Is Costa Rica a Good Place to Make Money on Rental Property?
We have been telling you for a while that Costa Rica is a good place to make money on rental property. It turns out that we are not the only ones that think this. A recent article in the Business Insider found that Costa Rica ranks as the 3rd Best country to Buy Rental Property and make money.
The research was done by GOBankingRates who reviewed important indicators like monthly rent, rental tax rates and gross rental yields to come up with the amount, expressed as a percentage, that a landlord can expect as return on his investment before taxes, maintenance fees and other costs. Each metric was assigned a score, and the three scores were then combined for each country to form an overall score, which determined the final ranking. The higher the score, the higher the potential income for property owners.
Here are the numbers for Costa Rica:
Rental yield: 7.48%
Effective rental income tax: 5.16%
Monthly rent: $1450
Although Costa Rica’s rents are comparatively low, it has the second-highest rental yield in the survey, and its effective rental income tax is lower than 72 percent of the other countries reviewed. Only the United Arab Emirates and The Philippines beat Costa Rica out of all the countries in the world. Check out the article for details on how to make money on rental property in Costa Rica.
