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 local citizens. The process involves hiring a local attorney, conducting proper due diligence, and understanding specific restrictions in coastal zones.
Costa Rica offers a straightforward property purchase process for Americans, with no residency requirements and access to the same property rights as locals. The main considerations include understanding Maritime Zone restrictions, working with qualified legal professionals, and navigating the tax implications for both Costa Rican and U.S. obligations.
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 with no residency requirements, though coastal properties have foreign ownership restrictions.
The purchase process requires a local attorney and notary, with property prices ranging from $65,000 in rural areas to over $1,000,000 for luxury beachfront properties.
| Key Aspect | Requirement/Details | Important Notes |
|---|---|---|
| Legal Ownership | Full property rights same as locals | 49% limit in Maritime Zone only |
| Residency Required | No | Tourist visa sufficient for purchase |
| Physical Presence | Traditional for closing | Power of Attorney alternative available |
| Local Attorney | Mandatory for closing | Must be licensed Costa Rican notary |
| Property Tax | 0.25% annually | Based on registered property value |
| Transfer Tax | 1.5% at purchase | Paid during closing process |
| Popular Regions | Guanacaste, Central Valley, Manuel Antonio | Prices vary significantly by location |
Can Americans legally buy property in Costa Rica and are there any restrictions compared to locals or other foreigners?
Americans can legally purchase property in Costa Rica with full ownership rights identical to Costa Rican citizens.
The Costa Rican legal system grants foreigners the same property ownership rights as locals through fee simple ownership (titled property). This means Americans can buy, sell, rent, and transfer property without any special permits or residency requirements.
The main restriction applies to the Maritime Zone, which covers the first 200 meters from the high tide line along Costa Rica's coastlines. In these areas, foreigners can only own up to 49% of any property, with the remaining 51% requiring Costa Rican ownership. Similar restrictions apply to properties near international borders and within national parks or protected areas.
Standard residential properties, condominiums, and commercial buildings outside these restricted zones have no foreign ownership limitations. Americans purchasing property in areas like the Central Valley, most urban centers, or inland regions face no ownership restrictions whatsoever.
As of September 2025, this legal framework remains unchanged and provides Americans with secure property ownership rights under Costa Rican law.
Do Americans need to have residency, a visa, or any special permit before they can buy property in Costa Rica?
No residency, visa, or special permit is required for Americans to purchase property in Costa Rica.
Tourists entering Costa Rica on a standard 90-day tourist visa can legally purchase real estate during their visit. The Costa Rican government does not require foreign buyers to establish legal residency or obtain investment visas before purchasing property.
However, investing at least $150,000 in Costa Rican real estate qualifies buyers for Investor Residency status. This optional program provides legal residency benefits but is not mandatory for property ownership. Investor Residency offers advantages like easier banking, longer legal stays, and potential pathways to permanent residency.
Americans can complete property purchases entirely as non-residents and maintain their tourist status throughout the process. The property ownership itself does not grant residency rights, but it can serve as a pathway to residency if desired.
It's something we develop in our Costa Rica property pack.
Do Americans need to be physically present in Costa Rica at any stage of the purchase process?
Physical presence is traditionally required for the final deed signing, but alternatives exist through legal representation.
The property search, negotiations, due diligence, and preliminary agreements can all be completed remotely from the United States. Many Americans successfully navigate the initial stages through online communication with real estate agents, attorneys, and sellers.
The final property transfer requires signing the deed (Escritura de Traspaso) before a licensed Costa Rican notary. Traditionally, buyers attend this closing in person to complete the legal transfer and registration process.
Americans who cannot travel to Costa Rica for closing can appoint a legal representative through a Power of Attorney. This document can be prepared at a Costa Rican consulate in the United States or through a Costa Rican notary. The representative then attends the closing and signs all documents on the buyer's behalf.
While remote closing is legally possible, many attorneys recommend in-person attendance when feasible to ensure all details are properly addressed and to personally verify the property before final payment.
What are the exact steps an American should follow to buy property in Costa Rica from start to finish?
The Costa Rican property purchase process follows a structured six-step legal framework.
- Property Search and Offer: Identify the desired property and submit a formal Letter of Intent or purchase offer, typically accompanied by a 10% earnest money deposit placed in escrow.
- Legal Representation: Hire an independent, licensed Costa Rican attorney who specializes in real estate law and is not affiliated with the seller or listing agency.
- Due Diligence Period: The attorney conducts comprehensive title searches through the Costa Rican National Registry, verifies zoning compliance, checks for liens or encumbrances, and confirms the property is not in restricted zones.
- Purchase Agreement: Negotiate and execute a binding purchase and sale agreement outlining all terms, conditions, and closing timeline.
- Closing and Transfer: Sign the transfer deed (Escritura de Traspaso) before a Costa Rican notary, pay the remaining purchase price, and complete all tax obligations and registration fees.
- Property Registration: The notary registers the property in the buyer's name (or corporate entity) with the National Registry, completing the legal ownership transfer.
This process typically takes 30-60 days from offer acceptance to final registration, depending on due diligence complexity and documentation preparation time.
What documents does an American buyer need to provide at each step of the process?
Document requirements vary by transaction stage and become more comprehensive as the purchase progresses.
| Purchase Stage | Required Documents | Additional Notes |
|---|---|---|
| Initial Offer | Passport copy, proof of funds | Bank statements or pre-approval letters |
| Due Diligence | Property documents from seller | Plano Catastrado, Escritura, registry certificates |
| Purchase Agreement | Passport, financial documentation | Detailed source of funds verification |
| Closing Preparation | Passport, Power of Attorney (if applicable) | POA must be prepared at consulate or in Costa Rica |
| Final Closing | Original passport, wire transfer confirmations | Funds must be available for immediate transfer |
| Corporate Purchase | Corporate documents (PersonerĂa JurĂdica) | If buying through Costa Rican corporation |
| Registry Filing | All notarized transfer documents | Attorney handles registry submission process |
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Is it mandatory for Americans to hire a local lawyer, and what should they look for when choosing one?
Hiring a licensed Costa Rican attorney is mandatory for all property closings as they must also serve as the notary.
Costa Rican law requires all property transfers to be overseen and notarized by a licensed attorney who holds notarial powers. This attorney-notary handles the legal documentation, registry filings, and ensures compliance with all Costa Rican real estate laws.
Americans should prioritize hiring an independent attorney not affiliated with the seller, listing agency, or developer to avoid conflicts of interest. Essential qualifications include fluency in English, specialization in real estate law, current licensing with the Costa Rican Bar Association, and a verifiable track record with foreign buyers.
Key questions to ask potential attorneys include their experience with American buyers, fee structure, timeline expectations, and references from recent clients. The attorney should provide clear explanations of all legal processes and maintain regular communication throughout the transaction.
Legal fees typically range from $1,500 to $3,000 depending on transaction complexity, but this investment protects against costly legal issues that commonly affect uninformed foreign buyers.
What are the current property price ranges in different Costa Rican cities and regions, broken down by area?
Costa Rican property prices vary significantly by region, with coastal areas commanding premium prices and rural areas offering the most affordable options.
| Region/City | Property Type | Price Range (USD) |
|---|---|---|
| San José (Capital) | Condos/Apartments | $125,000 - $350,000 |
| Central Valley (Heredia, Alajuela) | Single-family homes | $150,000 - $400,000 |
| Guanacaste (Tamarindo, Playa Flamingo) | Beachfront/Luxury properties | $225,000 - $1,000,000+ |
| Guanacaste (Inland areas) | Standard homes | $175,000 - $400,000 |
| Southern Zone/Osa Peninsula | Ocean-view/Eco-retreats | $275,000 - $800,000+ |
| Caribbean Coast (Puerto Viejo) | Standard homes | $140,000 - $350,000 |
| Rural/Agricultural regions | Basic properties | $65,000 - $200,000 |
As of September 2025, beachfront properties in popular expat areas like Tamarindo and Nosara have seen the strongest price appreciation, while emerging markets like Puerto Viejo and Dominical offer better value propositions for investors.
Which areas in Costa Rica are the most popular with Americans, and why?
Guanacaste Province dominates American buyer preferences due to its established expat infrastructure and beach lifestyle.
Tamarindo leads American purchases with its developed infrastructure, international airport proximity, established expat community, and consistent rental income potential. The area offers restaurants, healthcare facilities, and services catering specifically to English-speaking residents.
The Central Valley, particularly EscazĂș and Santa Ana, attracts Americans seeking year-round mild climate, proximity to quality healthcare, and urban amenities without beach living. These areas provide easy access to San JosĂ©'s international airport and business centers.
Manuel Antonio appeals to Americans wanting luxury tourism exposure with strong rental yields and established property management services. The area combines national park proximity with upscale resorts and dining options.
Emerging American destinations include the Southern Nicoya Peninsula (Santa Teresa, Montezuma) for surf culture and bohemian lifestyle, and the Caribbean coast (Puerto Viejo) for lower prices and developing tourism infrastructure.
It's something we develop in our Costa Rica property pack.
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 offer the best potential for living, renting out, or capital appreciation based on the latest livability scores, rental yields, tourism numbers, and growth forecasts?
The Central Valley offers the best living conditions, while Pacific coastal areas provide superior rental yields and capital appreciation potential.
For permanent living, the Central Valley (EscazĂș, Santa Ana, Heredia) provides the most comfortable year-round climate, best healthcare access, reliable infrastructure, and established expat services. These areas score highest on livability indices due to moderate temperatures, low crime rates, and proximity to international amenities.
Rental yield leaders include Guanacaste coastal towns (Tamarindo, Playa Flamingo) and Manuel Antonio, generating 8-12% annual yields through short-term vacation rentals. These areas benefit from consistent tourism traffic and established property management networks.
Capital appreciation hotspots center on emerging coastal markets like Dominical, Puerto Viejo, and the Southern Nicoya Peninsula, where infrastructure development and growing tourism are driving property values up 15-25% annually as of 2025.
Investment strategy should consider Guanacaste for immediate rental income, Central Valley for personal use and stability, and emerging coastal areas for long-term capital gains potential based on current tourism growth forecasts and infrastructure investment patterns.
Do American buyers have access to mortgages in Costa Rica, what are the current rates and conditions, and what tips can help secure one?
American buyers can access Costa Rican mortgages, but local financing remains challenging with most Americans preferring U.S.-based financing or cash purchases.
Costa Rican banks offer mortgages to foreigners at rates typically ranging from 7-10% for USD-denominated loans, with some institutions charging higher rates up to 12%. Local colĂłn-denominated loans may offer slightly lower rates but expose buyers to currency risk.
Securing local financing requires extensive documentation including proof of Costa Rican income, local employment verification, substantial down payments (typically 30-40%), and comprehensive financial vetting that may not accept U.S. credit history. The approval process often takes 60-90 days with rigorous income verification requirements.
Most American buyers choose alternative financing strategies including cash purchases, U.S. home equity loans, portfolio loans from U.S. lenders, or seller financing arrangements. These options typically offer better rates and faster approvals than Costa Rican institutional lending.
For Americans pursuing local financing, establishing Costa Rican banking relationships, demonstrating local income sources, and working with bilingual mortgage brokers significantly improve approval chances.
What are the tax obligations and other fiscal implications for Americans who own property in Costa Rica?
American property owners in Costa Rica face dual tax obligations to both countries with specific rates and reporting requirements.
Costa Rican property tax applies at 0.25% annually based on the property's registered municipal value, payable to local government offices. Transfer tax of 1.5% applies at purchase, calculated on the sale price or registered value, whichever is higher.
Capital gains tax of 15% applies to property sales unless the property serves as the owner's primary residence. Rental income generated in Costa Rica is subject to local income tax rates ranging from 10-25% depending on income levels.
U.S. tax obligations require American owners to report foreign property ownership and rental income to the IRS. Foreign tax credits may reduce double taxation on rental income, but capital gains on foreign property sales typically face full U.S. taxation without foreign tax credit benefits.
Additional considerations include potential inheritance tax implications in Costa Rica and mandatory tax residency declarations for Americans spending more than 183 days annually in Costa Rica. Professional tax consultation is recommended for complex ownership structures or substantial rental income operations.
It's something we develop in our Costa Rica property pack.
What are the most common mistakes or pitfalls Americans face when buying property in Costa Rica and how can they avoid them?
Americans frequently encounter expensive mistakes due to insufficient market knowledge and inadequate legal representation.
- Maritime Zone Misunderstanding: Purchasing concession land without understanding the 49% foreign ownership limit and complex renewal requirements.
- Skipping Due Diligence: Failing to conduct comprehensive title searches, lien verification, and boundary surveys through qualified attorneys.
- Unlicensed Representation: Working with unlicensed real estate agents or developers, as Costa Rica does not regulate real estate professionals.
- Inadequate Legal Counsel: Using attorneys recommended by sellers or failing to hire independent legal representation for the transaction.
- Direct Payment Mistakes: Paying sellers directly instead of using proper escrow accounts, creating fraud vulnerability and legal complications.
- Survey and Mapping Errors: Proceeding without clear, registered survey maps and updated property plans from the National Registry.
- Market Overpayment: Overpaying due to lack of local comparable sales data and relying solely on expat community advice.
- Currency and Cost Miscalculation: Failing to budget for currency fluctuations, ongoing maintenance costs, and property management expenses.
Avoiding these pitfalls requires working exclusively with reputable, licensed professionals, conducting thorough independent due diligence, visiting properties in person before final payment, and budgeting conservatively for all associated costs and currency risks.
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 presents an accessible property market for American buyers with clear legal frameworks and established ownership rights.
Success depends on proper legal representation, thorough due diligence, and understanding both Costa Rican and U.S. tax obligations before proceeding with any purchase.
Sources
- Wise - Buy Property in Costa Rica
- The Latinvestor - Costa Rica Real Estate for Foreigners
- The Latinvestor - Costa Rica Foreign Property Ownership Laws
- Quatro Legal - Non-Resident Property Ownership
- Punta Uva Realty - Property Purchase and Residency
- Alegria Village - Legal FAQs
- RE/MAX Blue Ocean - Property Buying Guide
- Cabuya Realty - Common Mistakes Guide