Costa Rica is often referred to as the happiest place on earth. In 2022, it’s making foreign investors ecstatic – for good reason.
To begin with, demand for seasonal rentals (November through April) far outstrips the supply available. In May of 2019, Costa Rica’s beach and tourist towns, like La Fortuna where Arenal Hills is located, had a single-family housing supply of 5,490 homes. Fast forward to May of 2022, and that inventory is down to 1,840 homes. That’s a 45 percent drop. It doesn’t mean less people are coming to Costa Rica. On the contrary, last year, Costa Rica welcomed 1,347,055 tourists, which amounts to 50 percent more than arrivals in 2020, are reported in the Tico Times.
Consider La Fortuna on its own. It’s one of the most popular tourist destinations in the world, and the number-one destination in Costa Rica. Last year, more than one million tourists visited La Fortuna, yet it only has 1,058 hotel rooms. This is what is driving an increase in the number of Airbnb and VRBO listings in La Fortuna.
What makes Costa Rica such a smart investment?
Not only is having a vacation home in Costa Rica a bucket list dream for so many worldwide, it’s also a smart investment. Right now, it’s a buyer’s market that has the potential for low risk and big gains. Many owners in Costa Rica who purchased just a few short years ago have seen their property value double or triple in a short period of time. According to the CIA World Fact Book, market due to temporary global liquidity and spending shortages. Land investment in Costa Rica has experienced gains of 30 percent per year for the last ten years.
Foreign ownership is 100 percent permitted, encouraged, appreciated, and easy.
All individuals and private companies, local or foreign, can own land and property in Costa Rica. Only a few restrictions apply, with the most important being physical occupancy and a 50-meter limit from the beach on oceanfront property. The process itself is very easy. Costa Rica’s National Registry has every property in the country on file with its current status that anyone or their attorney can request at any time. That makes it quite convenient for investors and their legal counsel to do their due diligence.
Property taxes are really low in Costa Rica.
The average property tax generally can be anywhere from one to 25 percent of the property’s assessed value. Often, the purchase price of the property is significantly different than its registered value, which favors the buyer. Some very large and luxurious properties can be subject to a luxury tax that based on a calculation that includes such features as structure size and finishings (like imported wash basins or travertine floors), which puts them in the 25 percent range. Let’s say you purchase a home at Arenal Hills for $500,000. Your assessed value for taxation, assuming you are at the high end of the Luxury Tax assessment, could be as low as $125,000.
Most importantly, Costa Rica is like no place on earth.
The weather in Costa Rica is picture perfect, sunny and warm almost every day, despite rainy season and windy December. Costa Rica is also home to five percent of the world’s biodiversity, where one can see sloths, monkeys, iguanas, macaws, toucans, tree frogs, millions of butterflies, whales, dolphins, sharks, sting rays, sea turtles, exotic fish, and much more. Where else in the world has natural wonders where you can go on adventure tours such as national parks, rainforest, 67 different volcanoes, lakes, natural hot springs, several dozen pristine beaches, oceans, mangrove, caves, waterfalls, rivers, and mountains all within a few hours’ drive?
Arenal Hills puts you at the heart of it all.
When we say buying an investment property at Arenal Hills is turnkey—it means just that. All you have to do is the turn the key. Your home is fully furnished and thoroughly stocked, from the towels and linens to the dishes and cookware.
Equally important, when you invest in a single-family style villa home at Costa Rica, our on-site community concierge will vet all of your rental guests, provide concierge services to them during their stay, collect fees, and ready your property for the next arrival. We have a team of property maintenance and landscape professionals on-site daily to make sure your Arenal Hills home is always picture-perfect and ready to delight its occupants.
All the adventure, excitement, dining, and nightlife of La Fortuna is just minutes away. Yet, Arenal Hills is a world apart. To learn more, visit www.arenalhills.com or call 1-844-MY-HILLS.