NEW LAW TO ATTRACT INVESTORS - BILL TO STIMULATE INVESTMENT APPROVED IN FIRST DEBATE
June 23 2021
Last week Costa Rica’s Congress approved in first debate a new bill to attract people interested in investment, renter, and pensioner visas. The main objective of the bill is to create incentives with the intention to attract more foreigners coming to Costa Rica under those three categories.
Among the most important incentives within the Bill are the following:
· Reduction of minimum capital required for investors. Currently, the law requires a minimum capital investment of $200,000 USD to qualify for this category. The bill proposes to reduce the amount to $150,000 USD.
· Tax exemptions. Applicants will have the right to import one vehicle into the country tax-free for personal or family use; and, will be able to import household goods into the country, tax-free, for one time only. These exemptions will be applicable to all foreigners and dependents applying under one of the three residency categories mentioned above.
· Property transfer tax discount. All real estate purchased under the name of the applicant is subject to a 20% discount of the real estate transfer tax.
· Income Tax exclusion. Money earned abroad would not be taxed by Costa Rica, for example the income reported for a residency application, would be excluded from tax.
The Bill No. 22.156 still needs to pass one more debate, which is presumably scheduled for June 17, and if approved, it will need to be published in the national paper “La Gaceta” and made an official law.
4 Mistakes That Plague First-Time Home Sellers and How to Avoid Making Them
Are you thinking about selling your home? If this is your first time going through the selling process, you may be wondering just how well things are going to go. Selling a home is usually a smooth process – there are thousands sold each day – but issues can arise if you're not careful. Let's explore four mistakes that are commonly made by first-time home sellers and how you can avoid them.
Trying To Sell Without Experienced Representation
The first and most significant mistake that some first-time sellers make is to try to go it alone. Selling a house is a major financial and legal transaction and one where experience is crucial in getting things right. Invest in an agent who has a track record for quick, efficient sales and you're going to have an advantage.
Choosing Emotion Over Reason
Next, you'll want to avoid letting your emotions control how you react or respond during the selling process. Many homeowners become emotionally attached to their homes, which is fine while you're living there but can be a problem when you're selling. It's important to let logic and reason guide the sale. Don't let yourself get caught up emotionally or you may make a critical mistake.
Pricing Outside Of A Realistic Range
Asking too much – or too little! – for their home is another common mistake made by first-time home sellers. It's critical to understand that the local real estate market has a lot of influence on the correct asking price for your home. Current listings and recent sales of similar homes in the area tend to set a price range in the minds of buyers, so these will need to be observed. Your real estate agent will be a big help in choosing the right sale price.
Selling At The Wrong Time
The final mistake we'll cover today is listing your home for sale in the wrong environment. The local real estate market is in constant state of change due to a variety of factors. The seasons, other local home listings, interest rates, new home construction, local municipal zoning changes and all sorts of other factors can influence your sale. Unless you are under a time constraint, it's best to let your agent advise you when it's a good time to list your home.
Selling your first home can be a daunting experience, but with the right frame of mind and professional representation, it will go smoothly. To learn more about the home selling process or to list your home for sale, contact us today. Our real estate team is happy to assist.