How to buy a car in Costa Rica. ☎️ Notarized car transfers.
Rental cars can be a pain, so you may want to consider buying a car in Costa Rica. There are many cars for sale in Costa Rica, which you can find at dealerships or online. However, it’s important to note that to buy or sell a vehicle in Costa Rica, you will need the services of a Notary Public. All vehicles for sale in Costa Rica are registered to their respective owners at the Public Registry. Selling a car in Costa Rica, can´t be done by simply endorsing the car’s deed. A notary public must draft the notarized sale and then proceed with registration. Involving a notary public from the beginning is essential when buying or selling a car. Once this is done, the notary must register the car purchase, at the Public Registry. The registry will then show who the new owner is.
Legal options for vehicle transfers:
There are many cars for sale in Costa Rica, so if you are planning on staying here, you don´t have to keep using rental cars. All you need to do, is find the right car for sale, and we will take care of the car purchase for you. Leave it all to us. We will draft the legal paperwork, a notarized car sale or a notarized vehicle donation. We will then proceed to register the vehicle purchase, at the Public Registry. The car will be in your name, in no time.
Buying or selling a car in Costa Rica. Due diligence:
Buying a car in Costa Rica, carries the same work as purchasing real estate. It´s important to have your attorney perform a summary due diligence study on the car for sale you wish to purchase. I begin due diligence, by first checking if the vehicle is free of encumbrances, such as liens or judicial embargos. It´s essential to ascertain the vin and chassis number of the car, and who is the current owner of the vehicle. We do this for you, by checking the vehicle Registry of Costa Rica
Every car in Costa Rica must pay a yearly tax, called the Marchamo, to circulate. So it´s important to check that it has been paid. To buy a car in Costa Rica, we must also asses that the vehicle has passed the annual mechanic evaluation. This annual mechanic evaluation, or “Revisión Técnica”, is carried out at various DEKRA stations nationwide. If the marchamo is not paid in time, or you miss out on the technical revisions by Dekra, you may be fined by transit offices in Costa Rica.
Costa Rica cars for sale: how can I determine its fiscal value for tax purposes?
If you wish to sell your car, and you are unsure about its fiscal value, all you have to do is log into the Public Registry or have your attorney do it for you. Once you access the corresponding site with the plate number, you can ascertain the vehicle’s information. The Registry will certify all important information, such as who owns the vehicle, its fiscal value, and important characteristics. It also tells us if the car has encumbrances or judicial annotations. This is extremely important information, whether you wish to buy or sell a vehicle in Costa Rica.
Closing costs associated with buying a car in Costa Rica:
Besides legal fees, vehicles for sale in Costa Rica, pay 3.5% in taxes and registration expenses. This tax rate will always be based on either the vehicle sales price or the fiscal value of the car, whichever is the highest. These moneys must be paid to the public notary, at the moment of the car sale closing, so that he may pay the corresponding amounts, when he files the paperwork at the Public Registry.
Buying or selling a car in Costa Rica: The notarized paperwork.
There are many car dealerships with vehicles for sale in Costa Rica. Suppose you found the car you wish to buy, and due diligence was performed on the vehicle. A sale price was negotiated, and you are ready to go with the seller, to the public notary´s office. You arrive at the notary public´s law firm, and the public scripture is read aloud. Both you, as the buyer and the seller must sign the scripture, which is the notarized sales contract. This is done in a public scripture, in a notarized fashion. Once you employ the notary and sign the paperwork, the notary public will register the copy of the public scripture in the Public Registry. He will need to pay the taxes and associated costs. The Registry will then proceed with the registration process. The car will be successfully transferred to the new owner if no defects exist in the notarized paperwork.
I wish to buy a car in Costa Rica. What can you recommend?
If you wish to buy a car and you need help finding where to look, there are interesting options online. You can search for a car from a seller on Auto Finanzas. Once you find the vehicle you wish to buy, have it inspected by a mechanic, and hire an attorney/notary public to help you with the transfer. You should also consider setting up a corporation in Costa Rica to act as a holding company for the asset. This has several advantages, especially for expensive vehicles. If not, have it in your name. Your attorney must also perform a small due diligence check to ascertain that the car has no legal responsibilities or liens.
Should I sell my car or donate it? What is the difference?
A sale is an onerous contract. A sale is legally perfected when the seller and buyer agree to sell and buy a car. An essential element in a sale is the agreement on a price. A donation, on the other hand, has no price. The person who receives the donation is not paying for the transfer. In both cases, however, you still have to pay the notary´s legal fees and the transfer taxes and registry costs. If you sell your car for more than US$10,000 (ten thousand dollars), the banks will require you to show the origin of the funds. You should request a copy of the public scripture, to the notary public that did the transfer to show to the banks.
Are there other ways to own and transfer vehicles for sale in Costa Rica?
A popular way to own a vehicle is to put it in the name of a corporation in Costa Rica. When you wish to sell a car, you only have to transfer the corporation’s shares to the buyer. You will avoid paying high legal fees, car transfer taxes, and registry costs. Another option is to simply lease a vehicle. The monthly payments are even tax deductible if you use the car for your work. You can also rent a vehicle and have the rental payments as tax-deductible.
Any more legal advice when buying a car in Costa Rica?
Avoid scams by remembering that a vehicle purchase in Costa Rica requires a notary public. You can consult with me for vehicle due diligence. We will revise the circulation rights and property title. Remember to see if the circulation rights (marchamo) are paid for the corresponding year and that the technical revisions are up to date with Dekra.
Contact us to help you buy or sell a car in Costa Rica in any province: San José, Heredia, Cartago, Alajuela, Limón, Puntarenas and Guanacaste.
Dr. Christopher Pirie Gil.