How to buy land in Costa Rica (guide)

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

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THELATINVESTOR

A team specialized in real estate investing in Latin America (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.

What types of land can foreigners legally buy in Costa Rica, and are there any restrictions based on location or size?

Foreigners can legally buy and own most types of titled land in Costa Rica with the same rights as Costa Rican citizens.

This includes residential properties, commercial developments, and agricultural land throughout most of the country. As of June 2025, Costa Rica maintains one of the most open property ownership policies in Central America for foreign investors.

However, significant restrictions apply in specific zones. The maritime zone (Zona Marítimo Terrestre) prohibits foreign ownership within the first 50 meters from the high tide line, which is public land. The next 150 meters (up to 200 meters from the beach) allows only concession rights, where foreigners can own maximum 49% of a corporation holding the concession, provided the corporation is at least 51% Costa Rican-owned.

Border restrictions prevent foreign ownership within 50 kilometers of international borders with Nicaragua and Panama. Protected areas including national parks, reserves, and indigenous territories also restrict foreign ownership. Government-program land acquired through farmer assistance programs cannot be sold to foreigners until specific holding periods are met.

Size restrictions vary by zoning, particularly in agricultural areas where minimum parcel sizes may apply (such as 5,000 m² in San Ramón, Alajuela) with building coverage limits of 10% and maximum house sizes of 300 m².

Are there areas in Costa Rica where foreigners are not allowed to own land outright, like maritime zones or protected areas?

Yes, several areas completely prohibit outright foreign land ownership in Costa Rica.

The maritime zone represents the most significant restriction for foreign buyers interested in beachfront properties. The first 50 meters from the high tide line is public domain and cannot be owned by anyone, Costa Rican or foreign. The subsequent 150 meters allows only concession rights through corporations with majority Costa Rican ownership.

Approximately 95% of Costa Rica's coastline falls under maritime zone regulations. Only about 5% of beaches have titled land extending to the 50-meter line, including areas like Jaco and Los Sueños where previous development occurred before maritime zone laws.

Border security zones within 50 kilometers of Nicaragua and Panama borders restrict foreign ownership entirely. This affects substantial portions of northern Guanacaste province and southern regions near the Panama border.

National parks, biological reserves, and other protected areas prohibit private ownership by anyone. Indigenous territories maintain sovereignty over their lands and generally exclude foreign ownership. Additionally, lands acquired through government agricultural programs remain restricted from foreign sale until original owners meet specified holding requirements.

These restrictions are strictly enforced, and attempting to circumvent them through nominee arrangements or shell companies carries legal risks including property forfeiture.

Where do foreigners most commonly buy land in Costa Rica, and what are the pros and cons of each region?

Guanacaste province attracts the highest concentration of foreign land buyers due to its stunning Pacific beaches and established tourism infrastructure.

The Central Valley offers the most practical choice for year-round living with superior healthcare, education, and business infrastructure. Guanacaste provides the strongest investment returns but at premium prices. The Southern Zone represents the best value proposition for long-term growth, while the Caribbean coast appeals to buyers seeking authentic cultural experiences at lower price points.

What is the average cost per square meter for different types of land (rural, beachfront, agricultural, development-ready)?

Land prices in Costa Rica vary dramatically by location, with the national average reaching approximately $1,021 per square meter as of June 2025.

Coastal hotspots command premium prices, with Nosara reaching up to $3,298/m², Tamarindo averaging $2,725/m², and Playas del Coco around $2,113/m². These areas offer titled beachfront land with development potential and established tourism infrastructure.

Central Valley locations like San José, Santa Ana, and Escazú range from $1,110 to $1,700+/m² depending on exact location and development readiness. Properties near the international airport or in exclusive neighborhoods command higher premiums.

The Southern Zone offers exceptional value, with Uvita averaging around $79/m² and many lots under $100,000 total. This region provides significant upside potential as infrastructure develops and eco-tourism grows.

Rural and agricultural land starts as low as $5-$20/m² in remote areas, offering opportunities for large-scale farming or conservation projects. The Caribbean coast averages $800-$1,000/m², providing affordable entry points with cultural appeal.

Development-ready land with infrastructure access, proper zoning, and construction permits typically costs 20-50% more than raw land in the same area. Beachfront properties consistently command 3-5 times more than inland locations within the same region.

What are the total costs involved in purchasing land in Costa Rica, including taxes, legal fees, notary fees, and registration?

Total closing costs for land purchases in Costa Rica typically range from 3.5% to 4% of the property value.

The transfer tax represents the largest single cost at 1.5% of the property's registered value, paid to the Costa Rican government. Notary and legal fees generally cost 1-2% of the property value, covering due diligence, document preparation, and transaction oversight by a licensed Costa Rican attorney.

Registration fees with the National Registry cost approximately 0.5-0.8% of the property value to officially record the new ownership. These fees ensure proper title transfer and legal protection for the buyer.

Additional costs may include property surveys ($500-$2,000), title insurance if available ($300-$1,000), escrow services ($200-$500), and translation services for documents ($100-$300 per document). If financing is involved, bank fees and appraisal costs add 0.5-1% to total costs.

After purchase, ongoing costs include annual property tax at 0.25% of the registered property value, which is remarkably low compared to most countries. Luxury properties valued over $200,000 may face additional luxury home taxes.

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

Can a foreigner buy land in Costa Rica without physically being in the country, and if so, what steps are needed?

Yes, foreigners can successfully purchase land in Costa Rica remotely through a Power of Attorney arrangement with a licensed Costa Rican attorney.

The process begins with granting a specific Power of Attorney (POA) to a qualified Costa Rican lawyer who will handle all aspects of the transaction on your behalf. This POA must be notarized in your home country and apostilled according to Hague Convention requirements for international recognition.

Your attorney will conduct comprehensive due diligence including title searches, property surveys, zoning verification, and lien checks. They negotiate terms, review contracts, and ensure all legal requirements are met before proceeding with the purchase.

Fund transfers typically occur through secure escrow accounts managed by law firms or title companies. You'll need to obtain a Costa Rican tax identification number (NITE) for non-residents, which your attorney can arrange.

The attorney signs all purchase documents on your behalf and handles registration with the National Registry. Throughout the process, you receive regular updates and copies of all documentation via secure digital channels.

This remote purchase method is commonly used and legally sound, but requires selecting a reputable attorney with specific experience in international real estate transactions. Costs for remote purchases include POA preparation, apostille services, and potentially higher legal fees for the additional coordination required.

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What is the full step-by-step process for buying land in Costa Rica, from search to registration?

The land buying process in Costa Rica follows six essential steps that typically take 30-60 days to complete.

Step 1: Property search and selection involves working with licensed real estate agents familiar with your target area and budget. Identify potential properties through online platforms, local referrals, and site visits to evaluate location, access, utilities, and development potential.

Step 2: Offer submission and negotiation begins with a formal written offer specifying price, terms, contingencies, and timeline. Successful negotiations result in a purchase agreement outlining all conditions, deposit requirements, and closing timeline.

Step 3: Due diligence represents the most critical phase, where your attorney conducts comprehensive title searches, verifies property boundaries through surveys, confirms zoning compliance, checks for liens or encumbrances, and validates seller ownership rights.

Step 4: Escrow setup involves depositing agreed-upon funds into a secure escrow account managed by your attorney or a recognized title company. This protects both buyer and seller during the transaction period.

Step 5: Closing preparation includes finalizing all documentation, obtaining necessary permits or certificates, arranging fund transfers, and scheduling the formal closing meeting with all parties present or represented.

Step 6: Registration with the National Registry officially transfers ownership by recording the new deed in your name, updating property records, and providing legal proof of ownership that protects your investment.

What documents and permits are required to buy land as a foreigner, and what paperwork should be verified?

Foreign land buyers in Costa Rica must gather specific documentation while verifying critical property paperwork to ensure a secure transaction.

Required buyer documents include a valid passport, Costa Rican tax identification number (NITE) for non-residents, proof of funds through bank statements or financing pre-approval, and Power of Attorney if purchasing remotely. Some transactions may require apostilled documents from your home country.

Essential property documents that must be verified include the current title deed (Escritura) proving clear ownership, an updated survey map (Plano Catastrado) showing exact boundaries and dimensions, and a comprehensive title search confirming no liens, debts, or legal disputes affecting the property.

The land use certificate (Uso de Suelo) confirms permitted uses and building restrictions for the property. Tax records verify current payment status and assessed value. If utilities exist, connection documents and payment records should be reviewed.

For development-ready land, construction permits from local municipalities, environmental clearances if required, and utility availability letters provide crucial information about building feasibility and costs.

Your attorney should verify seller identity and authorization to sell, confirm property dimensions match survey records, validate zoning compliance for intended use, and ensure all taxes and fees are current. Any discrepancies in documentation can delay closing or indicate potential legal issues requiring resolution before purchase.

Can foreigners pay cash for land purchases, and is it recommended over other financing methods?

Cash purchases represent the most common and recommended method for foreign land buyers in Costa Rica.

Approximately 80% of foreign property transactions in Costa Rica are completed with cash due to the simplicity and speed of the process. Cash purchases eliminate financing complications, reduce closing times from 60-90 days to 30-45 days, and often provide negotiating leverage for better prices.

Cash transactions avoid the complex documentation requirements, income verification, and approval processes required for financing. This is particularly advantageous for foreign buyers who may face challenges meeting Costa Rican bank requirements for income documentation and credit history.

Sellers typically prefer cash offers because they eliminate financing contingencies and the risk of deal collapse due to loan approval issues. This preference often translates to 5-10% better pricing for cash buyers compared to financed purchases.

The cash payment process involves wire transfers to secure escrow accounts managed by attorneys or title companies. These transfers must comply with international banking regulations and may require documentation of fund sources for amounts exceeding $10,000.

While cash purchases require significant liquid capital, they provide immediate ownership, faster closing times, stronger negotiating position, and elimination of interest payments and loan fees that can add 15-25% to total property costs over time.

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

Are mortgages or loans available to foreigners for land purchases in Costa Rica, and what are the typical rates, conditions, and best practices to get approved?

Mortgage financing for foreign land buyers in Costa Rica is possible but limited, with most banks requiring extensive documentation and offering less favorable terms than cash purchases.

Major Costa Rican banks including Banco Nacional, Banco de Costa Rica, and private institutions like BAC San José occasionally provide financing to foreigners, but typically require legal residency status, verifiable Costa Rican income, or substantial assets within the country.

Interest rates for foreign borrowers typically range from 8-12% annually, significantly higher than rates available to Costa Rican citizens (6-8%). Loan terms usually extend 10-15 years maximum, with down payment requirements of 30-50% for foreigners compared to 20% for locals.

Required documentation includes proof of stable income for 2-3 years, tax returns, bank statements, credit reports from home country, debt-to-income ratio analysis, and appraisal of the property being purchased. Banks may also require life insurance policies naming the bank as beneficiary.

Alternative financing options include seller financing, where property owners provide direct loans with negotiated terms, and private lending companies specializing in foreign investor financing. These options often provide more flexibility but at higher interest rates (10-15%).

Best practices for financing approval include establishing Costa Rican bank relationships early, maintaining substantial account balances, working with experienced mortgage brokers, and considering shorter-term loans that can be refinanced as circumstances improve.

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 are the common mistakes or scams that foreigners fall into when buying land in Costa Rica, and how can they be avoided?

Foreign land buyers in Costa Rica frequently encounter five major categories of mistakes and scams that can result in significant financial losses.

Title and ownership scams represent the most dangerous pitfall, including fake title documents, sellers who don't actually own the property, and properties with hidden liens or legal disputes. Avoid these by conducting comprehensive title searches through the National Registry, verifying seller identity and ownership rights, and never purchasing without proper legal representation.

Maritime zone violations catch many buyers seeking beachfront properties. Scammers may offer "fee simple" ownership of land actually within the maritime zone where foreigners cannot own outright. Always verify exact property boundaries through licensed surveyors and confirm distance from high tide lines before committing to coastal purchases.

Overpricing and inflated valuations target foreign buyers unfamiliar with local market rates. Some agents quote prices 50-100% above fair market value, knowing foreign buyers lack local knowledge. Combat this by researching comparable sales, obtaining multiple property valuations, and working only with licensed, reputable real estate professionals.

Zoning and permit issues can render land unsuitable for intended use. Properties may be sold as "development-ready" when they lack proper zoning, environmental permits, or utility access. Verify zoning compliance, obtain use of soil certificates, and confirm utility availability before purchase.

Avoiding these scams requires working with licensed Costa Rican attorneys who specialize in real estate law, conducting thorough due diligence regardless of time pressure, obtaining independent property appraisals, and never rushing into purchases without proper verification of all claims made by sellers or agents.

Is owning land in Costa Rica a path to residency or citizenship, and if so, what are the conditions and timelines involved?

Owning land in Costa Rica does not automatically grant residency or citizenship, but property investment can qualify foreign buyers for investor residency status.

The Investor Residency Program requires a minimum real estate investment of $150,000 in Costa Rica to qualify for temporary residency status. This investment must be maintained throughout the residency period and can include residential, commercial, or agricultural properties.

Investor residency provides two-year renewable status allowing legal residence in Costa Rica with the ability to work, open bank accounts, obtain driver's licenses, and access public healthcare. Residency must be renewed every two years by demonstrating continued investment and compliance with program requirements.

After maintaining legal residency for seven consecutive years, property owners can apply for Costa Rican citizenship through naturalization. This process requires demonstrating Spanish language proficiency, knowledge of Costa Rican history and culture, and clean criminal records both in Costa Rica and home countries.

Alternative residency paths include the Pensioner Program (requiring $1,000 monthly pension income) and the Rentista Program (requiring $2,500 monthly guaranteed income). These may be easier to obtain than investor residency depending on individual circumstances.

The timeline for investor residency approval typically takes 6-12 months from application submission, while citizenship applications require additional 12-18 months for processing. Successful completion provides full Costa Rican citizenship with voting rights and passport eligibility.

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.

Sources

1. Tropisphere Real Estate Guide
2. TheLatinvestor Costa Rica Real Estate for Foreigners
3. AG Legal Costa Rica Land Purchase Guide
4. HRG Vacations Property Buying Guide
5. Wise Costa Rica Land Buying Guide
6. TheLatinvestor Buying Land Costa Rica
7. Coldwell Banker Property Buying Process
8. Quatro Legal Closing Costs Guide