Authored by the expert who managed and guided the team behind the Costa Rica Property Pack
Everything you need to know before buying real estate is included in our Costa Rica Property Pack
Americans can legally own property in Costa Rica with virtually the same rights as locals, making it one of the most foreigner-friendly real estate markets in Latin America. The process is straightforward but requires careful navigation of legal requirements, tax obligations, and local market dynamics.
If you want to go deeper, you can check our pack of documents related to the real estate market in Costa Rica, based on reliable facts and data, not opinions or rumors.
Americans enjoy full property ownership rights in Costa Rica without residency requirements, though coastal properties have restrictions.
The buying process requires mandatory legal representation and involves transfer taxes of 1.5% plus ongoing property taxes of 0.25% annually.
| Key Aspect | Requirement/Details | Cost/Timeline |
|---|---|---|
| Ownership Rights | Full ownership for titled property, 49% max for coastal concessions | No restrictions |
| Residency Needed | No residency or visa required | Tourist status sufficient |
| Physical Presence | Not required, can buy remotely via Power of Attorney | Entire process remote |
| Transfer Tax | 1.5% of sale/registered value | Due at closing |
| Legal Fees | Mandatory attorney participation | 1.25-1.5% of purchase price |
| Annual Property Tax | 0.25% of registered municipal value | Ongoing obligation |
| Popular Areas | Tamarindo, Nosara, Escazú, Santa Ana | $1,200-$6,000/m² range |
Can Americans legally own property in Costa Rica and are there any restrictions compared to locals?
Americans can legally own property in Costa Rica with virtually identical rights to Costa Rican citizens.
For titled property (fee simple), Americans enjoy complete ownership rights including the ability to own, sell, lease, or inherit property without requiring a Costa Rican partner or residency status. There are no limits on the number of properties Americans can own or the total value of their real estate portfolio in Costa Rica.
The only significant restriction applies to Maritime Zone properties along the coast. The first 50 meters from the high tide mark is public land, while the next 150 meters (concession land) can only be owned up to 49% by foreigners, typically requiring a Costa Rican partner for majority ownership. However, this restriction affects all foreigners equally, not just Americans.
Inland properties and titled beachfront properties are available for full 100% ownership by Americans. This makes Costa Rica one of the most foreigner-friendly real estate markets in Central America, as many neighboring countries impose stricter ownership limitations.
It's something we develop in our Costa Rica property pack.
Do Americans need residency or a visa to buy or hold real estate in Costa Rica?
Americans do not need residency or any type of visa to purchase or hold real estate in Costa Rica.
Even tourists entering Costa Rica on a standard 90-day entry stamp can legally complete property transactions. The Costa Rican government places no residency requirements on foreign property ownership, making it possible to buy property during a vacation or business trip.
Owning property does not automatically grant residency rights in Costa Rica. However, Americans who invest at least $150,000 in real estate can qualify for investor residency, which provides a renewable two-year visa for those seeking to live in Costa Rica long-term.
This policy makes Costa Rica particularly attractive for American retirees, investors, and vacation home buyers who want property ownership without the commitment of establishing legal residency. The separation of property rights from residency requirements provides maximum flexibility for American buyers.
Do Americans need to be physically present in Costa Rica to complete a purchase?
Physical presence is not required to complete a property purchase in Costa Rica.
The entire buying process can be handled remotely through a Costa Rican attorney acting under Power of Attorney (POA). This allows Americans to purchase property from the United States or anywhere else in the world without traveling to Costa Rica for closing.
The remote process includes property searches, due diligence, contract negotiations, and final deed transfer. Your attorney can represent you at all stages, from initial offer submission to final registration at the National Registry.
However, many Americans choose to visit the property in person before purchasing, especially for due diligence purposes. While not legally required, physical inspection helps verify property conditions, neighborhood characteristics, and access to utilities and services that may not be apparent in photos or virtual tours.
What taxes, fees, or ongoing fiscal obligations apply to Americans who own property in Costa Rica?
American property owners in Costa Rica face several mandatory taxes and fees both at purchase and annually.
| Tax/Fee Type | Rate/Amount | When Due |
|---|---|---|
| Transfer Tax | 1.5% of sale/registered value | At closing |
| Legal/Notary Fees | 1.25-1.5% of purchase price | At closing |
| Annual Property Tax | 0.25% of registered municipal value | Quarterly payments |
| Luxury Property Tax | 0.25-0.55% for properties >$233,900 | Annual |
| Rental Income Tax | 15% of 85% of gross rental income | If property is rented |
| Corporate Fees | $200-500 annually | If owned through corporation |
What is the full step-by-step process for an American to buy property in Costa Rica, including all documents needed?
The Costa Rican property purchase process follows a structured legal framework requiring specific documentation at each stage.
Step 1: Property Search and Offer - Americans typically work with licensed real estate agents to identify properties, then submit a Letter of Intent or Option to Purchase Agreement with a 10% escrow deposit to secure the property while due diligence is conducted.
Step 2: Due Diligence - Your attorney verifies clear title at the National Registry, checks for liens, confirms zoning compliance, and validates utility availability. Critical documents include the Plano Catastrado (official survey), Escritura (title deed), Certificación Literal (ownership record), and if using a corporation, the Personería Jurídica.
Step 3: Closing and Transfer - Both parties sign the official Transfer Deed (Escritura de Traspaso) before a Notary Public, who then registers the property transfer at the National Registry. Required documents include valid passport, proof of funds, and any corporate documentation if applicable.
Step 4: Post-Purchase Registration - The deed registration process typically takes 30-60 days, after which you receive your registered title. Many buyers also secure title insurance during this phase for additional protection.
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Is hiring a lawyer mandatory for Americans buying property in Costa Rica and what should they look for when choosing one?
Hiring a Costa Rican attorney is mandatory for all property transactions, as attorneys also serve as notaries public who must oversee deed transfers and title registrations.
Your lawyer must be independent and not selected by the seller, real estate agent, or any other party with financial interest in the transaction. This independence is crucial for protecting your interests during due diligence and contract negotiations.
Key qualifications to look for include extensive experience in real estate transactions, membership in good standing with the Costa Rican Bar Association, and a track record working with American clients. Your attorney should conduct thorough due diligence including verifying property boundaries, checking water rights, confirming building permits, and ensuring zoning compliance.
Red flags include attorneys recommended by sellers or agents, those who rush the due diligence process, or lawyers who cannot provide references from previous American clients. The Costa Rican Bar Association can provide referrals to qualified real estate attorneys.
Legal fees typically range from 1.25-1.5% of the purchase price and cover all services from contract review through final registration.
Which areas in Costa Rica are most popular with Americans and why?
Several regions in Costa Rica have emerged as preferred destinations for American property buyers based on lifestyle preferences, infrastructure quality, and expat community presence.
Tamarindo, Nosara, and Samara on the Pacific Coast attract Americans seeking beach lifestyle with world-class surfing, established expat communities, and reliable infrastructure including international restaurants, medical facilities, and English-speaking services.
Jacó and Hermosa in the Central Pacific region appeal to Americans wanting vibrant nightlife, easy access to San José's international airport, and a more urban beach experience with shopping centers and entertainment venues.
The Arenal/La Fortuna area draws Americans preferring cooler mountain climates, eco-friendly lifestyles, and stunning lake views, particularly retirees seeking a more peaceful environment away from coastal tourism.
Escazú and Santa Ana, suburbs of San José, attract American families and professionals requiring urban amenities, top-tier healthcare facilities, international schools, and proximity to business centers while maintaining suburban comfort.
These areas consistently rank highest for American property purchases due to their combination of safety, established expat infrastructure, and lifestyle amenities that appeal to American preferences.
Which regions currently rank best for living, renting out, or capital appreciation based on the latest livability index, gross rental yields, rental income data, tourism numbers, and growth forecasts?
As of September 2025, specific regions in Costa Rica offer distinct advantages for different investment strategies and lifestyle goals.
Guanacaste Province, including Tamarindo, Nosara, and Flamingo, leads in rental yields with gross returns of 7-10% annually due to consistent international tourism and strong vacation rental demand. These areas also show steady capital appreciation driven by continued infrastructure development and growing expat populations.
The Central Valley, particularly Escazú, Santa Ana, and Grecia, ranks highest for long-term living with superior healthcare facilities, international schools, and year-round temperate climate. While rental yields are lower at 4-6%, these areas offer the most stable long-term appreciation and highest livability scores.
The Southern Zone, including Dominical and Uvita, represents emerging markets with strong eco-tourism growth and rising property values. Current rental yields range from 6-8% with significant potential for capital appreciation as infrastructure improves.
Tourism data from the Costa Rican Tourism Board shows Guanacaste receiving over 40% of international visitors, supporting strong rental income potential, while Central Valley locations provide the most stable long-term investment environment for Americans prioritizing lifestyle over maximum returns.
It's something we develop in our Costa Rica property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Costa Rica versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What is the current breakdown of property prices per city and region in Costa Rica for Americans looking to buy?
Costa Rican property prices vary significantly by location, with coastal and expat-focused areas commanding premium pricing as of September 2025.
| Region/City | Property Type | Price Range (USD per m²) |
|---|---|---|
| San José City | Apartments/Condos | $1,200-$1,800 |
| Escazú/Santa Ana | Luxury Condos | $1,800-$3,000 |
| Tamarindo | Oceanfront Properties | $2,500-$6,000 |
| Tamarindo | Inland Properties | $1,500-$3,000 |
| Nosara/Samara | Beach Properties | $2,000-$5,000 |
| Jacó/Hermosa | Mixed Development | $1,200-$2,500 |
| Arenal Region | Mountain Properties | $1,000-$2,000 |
Can Americans get a mortgage in Costa Rica, what are the usual rates and conditions, and what tips help secure one?
Americans can obtain mortgages from Costa Rican banks, though conditions are significantly stricter than typical US mortgage requirements.
Costa Rican banks typically require 30-50% down payments for foreign borrowers, with loan terms limited to 10-20 years and interest rates ranging from 8.5-10% annually. These rates reflect both local banking practices and additional risk assessment for foreign borrowers.
Required documentation includes proof of stable income for at least two years, bank statements, credit reports, employment verification, and detailed property appraisals. The approval process often takes 60-90 days and requires extensive paperwork in Spanish.
Successful strategies include establishing relationships with banks experienced in foreign lending such as Banco Nacional or BAC San José, maintaining Costa Rican bank accounts before applying, and providing comprehensive financial documentation translated by certified translators.
Many Americans alternatively use US-based Home Equity Lines of Credit (HELOCs) or private financing, which often provide more favorable terms and faster approval processes than local Costa Rican mortgages.
What are the most common mistakes and pitfalls Americans face when buying property in Costa Rica?
The most critical error Americans make is purchasing non-titled or unregistered land, which provides no legal protection and cannot be properly insured or resold through normal channels.
Many Americans ignore Maritime Zone restrictions when buying coastal properties, failing to understand the complex concession requirements that can limit ownership rights and create future legal complications.
Using attorneys recommended by sellers or real estate agents represents another major pitfall, as these lawyers may prioritize the transaction over buyer protection during due diligence processes.
Americans frequently underestimate ongoing costs including annual property taxes, luxury property taxes for higher-value properties, corporate maintenance fees if using corporate ownership, and utility expenses that can be substantially higher than US equivalents.
Failure to verify essential elements like water rights, road access, building permits, and zoning compliance creates long-term problems that can be expensive or impossible to resolve after purchase.
Finally, many Americans underestimate closing timelines and Costa Rican bureaucratic processes, leading to rushed decisions or inadequate due diligence periods that compromise transaction security.
How does the property ownership process for Americans compare to that of locals or other foreign nationalities?
For titled property ownership, Americans enjoy identical legal rights to Costa Rican citizens with no discriminatory restrictions or additional requirements.
The purchasing process, legal requirements, tax obligations, and documentation needs are the same for Americans as for Costa Rican nationals. Both groups can own unlimited numbers of properties with unrestricted values and identical inheritance rights.
Maritime Zone restrictions apply equally to all foreign nationals regardless of country of origin, meaning Americans face the same 49% ownership limitation on coastal concession land as Germans, Canadians, or any other foreign buyers.
However, Americans often have practical advantages over other foreign nationals including stronger banking relationships for international wire transfers, more established real estate agent networks catering to English-speaking clients, and larger expat communities providing referrals and support services.
Costa Rica's foreign-friendly property laws contrast sharply with neighboring countries like Nicaragua or Guatemala, where Americans face significantly more restrictions, higher foreign ownership taxes, or requirements for local partnerships that don't exist in Costa Rica.
It's something we develop in our Costa Rica property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
American property ownership in Costa Rica offers exceptional opportunities with minimal restrictions compared to most international markets.
Success requires proper legal representation, thorough due diligence, and understanding of local tax obligations, but the process is straightforward for prepared buyers.
Sources
- Wise - Buy Land in Costa Rica
- Nestmann - Costa Rica Property Ownership Laws for US Citizens
- Nestmann - Buying Property in Costa Rica American Guide
- The LatinVestor - Costa Rica Real Estate for Foreigners
- The LatinVestor - Americans Buying Property Costa Rica
- CB Sunset Tree Realty - Costa Rica Residency Requirements
- Punta Uva Realty - Buy Property Apply for Residency
- OSA Property Management - Costa Rica Property Prices 2025
- Sol Realty CR - Costa Rican Real Estate Taxes 2025
- Flamingo Beach Realty - Luxury Property Tax Guide Costa Rica 2025