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
Americans can legally purchase property in Costa Rica with the same ownership rights as locals for most property types.
The process doesn't require residency or visa status, making Costa Rica one of the most accessible real estate markets for US citizens in Central America. However, navigating the legal requirements, understanding maritime zone restrictions, and working with local professionals are essential steps for a successful purchase.
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.
Americans enjoy full property ownership rights in Costa Rica without residency requirements, though maritime zone properties have restrictions.
The purchase process requires hiring a local attorney, conducting proper due diligence, and understanding both Costa Rican and US tax implications.
| Key Factor | Requirement for Americans | Important Details |
|---|---|---|
| Legal Ownership | Same rights as locals | Except maritime zone properties (49% max ownership) |
| Residency/Visa | Not required | Tourist visa sufficient; $150k+ investment qualifies for residency |
| Physical Presence | Not mandatory | Can use Power of Attorney for remote closing |
| Legal Representation | Mandatory | Must hire independent Costa Rican attorney/notary |
| Financing | Challenging but possible | 30-50% down payment, 8-10% interest rates |
| Property Tax | 0.25% annually | Plus luxury tax for properties over $230,000 |
| Transfer Tax | 1.5% of property value | Usually split between buyer and seller |
Can Americans legally buy property in Costa Rica and are there any restrictions compared to locals?
Americans can legally purchase property in Costa Rica with identical ownership rights to Costa Rican citizens for most property types.
The main exception involves properties within the Maritime Zone (Zona MarĂtima Terrestre), which covers the first 200 meters from the high tide line. The first 50 meters constitute public land that cannot be owned by anyone, while the next 150 meters can only be leased through concession agreements. Foreign ownership in maritime zone properties is typically limited to 49% through a Costa Rican corporation.
Additional restrictions apply to border areas, river mouths, and nature reserves, where special permissions or ownership limitations may exist. Properties near airports, military installations, and certain coastal areas may also have specific regulations governing foreign ownership.
For all other titled land throughout Costa Rica, Americans enjoy fee simple ownership rights identical to locals. This means you can own the property outright, sell it freely, and pass it on to heirs without restrictions. The Costa Rican Constitution guarantees property rights for foreigners, making it one of the most secure real estate markets in Central America.
It's something we develop in our Costa Rica property pack.
Do Americans need to have residency or a specific visa type to purchase property in Costa Rica?
No residency or specific visa is required for Americans to purchase property in Costa Rica.
You can buy real estate using just your US passport on a standard tourist visa. This makes Costa Rica particularly attractive compared to other Central American countries that require residency or special permits for foreign property ownership.
While property ownership doesn't automatically grant residency, investing at least $150,000 USD in Costa Rican real estate qualifies you to apply for Investor Residency status. This residency program allows you to live in Costa Rica long-term and eventually apply for permanent residency after maintaining your investment for the required period.
The Investor Residency option provides benefits including multiple-entry privileges, the ability to work in Costa Rica, and access to the national healthcare system. However, you must maintain the minimum investment amount and fulfill other requirements such as demonstrating financial stability and clean criminal records.
Is it necessary for an American buyer to be physically present in Costa Rica during the property purchase process?
Physical presence in Costa Rica is not required to complete a property purchase.
The entire transaction can be handled remotely using a Power of Attorney (POA) granted to a trusted attorney or representative in Costa Rica. This POA must be properly notarized and authenticated through the Costa Rican consulate in your area of the United States.
Most negotiations, due diligence investigations, and the final closing can be managed through email, video calls, and legal document exchanges. Your attorney will represent your interests throughout the process, from initial property inspections to final registration at the National Registry.
However, many buyers choose to visit the property at least once before purchase to verify its condition and location personally. While not legally required, this visit can provide valuable insights into the neighborhood, accessibility, and potential issues that might not be apparent from photos and descriptions alone.
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What are the exact steps and required documents for an American to buy property in Costa Rica?
The property purchase process in Costa Rica follows a structured legal framework requiring specific documentation and steps.
| Step | Action Required | Key Documents/Details |
|---|---|---|
| 1. Property Identification | Work with licensed real estate agent | Property listing, initial viewing arrangements |
| 2. Offer and Agreement | Negotiate terms and sign purchase agreement | Purchase contract with deposit (typically 10-20%) |
| 3. Due Diligence | Attorney conducts comprehensive property investigation | Title search, survey verification, lien check, zoning confirmation |
| 4. Deed Preparation | Attorney prepares Transfer Deed (Escritura) | Legal description, purchase price, buyer/seller details |
| 5. Notarization and Signing | Execute deed before licensed notary public | Escritura, Power of Attorney (if remote), identification |
| 6. Registration | Notary registers deed at National Registry | Registered deed, updated title, property tax assessment |
| 7. Closing and Transfer | Final payment and property handover | Closing costs payment (3.5-4% of property value), keys transfer |
Essential documents include your US passport for identification, a properly executed Power of Attorney if completing the purchase remotely, the signed purchase agreement, the Transfer Deed (Escritura), and the official property survey map (Plano catastrado). Your attorney will also obtain title search results to verify clear ownership and confirm the property's legal status.
Is it mandatory for Americans to hire a local lawyer when buying property in Costa Rica, and what should they look out for?
Hiring a local Costa Rican attorney who is also a licensed notary public is absolutely mandatory for property purchases.
Costa Rican law requires that all real estate transactions be executed before a licensed notary, and only attorneys can serve as notaries. Your attorney will conduct essential due diligence, prepare the transfer deed, handle the closing process, and register the property at the National Registry.
Look for a bilingual attorney with substantial experience in foreign transactions and verify their credentials with the Costa Rican Bar Association (Colegio de Abogados). Never rely solely on the seller's attorney or the real estate agent's recommended lawyer, as this creates potential conflicts of interest.
Key items your attorney should investigate include verifying clear title with no outstanding liens, confirming proper zoning and permitted land use, validating accurate survey boundaries, ensuring water rights and road access, and avoiding unregistered properties or concession-only arrangements that don't provide full ownership.
It's something we develop in our Costa Rica property pack.
What are the most common mistakes Americans make when buying property in Costa Rica and how can they be avoided?
American buyers frequently encounter preventable problems that can result in significant financial losses or legal complications.
The most critical mistake is skipping comprehensive due diligence, which should include title verification, boundary confirmation, zoning compliance, and water rights investigation. Many buyers rush through this process to secure a desired property quickly, only to discover serious issues later.
Another major error involves not hiring an independent attorney and instead relying on the seller's or agent's recommended lawyer. This creates inherent conflicts of interest and may result in inadequate protection of your interests throughout the transaction.
Financial miscalculations represent another common pitfall, as buyers often underestimate closing costs, ongoing property taxes, maintenance expenses, and potential association fees. These additional costs can add 5-8% to the total purchase price and create ongoing financial obligations.
Rushing the purchase process without adequate research or property visits frequently leads to buyer's remorse. Taking time to understand local market conditions, neighborhood dynamics, and resale potential helps ensure a sound investment decision.
Can Americans get a mortgage in Costa Rica, and what are the typical interest rates, loan conditions, and tips to improve approval chances?
Americans can obtain mortgages in Costa Rica, though the process is considerably more challenging than domestic financing in the United States.
Costa Rican banks require extensive documentation including proof of income, employment verification, credit history, and financial statements. Down payments typically range from 30-50% of the property value, with loan terms extending up to 20 years and interest rates between 8-10% annually.
Many American buyers explore alternative financing options such as home equity loans from US banks, private lenders, or seller financing arrangements. These alternatives often provide more favorable terms and faster approval processes compared to Costa Rican bank loans.
To improve approval chances with local banks, provide thorough documentation of income and assets, work with banks that specifically serve foreign clients such as Banco Nacional or BAC San José, maintain substantial cash reserves beyond the down payment requirement, and consider establishing a relationship with the bank before applying for the mortgage.
Private financing through Costa Rican individuals or companies may offer more flexible terms but requires careful legal review to ensure proper documentation and protection of your interests.
What are the tax implications for American buyersâboth in Costa Rica and back in the US?
Property ownership in Costa Rica creates tax obligations in both countries that require careful planning and compliance.
| Tax Type | Costa Rica Rate | US Implications |
|---|---|---|
| Annual Property Tax | 0.25% of registered value | May be deductible on US returns if property generates income |
| Luxury Property Tax | 0.25-0.55% for properties over $230,000 | Additional deduction if income-producing property |
| Transfer Tax | 1.5% of property value (usually split) | Added to property basis for US capital gains calculation |
| Capital Gains Tax | 15% on profit when selling | US taxes full gain with credit for Costa Rican tax paid |
| Rental Income Tax | Progressive rates, first ~$7,000 exempt | Must report all rental income on US tax returns |
US citizens must file annual tax returns reporting worldwide income, including rental income, capital gains, and dividends from Costa Rican properties. The IRS requires disclosure of foreign bank accounts through FBAR and Form 8938 if applicable thresholds are met.
Foreign tax credits may offset some US tax liability for taxes paid to Costa Rica, but careful planning with a qualified international tax professional is essential to optimize your tax position and ensure compliance with both countries' requirements.
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 American buyers for lifestyle, investment, or retirement purposes?
American buyers concentrate their purchases in specific regions that offer established expat communities, reliable infrastructure, and strong investment potential.
Tamarindo leads as the most popular destination, featuring a vibrant international community, consistent tourism, and strong rental demand. The area offers excellent restaurants, English-speaking services, and easy access to Liberia International Airport, making it ideal for both investment and lifestyle purchases.
EscazĂș attracts Americans seeking upscale living near San JosĂ©, with excellent international schools, modern shopping centers, reliable utilities, and proximity to quality healthcare facilities. This area appeals particularly to families and professionals working in the capital region.
Santa Teresa has emerged as a top choice for surf enthusiasts and younger demographics, with rapidly growing tourism, strong rental yields, and an increasingly sophisticated infrastructure supporting the expanding expat community.
The Central Valley region, including areas like Atenas and Santa Ana, attracts retirees seeking mild climate, lower costs, and easy access to San José's services while maintaining a more traditional Costa Rican lifestyle.
JacĂł offers beachfront living with active nightlife and established tourism infrastructure, though it tends to attract a more transient population compared to other American-preferred destinations.
Which cities or regions currently show the best returns in terms of rental yield, tourism growth, and capital appreciation?
Investment performance varies significantly across Costa Rican markets, with coastal tourism areas generally outperforming inland regions for rental yields.
Tamarindo consistently delivers strong rental yields between 8-12% annually, driven by year-round tourism, established vacation rental infrastructure, and growing demand from international visitors. Capital appreciation has averaged 5-8% annually over the past five years, supported by limited developable land and continued international interest.
Santa Teresa and surrounding areas show exceptional tourism growth rates, with visitor numbers increasing 15-20% annually as infrastructure improvements make the area more accessible. Rental yields often exceed 10% for well-located properties, though the market remains more volatile than established destinations.
The Central Valley and EscazĂș regions provide steady appreciation of 3-5% annually with lower rental yields but more stable long-term growth patterns. These areas benefit from consistent demand from local professionals and long-term expat residents.
JacĂł offers moderate rental yields of 6-9% with tourism growth averaging 8-12% annually, though the market faces increased competition from new developments and changing visitor preferences toward more authentic experiences.
It's something we develop in our Costa Rica property pack.
What is the current average price per square meter or home in key Costa Rican areas like San José, Tamarindo, Santa Teresa, Jacó, and the Central Valley?
As of June 2025, property prices across Costa Rica's key markets reflect the country's growing popularity among international buyers and tourism growth.
San JosĂ© and the greater Central Valley region show prices ranging from $1,500-$3,000 per square meter for quality apartments and homes. Premium areas like EscazĂș and Santa Ana command higher prices, while more traditional neighborhoods offer better value for buyers seeking authentic Costa Rican living.
Tamarindo represents the most expensive coastal market, with prices typically between $2,000-$4,000 per square meter for condos and homes near the beach. Oceanfront properties and luxury developments can exceed $5,000 per square meter, reflecting the area's established tourism infrastructure and international demand.
Santa Teresa and the southern Nicoya Peninsula show prices from $1,500-$3,500 per square meter, with significant premiums for beachfront locations. This market has experienced rapid price growth as infrastructure improvements increase accessibility and tourism continues expanding.
JacĂł pricing ranges from $1,800-$3,200 per square meter, with beachfront properties commanding substantial premiums. The market offers more variety in price points compared to Tamarindo, making it accessible to a broader range of international buyers.
These prices vary significantly based on specific location, property condition, amenities, and proximity to beaches or other attractions. Always verify current market rates with local real estate professionals before making purchase decisions.
How does the property market in Costa Rica compare in terms of liveability, infrastructure, healthcare, safety, and expat-friendliness for Americans?
Costa Rica ranks among the top destinations for American property buyers in Central America across multiple quality-of-life indicators.
Liveability standards are high, particularly in established expat communities where English-speaking services, international restaurants, and familiar amenities create comfortable living environments. The country's stable democracy, environmental consciousness, and "Pura Vida" lifestyle attract Americans seeking a more relaxed pace of life.
Infrastructure quality varies by region, with urban areas and major tourist zones offering reliable electricity, water, and internet services. Rural and developing areas may experience occasional service interruptions, though overall infrastructure continues improving as tourism and foreign investment drive development.
Healthcare in Costa Rica is excellent and affordable, with the national system (CAJA) providing comprehensive coverage and private healthcare offering world-class services at fraction of US costs. Many American retirees specifically choose Costa Rica for affordable, quality healthcare access.
Safety levels are generally good, especially in expat-heavy communities where local authorities prioritize security. Standard precautions apply, and most Americans report feeling secure in their daily activities while exercising normal urban awareness.
Expat-friendliness is exceptional, with established American communities providing immediate social networks, business services, and cultural familiarity. Government policies actively encourage foreign investment and residency, making Costa Rica one of the most welcoming destinations for American property buyers in the region.
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.
Costa Rica offers Americans an exceptional opportunity to own property in a stable, welcoming environment with the same rights as local citizens.
Success requires working with qualified professionals, conducting thorough due diligence, and understanding both countries' tax implications to maximize your investment while ensuring legal compliance.
Sources
- Wise - Buy Property in Costa Rica
- Nestmann - Buying Property in Costa Rica American Guide
- TheLatinvestor - Costa Rica Real Estate for Foreigners
- Punta Uva Realty - Guide to Purchasing
- Pirie Legal - Real Estate Attorney in Costa Rica
- HRG Vacations - Guide to Buying Property Costa Rica
- TheLatinvestor - Costa Rica Buying Property American
- Henley Global - Costa Rica Residence Investment
- CB Sunset Reef Realty - Property and Residency Requirements
- Living Costa Rica - How to Buy Property Remotely