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
Costa Rica offers foreigners strong property ownership rights on most types of land, making it an attractive destination for international land buyers in 2025. The country's stable democracy, growing expat community, and strategic location between North and South America create compelling opportunities for both investment and lifestyle purchases.
However, coastal properties face restrictions through the Maritime Zone laws, and the buying process requires careful navigation of legal requirements and due diligence to avoid common pitfalls that have cost many foreign buyers significant money.
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 own most types of land outright in Costa Rica, with the main restrictions applying to the first 200 meters from the coastline and certain border areas.
While land ownership doesn't automatically grant residency, investing $150,000 or more in Costa Rican real estate qualifies buyers for renewable temporary residency through the Investor Residency program.
| Land Type | Foreign Ownership | Key Restrictions |
|---|---|---|
| Titled Land (Urban/Agricultural) | 100% ownership allowed | None - same rights as citizens |
| Maritime Zone (0-50m from coast) | Prohibited | Public land, no development |
| Maritime Zone (50-200m from coast) | Concession lease only | Max 49% unless 5+ years residency |
| Border Regions | Highly restricted | Special permits required |
| National Parks/Protected Areas | Prohibited | Conservation zones off-limits |
| Indigenous Territories | Prohibited | Reserved for indigenous communities |
| River Islands | Restricted | Special government approval needed |
What kinds of land can foreigners legally buy in Costa Rica, and what types are restricted or off-limits?
Foreigners enjoy extensive property rights in Costa Rica, but the type of land determines what you can own outright versus what requires special arrangements.
Titled land represents the most straightforward option for foreign buyers. This includes most urban, agricultural, and residential properties located inland. On titled land, foreigners have identical ownership rights to Costa Rican citizens, with no residency requirements or ownership percentage limitations.
The Maritime Zone creates the most significant restrictions for foreign land buyers. The first 50 meters from the high-tide line on any coastline is public land that cannot be owned or developed by anyone. The next 150 meters can only be leased through a concession system, not owned outright. Foreigners face additional limitations in this zone - they cannot directly own more than 49% of a concession unless they've maintained legal residency in Costa Rica for at least five years.
Border regions, national parks, protected areas, indigenous territories, and certain river islands are either completely off-limits or require special government approvals that are rarely granted to foreign buyers.
It's something we develop in our Costa Rica property pack.
Is buying land in Costa Rica a path to residency or citizenship for foreigners, and what are the requirements?
Land ownership alone does not automatically grant residency or citizenship in Costa Rica, but real estate investment can qualify you for legal residency through specific programs.
The Investor Residency program requires a minimum investment of $150,000 in Costa Rican real estate to qualify for renewable temporary residency. This residency status is typically granted for two years initially and can be renewed as long as you maintain the investment. The application process requires proof of property ownership, background checks, financial documentation, and other supporting materials.
After maintaining legal residency for seven consecutive years, you become eligible to apply for Costa Rican citizenship through naturalization. This process requires passing Spanish language proficiency tests and demonstrating knowledge of Costa Rican culture and history.
The Investor Residency program offers several benefits beyond the path to citizenship, including the ability to work legally in Costa Rica, access to the national healthcare system, and freedom to travel in and out of the country without visa restrictions.
Where do foreigners most often purchase land in Costa Rica, and why are these areas popular?
Foreign land buyers concentrate their purchases in four primary regions, each offering distinct advantages for different buyer profiles and investment strategies.
Guanacaste province dominates foreign land purchases, particularly around beach towns like Tamarindo, Flamingo, and Nosara. These areas attract buyers due to their established expat communities, world-class surfing, strong tourism infrastructure, and proven track record for vacation rental income. Tamarindo alone generates some of the highest rental yields in the country due to its international airport proximity and year-round tourist demand.
The Central Valley, including San José, Escazú, and Santa Ana, appeals to buyers seeking urban amenities and permanent residency. This region offers access to international schools, modern healthcare facilities, business opportunities, and a more temperate climate compared to coastal areas. Property prices remain lower than coastal zones while providing better infrastructure and services.
The Central Pacific coast, centered around Jacó and Manuel Antonio, attracts buyers focused on tourism rental investments. These areas benefit from easy accessibility from San José, established tourist infrastructure, and consistent occupancy rates for short-term rentals throughout the year.
The Southern Zone and Caribbean coast, including the Osa Peninsula and Puerto Viejo, appeal to buyers seeking eco-retreat properties, adventure tourism investments, or a slower-paced lifestyle. These areas typically offer lower purchase prices but require more tolerance for basic infrastructure and longer travel times to major cities.
What is the step-by-step process for buying land as a foreigner in Costa Rica from start to finish?
The Costa Rican land purchase process follows a structured sequence that typically takes 30-60 days from offer to final closing when properly managed.
Your first step involves assembling your professional team by hiring a reputable real estate agent and, more importantly, an experienced real estate attorney who specializes in foreign transactions. Never skip the attorney - Costa Rican law requires legal representation for property transfers, and this professional will protect your interests throughout the process.
Once you've identified a property and conducted initial site visits, you'll submit a formal written offer to the seller through your agent. After price and terms negotiations, you'll sign a purchase agreement that typically requires a 10% down payment held in escrow.
During the due diligence phase, your attorney performs critical checks including title searches, zoning verification, boundary surveys, and obtaining municipal certificates that confirm the property's legal status. This phase also involves opening an escrow account where your funds remain protected until closing.
The closing meeting brings together all parties to sign the final transfer deed. You can attend personally or authorize your attorney to represent you through a power of attorney. After signing, your attorney registers the property transfer with the National Registry (Registro Nacional), which officially completes your ownership.
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Which documents are mandatory to complete a land purchase, and which ones are optional but recommended?
Costa Rican land transactions require specific mandatory documentation while several optional documents provide additional protection for foreign buyers.
Mandatory documents include your passport for identity verification, the signed purchase agreement outlining terms and conditions, and the escrow agreement protecting your funds during the transaction. The seller must provide the current title or deed, municipal certificates confirming property taxes are current, and registry certificates showing no liens or encumbrances exist against the property.
The land use certificate (uso de suelo) is mandatory as it confirms the property's zoning and development restrictions. Your attorney will also obtain a no-lien certification from the National Registry to ensure the property has clear title.
Optional but strongly recommended documents include a professional property survey (plano catastrado) that precisely maps boundaries and identifies any encroachments. Environmental studies help identify potential restrictions or contamination issues, while building inspections reveal structural problems or code violations that could affect value.
A comprehensive due diligence report from your attorney summarizes all findings and recommendations, providing valuable protection against future legal or financial problems.
Can you buy land in Costa Rica without physically being in the country, and how does that process work?
Remote land purchases are completely legal and commonly executed in Costa Rica through a Power of Attorney arrangement with your local attorney.
The Power of Attorney document grants your attorney the legal authority to act on your behalf for all aspects of the property transaction. This document must be properly notarized and authenticated in your home country, then apostilled to meet Costa Rican legal requirements.
Your attorney handles all steps of the process remotely, including property inspections, document verification, fund management through escrow, and attending the closing meeting on your behalf. You can complete the entire transaction without ever setting foot in Costa Rica, though most experienced buyers recommend at least one in-person visit to see the property firsthand.
Remote purchases require careful selection of your attorney, as this person will have significant authority over your transaction. Verify their credentials, references, and track record with foreign clients before proceeding. Many buyers conduct video calls with their attorney throughout the process to maintain communication and oversight.
It's something we develop in our Costa Rica property pack.
What are the typical mistakes and pitfalls foreigners face when buying land, and how can you avoid them?
Foreign land buyers in Costa Rica consistently make several costly mistakes that proper preparation and professional guidance can prevent.
The most expensive mistake involves skipping proper title verification and legal due diligence. Properties with unclear titles, unpaid taxes, or boundary disputes can result in total loss of investment. Always hire a qualified real estate attorney and never bypass the title search and verification process, regardless of time pressure or seller assurances.
Engaging unregistered agents or attorneys represents another major risk. Costa Rica requires real estate professionals to maintain proper licensing and registration. Verify credentials through official channels and never work with anyone who cannot provide proper documentation of their legal standing.
Environmental and zoning oversights frequently catch foreign buyers unprepared. Properties may have wetland restrictions, environmental setbacks, or zoning limitations that prevent intended development. Always obtain the land use certificate and environmental assessments before committing to purchase.
Overpaying due to market inexperience costs many foreign buyers thousands of dollars. Coastal properties especially can vary dramatically in value based on location, access, and development potential. Research comparable sales and consider hiring a local appraiser for significant purchases.
Payment outside of escrow represents an absolute red flag that legitimate sellers will never request. All funds should flow through properly established escrow accounts managed by your attorney or a licensed escrow company.
What do foreigners most commonly use the land for once purchased in Costa Rica?
Foreign land buyers in Costa Rica pursue diverse strategies that align with both lifestyle and investment objectives, with vacation rentals dominating recent purchase activity.
1. **Vacation rental properties** - Short-term rental platforms like Airbnb drive significant demand, particularly in Guanacaste and Central Pacific coastal areas where properties can generate 8-12% annual returns through tourist rentals.2. **Retirement and lifestyle homes** - Many buyers develop land for permanent or seasonal residences, taking advantage of Costa Rica's stable climate, healthcare system, and expat-friendly environment.3. **Agricultural investments** - Coffee plantations, sustainable farming, and eco-agriculture projects attract buyers interested in agricultural income and environmental stewardship.4. **Eco-retreat and wellness centers** - The growing wellness tourism market creates opportunities for retreat centers, yoga studios, and holistic health facilities, especially in areas with natural beauty.5. **Land banking and speculation** - Some buyers purchase undeveloped land in areas expecting future infrastructure development or tourism growth, holding for long-term appreciation.6. **Commercial development** - Hotels, restaurants, and tourist-focused businesses represent significant investment opportunities in high-traffic areas near beaches and national parks.
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 current average prices for land in different regions of Costa Rica?
Costa Rican land prices vary dramatically by location, with coastal areas commanding premium prices while inland and mountainous regions offer more affordable entry points for foreign buyers.
| Region | Average Price per m² | Typical Land Size |
|---|---|---|
| Tamarindo (Guanacaste) | $180-$350 | 500-2,000 m² |
| Playas del Coco | $120-$280 | 800-2,500 m² |
| Manuel Antonio | $200-$400 | 300-1,500 m² |
| Central Valley (Escazú) | $150-$300 | 400-1,200 m² |
| Monteverde | $45-$85 | 2,000-10,000 m² |
| Osa Peninsula | $25-$65 | 5,000-50,000 m² |
| Caribbean Coast (Puerto Viejo) | $35-$75 | 1,000-5,000 m² |
Premium beachfront lots in established areas like Tamarindo can exceed $500 per square meter, while large agricultural parcels in remote areas may cost as little as $10-$20 per square meter. Ocean view and walking distance to beaches significantly impact pricing, with lots losing 30-50% of their value for each 100 meters away from the coast.
As of September 2025, prices have stabilized after rapid increases during 2022-2024, with most regions showing 3-8% annual appreciation rather than the double-digit growth experienced during the pandemic period.
What is the long-term forecast for the Costa Rican land market, and what trends should buyers watch?
The Costa Rican land market shows strong fundamentals for continued growth through 2028, driven by international buyer demand and infrastructure development, though at a more sustainable pace than recent years.
Infrastructure improvements represent the most significant driver of future value appreciation. The completion of Route 27 improvements, new airport developments, and fiber internet expansion to rural areas will open previously inaccessible regions to development. Areas within one hour of improved transportation corridors should see accelerated appreciation.
Sustainable development requirements are reshaping buyer preferences and market dynamics. Environmental regulations increasingly favor eco-friendly development, creating premium value for properties with renewable energy potential, water conservation systems, and minimal environmental impact. Properties that cannot meet evolving environmental standards may face restricted development potential.
The remote work trend continues driving demand from international buyers seeking lifestyle properties with reliable internet connectivity. Areas offering high-speed internet, good healthcare access, and established expat communities will likely outperform isolated locations.
Tourism recovery and growth provides ongoing support for rental income properties, with adventure tourism and wellness travel showing particular strength. Properties positioned for eco-tourism, wellness retreats, or adventure activities should maintain strong rental demand.
Climate change concerns are creating both risks and opportunities. Coastal properties face potential sea-level rise issues, while higher elevation areas with cooler climates may become more desirable as temperatures rise globally.
What taxes, fees, and other costs are associated with buying and owning land in Costa Rica?
Costa Rican land ownership involves upfront closing costs plus ongoing annual obligations that foreign buyers must budget for throughout their ownership period.
Closing costs typically range from 3.5% to 6% of the purchase price and include transfer taxes, legal fees, and registration costs. The transfer tax alone accounts for 1.5% of the property value, while attorney fees generally run 1-2% of the purchase price. Registration fees, notary costs, and miscellaneous administrative expenses add another 1-2.5% to the total closing cost.
Annual property taxes are assessed at 0.25% of the declared property value for most residential and agricultural land. However, properties valued above $250,000 face an additional luxury tax that can increase the effective rate. Property tax assessments occur periodically, and values may be adjusted based on market conditions or improvements made to the land.
When selling, capital gains taxes apply at a rate of 15% on the profit from the sale, calculated as the difference between purchase and sale prices. Alternatively, sellers can choose to pay 2.25% of the total sales price, which may be advantageous for properties with significant appreciation.
Ongoing costs include utilities, insurance, security, and maintenance. Properties in gated communities or developments typically require monthly HOA fees ranging from $50-$300 depending on amenities and services provided.
Can you buy land in cash as a foreigner, and if you need financing, is mortgage lending available, what are the current rates and conditions, and what are the best tips to get approved?
Cash purchases represent the most straightforward and common method for foreign land buyers in Costa Rica, while financing options exist but involve significant challenges and limitations.
Cash transactions are completely legal and often preferred by sellers because they close faster and involve fewer complications. Wire transfers through established banking channels provide secure fund movement, and escrow accounts protect both buyers and sellers during the transaction process.
Costa Rican banks theoretically offer mortgages to foreign buyers, but approval requirements make financing difficult in practice. Banks typically require down payments of 40-50% of the property value, significantly higher than most domestic lending markets. Interest rates as of September 2025 range from 8-12% annually, with loan terms rarely exceeding 15-20 years for foreign borrowers.
Mortgage approval requires extensive documentation including proof of income, employment verification, tax returns, and significant collateral beyond the property itself. Many banks also require borrowers to maintain legal residency in Costa Rica, effectively excluding tourist visa holders from financing options.
Alternative financing strategies often prove more practical for foreign buyers. Owner financing arrangements with sellers can provide flexible terms and faster closings. Using home equity loans or lines of credit from your home country bank may offer better rates and terms than Costa Rican financing. Some buyers form partnerships with local investors to share financing burdens and leverage local banking relationships.
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 as a foreigner in 2025 offers significant opportunities for both investment and lifestyle purposes, with strong legal protections and growing market fundamentals supporting long-term value appreciation.
Success requires careful attention to legal requirements, proper professional guidance, and realistic expectations about costs and market conditions, but the rewards can be substantial for well-prepared buyers who understand the process and choose appropriate locations.
Sources
- Drink Tea Travel - Buying Property in Costa Rica
- The LatinVestor - Costa Rica Real Estate for Foreigners
- Visit World Today - Property Buying Guide
- Century 21 Ballena Properties - Beachfront Property Ownership
- The LatinVestor - Buy Land Costa Rica
- CB Sunset Reef Realty - Residency Requirements
- CitizenX - Costa Rica Citizenship Investment
- Nomad Capitalist - Costa Rica Residence
- eSales International - Market Outlook 2025
- Flamingo Property - Buying Land Guide