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 legal and straightforward for most property types, with the same ownership rights as locals.
The Costa Rican real estate market offers diverse opportunities from beachfront plots in Guanacaste to affordable development land in the Southern Zone, with average national prices at $1,021 per square meter as of June 2025.
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 in Maritime Zones where restrictions apply.
The process can be completed remotely through a Power of Attorney, with total closing costs typically ranging from 3.5-4% of the property value.
| Aspect | Details | Cost/Requirements |
|---|---|---|
| Ownership Rights | Full fee simple ownership for most land types | Same as Costa Rican citizens |
| Restricted Areas | Maritime Zone (first 200m from beach) | Concession only, 49% max foreign ownership |
| Average Land Price | National average (June 2025) | $1,021 per square meter |
| Closing Costs | Transfer tax, notary, registry fees | 3.5-4% of property value |
| Financing | Limited mortgage options for foreigners | 25-30% down, 8-8.5% interest rates |
| Residency Option | Investor residency available | Minimum $150,000 real estate investment |
| Physical Presence | Not required for purchase | Power of Attorney sufficient |
What kinds of land can foreigners legally buy in Costa Rica, and are there any restrictions or exceptions?
Foreigners can legally purchase most types of land in Costa Rica with full ownership rights, identical to those of Costa Rican citizens.
Fee simple ownership applies to residential, commercial, agricultural, and vacant lots throughout most of the country. This means you hold complete title to the land and can sell, lease, or develop it without restrictions.
The primary exception involves the Maritime Zone (Zona Marítimo Terrestre), which covers the first 200 meters from the high tide line along all coastlines. The first 50 meters are public domain and cannot be owned by anyone. The next 150 meters can only be held through concession leases, and foreigners can only own up to 49% of a corporation holding such a concession unless they have been legal residents for at least five years.
Additional restrictions apply near international borders, river mouths, nature reserves, and islands. These areas require special verification of legal status before any purchase.
It's something we develop in our Costa Rica property pack.
Are there specific areas or regions where foreigners tend to buy land the most in Costa Rica, and why?
Guanacaste Province dominates foreign land purchases, particularly in beach towns like Tamarindo, Nosara, and Flamingo.
This region attracts buyers seeking vacation homes and rental investment properties due to its established tourism infrastructure, direct flights to Liberia airport, and consistent rental demand. Guanacaste offers the highest rental yields in Costa Rica, with beachfront properties generating 8-12% annual returns.
The Central Valley, including Escazú, Santa Ana, and Heredia, ranks second for foreign purchases. Expats and investors choose this region for its urban amenities, proximity to healthcare facilities, established expat communities, and year-round spring-like climate. Land prices here remain stable with consistent appreciation.
The Southern Zone, encompassing Ojochal, Uvita, and Dominical, is rapidly gaining popularity among foreign buyers seeking affordable land with development potential. This region offers significantly lower entry costs compared to Guanacaste while providing access to pristine beaches and eco-tourism opportunities.
The Caribbean Coast around Puerto Viejo attracts buyers interested in unique cultural experiences and niche eco-tourism ventures, though this market remains smaller than the Pacific regions.
What's the full step-by-step process to legally buy land in Costa Rica as a foreigner?
The land purchase process in Costa Rica follows eight essential steps that typically take 30-60 days to complete.
First, engage a reputable real estate agent and attorney experienced with foreign buyers. Your attorney will handle all legal aspects and serve as your representative throughout the transaction.
Second, select your property and conduct initial negotiations on price and terms. Most sellers expect a 10% deposit held in escrow to secure the property during due diligence.
Third, your attorney conducts comprehensive due diligence, including title searches, boundary verification, zoning confirmation, and environmental checks. This process typically takes 15-30 days and costs $500-1,500 depending on property complexity.
Fourth, sign the purchase agreement (contrato de compraventa) which establishes final terms, closing date, and conditions. This legally binds both parties to the transaction.
Fifth, complete all required legal checks and obtain necessary certificates, including the land use certificate (uso de suelo) and National Registry certification (certificación literal).
Sixth, arrange financing or confirm fund transfers for the remaining purchase price plus closing costs.
Seventh, attend the closing where your notary attorney prepares and signs the transfer deed (escritura de traspaso) before witnesses.
Eighth, your attorney registers the property transfer at the National Registry, officially transferring ownership to your name. This final step takes 3-15 business days.
Do I need to be physically present in Costa Rica to buy land, or can I do it remotely?
Physical presence in Costa Rica is not required to purchase land, making remote buying entirely feasible and legally valid.
You can complete the entire transaction through a Power of Attorney (Poder Especial) granted to your Costa Rican attorney. This document must be authenticated at a Costa Rican consulate in your home country or apostilled according to Hague Convention standards.
Property viewing can be conducted through virtual tours, drone footage, and video calls with your real estate agent. Many buyers successfully purchase land after comprehensive remote inspections, though visiting the property remains recommended for major investments.
All legal documentation, contract signing, and fund transfers can be handled electronically or through your legal representative. Your attorney will provide regular updates and digital copies of all documents throughout the process.
Remote closings are standard practice, with your attorney signing documents on your behalf at the notary office. The Power of Attorney specifically authorizes your attorney to complete the purchase, transfer funds, and register the property in your name.
What documents and legal checks are absolutely required when purchasing land in Costa Rica?
Seven essential documents are required for any land purchase in Costa Rica, each serving specific legal verification purposes.
| Document | Purpose | Cost/Timeline |
|---|---|---|
| Valid Passport | Identity verification for foreign buyers | Current/valid required |
| NITE Tax ID | Tax identification for non-residents | Free, obtained online |
| Plano Catastrado | Official property survey with boundaries | $200-500, 2-4 weeks |
| Estudio Registral | Complete title search and ownership history | $150-300, 1-2 weeks |
| Certificación Literal | Current registry status and encumbrances | $25-50, 1-3 days |
| Uso de Suelo | Land use certification and zoning | $100-200, 1-2 weeks |
| Escritura | Property deed and ownership transfer | Included in notary fees |
Additional legal checks include verification of utilities access, environmental restrictions, construction permits if applicable, and confirmation that property taxes are current. Your attorney will coordinate obtaining all documents and conducting required verifications.
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What are the typical uses foreigners have for land they buy in Costa Rica — residential, commercial, farming, or investment?
Foreign land buyers in Costa Rica typically pursue four primary use categories, with residential and investment purposes dominating the market.
Residential use accounts for approximately 60% of foreign land purchases, including primary homes for retirees, vacation properties for seasonal use, and custom home construction. Many buyers in Guanacaste and the Central Valley build retirement homes, while Southern Zone buyers often construct eco-friendly residences.
Investment and development represent 25% of purchases, with buyers acquiring land for future resale, subdivision development, or rental property construction. Popular strategies include buying larger parcels for subdivision in emerging areas like Uvita or Ojochal.
Commercial development comprises 10% of foreign purchases, including hotels, eco-lodges, restaurants, and tourism-related businesses. Guanacaste and Manuel Antonio remain the preferred locations for commercial ventures due to established tourism infrastructure.
Agricultural use represents 5% of purchases, with buyers establishing sustainable farms, agro-tourism operations, or fruit plantations. The Central Valley and Southern Zone offer the best climate and infrastructure for agricultural ventures.
It's something we develop in our Costa Rica property pack.
What are the average prices per square meter or hectare for land in the most popular regions?
Costa Rican land prices vary dramatically by location, with beachfront and urban areas commanding premium rates as of June 2025.
The national average land price reaches $1,021 per square meter, but this figure masks significant regional variations. Beachfront properties in prime Guanacaste locations like Tamarindo and Nosara range from $2,500 to $5,000 per square meter, while inland properties in the same province average $200-800 per square meter.
Central Valley urban areas, particularly Escazú and Santa Ana, maintain some of the highest land values, often exceeding $1,000 per square meter for residential plots with utilities. Rural Central Valley land averages $100-400 per square meter depending on access and topography.
The Southern Zone offers the most affordable options, with buildable lots typically priced under $100,000 total and ranging from $50-300 per square meter. This region shows strong appreciation potential as infrastructure improves.
Large agricultural parcels are priced per hectare, ranging from $4,650 to $25,000+ per hectare based on location, soil quality, water access, and development potential. Prime agricultural land in the Central Valley commands the highest per-hectare prices.
What are the total costs, taxes, legal fees, and hidden charges involved in buying land?
Total closing costs for land purchases in Costa Rica typically range from 3.5% to 4% of the property value, with specific fees mandated by law.
| Cost Category | Percentage/Amount | Description |
|---|---|---|
| Transfer Tax | 1.5% of value | Government tax on property transfers |
| Notary Fees | 1-2% of value | Attorney/notary services for closing |
| Registry Fees | ~0.5% of value | National Registry recording costs |
| Due Diligence | $500-1,500 | Title search, survey, inspections |
| Property Tax | 0.25% annually | Annual tax on assessed value |
| Corporate Setup | $800-1,200 | If purchasing through corporation |
| Annual Corporate | $494 annually | Corporate tax plus resident agent |
Additional costs may include utilities connections ($1,000-5,000), environmental impact studies for larger properties ($500-2,000), and topographical surveys for development ($300-1,000). Property taxes are assessed annually at 0.25% of the registered value, which is typically lower than market value.
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.
Can I buy land in Costa Rica in cash, or is mortgage financing available for foreigners — and if yes, what are the rates and conditions?
Cash purchases are the most common and straightforward method for foreign land buyers in Costa Rica, but limited financing options exist.
Most banks offer mortgages exclusively to US and Canadian citizens, requiring extensive documentation and higher down payments. Foreign buyers typically need 25-30% down payment with interest rates ranging from 8% to 8.5% annually. Loan terms usually span 15-20 years, shorter than typical US mortgages.
Required documentation for foreign mortgages includes two years of tax returns, bank statements, employment verification, credit reports from your home country, and Costa Rican income verification if applicable. The approval process takes 60-90 days and costs $2,000-4,000 in fees.
Owner financing occasionally becomes available, typically requiring 50% down payment with 3-5 year terms at 5-7% interest. These arrangements are more common for larger parcels or when dealing directly with developer owners.
Cash buyers enjoy significant advantages including faster closings, stronger negotiating positions, and elimination of bank approval delays. Most successful foreign investors recommend having full cash available even if financing options exist.
Are there residency or citizenship options connected to buying land, or other investment-based immigration paths?
Costa Rica offers investor residency directly tied to real estate purchases, providing a path to legal residency for property owners.
The Investor Residency (Residencia por Inversionista) requires a minimum investment of $150,000 USD in Costa Rican real estate as of June 2025. The property must be registered in your name or a corporation you control and must be free of liens or encumbrances.
This residency status must be renewed every two years and does not automatically lead to citizenship. However, it provides legal residency, work authorization, and access to Costa Rican social services including healthcare.
Alternative residency options include Pensionado (retiree) visa requiring $1,000 monthly pension income, Rentista visa requiring $2,500 monthly income guarantee, and the Digital Nomad visa for remote workers. These visas are not directly connected to property ownership but can be combined with real estate investment.
Costa Rican citizenship becomes available after seven years of legal residency (five years if married to a Costa Rican citizen). Property ownership demonstrates ties to the country but does not accelerate the citizenship timeline.
It's something we develop in our Costa Rica property pack.
What are the most common mistakes, pitfalls, or scams foreigners should avoid when buying land?
Inadequate due diligence represents the most costly mistake foreign land buyers make in Costa Rica, often resulting in legal disputes or financial losses.
- Skipping comprehensive title searches: Failing to verify complete ownership history, existing liens, or boundary disputes. Always demand a full estudio registral going back at least 30 years.
- Purchasing in Maritime Zones without understanding restrictions: Buying beach property without confirming legal status or concession requirements. Maritime Zone laws are complex and violations can result in property loss.
- Using inexperienced or unlicensed attorneys: Hiring lawyers without real estate specialization or proper licensing. Always verify attorney credentials with the Costa Rican Bar Association.
- Ignoring access rights and utilities: Purchasing land without legal road access or utility connections. Verify recorded easements and infrastructure availability before closing.
- Falling for pressure sales tactics: Responding to high-pressure sales situations or "limited time" offers. Legitimate properties remain available for proper due diligence periods.
Common scams include sellers without clear title attempting quick sales, properties with inflated values in rural areas, and fake development projects promising unrealistic returns. Always work with established real estate professionals and conduct independent verification of all claims.
What is the long-term outlook for land value and development trends in Costa Rica in 2025 and beyond?
The Costa Rican land market shows positive long-term prospects driven by continued foreign investment, infrastructure improvements, and sustainable tourism growth.
National average land prices have stabilized after the 2022 market correction, with selective regional growth replacing the broad price increases of 2020-2021. Coastal areas maintain strong demand while inland properties show more measured appreciation.
Infrastructure development significantly impacts land values, particularly the expansion of Route 27 to the Pacific coast and improved internet connectivity in rural areas. The Southern Zone shows the strongest growth potential as road improvements and fiber optic installation make previously remote areas more accessible.
Tourism recovery post-pandemic drives demand in established markets like Guanacaste, while eco-tourism growth benefits the Southern Zone and Caribbean coast. Sustainable development practices increasingly influence buyer preferences and regulatory requirements.
As we reach mid-2025, market experts predict 3-5% annual appreciation in prime locations, with the Southern Zone potentially achieving 8-12% annual growth as infrastructure develops. Currency stability and political continuity support long-term investment security.
Climate change considerations increasingly affect land values, with higher elevation properties gaining favor over low-lying coastal areas. Water availability and sustainable development capabilities become primary value drivers for future land purchases.
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 excellent opportunities for foreigners seeking tropical property investments, retirement homes, or development projects.
With proper due diligence, experienced legal representation, and realistic expectations, foreign buyers can successfully navigate the Costa Rican land market and achieve their investment goals.
Sources
- Costa Rica Real Estate for Foreigners - TheLatinvestor
- How to Buy Property in Costa Rica - RE/MAX Blue Ocean
- Buy Land in Costa Rica - AG Legal
- Buying Real Estate in Costa Rica Guide - Central America
- Process of Buying Real Estate in Costa Rica - News.co.cr
- 5 Things to Know Before Buying Land in Costa Rica - ICS
- Top Regions for Costa Rica Real Estate Investment 2025 - Coldwell Banker
- Real Estate Market Trends Costa Rica - TheLatinvestor
- Costa Rica Real Estate Market Prices 2025 - Costa Rica Law
- Transaction Costs Buying Property Costa Rica - Langston Realty