Investing in Costa Rica
We have advised and guided a lot of people in a variety of different investments in Costa Rica, from luxury tourism projects to vacation homes.
Using our years of experience and access to data, we can help make the right investment choices for you.
There are a variety of ways you can invest in Costa Rica without having to buy a property outright:
Real Estate Funds:
Costa Rica has a limited offering when it comes to Real Estate Funds or REIT’s. The only US-accredited fund that operates here is the Costa Rica REIT, which focuses on vacation rental investments, offering clients the opportunity to invest in the properties at a discount.
The Costa Rica REIT fund offers investors a preferential return of 6% to 15% ROI plus discounted use of the vacation rentals.
This fund is managed by Real Estate and Tourism professionals in Costa Rica.
There are commercial funds offered through various local institutions, although they are not US accredited.
Invest in a hotel or tourism project:
One way to gain exposure and enjoy the upside of Costa Rican real estate - especially the tourism market - is to invest in, or joint venture, with tourism projects who are looking for investors, either as shareholders or by providing secured debt.
There are a variety of tourism investment instruments that we can offer from convertible bonds with usage rights to straight equity investments. Using our knowledge and data of tourism projects, we know which ones have a high and low risk based on the project.
Arenas del Mar, a luxury beachfront resort in Manuel Antonio, is offering a limited number of convertible bonds with a return of 4% annually plus two weeks stay (10% proforma return) and the ability to convert the bond to equity ownership.
This is a great option for someone wanting to invest in and own a part piece of one of Costa Rica’s most iconic beachfront resorts.
Fractional or shared ownership:
This is where you part own or share ownership in real estate.
It can be done by jointly owning with a group of friends or via shared ownership with other people. This allows you the opportunity to invest in real estate, although as there are many owners, you won’t have as much control as if you owned the property outright.
A relatively easy method to invest in Costa Rica real estate is to buy a plot of land and hold it.
To get your returns, you'd need to have good information on which areas will see growth in the coming years. For example, in areas of Costa Rica like Nosara, Flamingo, and Dominical, you would have doubled your money already if you'd bought a decade ago. In other areas, however, prices have stagnated over the same period.
There's a Costa Rican Land Bank Fund available, which is a Costa Rican-held company that invests in raw land, lightly developing it throughout the developing and high-growth areas of Costa Rica.
If buying land is of interest to you, we suggest using our impartial, objective real estate consulting services to get an expert opinion on the best areas to invest in.
In Costa Rica, the price of real estate goes up and down as it does in most countries. Typically, though, you'll see a steady increase in property prices year over year, usually in single digits.
Costa Rica is a great country to invest in as a wealth preservation strategy, as its economic and political security makes it a secure investment.
If you would like to know more please don't hesitate to contact us.
*It should be understood that Costa Rican Vacations are not part of this fund and takes no responsibility for the funds’ performance or legality. You should consult a lawyer before investing.