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The Tenancy Law (Ley de Arrendamientos Urbanos) allows the rent to be increased, in the case of households, only when it is stated in colones, if in dollars, the same price should stay for the 3 years period. When the price is stipulated in colones 15% increases are allowed when the accumulated rate of inflation of the previous year is equal or lower to 15%
Ellensam: There is more to it than simply go with “the informal arrengement”. Lease agreements in Costa Rica are either verbal or written, and the Tenancy Law apply the same.
The basics: a- No agreement could be shorter than 3 years, if the tenant so desires. He could sign, or shake hands over a 6 month lease, but if he wants, you can not evict him before 3 years. b- No increments in the rent for 3 years if the lease is in dollars. c- if after 3 years he does not want to leave, you will have to take your tenant to court and fight some good 6 – 9 months.Jose R Fernández, Attorney (iblawcr@gmail.com)
That is not correct.
A foreigner can not start a business in his own name. No licenses or governmental authorizations will be approved for a non resident.
However, a foreigner can start a business through a Costa Rican Corporation, but it would be difficult to open bank accounts where a non resident could have signatory powers on the corporations account.
It is true that the profits of the business can be distributed (subject to income or withholding taxes)to shareholder foreigners.
What is NOT true at all, is that a non-resident foreigner can work on a business owned a a corporation of which he is the shareholder.
Tourists can not work in Costa Rica, period. It does not make any differece to the law if such person work for a salary or for any other type of compesation.
José Rafael Fernández
AttorneyDiane:
Again I insist that title insurrance is not necessary in Costa Rica, provided your attorney can read and interpret what public records show. (And do not be amazed if you find several that can not)
On the matter of the properties “close” to the beach, the thing is a bit complicated.
In Costa Rica you can find 3 coexisting Real Estate regulatory systems.
One, for “normal” land
Two, for beach front property
Three, for land without title.Normal land has a unique number called Folio Real that is the key number to access all legal information for that property on-line, and up to date.
On beach front the problem is that the Cities are in charge of such records, and they are not precisely “kosher”. Before buying beach front, your attorney should excersise EXTREME care, and personally review Citie’s records. This land is only given in concession to citizens. It perpetually belongs to the State.
Land without title is the more difficult to deal with, since there are no records anywhere, is a situation of mere posession. Whomever say owns the land has to prove he has been on the land for at least 10 years, or that he bought the posession of previous posessors. It can be titled through a process in court called “informacion posesoria”
Regarding legal fees. You should expect to pay somewhere around 1% in all Real Estate transactions, as legal fees, that is normal.
However, there are thousands of attorneys in Costa Rica, and in finding one to represent you, the goal to keep in mind is a win/win situation, where a business relationship is set for the long run. At least that is how I see it, but a lot of foreigners find themselves in the situtation of being targeted by professional of all kinds, as “gringos with dollars”. In my oppinion that is not very intelligent, since they might get one deal, but it would be the last and only.
Of course you will find attorneys with different set of rates per their labor. Find one you feel confortable with.
José Rafael Fernandez
AttorneyCharlie:
Costa Rican Real Estate legal system offers a better security than some of the systems available within the US. That is the reason why, if a proper due dilligence is performed, you don’t need title insurrance.
But try to explain that to international banks!. The reason why Stewart title exists in Costa Rica is because foreing banks require title insurrance.
A good attorney is what you need. Now, maybe the title insurrance is best in Costa Rica to avoid the bad work of some attorneys. Simply because in most of the cases gone wrong, attorneys will not assume their responsibility, whereas ST will pay the insurred amount if anything happens (if the small letter does not exclude).
But again, what I mean is, if the attorney knows what he is doing, title insurrance is not necessary in Costa Rica.
The labor of the attorney and the title insurrance apply both to new and old properties. The problems are related to the land, the title, the owner, undisclosed legal issues, not to the age of the property.
Regards,
José Rafael Fernández
AttorneyGenn:
Gravamen means a limitation impossed by law to the land. It can be of very different sort, from mortgages to water preservation laws or easements, etc.
If you give me the Folio Real number I will gladly run a quick search of what the gravamen might be. However, the most of the times, the on-line information only makes reference to the number of the entry where the document is microfilmed, and you need to go personally to take copies of it.
José Rafael Fernández -Attorney-
jfernandez@fayca.comLaguna:
If you give me your e-mail, I will be glad to contact your.
José Rafael Fernández. Real Estate Attorney.
Mark:
Give Arq. Felipe Calderón a call. We grew up in the same street, so I have known him for (I won’t say how many 🙂 ) many years, and he has been doing fantastic job on the south area of the country, all the way from Jacó to Osa.
His phone numbers: 389-3218 or 841-4306
Lic José Rafael Fernández
Real Estate AttorneyBetty:
Costa RicA (with an “A”).
Puerto RicO (with an “O”) is an island in the Caribean, and the free associate state of US.
We are and independent Republic….
On the subject that confused you from the get go. The reason why it is stated that men can apply for residency and their wives will be their “dependants”, is only because normally it is the husband who has the out of home job.
If the situation is the opposite, the lady’s application will have her husband as the “dependant” which will be processed without a hint of discrimmination.
Attorney Montero:
It was not until today that I read this note you addressed to me, posted on this forum.
I do not usually have time to browse through discussion fora on the Web, not even this one. It was a mere coincidence that I had time and interest to do so today (Saturday morning).
I answer now, due to respect for the public who read the forum.
As you are very well aware of, when partners of Paragon Properties decided to set foot in Costa Rica, they contacted my legal offices, and in fact I was their legal advisor for a few months.
I resigned that position, very early in the process.
The reasons behind my decision are covered by the attorney-client priviledged information, or “secreto profesional” as we say in Spanish. Since then, I have adhered to ethics of my profession and -even more- to my personal ethics, and I will continue to do so.
Ever since I sent my written resignation to Paragon owners, I have not had any contact whatsowever with them, nor with anybody related to that company, neither have I had any interest in following the development of the work of such business. I am too busy for that.
José Rafael Fernández
AttorneyMarion:
Forming a corporation takes about 4-6 weeks. That is a standard proceeding.
Now when you say they inted to wire money to Costa Rica to “buy and sell” land, we enter the “know your client” policy of banks and that is complicated.
First of all, most banks will not open an account to non-residents; not even to corporations whose managers are non-residents.
So, the Costa Rican resident will have to appear on the corporation as the manager and signatory on the account, to begin with.
Also, if they can get that far, filing of detailed information will be required to perform every single movement of money avobe $10,000. Including contracts, personal information of the parties, etc etc.
If you have any further questions, feel free to contact me.
Regards,
José Rafael Fernández
Attorney
iblawcr@gmail.comHi there:
Immigration Law states clearly that the benefit will apply only to parents and single brethern…
José Rafael Fernández
Attorney
iblawcr@gmail.comImmigration Council has had an erratic history of contradictory resolutions throughout this administration, that -GLADLY- ends next May 1st. Elections will be held next Feb 5.
Anyhow, regarding the misdeamanor, if it shows in the Police records, I think that would be enough for them to deny your residency petition.
Remember that granting residency is a courtesy of the State, not a right of the foreigner.
Second, regarding alimony, you would have to ask an attorney up there regarding the proceedings in your State. What I can tell you is that if your pension is going to be received by you through the US Consulate in San José, the only thing any woman living in Costa Rica, needs to get her alimony from a US Citizen, is file a petition and the Consulate retains the amount owed and gives it to her.
Regarding pending debts, you can be sued here or sued up there and the judicial decision executed by a Judge here in Costa Rica.
José Rafael Fernández. Attorney. iblawcr@gmail.com
