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 LATIN INVESTOR

A team specialized in real estate investing in Latin American countries (Costa Rica, Panama, 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.

How this content was created 🔎📝

At The Latin Investor, 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, Tamarindo, and Uvita. 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.

What kind of land can Americans legally buy in Costa Rica and are there any restrictions compared to locals?

Americans can legally buy most types of land in Costa Rica with the same ownership rights as Costa Rican citizens.

The primary restriction applies to the Maritime Zone (Zona Marítimo Terrestre), which is the 200-meter coastal strip measured from the high tide line. The first 50 meters from the high tide line is public land that cannot be owned by anyone, including locals. In the next 150 meters, foreigners who have not lived in Costa Rica for at least five years can only own up to 49% of a property, typically through a Costa Rican corporation with a local citizen or legal resident owning the majority 51%.

However, approximately 5% of Costa Rica's beaches have titled land that extends up to the 50-meter line, such as Jaco Beach and Los Sueños Beach, where Americans can own property outright. Outside the Maritime Zone, Americans enjoy full ownership rights for residential, commercial, and rural land without any restrictions.

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

This means Americans can purchase mountain properties, urban lots, agricultural land, and most beachfront properties with complete ownership rights identical to those of Costa Rican nationals.

Do Americans need residency, a specific visa, or any permits to buy land in Costa Rica?

Americans do not need residency, a specific visa, or any special permits to buy land in Costa Rica.

You can purchase property while on a simple tourist visa, which allows Americans to stay in Costa Rica for up to 90 days without any special documentation beyond a valid passport. The land purchase process is completely separate from immigration status, meaning you can buy property even without ever setting foot in the country.

However, it's important to understand that owning property in Costa Rica does not automatically grant residency rights. If you want to live in Costa Rica long-term, you must apply for residency through separate immigration procedures, such as the pensionado program for retirees or the rentista program for those with guaranteed income.

The Costa Rican government welcomes foreign investment in real estate and has structured the system to be accessible to international buyers without bureaucratic barriers related to immigration status.

Do I have to be physically present in Costa Rica to purchase land or can I do it remotely from the U.S.?

You do not need to be physically present in Costa Rica to purchase land, and the entire buying process can be completed remotely from the United States.

The remote purchase process involves working with a local real estate agent who can show you properties virtually through video tours, photos, and detailed descriptions. Your Costa Rican attorney can handle all legal documentation, title searches, and due diligence procedures without requiring your physical presence.

If you prefer not to travel for the closing, you can grant power of attorney to your lawyer or another trusted representative to sign documents on your behalf. This power of attorney must be notarized and authenticated through the Costa Rican consulate in the United States.

Many Americans successfully purchase Costa Rican land entirely through digital communication, video conferences, and electronic document exchange, making the process convenient for those who cannot travel or prefer to complete the transaction from home.

What is the complete step-by-step process for an American to buy land in Costa Rica, from initial research to final ownership?

The complete land buying process in Costa Rica follows a structured nine-step procedure from research to ownership transfer.

Step	Action Required	Timeline
1. Research & Planning	Choose region and land type, set budget	1-4 weeks
2. Find Real Estate Agent	Select experienced local agent with references	1-2 weeks
3. Property Selection	Visit properties (virtually or physically)	2-8 weeks
4. Make Offer	Submit formal offer and negotiate terms	1-2 weeks
5. Due Diligence	Attorney conducts title search and legal verification	2-4 weeks
6. Purchase Agreement	Sign binding agreement, pay 10% deposit	1 week
7. Financing	Arrange payment method (cash, mortgage, etc.)	2-6 weeks
8. Closing	Sign transfer deed with notary attorney	1 day
9. Registration	Property officially transferred in Public Registry	1-2 weeks

What documents are required for Americans to buy land in Costa Rica and who typically prepares them?

The land purchase in Costa Rica requires specific legal documents that your attorney prepares and manages throughout the transaction.

Key documents include a certified copy of the current deed (escritura), the Plano Catastrado (official survey plan registered with the National Registry), a certified title search showing the property's legal history, current survey maps, Certification of Alineamiento from INVU (urban planning compliance), and proof that all property taxes are current and the title is clear of liens or encumbrances.

Your local real estate attorney, who must also be a licensed notary public, prepares, reviews, and files all these documents. The attorney conducts the title search, verifies property boundaries, ensures compliance with local regulations, and drafts the transfer deed (escritura de traspaso).

As the buyer, you'll need to provide a copy of your passport and may need to obtain a tax identification number (cédula de persona física) from the Costa Rican tax authority if the property value exceeds certain thresholds.

All documentation must be in Spanish, and your attorney handles translations of any English documents you provide, ensuring everything meets Costa Rican legal requirements for property transfer.

Is hiring a local lawyer mandatory for Americans buying land in Costa Rica, and how do I choose a good one?

Hiring a local lawyer is absolutely mandatory for any real estate transaction in Costa Rica, and the attorney must also be a licensed notary public to register the deed transfer.

Choose an attorney who represents only your interests, not the seller's, to avoid conflicts of interest. Look for a lawyer who is bilingual (fluent in English), specializes in real estate law, has extensive experience with foreign buyers, and maintains good standing with the Costa Rican Bar Association (Colegio de Abogados).

Verify the attorney's reputation by checking references from previous American clients, confirming their professional credentials, and ensuring they provide transparent fee structures and clear explanations of the legal process. A good attorney should be responsive to communications, patient with questions, and willing to explain Costa Rican property law in detail.

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

Avoid using the seller's attorney or any lawyer recommended solely by the seller, as this creates inherent conflicts of interest that could compromise your legal protection during the transaction.

Are there property taxes, capital gains taxes, or any fiscal obligations for Americans after purchasing land in Costa Rica?

Americans face several ongoing tax obligations after purchasing land in Costa Rica, with rates that are generally reasonable compared to U.S. standards.

The annual property tax is 0.25% of the property's registered value, paid quarterly to the local municipality. Properties valued above approximately $250,000 may be subject to an additional luxury tax ranging from 0.25% to 0.55% depending on the property's assessed value.

When you eventually sell the property, you'll pay a 15% capital gains tax on profits from investment or commercial properties, though this doesn't apply to your primary residence. At the time of purchase, buyers pay a 1.5% transfer tax based on the sale price or registered value, whichever is higher.

Additional ongoing costs include municipal taxes for services like garbage collection, which typically range from $20-100 annually, and potentially homeowner association fees if the property is in a planned community or condominium development.

These tax obligations are automatically calculated and collected through the Costa Rican tax system, and your local attorney can help establish proper tax payment procedures.

Can Americans get a mortgage to buy land in Costa Rica, and if so, what are the rates, conditions, and lender options available?

Americans can obtain mortgages to buy land in Costa Rica, but local bank financing is rare and difficult for foreigners to secure.

Costa Rican banks typically require 25-50% down payments, extensive documentation, strong credit histories, and proof of income, with interest rates ranging from 7.5% to 10% for terms up to 20 years. The application process is lengthy and complex, often taking several months to complete.

Most American buyers use alternative financing methods including cash purchases, home equity lines of credit from U.S. banks, international lenders who specialize in Central American real estate, or owner financing arrangements with sellers who may accept 50% down payments and short-term notes of 1-3 years.

International mortgage companies now offer 30-year fixed-rate mortgages for Costa Rican properties, though interest rates are typically higher than comparable U.S. mortgages. These lenders understand the Costa Rican market and can often provide more flexible terms than local banks.

Given the financing challenges, many Americans save for cash purchases or use U.S.-based financing options secured against existing American properties to fund their Costa Rican land investments.

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 regions in Costa Rica offer the best opportunities for land investment in terms of lifestyle, tourism growth, and capital appreciation?

Costa Rica's land investment opportunities vary significantly by region, with each offering distinct advantages for lifestyle, tourism potential, and appreciation prospects.

Guanacaste Province leads in tourism growth and capital appreciation, particularly around Tamarindo, Nosara, and Santa Teresa, where beachfront and near-beach properties have shown consistent annual appreciation of 8-12%. The region benefits from excellent beach access, established expat communities, strong rental markets, and the Liberia International Airport providing easy access for tourists and part-time residents.

The Central Valley, including Escazú and Santa Ana, offers stable 4-6% annual appreciation with urban amenities, international schools, quality healthcare, and year-round spring-like climate. This region attracts Americans seeking a more traditional living environment with modern conveniences.

The Southern Zone, particularly around Ojochal, Uvita, and Dominical, represents emerging markets with higher growth potential of 9-10% annually. This region features eco-tourism development, more affordable land prices, and increasing infrastructure improvements, making it attractive for investors seeking higher returns.

The Caribbean Coast around Puerto Viejo offers unique cultural experiences and growing tourism, though appreciation rates are more modest at 5-7% annually, with appeal to investors seeking authentic Caribbean lifestyle and emerging market potential.

What are the current average land prices per square meter or hectare in key regions like Guanacaste, Central Valley, and the Caribbean coast?

Land prices in Costa Rica vary dramatically by region, proximity to amenities, and development level, with significant differences between coastal and inland areas as of mid-2025.

Region	Price per m² (USD)	Key Areas
Guanacaste Coast	$253-$6,300	Tamarindo, Nosara (highest prices)
Guanacaste Inland	$15-$150	Rural areas, agricultural land
Central Valley Urban	$100-$500+	Escazú, Santa Ana (premium areas)
Central Valley Rural	$25-$100	Mountain properties, coffee farms
Caribbean Coast	$50-$300+	Puerto Viejo, Cahuita (popular spots)
Southern Zone	$10-$200+	Wide variation, many affordable options
Remote Rural Areas	$5-$50	Agricultural land, mountain properties

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

What are the most common mistakes Americans make when buying land in Costa Rica and how can I avoid them?

Americans frequently make several critical mistakes when buying Costa Rican land that can result in significant financial losses or legal complications.

The most serious mistake is skipping proper due diligence, including failing to verify clear title, accurate property boundaries, legal access rights, and compliance with local zoning regulations. Always ensure your attorney conducts a comprehensive title search going back at least 30 years and verifies that the property boundaries match the legal description.

Using the seller's attorney creates dangerous conflicts of interest and should be avoided at all costs. Hire your own independent legal counsel who represents only your interests throughout the transaction.

Many Americans underestimate the total costs involved, failing to budget for closing costs (typically 3.5-4% of property value), ongoing property taxes, maintenance expenses, and potential infrastructure development costs if the land lacks utilities or road access.

Ignoring Maritime Zone restrictions leads to ownership complications near coastal areas. Thoroughly understand these limitations before purchasing beachfront property, and verify whether the land has proper titled ownership or falls under concession regulations.

Cultural misunderstandings also create problems, as Costa Rican business culture values patience and relationship-building. Rushing transactions or misinterpreting polite responses as firm commitments can lead to misunderstandings and failed deals.

Where do most Americans settle when buying land in Costa Rica and what factors make those areas popular?

Americans gravitate toward specific regions in Costa Rica based on lifestyle preferences, infrastructure quality, and community factors that make integration easier.

1. **Guanacaste Province**: Tamarindo, Nosara, and Playa Hermosa attract Americans seeking beach lifestyle with established expat communities, English-speaking services, direct flights from the U.S., strong rental income potential, and modern amenities including international restaurants and shopping.2. **Central Valley**: Escazú and Santa Ana appeal to Americans wanting urban conveniences, excellent healthcare facilities, international schools for families, year-round comfortable climate, proximity to San José's cultural attractions, and easy access to both coasts for weekend trips.3. **Southern Zone**: Ojochal, Uvita, and Dominical attract Americans interested in eco-tourism, more affordable land prices, smaller expat communities, pristine natural environments, and opportunities to participate in conservation efforts.4. **Caribbean Coast**: Puerto Viejo draws Americans seeking authentic Caribbean culture, laid-back lifestyle, unique Afro-Caribbean community, excellent surfing, and relatively affordable living costs compared to Pacific coast areas.

These areas offer critical factors that Americans prioritize: established expat communities for social support, English-speaking services and healthcare, reliable internet for remote work, good transportation infrastructure, and proximity to international airports for easy travel to the United States.

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. The Latin Investor - Costa Rica Property Ownership for US Citizens
2. Nestmann - Costa Rica Property Ownership Laws
3. The Latin Investor - Costa Rica Real Estate for Foreigners
4. Wise - How to Buy Property in Costa Rica
5. The Latin Investor - Americans Buying Property in Costa Rica
6. Pirie Legal - Real Estate Attorney Services
7. Wise - How to Buy Land in Costa Rica
8. Costa Rica Law - Capital Gains Tax Information
9. Coldwell Banker - Top Investment Regions 2025
10. The Latin Investor - Best Areas in Costa Rica