'Purchasing Real Estate' Expat  

Purchasing Real Estate

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Jodie (70.48.59.222) -

Has anyone had any experience purchasing property in CR? I'm looking at a condo. Has anyone had any experience with a developer by the name of MN Partners Of Costa Rica?

Jodie

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Reply #1 Vince Matlock (205.201.163.146) -

Yes I have purchased property before. You need to work with a local attorney who will search public records to make sure that the seller is indeed the owner, free of liens, etc (just like in the states). There are American title companies down there but you really don't need them. Haven't heard of MN Partners but you should due your due diligence as in any deal. Is the HOA in place? Ask for a copy of the by laws, etc

Reply #2 Marinela (12.170.105.197) -

Hi Jodie,

Your question is exactly what I wanted to ask. We are in the process of buying a condo in Villa la Colina from MN Partners and do not know what to expect.

Did you buy yours? Can you share anything from the experience?

Thanks in advance,

Marinela

Reply #3 Mike Dammann (201.194.231.74) -

work with a good attorney and buy the property under a corporation.

• Real Estate Law

Reply #4 Bart from San Jose, Costa Rica -

If you are a U.S. Citizen or Resident Alien of the United State and form a foreign corporation in say Costa Rica, you will most likely burden yourself with some massive tax filings back home.

While you will most likely not be responsible for paying any taxes in the USA, you will be responsible for making information returns detailing everything about that corporation you bought the property with.

The second equally important issue relates to the proper creation of the corporation in Costa Rica. While you may be led to believe everything is in order with it, that may not be the case. What happens to that US$200, 000 property that is owned by a deficient corporation?

Additionally, you are often told you can easily purchase a property owned by a corporation by a simple share transfer rather than a property deed transfer. Absolutely correct. You will also "inherent" any other liabilities that corporation may have. A "title" search on the corporation might be much more difficult than the property.

If you purchase the property for investment purposes you won't have the benefit of deprecion express to reduce your taxes in the USA as you don't own the property, the corporation does.

All of that aside, if you can deal with the IRS forms for a foreign corporation there may well be advantages of purchasing property with a Costa Rica corporation (but defininately not buying someone else's corporation to acquire the property).

Reply #5 fun2bv (66.75.226.47) - Sun Jul 13 23:42:39 2008

All I can say is do your research on Minnesota Partners of Costa Rica. Have they followed through on all projects?? Have they taken money for pre-construction from customers and not given them anything for it??

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