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
Buying land in Costa Rica as a foreigner is straightforward and legally protected, with no residency requirements or ownership restrictions on most properties.
Foreigners enjoy the same property rights as Costa Rican citizens and can purchase residential, commercial, and agricultural land throughout most of the country. The key exceptions involve coastal concession zones and protected areas, but these represent a small fraction of available land. The process requires proper due diligence, working with qualified professionals, and understanding local regulations to ensure a successful transaction.
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.
Foreigners can legally buy most types of land in Costa Rica with full ownership rights, except for coastal maritime zones where restrictions apply.
Land purchases require proper due diligence, legal representation, and registration at the National Registry, with total costs typically ranging 3.5-6% of the purchase price.
| Land Type | Foreign Ownership Status | Key Restrictions |
|---|---|---|
| Residential/Commercial Land | Full ownership allowed | None - same rights as citizens |
| Agricultural Land | Full ownership allowed | May have development restrictions |
| Coastal (50m from high tide) | Public domain | Cannot be privately owned |
| Coastal (50-200m from high tide) | Concession only | 49% max unless 5+ years residency |
| Protected Areas | Restricted/Prohibited | Environmental protection laws |
| Indigenous Territories | Prohibited | Reserved for indigenous communities |
| Border Areas | Restricted | National security regulations |
What types of land can foreigners legally buy in Costa Rica, and what types are off-limits?
Foreigners can legally purchase most types of land in Costa Rica with full ownership rights identical to Costa Rican citizens.
You can buy residential, commercial, and agricultural land throughout most of the country without any special permits or residency requirements. This includes urban lots, rural properties, farms, and development land. The ownership is fee simple, meaning you have complete rights to sell, develop, inherit, or lease your property.
The primary restrictions involve coastal areas within the Maritime Zone, which extends 200 meters inland from the high tide line. The first 50 meters is public domain and cannot be privately owned by anyone. The next 150 meters is concession land where foreigners can only own up to 49% unless they've maintained legal residency in Costa Rica for at least five years.
Other off-limits areas include Indigenous Territories, which are reserved exclusively for indigenous communities, certain protected environmental zones managed by SINAC (National System of Conservation Areas), and some border areas near Nicaragua and Panama where national security restrictions apply. Additionally, certain government social program lands cannot be sold to foreigners until the original Costa Rican owner has held the property for a specified period.
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Is buying land in Costa Rica a path to residency or citizenship, and what are the requirements?
Buying land alone does not automatically grant residency or citizenship in Costa Rica, but it can qualify you for the Investor Residency Program.
The Inversionista (Investor) residency requires a minimum investment of $150,000 in real estate or other qualifying assets. This investment must be maintained throughout your residency period and verified annually. You'll need to provide proof of property ownership, a clean criminal background check from your home country, birth certificate, proof of income or financial solvency, and passport copies—all properly apostilled and translated into Spanish.
The application process typically takes 6-12 months through Costa Rica's immigration department (DGME). Initially, you receive temporary residency valid for two years, which can be renewed. After maintaining legal residency for seven consecutive years, you become eligible to apply for permanent residency and eventually citizenship.
As of September 2025, the Investor Residency Program remains one of the most accessible paths for foreigners seeking legal status in Costa Rica. The real estate investment can include multiple properties, land purchases, or combinations of property and business investments to reach the $150,000 threshold.
Where do foreigners most often buy land in Costa Rica, and why?
Foreigners predominantly purchase land in Guanacaste Province, the Central Valley, and the Nicoya Peninsula due to accessibility, infrastructure, and investment potential.
Guanacaste Province leads foreign land purchases, particularly around Tamarindo, Nosara, Playa del Coco, and Manuel Antonio. This region offers Pacific coast access, established tourism infrastructure, reliable rental income potential, and relatively developed road networks. Land prices range from $200,000 to $2,000,000 per acre for prime coastal properties.
The Central Valley around San JosĂ© attracts buyers seeking year-round mild climate, proximity to Juan SantamarĂa International Airport, urban amenities, and stable infrastructure. This area is popular for permanent relocation and offers land prices between $50,000-$300,000 per acre depending on location and zoning.
The Nicoya Peninsula, designated as one of the world's Blue Zones due to residents' longevity, appeals to retirees and wellness-focused buyers. Areas like Santa Teresa, Montezuma, and Mal PaĂs offer more affordable oceanview land with prices ranging $25,000-$150,000 per acre.
Emerging markets include the Southern Pacific coast around Uvita and Dominical, where foreigners find better value with oceanview land priced $100,000-$400,000 per acre and growing tourism infrastructure making these areas attractive for both personal use and investment.
What's the step-by-step process for purchasing land in Costa Rica as a foreigner?
- Property Search and Initial Due Diligence: Identify potential properties and conduct preliminary research on location, zoning, and basic legal status.
- Comprehensive Title Search: Your attorney performs a detailed title search at the National Registry to verify ownership, liens, encumbrances, and any legal issues.
- Property Survey and Inspection: Commission a licensed surveyor to verify boundaries and ensure the property matches registry records.
- Environmental and Municipal Compliance Check: Verify environmental permits, water availability, municipal taxes are current, and zoning allows intended use.
- Purchase Agreement Drafting: Your attorney prepares a comprehensive purchase contract outlining terms, conditions, contingencies, and deposit requirements.
- Escrow Setup: Establish an escrow account with your attorney or title company to secure funds until closing.
- Final Documentation Review: Complete final title certification, obtain municipal tax clearance, and verify all seller documents are current.
- Closing at Notary Public: Both parties meet at a notary public's office to sign the deed transfer and complete the transaction.
- National Registry Registration: Your attorney registers the new ownership at the National Registry to formalize the title transfer.
- Post-Purchase Setup: Establish property tax accounts, transfer utilities, arrange property insurance, and update municipal records.
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Which steps in the land-buying process are mandatory, and which are optional but recommended?
The mandatory steps required by Costa Rican law include title search, purchase agreement, notarized closing, and National Registry registration.
Title search at the National Registry is legally required to verify ownership and identify any liens or encumbrances. The purchase agreement must be in writing and signed by both parties. Closing must occur before a licensed notary public who witnesses the deed transfer and ensures legal compliance. Registration at the National Registry is mandatory to formalize ownership transfer and protect your legal rights.
Optional but strongly recommended steps include property survey, environmental compliance verification, escrow services, and legal entity establishment. A licensed surveyor should verify property boundaries match registry records and identify any encroachments. Environmental checks ensure compliance with SETENA (National Environmental Technical Secretariat) requirements and water availability.
Escrow services through your attorney or title company provide payment security and ensure funds are only released when all conditions are met. Many experienced buyers establish a Costa Rican corporation or limited liability company for asset protection, tax planning, and simplified future transactions.
Additional recommended steps include comprehensive property inspection, municipal compliance verification, utility availability confirmation, and proper insurance coverage setup before taking possession.
What documents do you need to buy land in Costa Rica, and who provides them?
| Document | Provided By | Purpose |
|---|---|---|
| Property Registry Certificate (CertificaciĂłn Registral) | National Registry / Seller's Attorney | Proves ownership and shows liens/encumbrances |
| Municipal Tax Certificate | Local Municipality / Seller | Confirms property taxes are current |
| Land Use Certificate (Certificado de Uso de Suelo) | Municipality / Buyer's Attorney | Verifies permitted property uses and building restrictions |
| Survey Plans (Planos Catastrados) | Licensed Surveyor / Seller | Shows exact property boundaries and dimensions |
| Purchase Agreement | Buyer's Attorney | Legal contract outlining sale terms and conditions |
| Passport and Identification | Buyer | Legal identification for property registration |
| Proof of Funds | Buyer's Bank | Demonstrates financial capacity for purchase |
Can you buy land in Costa Rica without being physically in the country, and how does that work?
Yes, you can purchase land in Costa Rica without being physically present by granting power of attorney to a qualified local attorney.
The power of attorney document must be notarized in your home country and receive an apostille certification to be legally valid in Costa Rica. Your attorney will act on your behalf throughout the entire process, from due diligence through closing and registration. This document should be specific to the property transaction and include clear limitations on the attorney's authority.
All required documentation can be handled remotely, including wire transfers for payments, digital signatures where permitted, and electronic communication for approvals. Your attorney will provide regular updates and require your approval for major decisions throughout the process.
The main requirement is selecting an experienced, licensed attorney with a strong reputation and proper credentials. Many foreign buyers successfully complete land purchases remotely, particularly for investment properties or when relocating to Costa Rica. Your attorney handles the closing at the notary public's office and ensures proper registration at the National Registry.
Remote purchases typically take 60-90 days from initial offer to completed registration, depending on due diligence complexity and documentation requirements.
What are the most common mistakes or pitfalls foreigners face when buying land in Costa Rica, and how can you avoid them?
- Inadequate Title Verification: Failing to conduct thorough title searches can result in purchasing property with liens, disputes, or ownership issues. Always use a qualified attorney to perform comprehensive registry searches going back at least 30 years.
- Ignoring Zoning and Building Restrictions: Many buyers discover after purchase that their intended use violates local zoning or environmental regulations. Obtain municipal land use certificates and environmental compliance verification before signing any agreements.
- Purchasing Concession Land Without Understanding Rules: Coastal concession properties have strict regulations regarding ownership percentages, development permissions, and renewal requirements. Ensure you understand all concession terms and restrictions before proceeding.
- Working with Unlicensed Professionals: Using unqualified attorneys, surveyors, or real estate agents can lead to legal problems and financial losses. Verify all professional licenses and credentials with appropriate Costa Rican regulatory bodies.
- Skipping Property Surveys: Boundary disputes are common when buyers rely on outdated or inaccurate property descriptions. Commission a new survey from a licensed surveyor to verify exact boundaries and identify any encroachments or access issues.
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What are the main reasons foreigners buy land in Costa Rica, and how do they typically use it?
Foreigners primarily buy land in Costa Rica for retirement homes, vacation properties, rental investments, and agricultural ventures.
Retirement relocation represents the largest segment, with buyers seeking year-round tropical climate, affordable healthcare, political stability, and proximity to the United States. Retirees typically purchase 0.5-2 acre lots in established communities with good infrastructure and medical facilities nearby.
Vacation home buyers focus on coastal and mountain properties for personal use and family retreats. These buyers often purchase larger lots (1-5 acres) with ocean views, beach access, or mountain settings for building custom homes. Many eventually convert these properties to rental income when not in personal use.
Investment-focused buyers target properties with strong rental potential, particularly in tourist zones like Guanacaste, Manuel Antonio, and Tamarindo. They typically develop vacation rental properties, boutique hotels, or eco-lodges to capitalize on Costa Rica's growing tourism industry.
Agricultural investors purchase larger tracts (5-50+ acres) for coffee plantations, sustainable farming, reforestation projects, or eco-tourism ventures. Costa Rica's commitment to environmental protection and sustainable agriculture attracts investors seeking both financial returns and environmental impact.
It's something we develop in our Costa Rica property pack.
What are the average prices for land in different parts of Costa Rica right now?
| Region | Price Range (per acre) | Key Characteristics |
|---|---|---|
| Guanacaste (Prime Coastal) | $200,000 - $2,000,000 | Ocean views, established tourism, high rental demand |
| Central Valley (San José area) | $50,000 - $300,000 | Year-round climate, urban amenities, airport proximity |
| Nicoya Peninsula | $25,000 - $150,000 | Blue Zone status, wellness tourism, more affordable |
| Southern Pacific (Uvita/Dominical) | $100,000 - $400,000 | Emerging market, ocean views, growth potential |
| Northern Plains (Agricultural) | $5,000 - $25,000 | Farming and ranching, large tracts available |
| Caribbean Coast (Puerto Viejo) | $30,000 - $120,000 | Unique culture, less developed, eco-tourism |
| Mountain/Cloud Forest Areas | $15,000 - $80,000 | Cooler climate, eco-tourism, sustainable living |
What's the long-term forecast for the Costa Rican land market?
The Costa Rican land market shows strong long-term growth potential driven by international demand, political stability, and sustainable tourism development.
Prime coastal and tourist areas are expected to continue appreciating at 5-8% annually through 2030, supported by growing North American retirement migration and increasing vacation rental demand. Guanacaste Province and established beach communities should maintain premium pricing due to limited developable coastal land and strong infrastructure.
Emerging markets like the Southern Pacific coast around Uvita and Dominical are projected to experience accelerated growth as infrastructure improvements and tourism development increase accessibility. These areas could see 8-12% annual appreciation over the next 5-7 years as they transition from emerging to established markets.
The Central Valley market remains stable with steady 3-5% annual growth, supported by consistent demand from retirees and permanent residents seeking year-round comfortable climate and urban amenities. Agricultural land in productive regions should appreciate modestly at 2-4% annually, with organic and sustainable farming operations commanding premium pricing.
Key growth drivers include Costa Rica's carbon neutrality goals attracting environmentally conscious investors, continued political stability, growing remote work trends enabling international relocation, and government infrastructure investments improving accessibility to previously remote areas.
What taxes, fees, and extra costs should you expect when buying land, and can you pay in cash or get a mortgage as a foreigner, including current rates, conditions, and tips for approval?
Total closing costs for land purchases typically range 3.5-6% of the property value, including transfer taxes, legal fees, and registration costs.
Transfer tax (Impuesto de Traspaso) costs 1.5% of the registered property value. Legal and notary fees typically run 1-2% of purchase price. National Registry registration fees are approximately 0.5% of property value. Additional costs include property survey ($800-2,500), environmental studies ($500-1,500), and title insurance (optional, 0.5-1% of value).
Annual ongoing costs include property tax (0.25-0.55% of registered value), municipal services fees, and property insurance. Luxury properties valued over $204,000 face higher property tax rates up to 0.55%.
Cash payments are preferred and most common, typically made through wire transfers to escrow accounts. As of September 2025, mortgages are available to foreigners but require substantial documentation including proof of income, credit history, and significant down payments (typically 30-50%). Current mortgage rates for foreigners range 8-12% annually depending on lender, loan term, and borrower qualifications.
Mortgage approval tips include establishing a Costa Rican bank account, providing comprehensive financial documentation, considering local banks like BAC San José or Banco Nacional which have experience with foreign borrowers, and working with mortgage brokers familiar with international lending requirements.
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.
Buying land in Costa Rica offers foreigners the same legal rights as citizens, with straightforward processes and strong investment potential across diverse regions.
Success requires proper due diligence, qualified professional guidance, and understanding of local regulations, particularly for coastal properties and specific zoning requirements.