It is customary that luxury goes hand in hand with unreal prices. Everything luxurious is usually extraordinary expensive. But good news is that when it comes to Costa Rica’s luxury real estate it is not so. Or, rather, luxury properties here are much more affordable than anywhere else, whether it is land, or rental villas, or even beach front properties.
It is true, that at the present moment Costa Rica’s estate property is experiencing a boom. But it is also true that the prices stay reasonable and, what is more surprising, the prices on luxury properties are also within a reasonable range. Therefore a lot of foreigners are attracted by Costa Rica either as a living, vocational or investment destination. All the more so, that 20-40% of profit per year is not a dream; especially on luxury villa rentals.
According to the recent data there have been a lot of more inquiries about million dollar homes lately. More serious buyers are looking for certain specific properties and they are quite sure in their choice. Which means that they are well-off in this respect and are ready to spend. Most of these prospective buyers come from the U.S., Canada or Europe and they know why they come here. The same property back at home will cost them several times as much. Besides, it is time for baby boomers to retire and a great number of them are considering Costa Rica as the probable place to do so. Larger homes are in demand among them as they need to accommodate family and friends. And these homes are affordable here due to unbelievably low taxes and property maintenance costs.
To have luxury property here in Costa Rica is even more pleasurable because not only it is affordable but you can have it any way you like – whatever exotic and great, with granite counters, marble floors, imported Spanish tiles… The thing is that a house of your dream will cost you here a fraction of what you would spend on in the U.S., Canada or Europe.
• Central Valley luxury properties are mostly located in the greater San Jose and surrounding areas such as Escazu, Cariari, Santa Ana, Heredia, Cartago, Alajuela, Barva, Atenas, La Garita, San Ramon , San Carlos, Grecia.
• Central Pacific luxury properties can be found in Quepos, Jaco Beach, Manuel Antonio, Puntarenas, Nicoya Peninsula, Playa Hermosa, Playa Heredura, Bejuco, Esterillos.
• South Pacific luxury properties such as ocean view luxury estate lots and luxury homes with plenty of marvelous beaches can be found in Laguna, Dominical, Uvita, Ojochal, Coronado, Golfito.
• North Pacific luxury properties are mostly located in Tambor, Nosara, Tamarindo, Flamingo, Playa Hermosa and Ocotal.
The prospective buyers, however, should take into consideration the following information. The luxury property is liable to 'Luxury Home Tax' which is actually called the 'Solidarity Tax for the Strengthening of Housing Programs'. The amount of this tax is stated in the correspondence to market value of the home, without the value of the land on which it is constructed. So, residences rated between $180,800 and $1,356,000 will be charged 0.25% of their market value. The ones above $1,356,000 but below $2,260,000 will have a charge of 0.35%. Homes estimated above $2,260,000 but below $3,164,000 will have to pay 0.45%. Property with market value above the aforementioned will be charged 0.55%. Again, the tax does not include the value of the land on which the homes are built.
The purpose of this tax is to help impoverished families by providing them better living conditions. It is expected that due to this tax $45 million will be raised annually for a period of 10 years. It will make possible the building of affordable housing for those who really need it.
If you are in a search of a profitable international real estate investment Costa Rica is a good place to consider. You are guaranteed high return on your property investment here and your chances to gain a good profit are even higher provided that your property is a luxury one.