How are Americans buying land in Costa Rica?

Authored by the expert who managed and guided the team behind the Costa Rica Property Pack

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THE LATIN INVESTOR

A team specialized in real estate investing in Latin American countries (Costa Rica, Mexico, Colombia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Costa Rica. If you'd like to learn more about us, you can check our presentation page.

How much land can an American legally buy in Costa Rica, and are there any restrictions compared to Costa Rican citizens?

Americans can legally purchase unlimited amounts of land in Costa Rica with the same ownership rights as Costa Rican citizens.

The only significant restriction applies to the Maritime Zone, which extends 200 meters inland from the coastline. The first 50 meters from the high tide line constitutes public land that cannot be owned by anyone, while the next 150 meters can only be leased by foreigners who have resided in Costa Rica for at least five years.

Outside of this coastal restriction, Americans enjoy full freehold ownership rights, meaning you can buy, sell, rent, or develop your property without limitations. You can own multiple properties, commercial land, residential lots, or agricultural acreage without any caps on the total value or size of your holdings.

Only about 5% of Costa Rica's beaches allow private ownership closer to the shoreline due to special titling arrangements that predate current maritime zone laws. These titled beachfront properties command premium prices but offer direct beach access that's otherwise restricted.

It's something we develop in our Costa Rica property pack.

Do Americans need to have residency or a specific visa to purchase land in Costa Rica?

No residency status or special visa is required for Americans to buy land in Costa Rica.

You can purchase property using only your valid U.S. passport while on a tourist visa, which allows stays of up to 90 days. This makes Costa Rica one of the most foreigner-friendly countries in Central America for real estate investment.

If you invest $150,000 or more in Costa Rican real estate, you become eligible to apply for Investor Residency status, but this is completely optional and not a requirement for property ownership. Investor Residency can provide benefits like easier banking access and the ability to apply for permanent residency after maintaining the investment for three years.

Your property ownership rights remain the same whether you're a tourist, temporary resident, or permanent resident. The land purchase process and legal protections don't change based on your immigration status.

Is it necessary for an American buyer to be physically present in Costa Rica during the land purchase process?

Physical presence in Costa Rica is not required to complete a land purchase.

You can execute the entire transaction remotely by granting Power of Attorney to a licensed Costa Rican lawyer. This legal document, which must be notarized and apostilled in the United States, authorizes your attorney to sign documents, transfer funds, and complete the property registration on your behalf.

Many Costa Rican law firms now offer comprehensive virtual services, including online consultations, digital document reviews, video property tours, and remote closings conducted via video conference. Your lawyer can coordinate with real estate agents, conduct due diligence, and handle all bureaucratic requirements without your physical presence.

However, visiting the property in person before purchase is highly recommended to verify its condition, assess the neighborhood, and ensure it meets your expectations. Many buyers choose to visit during the due diligence period to make final decisions before closing.

What are the step-by-step procedures and required documents for an American to buy land in Costa Rica?

The land purchase process in Costa Rica follows a structured legal framework that typically takes 30-60 days to complete.

Essential documents include the original property deed, Plano Catastrado (official property map), certified title search report, current survey map, Certification of Alineamiento from INVU (National Institute of Housing and Urban Development), and proof that all property taxes are current and the title is clear of liens or encumbrances.

Is hiring a local lawyer mandatory for Americans buying land, and what should the lawyer specifically assist with?

While not legally mandatory, hiring a qualified Costa Rican real estate attorney is considered essential and strongly recommended by all industry experts.

Your lawyer serves as your primary protection against fraud, legal complications, and bureaucratic errors that could cost tens of thousands of dollars. They must be licensed to practice law in Costa Rica and should be bilingual to ensure clear communication throughout the process.

The lawyer's specific responsibilities include conducting comprehensive title searches to verify clear ownership, reviewing all legal documents for accuracy and completeness, ensuring compliance with local zoning and environmental regulations, coordinating with government agencies for property registration, overseeing the escrow process and fund transfers, and providing guidance on tax implications and estate planning options.

Legal fees typically range from $1,500 to $3,000 depending on the property value and transaction complexity. This investment provides crucial protection in a foreign legal system where procedures and regulations may differ significantly from U.S. practices.

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What are the common mistakes or pitfalls Americans make when buying land in Costa Rica?

The most costly mistake Americans make is failing to verify zoning regulations and permitted land uses before purchase.

Ignoring zoning laws can severely restrict your ability to build or develop the property as intended. Always obtain a Land Use Specification (Uso de Suelo) document from the local municipality to understand exactly what construction and activities are permitted on the land.

Skipping comprehensive due diligence represents another major pitfall. This includes failing to verify exact property boundaries through updated surveys, not checking for outstanding liens or legal disputes, overlooking environmental restrictions that may limit development, and assuming utilities and road access are guaranteed without verification.

Many Americans underestimate infrastructure challenges in rural areas. Properties in remote locations may lack electricity, water connections, or reliable road access, significantly affecting both property value and development costs. Additionally, purchasing property does not automatically grant residency rights or extend your tourist visa status.

It's something we develop in our Costa Rica property pack.

Are mortgages actually available to Americans buying land in Costa Rica, and what are the interest rates, conditions, and tips to qualify?

Mortgages are available to Americans but with more restrictive terms than domestic U.S. financing.

Costa Rican banks rarely approve mortgages for foreign buyers, so most financing comes from private lenders, international banks with Costa Rican operations, or specialized foreign buyer mortgage programs. Interest rates typically range from 8% to 10% annually, significantly higher than current U.S. mortgage rates.

Standard financing terms require a down payment of 25-30% of the property value, loan terms of up to 20 years maximum, property appraisal conducted by a Costa Rican-licensed appraiser, and various initiation fees and closing costs that can add 2-3% to the total loan amount.

To qualify for financing, you'll need proof of stable income through recent pay stubs, bank statements, and tax returns, a credit report from your home country translated into Spanish, employment verification letter, and proof of assets and financial reserves. Some lenders may require establishing a Costa Rican bank account and demonstrating ties to the country.

Alternative financing options include using home equity loans or lines of credit from U.S. banks, liquidating retirement accounts or investments, or negotiating seller financing directly with the property owner.

What are the tax implications and fiscal responsibilities for Americans who own land in Costa Rica, both locally and in the U.S.?

American landowners in Costa Rica face tax obligations in both countries with specific reporting requirements and potential credits.

U.S. tax obligations include reporting all rental income on your federal tax return regardless of where it's earned, paying U.S. capital gains tax when selling the property, and potentially filing Form 8938 or FBAR if the property value and other foreign assets exceed reporting thresholds of $50,000 to $200,000 depending on your filing status.

Costa Rican property taxes paid can be claimed as a foreign tax credit on your U.S. return, potentially reducing your U.S. tax liability dollar-for-dollar.

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.

Which regions or cities in Costa Rica offer the best opportunities for capital appreciation when buying land?

Guanacaste Province leads Costa Rica in land value appreciation, particularly in established beach communities like Tamarindo, Playa Flamingo, and Playa Hermosa.

These coastal areas benefit from strong tourism demand, developed infrastructure, and proximity to Daniel Oduber Quirós International Airport in Liberia. Land values in prime Guanacaste locations have appreciated 5-8% annually over the past five years, with some premium beachfront areas seeing even higher gains.

The Central Valley, including Escazú, Santa Ana, and parts of San José, offers steady appreciation driven by urban development and expatriate demand. These areas provide reliable infrastructure, healthcare access, and proximity to Juan Santamaría International Airport, making them attractive for both investment and personal use.

The Southern Zone, encompassing Dominical, Uvita, and Ojochal, represents emerging value with strong growth potential. This region attracts eco-conscious buyers and offers lower entry prices while benefiting from improving infrastructure and growing tourism. Land prices remain relatively affordable compared to Guanacaste, providing better appreciation potential for early investors.

Where do Americans most commonly buy land in Costa Rica, and what drives those location preferences?

Americans concentrate their land purchases in three primary regions: Guanacaste Province coastal areas, Central Valley suburbs, and the Southern Pacific Zone.

Guanacaste Province dominates American purchases, with Tamarindo, Playas del Coco, and Nosara leading in transaction volume. These areas offer established expatriate communities, English-speaking services, direct flights from major U.S. cities, and proven rental income potential from vacation properties.

Central Valley locations like Escazú and Santa Ana attract Americans seeking urban conveniences, world-class healthcare, international schools, and year-round spring-like climate. These areas provide easy access to San José's business district while maintaining a suburban lifestyle familiar to American buyers.

The Southern Zone appeals to Americans prioritizing natural beauty, lower costs, and eco-friendly living. Dominical and Uvita offer pristine beaches, national park access, and growing but still intimate expatriate communities. These areas typically cost 30-50% less than comparable Guanacaste properties while offering similar beach access and lifestyle benefits.

It's something we develop in our Costa Rica property pack.

What are the liveability scores, rental yields, tourism stats, and growth forecasts for the most popular regions where Americans buy land?

Costa Rica's popular American investment regions offer strong fundamentals across multiple metrics as we reach mid-2025.

Tourism statistics show Costa Rica welcomed 1.3 million visitors in the first half of 2023, with Guanacaste Province receiving approximately 40% of international tourists. This sustained tourism flow supports rental property demand and drives service sector employment in expatriate-preferred areas.

Rental yields vary significantly by location and property type. Coastal tourist zones including Tamarindo, Manuel Antonio, and Jaco generate rental yields of 7-10% annually for well-managed vacation properties. Central Valley areas like Escazú and Santa Ana typically yield 4-6% annually but offer more stable, long-term rental markets with less seasonality.

Growth forecasts indicate the Costa Rican real estate market will expand at a compound annual growth rate of 3.82% from 2025 to 2029. Guanacaste and Central Valley areas are expected to outperform this average due to continued tourism growth and infrastructure investments.

Infrastructure improvements including the planned expansion of Route 27 to the Central Pacific, completion of the San José-San Ramón highway, and airport upgrades in Liberia and San José will likely boost property values in connected regions through improved accessibility and reduced travel times.

What's the average price per square meter or per acre for land in different parts of Costa Rica right now?

As of June 2025, land prices in Costa Rica vary dramatically based on location, with coastal areas commanding premium pricing.

Large parcels and agricultural land typically cost significantly less per square meter, with some rural areas offering development opportunities for under $10/m². However, these properties may lack infrastructure and require substantial investment to make them suitable for construction or development.

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.

Sources

1. Wise - How to Buy Land in Costa Rica
2. The Latin Investor - Costa Rica Property for Americans
3. Costa Rica.org - Real Estate Land Guide
4. OSA Property Management - Property Ownership Laws
5. Costa Ballena Property - Mortgage Guide
6. Taxes for Expats - Costa Rica Tax Guide
7. The Latin Investor - Buying Land Guide
8. My Palmyra - Market Trends