• Costa Rica Coffee Guide

2 New Rules For Buying, Registering Property

November 9, 2007

Purchasing property in Nicaragua is simple and safe, if the buyer follows all the correct steps.

The first step, as we have mentioned in previous columns, is to always carry out a title search to know the current legal status and history of the property.

Once a buyer has decided to buy a piece property, the next step is to get a notary to authorize a public purchase deed, in which the seller agrees to sell the property to the buyer and the buyer agrees to purchase the property from the seller.

The purchase deed has to be registered at the Public Registry under the new owner’s name (buyer’s name); this is the stage that we call the “registration process.”

It is in this stage where buyers have to watch out for two new rules in order to avoid any potential problems for the registration of the property.

The first thing that a buyer has to know is that if he or she is purchasing property through a corporation, the corporation must first have a valid tax certificate to obtain the cadastral appraisal for the property, according to new regulations issued by the Tax Office. This means that, unlike before, when a buyer had only to register the corporation at the Public Registry in order to successfully register the purchased property under the corporation’s name, now the buyer must first register the corporation at the Public Registry and the Tax Office to receive a tax identification number (Tax ID).

The Tax ID is now required by the Tax Office for every corporation that purchases a piece of property.

If your corporation doesn’t have a Tax ID, then the buyer is guaranteed to have problems when requesting the cadastral appraisal certificate needed for the payment of the transfer tax and registration of the purchase deed at the Public Registry.

The second thing buyers must know when purchasing property (especially in the area of Rivas) is that some municipalities are requesting the payment of the municipality income tax, which is 1% of the purchase value of the property. Without the receipt indicating that the buyer has already paid this tax, the Public Registry will not admit the purchase deed for registration.

This tax is not being required by all municipalities in the country, but that doesn’t mean that it is an illegal tax – under the Law of Municipalities, each municipality can determine whether or not to charge this tax.

So these are the two new rules that the authorities are implementing for the purchase of property. If the buyer complies with them and follows the process, he or she should not have any trouble purchasing legally titled property and registering it properly.

 

You may be interested

Avianca to offer direct flights between Miami and Costa Rica
Costa Rica
1913 views
Costa Rica
1913 views

Avianca to offer direct flights between Miami and Costa Rica

Alejandro Zúñiga - April 10, 2021

Avianca announced a daily nonstop flight between the San José area and Miami, Florida, scheduled to start July 1. According…

Panama authorizes use of Chinese vaccine against Covid-19
Latin America
2121 views
Latin America
2121 views

Panama authorizes use of Chinese vaccine against Covid-19

AFP - April 10, 2021

Panama authorized "emergency" use of the CoronaVac vaccine, from the Chinese pharmaceutical company Sinovac, to combat Covid-19, the government announced…

Costa Rica coronavirus data for Friday, April 9
Costa Rica
57 views
Costa Rica
57 views

Costa Rica coronavirus data for Friday, April 9

The Tico Times - April 9, 2021

The country registered 907 new cases of Covid-19 on Wednesday, April 7; 877 on Thursday, April 8; and 914 cases…