Mexico Vrs. Costa Rica

Turn Key Properties of Costa Rica                        Toll Free: (866) 428-0672
"Integrity in a Costa Rican Real Estate Market"                     In Costa Rica Call: (506) 8389-6181

WHY INVEST IN COSTA RICA?

Whether you enjoy surfing, snorkeling, or relaxing by the turquoise waters in the Caribbean, Costa Rica has it all! There is something here for everyone. There are 11 climatic zones in this tropical paradise. The main reasons to invest in Costa Rica are:

• NO CAPITAL GAINS – When buying real estate for your retirement or for an investment and want to sell it the government has no capital gains law, which means you keep all the profits. No sharing with Costa Rica’s Government

• FEE SIMPLE TITLE – Which means you have complete ownership of your property and do not have to be a Costa Rican citizen or resident.

• MINIMAL PROPERTY TAXES .25% - Example: Buy a house for $250,000 and your yearly taxes will be $625. Nothing extra.

• REAL ESTATE IN COSTA RICA IS SO NEW so you’re getting in at a wonderful time. Think of Hawaii or The gold coast of Barbados 10-25 years ago. Wish you would have invested then? Be a part of this exploding market.

• COSTA RICA INVITES FOREIGNERS WITH OPEN ARMS AND MAKES IT SIMPLE TO BUY REAL ESTATE!

WHY NOT INVEST IN MEXICO?

Title Issues: The Mexican Constitution regulates the ownership of the land and establishes that "... in a zone of 100 kilometers along the border or 50 kilometers along the coast, a foreigner cannot acquire the direct ownership of the land". These areas are known as the "Restricted or Prohibited Zones". Outside the Restricted Zone, a foreigner or foreign corporation can acquire any type of real estate as any Mexican National, holding the property as a direct owner complying with Mexican law. Within the Restricted Zone, a foreigner or foreign corporation may obtain all the rights of ownership but it must be in a bank trust, known as Fideicomiso. Another alternative is to purchase non-residential property through a Mexican corporation which can be, under certain conditions, 100% foreign-owned, with a provision in its by-laws that the foreigners accept to be subject to Mexican laws and agree not to invoke the laws of their own country.

Capital Gain Taxes: In Mexico, the concept of capital gains tax does not apply in the sense in which it is determined in the United States. Here, the gain from the sale of the property is considered as normal income at a tax rate of up to 35%. In order to determine the gain, the following costs and expenses are deducted from the amount for which the property is officially sold: - The original land cost and the depreciated construction cost, based on the number of years the property was held and adjusted for inflation according to the official consumer price indexes.