How does buying land in Costa Rica as an American work?

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

Who is the author of this content?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

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.

How this content was created 🔎📝

At TheLatinvestor, we explore the Costa Rican real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like San José, Escazú, and Tamarindo. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can Americans legally buy land in Costa Rica and are there any restrictions compared to locals?

Americans can legally buy land in Costa Rica with full fee-simple title ownership rights identical to Costa Rican citizens.

The only significant restriction applies to the Maritime Zone, which consists of the first 200 meters from the high-tide line along Costa Rica's coastline. The first 50 meters are public land that cannot be privately owned by anyone, while the next 150 meters are "concession land" where foreigners can only own up to 49% of the concession unless they have resided in Costa Rica for at least five years.

Additional restrictions exist near international borders and in environmentally protected areas, but these apply equally to all non-Costa Rican nationals regardless of nationality. Outside of these specific zones, Americans enjoy the same property ownership rights as locals, including the ability to hold clear title, sell freely, and pass property to heirs through inheritance.

As of September 2025, there are no discriminatory laws against American buyers, and no requirements for local partnerships or corporate structures for most land purchases.

Are there any residency or visa requirements for Americans who want to purchase land?

No residency or special visa requirements exist for Americans purchasing land in Costa Rica.

Americans can buy property while on a standard 90-day tourist visa using only a valid US passport. Property ownership does not automatically grant residency status in Costa Rica, and maintaining the property does not extend visa privileges beyond standard tourist allowances.

However, Americans who invest $150,000 or more in Costa Rican real estate as of 2025 can qualify for the "Inversionista" (Investor) Residency program, which provides a pathway to legal residency but is not required for property ownership.

The purchase process can be completed entirely from the United States through power of attorney arrangements, eliminating the need for extended stays during the transaction period.

Do I need to be physically present in Costa Rica to complete a land purchase?

Physical presence in Costa Rica is not mandatory to complete a land purchase.

Many Americans successfully buy Costa Rican land using a power of attorney (POA) arrangement with a licensed Costa Rican notary or attorney. The POA document must be notarized in the United States and receive an apostille certification for legal recognition in Costa Rica, with costs typically ranging from $200 to $500 for the complete authentication process.

However, visiting the property in person before finalizing the purchase is strongly recommended to verify the land's condition, boundaries, access routes, and surrounding area. Many buyers choose to visit during the due diligence phase and then complete the final closing remotely through their attorney.

Remote closings have become increasingly common since 2020, with digital document signing and video conference capabilities making the process more accessible for international buyers.

What is the exact step-by-step process for buying land in Costa Rica as an American?

The land purchase process in Costa Rica follows a standardized seven-step procedure that typically takes 30 to 60 days to complete.

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

1. **Property Identification and Initial Offer**: Search listings through licensed real estate agents or online platforms, visit properties (in person or virtually), and submit a written offer with terms including price, timeline, and contingencies.2. **Attorney Selection and Engagement**: Hire a licensed Costa Rican attorney who is registered with the Costa Rica Bar Association and has experience with international real estate transactions.3. **Purchase Agreement and Escrow**: Sign a formal purchase agreement and deposit earnest money (typically 10% of purchase price) into an attorney-managed escrow account.4. **Due Diligence Phase**: Attorney conducts comprehensive title search, verifies no liens or encumbrances exist, confirms current registered survey (Plano Catastrado), checks zoning compliance, and verifies utility access availability.5. **Final Document Preparation**: Attorney prepares the transfer deed (escritura), coordinates final inspections, and schedules the closing date with all parties.6. **Closing and Payment**: Execute the final transfer deed either in person or via power of attorney, transfer remaining purchase funds, and pay all applicable taxes and fees.7. **Title Registration**: Attorney registers the new deed with Costa Rica's National Registry (Registro Nacional), ensuring legal transfer of ownership and updating public records.

What documents are required to buy land and which ones must be translated or notarized?

The required documentation varies depending on whether the buyer is present in Costa Rica or completing the transaction remotely.

Essential documents include a valid US passport for buyer identification, proof of funds documentation for anti-money laundering compliance, and the signed purchase agreement. If the buyer is not physically present, a power of attorney document must be notarized in the United States and receive apostille certification for use in Costa Rica.

Property-related documents include the current title deed, registered survey (Plano Catastrado), tax clearance certificates, and utility access verification letters. If the purchase is made through a corporation, additional corporate documentation including articles of incorporation and good standing certificates are required.

All foreign documents must receive apostille certification, and documents not in Spanish typically require official translation by a certified translator for registry purposes. The translation and apostille process usually adds $300 to $800 to transaction costs depending on document volume.

Is hiring a local lawyer mandatory for buying land and how do I choose a trustworthy one?

Hiring a licensed Costa Rican attorney is legally required and essential for all real estate transactions in Costa Rica.

Only licensed Costa Rican attorneys who are also notary publics can legally prepare and execute real estate transfer documents, conduct official title searches, and register property transfers with the National Registry. The attorney serves as both legal counsel and notary public for the transaction.

To choose a trustworthy attorney, verify their license with the Costa Rica Bar Association (Colegio de Abogados), select someone with specific real estate experience who is independent from the seller, and request references from previous international clients. Reputable real estate agencies and expat communities often provide reliable referrals.

Attorney fees typically range from 1% to 1.25% of the property value, and the attorney will also coordinate all aspects of due diligence, document preparation, and registry filing. Avoid attorneys who are affiliated with the seller or who quote fees significantly below market rates.

What are the typical costs and taxes involved in purchasing and owning land as an American?

Total closing costs for land purchases in Costa Rica typically range from 3.5% to 6% of the property value, with ongoing annual costs remaining relatively low.

Cost Category	Percentage/Amount	When Due
Attorney/Notary Fees	1-1.25% of property value	At closing
Transfer Tax	1.5% of registered value	At closing
Registration Stamps	0.85% of registered value	At closing
Escrow Account Fees	$500-$1,000	At closing
Due Diligence/Survey	$300-$1,000	During process
Annual Property Tax	0.25% of municipal value	Annually
Luxury Home Tax	Additional for properties >$250,000	Annually

Capital gains tax of 15% applies to profits when selling property, though primary residences held for more than five years may qualify for exemptions. Property taxes are calculated on municipal assessed values, which are typically lower than market values.

How does the mortgage process work for Americans buying land, what are the rates and conditions, and are there tips to improve approval chances?

Financing options for Americans buying Costa Rican land are limited but available through select local and international banks.

Local Costa Rican banks typically require down payments of 30% to 50% of the property value, with interest rates ranging from 8% to 12% APR as of September 2025. Loan terms generally span 10 to 30 years, and most banks prefer working with borrowers who have Costa Rican residency status or significant local income sources.

International banks with Costa Rican operations, such as Scotiabank and BAC San José, may offer more favorable terms for qualified American borrowers but still require substantial documentation including US tax returns, bank statements, employment verification, and credit reports. Some US-based lenders also provide international portfolio loans for foreign real estate purchases.

To improve approval chances, maintain excellent US credit scores above 700, provide comprehensive financial documentation, consider establishing a relationship with the bank before applying, and work with brokers experienced in international lending. Many Americans choose to purchase with cash due to simpler processes and faster closing timelines.

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.

Which areas in Costa Rica are most popular among Americans for living, renting out, or long-term investment, and what do the latest livability indexes, rental yields, tourism numbers, and growth forecasts show?

Three primary regions attract American land buyers based on different lifestyle and investment priorities.

Region	Primary Appeal	Rental Yields	Growth Forecast
Guanacaste Province	Beach communities, tourism	5-8% (up to 12% short-term)	Strong tourism growth
Central Valley	Healthcare, amenities, expat services	3-6%	Stable appreciation
Southern Pacific Zone	Nature, eco-tourism, lower costs	5-7%	Infrastructure improvements
Caribbean Coast	Authentic culture, lower prices	4-6%	Emerging development
Northern Plains	Agriculture, lower land costs	3-5%	Agricultural investment

Guanacaste Province, including areas like Tamarindo, Nosara, and Flamingo, leads in American purchases due to established expat communities, international airports, and strong rental markets driven by consistent tourism. The Central Valley around San José, Escazú, and Atenas appeals to Americans seeking urban amenities, quality healthcare, and year-round spring-like climate.

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

What is the current price range for land in different cities and regions of Costa Rica?

Land prices in Costa Rica vary significantly based on location, accessibility, size, and development potential as of September 2025.

Guanacaste beach areas command the highest prices, ranging from $200 to $1,000 per square meter for titled land with ocean views or beach access. Popular developments in Tamarindo, Nosara, and Flamingo typically price land between $400 to $800 per square meter, while less developed coastal areas range from $200 to $400 per square meter.

Central Valley land prices range from $50 to $400 per square meter depending on proximity to San José and infrastructure quality. Prime locations in Escazú and Santa Ana command $300 to $400 per square meter, while areas like Atenas and Grecia range from $100 to $250 per square meter.

Southern Zone regions including Dominical, Uvita, and Ojochal offer land from $50 to $300 per square meter, with ocean-view properties commanding premium prices. Remote rural areas throughout the country start as low as $10 to $100 per square meter but may lack basic infrastructure and services.

What are the most common mistakes or pitfalls Americans face when buying land in Costa Rica and how can they be avoided?

The most frequent and costly mistakes involve inadequate due diligence and failure to understand local regulations.

Purchasing untitled or concession land without understanding restrictions represents the most expensive mistake, as Maritime Zone concessions have limitations on foreign ownership and may face future regulatory changes. Always verify that land has a registered title (Plano Catastrado) and avoid concession properties unless fully understanding the restrictions.

Using attorneys affiliated with sellers or failing to hire independent legal representation leads to conflicts of interest and inadequate due diligence. Select your own attorney who is licensed with the Costa Rica Bar Association and has no relationship with the seller or real estate agent.

Overpaying due to lack of market knowledge occurs frequently in tourist areas where pricing may be inflated for foreign buyers. Research comparable sales, work with experienced agents, and consider hiring independent appraisers for significant purchases.

Ignoring zoning restrictions, environmental regulations, or development limitations can prevent intended land use. Verify current zoning, understand setback requirements, and confirm development feasibility before purchase, especially near beaches or protected areas.

Are there any differences in what types of land Americans can buy compared to other foreign nationalities?

No differences exist in land ownership rights between Americans and other foreign nationalities in Costa Rica.

All foreign nationals, regardless of country of origin, share identical property ownership rights under Costa Rican law. The same restrictions that apply to Americans in Maritime Zone areas also apply to all non-Costa Rican citizens, including Europeans, Canadians, and other Latin Americans.

Border area restrictions near Nicaragua and Panama apply equally to all foreigners, and environmental protection zone limitations affect all non-citizen buyers identically. Costa Rica's property laws make no distinction based on the buyer's nationality, diplomatic relationships, or trade agreements.

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

The only factors that may create practical differences relate to financing availability, as some banks may have specific programs for certain nationalities based on their international banking relationships, but legal ownership rights remain identical for all foreign buyers.

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. Wise - Buy Property in Costa Rica
2. TheLatinvestor - Costa Rica Real Estate for Foreigners
3. BrightTax - Panama or Costa Rica Expat Buying Guide
4. TheLatinvestor - Can Americans Buy Land in Costa Rica
5. Global Property Guide - Costa Rica Buying Guide
6. HRG Vacations - Guide to Buying Property in Costa Rica
7. CB Sunset Tree Realty - Costa Rica Property Residency Guide
8. Drink Tea Travel - Buying Property in Costa Rica
9. Wise - Best Countries to Buy Property Abroad
10. Flamingo Beach Realty - Americans Buying Property in Costa Rica