Business In Costa Rica

[CPV]

From what I understand there are a ton of legalities when it comes to
1- buying land
2- construction of buildings
i.e. obtaining lawyer, broker, architect, contractors, insurance, etc.

What are some of the specific costs associated with the above, as well as any other services I may need in order to buy and build... permits ...etc.

Thanks in advance
Roberta

ps- price of a work visa...    

[Russ]

Hi Roberta,

This is huge topic that an entire book would be needed to cover, but there are some basic tenets and pitfalls you can be aware of.  Here are a few to get started on:

**** Purchasing Land
Here is a great article on what you need to do in order to purchase land:
Costa Rica Land for sale - the buying process
The short answer is that the closing costs will run from 2- 5 % depending on whether or not you purchase title insurance and - or have a mortgage.

**** Building is difficult.  
This is true in any country.  In my humble opinion, no one who is new to Costa Rica should consider building on their own in Costa Rica unless they have experience back home and speak Spanish.  Then you have to be prepared for the process, which is stressful and difficult.  If you consider that a pre-existing building can be assessed for defects, location, and styling; it is clear that it is better for most people to look for a home or business that is already built.

The realtors in our group can help you find something that suits your needs and budget.

**** If you do decide to build.
What if absolutely nothing exists or you want to have the experience of building your very own dream home and you are prepared to face the building process?? The only way to get around not having experience and/or not speaking Spanish is to have a very competent architect paired with a very competent builder.  You need someone who is highly recommended and well established. AND HONEST. You should go see houses they have done and talk to the owners.  The realtors in the group do have builders and architects of this quality, but again (IMHO) you may be better off buying a new home that they have already built.  If you do need to build you may need to pay more than the standard fees, but here are some ideas.

Construction costs per square meter are from $600 to $1100 depending on whether the fixtures and finishings are normal quality or luxury.
Your architect must charge the following fees (minimum) mandated by the Board of Architects and based on the estimated value of the building:
- Preproject 1%
(this is your rough draft and perspectives)
-  Construction  Plans and Specifications 4%
(blueprints and specs)
- Budgeting 1%
 (optional - this is a list of all materials you will need and pricing)
- Programming the Project 1%
(optional - project timelines and personnel needed, meaning who you must hire, what they must do, and when they must do it)
- Consulting for bidding process .5%
(optional - analyzing contractor's bids and recommending specific contractors)
- Inspection 3%
( inspecting the progress of the work periodically )
- Technical Management 5 %
(optional - managing the progress of the work daily )
- Administration 12%
(optional - includes technical management plus managing the accounting and money of the project)

So you can see that the architect will charge 7% to 25% or more, of the projected value, depending upon his level of involvement in the planning and execution of the work.  Some of the optional functions may be done by the architect or the builder, so you would reduce  the cost of these from the building costs above.  

*** Residency in Costa Rica -
Costa Rica Residency - ways to reside legally

Well I think that covers the basics, have fun with your research!