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 buy and own land in Costa Rica with virtually the same rights as Costa Rican citizens. As of mid-2025, over 120,000 foreigners call Costa Rica home, with Americans representing a significant portion of foreign landowners in this tropical paradise.
The Costa Rican government actively welcomes foreign investment in real estate, making the country one of the most accessible destinations for American land buyers in Central America. However, there are specific regulations around coastal properties and maritime zones that require careful consideration.
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 can purchase land in Costa Rica without residency requirements, with the same ownership rights as locals except in maritime zones where foreign ownership is limited to 49%.
The process requires hiring a Costa Rican attorney for due diligence, and while financing is available, most buyers prefer cash transactions due to better terms and faster closings.
| Key Aspect | Details | Important Notes |
|---|---|---|
| Ownership Rights | Same as Costa Rican citizens | Except in maritime zones (49% limit) |
| Residency Required | No | Can buy on tourist visa |
| Physical Presence | Not mandatory | Power of attorney possible |
| Attorney Required | Essential | Must be Costa Rican notary |
| Property Tax | 0.25% annually | Based on registered value |
| Financing Available | Yes | 30-50% down payment typical |
| Average Land Prices | $50-$500+ per m² | Varies by location and proximity to amenities |
Can Americans legally buy land in Costa Rica, and are there ownership restrictions compared to locals?
Americans enjoy the same property ownership rights as Costa Rican citizens for most types of land purchases.
The Costa Rican constitution guarantees equal property rights to both citizens and foreigners, making land ownership straightforward for American buyers. There are no discriminatory laws or practices that grant Americans more privileges over other non-Costa Rican buyers.
However, ownership restrictions apply in specific zones. The Maritime Zone extends 200 meters inland from the high tide line, where the first 50 meters is public land that cannot be privately owned by anyone. The next 150 meters inland are concession land where foreign buyers can only own up to 49% of the property unless they have lived in Costa Rica for at least five years.
Border areas within approximately two kilometers of international boundaries also have special restrictions for foreign ownership due to national security considerations.
It's something we develop in our Costa Rica property pack.
Do Americans need to be residents or have a visa to purchase land in Costa Rica?
No residency or special visa is required for Americans to purchase land in Costa Rica.
Property can be purchased while on a standard tourist visa, and owning property does not automatically grant residency status. This makes Costa Rica one of the most accessible countries in Central America for American real estate investment.
However, investing at least $200,000 USD in real estate can qualify Americans for investor residency programs, which provide benefits like easier long-term stays and simplified property management. The residency application process typically takes 6-12 months and requires working with qualified immigration lawyers.
As of June 2025, many Americans choose to maintain tourist status while owning property, as the 90-day tourist visa can be renewed easily by leaving and re-entering the country.
Is it necessary for Americans to be physically present in Costa Rica to complete a land purchase?
Physical presence is not strictly required throughout the entire land purchase process.
With a trusted real estate attorney and a properly executed power of attorney, many steps including document signing and property registration can be completed remotely. The power of attorney must be notarized and apostilled in the United States before use in Costa Rica.
However, visiting the property in person is strongly recommended before purchase. This allows buyers to inspect the land, verify access to utilities, understand the neighborhood, and ensure the property matches expectations. Many buyers make multiple visits during different seasons to understand the area fully.
Remote purchases are increasingly common among American buyers, especially those working with established real estate companies that have proven track records with international clients.
What are the exact steps and documents required for an American to buy land in Costa Rica?
The land purchase process follows a structured sequence requiring specific documentation and professional assistance.
The essential steps include: property identification and initial inspection, hiring a Costa Rican attorney for due diligence, title search and legal verification, negotiating purchase terms, signing the purchase agreement with escrow deposit, completing final inspections and surveys, arranging financing if needed, and final closing with property registration.
Required documents include a valid US passport, power of attorney if not present, proof of funds documentation, purchase agreement contract, title documents and survey records, utility access verification letters, and tax clearance certificates. All foreign documents must be apostilled before use in Costa Rica.
The attorney conducts crucial due diligence including title searches for liens and ownership disputes, professional surveys to verify property boundaries, zoning verification for intended use, and utility access confirmation. This process typically takes 30-60 days depending on property complexity.
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Is hiring a Costa Rican lawyer mandatory or just recommended for land purchases, and what should buyers watch out for?
Hiring a Costa Rican real estate attorney is essential, not merely recommended, for land purchases.
Only a Costa Rican notary public (abogado-notario) can legally register property transfers in the National Registry, making attorney representation mandatory for completing purchases. The attorney handles title searches, contract preparation, due diligence verification, and final property registration.
Buyers should watch for several red flags: unclear or disputed property titles, properties without legal road access, missing utility connections, outstanding property taxes or liens, and zoning restrictions that prevent intended use. It's not uncommon to have multiple claims on the same plot of land, especially in rural areas.
Always hire your own independent attorney rather than using one recommended by the seller or real estate agent. Verify the attorney's credentials with the Costa Rican Bar Association and ensure they have experience with foreign buyers and the specific region where you're purchasing.
Attorney fees typically range from 1-2% of the purchase price, making this a worthwhile investment for protecting your land acquisition.
Are there specific tax or fiscal implications for Americans owning land in Costa Rica, both locally and in the U.S.?
Land ownership in Costa Rica creates tax obligations in both countries that Americans must understand.
In Costa Rica, annual property taxes are remarkably low at 0.25% of the registered property value. For a property assessed at $200,000, annual property taxes would be just $500. Properties valued over $214,000 may be subject to additional luxury taxes on a sliding scale up to 0.55%.
Capital gains tax applies at 15% on profits when selling property, though there's an alternative 2.25% tax on total sales price for properties acquired before July 1, 2019.
For US tax obligations, Americans must report Costa Rican property ownership and any rental income on their federal tax returns. Rental income is taxable as foreign income, while capital gains from property sales are subject to US capital gains tax. Costa Rican property taxes paid may qualify for foreign tax credits, and FBAR or Form 8938 reporting requirements may apply if total foreign assets exceed specific thresholds.
| Tax Type | Costa Rica Rate | US Implications |
|---|---|---|
| Annual Property Tax | 0.25% of assessed value | May qualify for foreign tax credit |
| Luxury Property Tax | Up to 0.55% (properties >$214k) | Additional foreign tax credit potential |
| Capital Gains | 15% on profit or 2.25% on total | Also subject to US capital gains tax |
| Rental Income | Various rates based on income | Reportable as foreign income |
| Transfer Tax | 1.5% of sale price | Not deductible on US returns |
Can Americans get a mortgage or financing for land in Costa Rica, and if so, under what conditions and interest rates?
Americans can obtain financing for Costa Rican land purchases, though cash transactions remain more common.
Local Costa Rican banks offer mortgages to foreigners, but the process is slow and bureaucratic with down payments typically requiring 30-50% and terms up to 20 years. Interest rates range from 8.5% to 10% for qualified borrowers as of mid-2025.
International lenders provide cross-border financing from US or Canadian institutions, often with higher interest rates of 9-12% and shorter terms of 5-15 years. These loans typically require significant income documentation and may have prepayment penalties.
Owner financing represents another popular option, where sellers provide direct financing with down payments over 50%, terms of 1-3 years, and interest rates of 6-9%. This arrangement often provides more flexibility than traditional bank financing.
Most American buyers prefer cash purchases due to faster closing times, stronger negotiating positions, and avoidance of complex international lending requirements. It's something we develop in our Costa Rica property pack.
What are the common mistakes Americans make when buying land in Costa Rica, and how can they avoid them?
American buyers frequently make preventable mistakes that can cost thousands of dollars and create legal complications.
The most common errors include skipping thorough due diligence on titles and zoning, underestimating total costs beyond the purchase price, choosing locations based on limited visits or online research only, ignoring future resale and rental potential, and failing to verify road access and utility availability.
Property lines in Costa Rica can be unclear, making professional surveys essential, and environmental laws can be strict, affecting what can be built on the land. Many buyers assume they'll have reliable water, electricity, and internet access without proper verification.
To avoid these mistakes: hire independent, experienced attorneys and real estate agents; conduct multiple property visits during different seasons; get detailed cost breakdowns including legal fees, taxes, and ongoing expenses; verify zoning allows intended use; confirm utility access and road rights; and research the local market for comparable sales and rental potential.
Working with established real estate companies that specialize in American buyers significantly reduces these risks through their experience and local knowledge.
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 or cities in Costa Rica are most popular with Americans for buying land, whether for living or investing?
Several regions consistently attract American land buyers due to their amenities, climate, and investment potential.
Guanacaste Province leads in popularity, with coastal towns like Tamarindo, Playa Flamingo, Playa Hermosa, Playa Conchal, and Playas del Coco offering world-class beaches, modern amenities, and strong expat communities. This region is often called Costa Rica's "Gold Coast" due to its development and tourism infrastructure.
The Central Valley, including Escazú, Santa Ana, and areas around San José, attracts Americans seeking urban conveniences, excellent healthcare, international schools, and year-round spring-like weather. Properties in the Central Valley appreciate steadily due to consistent demand from both locals and foreigners.
The Southern Zone, particularly around Uvita and Ojochal, offers lower entry prices, stunning natural beauty, and strong appreciation potential as infrastructure develops. The Caribbean Coast near Puerto Viejo provides a laid-back atmosphere and eco-tourism opportunities, though it's less developed than Pacific coastal areas.
As of 2025, international arrivals are expected to reach record levels, driven by Costa Rica's appeal as a sustainable and adventure-filled destination, fueling demand for properties in these key regions.
Where are the best areas in Costa Rica right now for capital appreciation, rental income, or Airbnb profitability based on recent data?
Current market data reveals specific regions offering superior investment returns across different strategies.
For capital appreciation, Guanacaste Province shows the highest residential property prices, with apartments averaging $2,896 per square meter and houses reaching $2,221 per square meter as of June 2024, representing 16.35% and 38.15% year-on-year growth respectively.
For vacation rentals and Airbnb profitability, investors are capitalizing on properties in Playa Conchal, Playa Hermosa, Tamarindo, Flamingo, and Playas del Coco due to the lucrative rental income potential from international tourists. These areas benefit from proximity to international airports and established tourism infrastructure.
The Central Valley offers stable long-term rental markets due to consistent demand from local professionals and expatriate workers. Despite a 10% drop in overall transactions in 2024, properties are selling 33% faster, averaging 395 days on the market, suggesting competitive pricing and buyer urgency.
Emerging opportunities exist in the Southern Zone where lower entry prices provide better cash-on-cash returns, though appreciation may be slower than established coastal areas.
What are the average land prices per square meter across Costa Rica's top regions—like Guanacaste, Central Valley, and coastal zones?
Land prices vary significantly based on location, proximity to amenities, and development status across Costa Rica's regions.
| Region/Area | Average Price per m² (USD) | Key Factors |
|---|---|---|
| Guanacaste Coastal | $150-$500+ | Beach proximity, tourism infrastructure |
| Central Valley | $100-$350 | Urban amenities, accessibility |
| Southern Zone | $50-$200 | Lower development, growth potential |
| Caribbean Coast | $40-$180 | Limited infrastructure, eco-tourism |
| Premium Beachfront | $800-$2,000+ | Direct ocean access, titled land |
| Mountain/Rural | $20-$100 | Agriculture, privacy, access challenges |
| Development Parcels | $75-$300 | Future potential, infrastructure plans |
As of February 2025, land listings range from $9,500 to $93 million USD, with most properties listed in US dollars targeting foreign buyers. Foreign investment continues driving prices up in traditional Costa Rican communities, with some locals receiving million-dollar offers for their agricultural land.
Premium titled beachfront land commands the highest prices, especially in Guanacaste's established beach towns where infrastructure and amenities are well-developed.
What are the forecasts for Costa Rica's real estate market in terms of land value growth, tourism trends, and rental demand for 2025 and beyond?
Market forecasts for Costa Rica's real estate sector remain optimistic through 2025 and beyond, supported by multiple growth drivers.
According to IMF data, Costa Rica's economy demonstrates strong recovery with real GDP growth reaching 5.1% in 2023, with forecasts of 4.0% in 2024 and 3.5% in 2025. This economic stability supports continued real estate appreciation.
Tourism trends show international arrivals expected to reach record levels in 2025, driven by Costa Rica's appeal as a sustainable and adventure-filled destination. This tourism growth directly benefits vacation rental markets and land values in tourist-focused regions.
The global shift toward remote work continues fueling international relocation, with Guanacaste becoming a magnet for digital nomads and remote workers, particularly in towns like Tamarindo and Flamingo that offer modern amenities and coworking spaces.
Sustainability trends are reshaping buyer preferences, with increasing demand for eco-friendly developments featuring solar panels, water recycling systems, and energy-efficient designs. It's something we develop in our Costa Rica property pack.
Land values are expected to appreciate 5-8% annually in prime locations through 2025, while rental demand remains strong for both short-term vacation properties and long-term residential rentals.
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.
Americans can confidently purchase land in Costa Rica with the same ownership rights as locals, making it one of the most accessible real estate markets in Central America for US buyers.
Success requires proper due diligence, working with qualified local attorneys, and understanding regional market dynamics to maximize investment potential in this growing tropical paradise.
Sources
- Wise - Buying property in Costa Rica as an American
- Wise - How to buy land in Costa Rica as an American
- Coastal Realty - Can Americans Buy Property in Costa Rica
- CB Sunset Tree Realty - Best Places to Buy Property 2025
- CB Sunset Tree Realty - Residency Requirements for US Citizens
- The Nestmann Group - Buying Property in Costa Rica American Guide
- TheLatinvestor - Costa Rica US Citizen Property Ownership
- RE/MAX Ocean Surf - Buying Property in Costa Rica
- Global Property Guide - Costa Rica Price History
- TheLatinvestor - Costa Rica Real Estate Market Statistics