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 purchase property in Costa Rica with nearly identical rights as locals, except for certain maritime and border restrictions.
Costa Rica offers one of Latin America's most welcoming property markets for US citizens, with no residency requirements and straightforward ownership processes. As of September 2025, thousands of Americans own property across the country, from beachfront condos in Guanacaste to mountain homes in the Central Valley.
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 almost identical property rights as Costa Rican citizens, with no residency requirements needed to purchase real estate.
The process involves hiring a local attorney, conducting due diligence, and paying transfer taxes of approximately 1.5% of the property value.
| Aspect | Details | Cost/Timeline |
|---|---|---|
| Legal Rights | Full ownership except maritime zones | No restrictions |
| Residency Requirement | None - can buy on tourist visa | $0 |
| Physical Presence | Not required - can use Power of Attorney | Optional |
| Property Tax | 0.25% of registered value annually | Plus luxury tax if over $230K |
| Transfer Tax | 1.5% of purchase price | Paid at closing |
| Legal Fees | Attorney required for all transactions | 1-2% of purchase price |
| Closing Timeline | 30-60 days typical | Varies by complexity |
Can Americans legally buy property in Costa Rica and are there any restrictions compared to locals?
Americans can legally purchase property in Costa Rica with nearly identical ownership rights as Costa Rican citizens.
You can own titled property outright with "fee simple" ownership, which includes the right to buy, sell, lease, and inherit property without restrictions. The Costa Rican constitution guarantees equal property rights for foreigners and locals on titled land.
The primary restriction applies to the Maritime Zone, which is the first 200 meters from the high tide line. The initial 50 meters is public land that cannot be owned by anyone, while the next 150 meters can only be held through a concession where foreigners cannot own more than 49%. Border areas near Nicaragua and Panama, as well as protected reserves, may have additional restrictions, but these apply equally to Costa Rican citizens.
As of September 2025, there are no nationality-based restrictions for Americans compared to other foreigners - all non-citizens have the same rights and limitations when purchasing Costa Rican real estate.
Do Americans need to be residents or have a specific visa to purchase property in Costa Rica?
Americans do not need to be residents or hold any specific visa to purchase property in Costa Rica.
You can buy real estate while visiting on a standard 90-day tourist visa. There are no residency requirements, citizenship requirements, or minimum stay periods required for property ownership. Many Americans complete their entire property purchase while on vacation in the country.
However, investing $150,000 or more in Costa Rican real estate can qualify you for the Inversionista (Investor) residency program if you choose to pursue it later. This residency status provides benefits like easier banking and potentially lower tax rates, but it's not required for property ownership.
Property ownership alone does not automatically grant permanent residency or citizenship rights. If you want to become a legal resident, you'll need to apply through separate immigration processes.
Is it necessary for Americans to be physically present in Costa Rica to complete the purchase?
Americans do not need to be physically present in Costa Rica to complete a property purchase.
The entire transaction can be handled remotely using a Power of Attorney (POA) that has been notarized and apostilled in the United States. Your trusted local attorney can execute all documents, conduct the closing, and register the property on your behalf using this POA.
However, most experienced investors and attorneys strongly recommend visiting the property in person before purchasing. This allows you to inspect the physical condition, verify the location, check neighborhood conditions, and meet your legal team face-to-face. Remote purchases based solely on photos and descriptions carry significantly higher risks.
It's something we develop in our Costa Rica property pack.
If you do choose to buy remotely, ensure your attorney is highly reputable and consider having a trusted local contact inspect the property on your behalf before finalizing the purchase.
What are the taxes and ongoing fiscal obligations for Americans owning property in Costa Rica?
Americans owning property in Costa Rica face several tax obligations both locally and in the United States.
The annual property tax is 0.25% of the property's registered value, which is typically assessed below market value. Properties valued above approximately $230,000-$250,000 (the threshold adjusts annually) are subject to an additional luxury tax that scales progressively from 0.25% up to 0.55% depending on the property value.
When selling property, you'll pay a 15% capital gains tax on profits, or alternatively a flat 2.25% of the entire sale price - you can choose whichever option results in lower taxes. Municipal taxes, utility fees, and homeowners association fees (if applicable) are additional ongoing costs.
As a US citizen, you must report worldwide income to the IRS, including any rental income from your Costa Rican property. You may be able to claim foreign tax credits for taxes paid to Costa Rica to avoid double taxation, but should consult with a tax professional familiar with both countries' tax codes.
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What is the exact step-by-step process for Americans to buy property there, including all required documents?
The property purchase process in Costa Rica follows a structured legal framework that typically takes 30-60 days to complete.
First, you'll search for properties through reputable agents or listings, keeping in mind that Costa Rica doesn't have a national MLS system. Once you find a property, immediately hire a qualified real estate attorney who is also a notary public - this is essential for all legal aspects of the transaction.
Next, you'll make an offer and sign a preliminary purchase agreement, which includes a deposit (usually 10%) held in escrow. Your attorney will then conduct comprehensive due diligence including title searches, lien verification, survey confirmation (Plano Catastrado), zoning verification, and property access confirmation.
After due diligence is complete, you'll sign the formal Purchase-Sale Agreement either in person or via Power of Attorney. At closing, your attorney drafts and notarizes the transfer deed, pays transfer taxes (approximately 1.5% of purchase price), handles stamp duties, and manages the registration process. Finally, the property is recorded at the Costa Rican National Property Registry.
Required documents include: valid US passport, Power of Attorney (if purchasing remotely, notarized and apostilled), proof of funds through bank statements, signed purchase-sale agreement, title deed and property survey plan, tax clearance certificates, and utility access letters. If purchasing through a corporation, you'll also need company formation documents and legal representation papers.
Do Americans need to hire a local lawyer, and what does that lawyer typically handle in the process?
Hiring a local attorney is strongly recommended and often required for American property buyers in Costa Rica.
Your attorney, who must also be a notary public under Costa Rican law, handles all legal aspects of the transaction including comprehensive due diligence, title and lien searches, contract preparation and review, document notarization, transfer tax calculations and payments, and property registration at the National Registry.
The attorney also verifies that the property has proper access rights, confirms zoning compliance, ensures all municipal and utility obligations are current, and checks for any encumbrances or claims against the property. They prepare all closing documents and ensure the transfer is legally recorded.
Many American buyers choose to establish a Costa Rican corporation (Sociedad AnĂłnima) to hold property title for asset protection and estate planning benefits. Your attorney can establish this corporation and guide you through the additional requirements.
Legal fees typically range from 1-2% of the purchase price. Since Costa Rica doesn't require real estate licensing, it's crucial to thoroughly vet your attorney's experience, credentials, and references before hiring them.
Which areas do Americans most often choose to live in, and why?
Americans gravitate toward specific regions in Costa Rica based on lifestyle preferences, climate, and access to amenities and expat communities.
The Central Valley, including San JosĂ©, EscazĂș, Santa Ana, and Heredia, attracts Americans seeking urban amenities, quality healthcare, international schools, and moderate mountain climate year-round. This region appeals to working professionals, families with children, and retirees who want access to services similar to what they're accustomed to in the United States.
Guanacaste Province, particularly Tamarindo, Playas del Coco, Nosara, Playa Flamingo, and the Papagayo Peninsula, draws Americans looking for beach lifestyle, fishing, surfing, warm dry climate, and established expat communities. The region offers luxury resorts, international restaurants, and direct flights to major US cities.
The Central Pacific coast, including Jaco and Manuel Antonio, appeals to Americans who want beach access combined with tourism infrastructure, high rental income potential, and active expat social networks. The Southern Zone and Caribbean coast are growing in popularity among Americans seeking more affordable, nature-focused living with emerging infrastructure improvements.
Which locations in Costa Rica are currently considered the best for living, renting out, or for long-term capital appreciation?
The best locations in Costa Rica depend on whether you prioritize lifestyle, rental income, or investment appreciation.
For living, the Central Valley offers the best overall quality of life with modern amenities, healthcare facilities, and moderate climate, while Guanacaste and the Central Pacific provide ideal beach living with established international communities and services.
For rental income, Tamarindo, Jaco, Nosara, Playa Flamingo, and Manuel Antonio generate the highest rental yields of 7-10% annually due to strong tourism demand and expat rental markets. These areas have consistent year-round occupancy and command premium rental rates.
For capital appreciation, Guanacaste Province, the Southern Pacific region, and increasingly the Caribbean coast show the strongest growth potential through 2026. New infrastructure investments, including improved roads and utilities, are driving property values higher in these previously underdeveloped areas.
Market forecasts indicate that primary destinations like Tamarindo, Jaco, and Central Valley locations will continue strong performance due to political stability, continued foreign investment, and Costa Rica's reputation as a safe investment destination in Latin America.
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 average property prices in Costa Rica by city and region?
| Location | Average Property Price (USD) | Price per Square Meter (USD) |
|---|---|---|
| San José (Capital) | $300,000 | $1,110 - $2,371 |
| Tamarindo (Guanacaste) | $500,000 - $1,000,000+ | $3,154 |
| EscazĂș / Santa Ana | $250,000 - $600,000+ | $1,950+ |
| Jaco (Pacific Coast) | $250,000 - $650,000 | $2,420 |
| La Fortuna | $150,000 | Varies widely |
| Playa del Coco | $200,000 - $500,000 | $2,872 |
| Caribbean Coast | $150,000 - $400,000 | $700 - $1,200 |
As of September 2025, property prices vary significantly based on location, proximity to amenities, and property type. City center properties typically range from $500-$1,300 per square meter, with luxury condos and beachfront properties commanding premium prices. The Caribbean coast offers the most affordable entry point for American buyers, while Tamarindo and luxury Central Valley areas represent the highest-priced markets.
Can Americans get a mortgage in Costa Rica, and if so, what are the typical interest rates, conditions, and tips to secure one?
Americans can obtain mortgages in Costa Rica, but the process is challenging and requirements are strict.
Only select private banks work with foreigners, including Banco Lafise, BAC San José, and BCT Bank. These institutions require extensive documentation including proof of income, translated and apostilled financial documents, bank statements, and employment verification. The approval process typically takes 3-6 months.
Down payments range from 25-50% of the property value, with most banks requiring at least 30% down for foreign borrowers. Interest rates as of September 2025 range from 7.5% to 10%, typically starting with a fixed rate for the first 2-4 years before converting to variable rates. Loan terms extend up to 20 years for fixed-rate mortgages and up to 25 years for some variable-rate products.
To improve your chances of approval, work with a Costa Rican mortgage broker who understands the system, allow extra time for the approval process, ensure all documents are officially translated and apostilled, maintain substantial cash reserves beyond the down payment, and consider establishing a relationship with the bank before applying.
Many Americans find it easier to finance their Costa Rican property purchase through US home equity loans or refinancing existing US properties, as the process is faster and often results in better interest rates.
What are the most common mistakes or pitfalls Americans face when buying property in Costa Rica?
American buyers commonly make several costly mistakes when purchasing Costa Rican property.
Rushing the purchase process is the most frequent error - "Tico time" means everything moves slowly, and impatience leads to poor decisions and overpaying. Americans often underestimate the total costs involved, failing to budget for transfer taxes (1.5%), closing fees, legal costs (1-2%), ongoing property taxes, luxury taxes, and municipal fees.
Skipping proper legal due diligence is another major pitfall, as title issues, zoning problems, and property access disputes are not uncommon in Costa Rica. Many Americans choose attorneys or agents based solely on price rather than experience and reputation, which can be catastrophic given that Costa Rica doesn't require real estate licensing.
Buying properties sight unseen based only on online listings or photos is extremely risky, as there's no national MLS system and listing information is often outdated or inaccurate. Trusting Power of Attorney arrangements with unvetted professionals has resulted in fraud cases.
It's something we develop in our Costa Rica property pack.
Other common mistakes include not understanding local property tax obligations, failing to research neighborhood development plans that could affect property values, and not considering the impact of seasonal accessibility issues in remote areas.
How do the rights and buying process for Americans compare to those for other foreigners in Costa Rica?
Americans have identical property rights and follow the same buying process as all other foreign nationals in Costa Rica.
Costa Rican law does not distinguish between different foreign nationalities when it comes to property ownership. All non-citizens, whether American, Canadian, European, or from any other country, have the same ownership rights as Costa Rican citizens for titled property, with identical restrictions applying to maritime zones and protected areas.
The legal process, documentation requirements, tax obligations, and attorney requirements are uniform for all foreign buyers regardless of nationality. Transfer taxes, property taxes, and closing costs are the same for Americans as they are for buyers from Germany, Canada, or any other country.
However, Americans may have practical advantages in certain situations due to the strong diplomatic and economic relationship between the United States and Costa Rica, easier access to banking services, and the prevalence of English-speaking professionals in popular expat areas.
It's something we develop in our Costa Rica property pack.
The investment residency program that allows $150,000+ property investors to apply for Inversionista status is also available equally to all foreign nationals, not just Americans.
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.
Costa Rica represents one of Latin America's most accessible and foreigner-friendly real estate markets for American buyers.
With proper legal guidance, realistic timelines, and thorough due diligence, Americans can successfully purchase everything from beachfront condos to mountain retreats with confidence and security.
Sources
- BrightTax - Panama or Costa Rica Expat Buying Guide
- The LatinvestoR - Costa Rica Real Estate for Foreigners
- The LatinvestoR - Can Americans Buy Property in Costa Rica
- Drink Tea Travel - Buying Property in Costa Rica
- CB Sunset Tree Realty - Residency Requirements for US Citizens
- The LatinvestoR - Can Americans Buy Land in Costa Rica
- Taxes for Expats - US Tax Preparation in Costa Rica
- GAP Investments - Property Taxes in Costa Rica Guide
- Armenian Lawyer - Costa Rica Tax Benefits Guide 2025
- Flamingo Beach Realty - Luxury Property Tax Guide Costa Rica 2025