Throughout the Tres Amigos Realty Group area here at the Gulf of Papagayo, we continuously deal with the question, shares of a corporation vs condominium, or what some people referred to as “titled” ownership. Theo Veenstra has over 20 years experience in Real Estate, including cond
ominium & share transfers. Let’s start by confirming the differences of both condominium and shares.
As for a condominium. The condo units are individually titled at national registry to what ever name you as the purchaser decides. Whether that be your personal name, kids’ names, your individual corporation, a family trust, foreign entity, etc.
Shares of a corporation are mirrored by what is known as a residential co-op in many countries. In the context of this blog, we are speaking of residential type corporations. Not necessary of an individual or business corporation. Individual corporations are normally something different than intended in this blog. Look for our blog titled “Ownership via Individual Corporations”.
The #1 reason we encounter shares of a corporation in Costa Rica relates to property on concession lands. Concession land consists of property located within 200 meters of the ocean and is a lease from the Costa Rican Republic. The rights or lease of these lands are available to Costa Ricans, or others with the requirement of being 50% plus Costa Rican owned.
Look for my blogs and videos specifically explaining concession lands. Many of these properties have multiple residencies/apartments/units also for our purposes known as condos. The 50% plus ownership requirement is accomplished in part through a Costa Rican corporation leasing the lands, and individuals like us possessing shares of that corporation. We pass by or rent those condos every day without knowing they are shares.
The #2 reason for shares of corporations owning properties that are not on concession lands, is the developer of the properties originally set the complex up as a
corporation to save time and money bypassing the condominium structure. In these instances, the corporation with all its units, out buildings and pools are on titled land, with ownership (Title) of the property registered to the corporation at the national registry. Again, we can hold the share representing your unit in whatever name you prefer.
There are some differences to each type of ownership. Here is short list:
| Detail | Condominium | Shares |
|---|---|---|
| Can not be used for residency | NO | YES |
| Can be financed | NO | YES |
| Less expensive to transfer | YES | NO |
| Homeowners’ association for governance | NO | YES |
| Board of directors for governance | YES | NO |
| Voting for rules and projects | YES | YES |
| Documented as a Public transfer at point of sale | NO | YES |
| Documented as a Private transfer at point of sale | YES | NO |
| Monthly Maintenance Fees (Normally) | YES | YES |
| Yearly Property Taxes included in Monthly Fee | SOME | NO |
Working with a knowledgable Agent in Costa Rica? This blog is intended to get a productive dialog started. Your conversation will entail aspects dealing with both condominiums or share ownership and ownership in general. Including shareholders registry, concession renewal (if applicable), transfer taxes, capital gains, liability,
residency, family planning, costs, closing procedures, escrow and more. Having owned both types, we are always happy to guide you through the process of acquiring a property in either type of structure.
Theo and the Tres Amigos Realty Group team, work with a variety of both legal and immigration experts, along with property managers etc. who are well versed and have an outstanding track record of getting things done right. Tres Amigos stands behind that statement.
The Gulf of Papagayo and our North Pacific Beaches are waiting for you to begin the next adventure of your life, beginning with a well-organized purchase handled by Theo Veenstra & Tres Amigos realty Group. Experts in our area.
Theo Veenstra, Lets Buy Costa Rica.com. Be sure to check my testimonials page on this website.