Investing in Costa Rica Through Your Self-Directed IRA

Unlock Tax-Advantaged Real Estate

What is a self-directed IRA?

A self-directed IRA (SDIRA) is a type of individual retirement account that allows you to have more control over your investment choices compared to a standard IRA. With a self-directed IRA, you can invest in a wider range of assets, including real estate.

Advantages of Investing in Real Estate

How Does It Work

Step by Step Process

Set Up Your Self-Directed IRA

  • Choose a qualified IRA custodian specializing in real estate investments
  • Transfer funds from your existing retirement account or make a new contribution
  • Your custodian handles all IRS compliance and reporting requirements

Select Investment

  • Identify real estate opportunities
  • Perform due diligence with local experts
  • Submit your investment decision to your IRA custodian

Purchase & Management

  • Your IRA custodian completes the property purchase
  • All expenses must be paid through your IRA
  • Rental income flows directly back into your IRA
  • Property management can be handled locally while you maintain oversight

Comparing Self-Directed IRAs with Traditional and Roth IRAs

When considering retirement investment options, it’s essential to understand the differences between self-directed IRAs (SDIRAs), traditional IRAs, and Roth IRAs.

Important Guidelines:

  • All property expenses must be paid from your IRA funds
  • You cannot personally use the property while it’s in your IRA
  • All rental income and capital gains must return to your IRA
  • Maintenance and property management must be handled by third parties

We continuously monitor and adapt to changes in market opportunities, investment regulations and economic conditions.

By far, the best resource available for anyone interested in investing in property in Costa Rica. We toured both urban and resort locations throughout the country and found them proactive, knowledgeable and an excellent and unbiased resource for selecting and purchasing property that best fits with the needs of the buyer.

Telemark HOA

Real Estate Investor

What kind of properties can I invest in with a self-directed IRA?

Purchase Options

Land Investments

Investing in land through a Self-Directed IRA (SDIRA) provides a flexible and tangible way to grow your retirement portfolio. Whether purchasing raw land for future development, agricultural use, or speculative appreciation, land investments offer long-term value and minimal management requirements. With an SDIRA, any profits from selling the land flow back into your account tax-deferred or tax-free, depending on your IRA type. This strategy allows you to diversify beyond traditional assets while building wealth through the increasing value of a finite resource.

San Carlos Costa Rica Mountain View

Vacation Rentals

Vacation rentals are a lucrative investment option for SDIRA holders, offering the potential for consistent income and high returns in popular tourist destinations. By owning short-term rental properties, you can capitalize on seasonal demand while benefiting from tax-advantaged growth. All rental income and profits generated by the property are directed back into the SDIRA, helping to maximize your retirement savings. This investment strategy combines real estate appreciation with steady cash flow, making it a valuable addition to a diversified retirement portfolio.

Fractional Real Estate

Fractional ownership allows SDIRA investors to own a share of high-value properties, such as luxury villas or resort homes, without the full financial burden. This cost-effective approach enables you to diversify into premium real estate markets while enjoying shared income and appreciation potential. Ideal for properties in sought-after locations, fractional ownership provides a passive investment opportunity managed by professionals. With an SDIRA, all income and capital gains from the fractional property return to your account tax-deferred or tax-free, helping you grow your retirement savings through strategic and collaborative real estate investments.

Invest with Confidence and Security

Why choose Investing Costa Rica?

We protect your interests with thorough due diligence and compliant investment structures.

We are here to help you.

Need Help?

Contact us and we will happily help you with any questions you have about Costa Rica. With over 50 years of combined experience, who better to ask than the experts?