,625,000

| Santa Teresa

A NEW HORIZON IN CURRIDABAT

Since San José’s expansion during the early 20th Century, Curridabat has always been one of the Central Valley’s most important and historic suburbs.

In many ways, its parallels with Escazú in terms of settlement process make it essentially this Western town’s Eastern version, sharing some of the world-class developments, modern shopping centers and stellar international restaurants, and even its own Multiplaza mall

Curridabat’s growth is one of the most accelerated within the Central Valley, boasting upscale real estate projects and iconic gated communities like Monteran, Hacienda Gregal, Colinas de Montealegre, among others Curridabat also embraces the specificity of its location, incorporating mountainside atmospheres and vistas into some of its developments, and making the most out of a privileged access to the country’s most well-regarded universities in San Pedro, and also some of its most prestigious private high schools

Given the level of luxury and quality of the amenities offered, Curridabat is nowadays one of the most enticing destinations for young professionals looking for a life of comfort and convenience in the Central Valley This makes it a natural fit within 2Costa Rica Real Estate’s growing roster of offerings With the ample expertise of our new agent Andrea Ramírez as our spearhead in the area, we’ll be happy to be your trusted advisors in the Eastern Central Valley’s hottest destination

GET TO KNOW YOUR AGENT! ANDREA RAMIREZ

My name is Andrea, I am Costa Rican, I studied dentistry more than 20 years ago, I am passionate about a country like Costa Rica, its flora and fauna, I love spending family time with my two children and my husband I like to travel and learn about new cultures and their gastronomy, I like the beach and the mountains, I love road cycling and I have competed in several opportunities in Costa Rica and outside of Costa Rica, I am an animal lover and I like agriculture, that is why I grow avocado in a small farm in Cartago

My interest in real estate is awakened because I see a great opportunity for personal and professional growth and I love to generate solid and lasting friendships and real estate is perfect for that, to generate bonds of trust

For me Costa Rica is a country with an impressive ecotourism and working in a company with so much experience gives you the certainty of providing excellent quality service and trust

SABANA PARK VIEW PENTHOUSE | Sabana, San José

Vistas del Parque was one of the first residential towers to be built, therefore, boasts an unbeatable location with towering views overlooking the Sabana park and National Stadium, as well as easy on and off ramp access to the Highway 27, and walking distance to area favorites including Starbucks, EnBoca, Furca and more

243 m2 | 3 beds | 3,5 baths | HOA $554 00/mo | $439,000

STYLISH TOP FLOOR LIVING

LOS MANZANOS MINIMALIST DESIGN

With an emphasis on the outdoors, and boasting country club style amenities including a 9 hole golf course, tennis facilities and a large community pool

Hacienda Los Reyes, La Guacima | 603 m2 lot | 300 m2 | 3 beds | 3 baths | $525,000

VILLAS EL PARQUE #18

Villas El Parque Center of Manuel Antonio is all about location Walk to all the great restaurants and bars and shops, be at the amazing beaches of the National Park of Manuel Antonio after a brief 5 minute drive

Manuel Antonio | 100 m2 | 2 beds | 2 baths | $240,000

STUNNING OCEAN VIEWS #3J

Del Mar Condos, Los Sueños | 144 m2 | 3 beds | 2 baths | $630,000

This three bedroom condominium is decorated with sleek design and new furniture The Del Mar community also boasts three designer pools with a BBQ area at each pool for the owners and guests to enjoy

MODERN, REPURPOSED & ECOFRIENDLY LAND

This home is designed with cross ventilation in mind, with two-story balconies that maximize the breeze and the stunning ocean views Nestled on over an acre of land with partial ocean views, this unique property is a one-of-a-kind opportunity for those who want to live in harmony with nature

5,039 m2 lot | 182 m2 | 3 beds

baths

Dos Colinas, Esterillos, Jaco

STUNNING OCEAN VIEW LOT

Stunning Ocean View 1 24 Acre Lot in Dos Colinas is located in a brand new, eco-friendly community in Esterillos Este, Costa Rica The 5009m2 lot offers stunning ocean views and is the perfect location to build your dream home

Dos Colinas, Jaco | 5009 m2 lot | $349,000

SUNSET VIEW IN MANUEL ANTONIO

Boasting a privileged location that sees right through the lush tropical jungle and out onto the paradisiacal sights of the Biesanz Bay, Sunset View offers some of the most spectacular and iconic ocean view sunsets in Costa Rica’s Pacific Coast

607 m2 lot | 100 m2 | 3 beds | 3 baths | $500,000

ONE-OF-A-KIND FAMILY HOME

Amenities of this community are the best of the area and include a lap and recreational pool, playroom, clubhouse, gym, BBQ area, tennis court, playground, basketball court

VILLA NUEVA QUAINT HOUSE #2

The garden has an incredible variety of fruit trees, a covered garage area, and lots of space to enjoy the nice Villa Nueva weather Located just 15-20 minutes from Quepos and the famous Marina Pez Vela