You just bought a property… Now What?
Author: Nick Halverson
Congratulations You Just Bought a Property! You are now the owner of a new home in the Costa Ballena region. Now what?
Plan for Usage
This is typically decided before the purchase process is completed. However, you should know what the plan is for the home. Is it strictly for personal use? Will you rent it out? If more than one person is involved with the purchase, it is advisable to have a ‘usage plan agreement’. Who gets to use it, when and for how many days per year.
Banking and Paying Bills
Who is going to be responsible for paying your bills? The Costa Rican banking system is pretty efficient. Seriously. Properly registered property management companies have banking platforms that make paying bills very easy. Coupled with our ability to wire funds from the USA to Costa Rica in a matter of hours, paying bills is easy.
For individuals, it can be a bit more challenging. Banks have begun tightening their rules for non-residents, and paying specific 3rd party bills can be extremely difficult, complicated, or expensive (if you have to wire funds from outside Costa Rica).
Keys to Your Castle
Who do you trust with the keys to your home? Is it someone you just met? Do they speak your native language? Be careful sharing keys – you wouldn’t give a stranger a key to your home back home – don’t do it here.
Death and Taxes
As Benjamin Franklin once said, “Nothing is certain except death and taxes.” Although no one wants to think of these two things during the thrill of purchasing a home in Costa Rica, they are topics that should be discussed.
In the event of one of the corporation owners’ death, the corporation will end up in probate unless a pre-existing Costa Rican trust is registered in Costa Rica; an issue advisable to be handled by a lawyer.
New vacation home rental tax for 2021.
Starting in 2021, and in response to the hotel and lodging industry’s valid complaint about vacation rentals not paying ‘their fair share’ of taxes, there is a new vacation rental home tax. The tax is 12.75% of the gross rental cost. This tax must be registered and paid monthly to the Costa Rican Tax Authorities (Hacienda).
Be sure you are paying those taxes, and your property manager has a solution to get those paid.
The homeowner pays 12.75%, while the 13% IVA tax must be paid by the renter.
In the end, it is our recommendation to hire one of the legally operating property management companies in the area. There are only a couple of us to choose from. Please verify that your property manager is registered with the Caja, Hacienda, and the Municipality. Without those certifications, they are not legally working in Costa Rica.
If you need help with accounting or your tax filings, please feel free to contact us:
Don’t let your excitement and happiness of owning in the region get off to a bad start. Nick Halverson has been buying and managing properties in the region since 2005.
We had to reinvent ourselves during the last year, focusing entirely on a virtual, 100% interactive presence of our bilingual Ballena Tales Comprehensive Magazine. We are achieving great opening numbers (more than 14,000 in the English versión alone), have breached the borders of Costa Rica, and are read by North Americans and Europeans, and surprisingly, many of my German patriots.
I do care a lot about my health and my family’s health. It is important to me that we all feel our best to manifest our best attitude and ability. Living in Costa Rica, I am surrounded by people who naturally want to feel better, too. We each have our ideas on how we can feel like the best version of ourselves, but they mostly revolve around the following precepts of everyday life in Costa Rica: Growing food, Daily exercise,
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Melvin González Rojas (Kamel), alias KURA^DENKA, is a member of the Boruca community and the Commission for the Heritage of these indigenous peoples. He is a notable artist who stands out for his masterful carvings and his expressive and colorful paintings. He is a Boruca Major’s son who was a prominent educator, painter, and mask sculptor. Kamel has participated in different exhibitions, including the Art and Theater Festivals, the Festival de las Spheres, the National Theater, the Costa Rican Art Museum, and the Expotural in Madrid, Spain.
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There is a new Property Management company in town, located at the only recently inaugurated state-of-the-art Plaza Solo Bueno in Dominical. Blue Morpho covers property management services, concierge services, vacation, and long-term rental opportunities.
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At the age of three, Rafael danced and sang to the sound of a portable radio. His mother smiled when she saw him but she never gave it much importance, since another plan was in the works since then. She would rather see him become a doctor than an artist from stage to stage.
Do you feel stress about the circumstances in your life or the world that surrounds you?
Do you have nagging physical symptoms?
Are you looking to reconnect and relax?
The Body Revitalization Center is here to help!
What to do, Where to eat and Where to stay…
- Activities and Tours
- Whale Watching Tour
- Natural Attractions
- Marino Ballena National Park
- Hotels and Accommodations