Can Americans buy and own land in Costa Rica?

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 The LatinVestor, 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 Manuel Antonio. 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 without restrictions compared to Costa Rican citizens?

Americans can legally buy and own land in Costa Rica with virtually the same rights as Costa Rican citizens.

The Costa Rican constitution grants foreigners equal property rights for titled land, known as "fee simple" ownership. This means Americans can purchase, own, sell, and transfer most types of land without special permits or residency requirements.

The primary exception involves beachfront properties in the Maritime Zone. The first 50 meters from the high-tide line remains public property that no one can own. The next 150 meters, called concession land, has restrictions where foreigners can only own up to 49% unless they have lived in Costa Rica for at least five years.

For all other properties—including inland parcels, mountain land, urban lots, and agricultural areas—Americans enjoy complete ownership rights identical to Costa Rican citizens. This includes the right to develop, rent, sell, or pass the property to heirs.

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

Do Americans need residency or a specific visa to purchase land in Costa Rica?

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

You can buy property as a tourist on a standard 90-day visitor visa. Property ownership does not automatically grant residency status, but the investment can potentially qualify you for residency programs if you choose to apply separately later.

The process remains the same whether you're visiting for vacation, living as an expat, or considering future relocation. No minimum investment thresholds or residency commitments are required purely for land ownership.

However, if you plan to generate rental income or establish a business on the property, you may need to consider tax registration requirements and potentially apply for appropriate residency status for ongoing tax obligations.

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

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

The entire transaction, including signing final documents, can be handled remotely through a legal Power of Attorney (POA) granted to a trusted Costa Rican attorney or representative. This allows you to complete the purchase from the United States.

Despite this convenience, visiting the property in person before purchase is strongly recommended. Virtual tours and online research cannot replace physical inspection for identifying potential issues with access roads, utilities, legal structures, or neighborhood conditions.

Many Americans successfully purchase land remotely, but those who invest in person typically make more informed decisions and avoid costly surprises after closing.

What is the step-by-step process for Americans to buy land in Costa Rica and what documents are required?

The land buying process follows eight essential steps with specific documentation requirements.

Step	Action Required	Key Documents
1. Legal Representation	Hire independent Costa Rican attorney-notary	Attorney credentials verification
2. Property Identification	Select property with real estate agent	Property listing details, photos
3. Purchase Agreement	Sign contract and deposit 10% in escrow	Purchase agreement, escrow receipt
4. Due Diligence	Attorney conducts title and legal checks	Certificación Literal, Plano Catastrado, Uso de Suelo
5. Final Negotiations	Finalize price and terms	Amended purchase agreement if needed
6. Document Signing	Sign deed in person or via POA	Escritura (deed), Power of Attorney if remote
7. Registration	Register deed at National Registry	Registered Escritura
8. Possession	Take legal possession of property	Keys, final property documents

Required documents include your valid US passport, Costa Rican tax ID (NITE), proof of funds for anti-money laundering compliance, official property survey (Plano Catastrado), registry certificate of title (Certificación Literal), and land use certificate (Uso de Suelo).

Is it mandatory for Americans to hire a lawyer when buying land in Costa Rica?

Hiring a Costa Rican attorney who is also a notary is mandatory for all foreign land purchases.

The attorney must be independent from the seller and experienced in property law. Their role includes conducting due diligence, preparing contracts, facilitating the deed transfer, and registering the property at the National Registry.

Due diligence involves verifying clear title, checking for liens or encumbrances, confirming property boundaries and zoning, and ensuring all taxes are current. Without proper legal representation, you risk purchasing property with hidden legal problems.

Attorney fees typically range from 1-2% of the property value, but this investment protects against potentially devastating legal issues that could arise from improper documentation or incomplete title searches.

What taxes and ongoing fiscal obligations do Americans face after purchasing land in Costa Rica?

Americans face several tax obligations when owning land in Costa Rica, both at purchase and annually thereafter.

At closing, you pay a transfer tax of 1.5% of the property value. This is typically split between buyer and seller unless negotiated otherwise in your purchase agreement.

Annual property tax amounts to 0.25% of the registered property value. The registered value is often lower than market value, making this tax relatively affordable compared to many US locations.

Additional ongoing obligations include municipal taxes and fees, which vary by location but typically range from $50-200 annually. If you rent out the property, you must pay Costa Rican income tax on rental earnings.

Capital gains tax of 15% applies when selling investment properties, though primary residences may qualify for exemptions. Non-residents must obtain a Costa Rican tax ID (NITE) for all tax-related obligations.

What are the most popular areas where Americans choose to buy land in Costa Rica and why?

Americans typically concentrate their land purchases in four primary regions, each offering distinct advantages.

Guanacaste Province, including Tamarindo, Nosara, and Playa Flamingo, attracts Americans seeking beachfront or near-beach properties. This region offers established expat communities, reliable infrastructure, and strong rental demand from tourists.

The Central Valley, encompassing San José, Escazú, and Santa Ana, appeals to Americans prioritizing urban amenities, quality healthcare, and international schools. This area provides year-round spring-like weather and easy access to both coasts.

The Central Pacific region, particularly Jaco and Manuel Antonio, combines beach access with tourism infrastructure. Americans buy here for rental income potential and proximity to adventure activities.

The Southern Zone, including Ojochal, Uvita, and Dominical, attracts Americans seeking more affordable prices, biodiversity, and a tranquil lifestyle away from major tourist areas but with growing infrastructure development.

Which regions currently offer the best potential for living, renting out, or capital appreciation?

As of September 2025, three regions stand out for different investment strategies based on current market data.

The Central Pacific and Guanacaste regions deliver the highest gross rental yields, ranging from 4-7% annually. Strong tourism numbers, established rental markets, and ongoing infrastructure improvements support consistent rental demand and property value growth.

The Central Valley offers the highest liveability index for full-time residents, with rising property values and stable rental markets serving both locals and expats. Healthcare quality, educational options, and urban conveniences make this region ideal for permanent relocation.

The Southern Zone presents the best long-term capital appreciation potential. Early-stage development, increasing eco-tourism interest, and infrastructure improvements suggest significant value growth over the next 5-10 years, though current rental yields remain lower.

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.

What is the latest breakdown of average land prices per city and region in Costa Rica?

Land prices vary significantly across Costa Rica's regions, reflecting accessibility, development level, and tourism demand.

Region/City	Average Price per m²	Key Factors
Guanacaste Beaches	$150-$500+	Prime beachfront locations, established tourism
Jaco/Manuel Antonio	$100-$350+	High tourism traffic, rental income potential
Central Valley Urban	$50-$200	San José proximity, infrastructure, amenities
Central Valley Rural	$25-$100	Mountain locations, agricultural potential
Southern Pacific Zone	$50-$150	Rising with infrastructure improvements
Caribbean Coast	$40-$120	Emerging market, environmental restrictions
Northern Plains	$20-$80	Agricultural areas, developing infrastructure

Actual prices fluctuate based on specific location, ocean or mountain views, road access, utilities availability, and lot size. Properties with direct beach access or panoramic views command premium prices significantly above regional averages.

What classic mistakes should Americans avoid when buying land in Costa Rica?

Five critical mistakes can cost Americans thousands of dollars or result in legal complications when buying Costa Rican land.

1. **Failing to hire an independent attorney-notary** - Using the seller's recommended lawyer creates conflicts of interest and inadequate buyer protection2. **Skipping comprehensive title searches** - Hidden liens, encumbrances, or Maritime Zone restrictions can invalidate purchases or limit usage rights3. **Avoiding physical property inspections** - Illegal structures, utility access problems, or road access issues are often invisible in virtual tours4. **Underestimating total costs** - Closing costs, ongoing taxes, capital gains obligations, and maintenance expenses frequently exceed initial budgets5. **Assuming property ownership grants residency** - This misconception leads to immigration status problems and tax complications later

Additional pitfalls include purchasing in areas with zoning restrictions that limit intended use, buying during rainy season without understanding drainage issues, and failing to verify utility availability and costs before closing.

Can Americans get mortgages to buy land in Costa Rica, and what are current rates and conditions?

Local Costa Rican mortgages are available for Americans but come with stricter requirements than US financing options.

Costa Rican banks typically require 30-50% down payments, with interest rates ranging from 7-10% annually as of September 2025. The approval process involves extensive documentation including proof of income, credit history, and financial statements spanning several years.

Most Americans choose alternative financing methods including cash purchases, US-based home equity lines of credit (HELOCs), or seller financing arrangements when available. These options often provide better terms and faster closing timelines.

For Americans seeking local mortgages, establishing a Costa Rican corporation for the purchase can streamline the approval process. Working with banks experienced in foreign client services, such as Banco Nacional or BAC San José, improves approval odds.

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

How do land buying rules for Americans compare with those for other foreign nationalities?

Costa Rica treats all foreign nationals equally regarding land ownership rights and purchase procedures.

Americans, Canadians, Europeans, and other foreign buyers face identical requirements, restrictions, and processes. The same Maritime Zone limitations apply to all foreigners regardless of nationality, and the same legal procedures and documentation requirements apply universally.

No preferential treatment exists for specific countries or special bilateral agreements that favor certain nationalities over others. Tax obligations, residency requirements, and legal representation needs remain consistent for all foreign buyers.

This equality makes Costa Rica particularly attractive for international real estate investment, as Americans don't face additional barriers compared to buyers from other countries. The standardized approach simplifies legal processes and ensures predictable outcomes regardless of buyer nationality.

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 LatinVestor - Buying Land Costa Rica as American
2. The LatinVestor - Can Americans Buy Land Costa Rica
3. CB Sunset Tree Realty - Costa Rica Property Residency Requirements
4. The LatinVestor - Costa Rica Real Estate Foreigner
5. Tropisphere - Buying Property in Costa Rica
6. BrightTax - Panama or Costa Rica Expat Buying Guide
7. Nestmann - Buying Property in Costa Rica American Guide
8. HRG Vacations - Guide Buying Property Costa Rica
9. Henley Global - Costa Rica Residence Investment
10. Punta Uva Realty - Buy Property Apply for Residency