Can Americans buy and own property 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?

THELATINVESTOR

A team specialized in real estate investing in Latin American countries (Costa Rica, 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 TheLatinvestor, 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 property in Costa Rica without needing residency?

Yes, Americans can legally purchase and own property in Costa Rica without any residency requirements.

US citizens enjoy the right to own property under "Fee Simple" ownership, which is the strongest form of property ownership available. This means you can buy, sell, lease, or inherit property without needing to be a Costa Rican resident or having a local partner.

The Costa Rican government has maintained foreigner-friendly property laws since the 1990s to attract foreign investment. Unlike some Latin American countries that require residency or impose ownership restrictions, Costa Rica welcomes foreign property buyers with open arms.

As of June 2025, there are no minimum investment thresholds for property ownership, no requirements to prove income or assets, and no restrictions on the number of properties a foreigner can own. This makes Costa Rica one of the most accessible real estate markets in Central America for American buyers.

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

Do Americans have the same property rights as Costa Rican citizens or are there restrictions?

Americans enjoy nearly identical property ownership rights as Costa Rican citizens, with only a few specific restrictions in certain zones.

Under Fee Simple ownership, American buyers receive the same legal protections and rights as local citizens. You can freely buy, sell, lease, mortgage, and pass property to heirs without any special approvals or government interference.

The main restrictions apply to coastal areas under the Maritime Zone Law. Within the first 200 meters from the high tide line, the first 50 meters are public land that cannot be privately owned. The next 150 meters can only be leased through government concessions, and foreigners cannot own more than 49% of concession property—the majority must be owned by a Costa Rican citizen.

Additional restrictions exist within 50 kilometers of international borders, in certain protected areas, and national parks. However, these restrictions apply equally to both foreigners and Costa Rican citizens, ensuring no discrimination based on nationality.

Outside these specific zones, Americans have complete ownership freedom with no limitations on property use, development, or transfer.

What types of property can Americans buy—land, condos, homes, beachfront—and are any zones off-limits?

Americans can purchase virtually all types of real estate in Costa Rica, including land, condominiums, single-family homes, and commercial properties.

Property Type	Ownership Status	Restrictions
Inland Land/Homes	Full ownership allowed	None (outside protected areas)
Condominiums	Full ownership allowed	None (including beachfront condos)
Commercial Property	Full ownership allowed	None (outside restricted zones)
Beachfront Land (0-50m)	Cannot own	Public land, no private ownership
Maritime Zone (50-200m)	Lease only (concession)	49% max foreign ownership
Border Areas (50km)	Restricted ownership	Special permits required
Protected Areas	Generally prohibited	Environmental restrictions apply

For beachfront properties, the key distinction is between direct beachfront land and beachfront condominiums. While you cannot own beachfront land outright within the Maritime Zone, you can own beachfront condominiums with full title since the condominium law supersedes Maritime Zone restrictions.

Most popular expat areas like Tamarindo, Manuel Antonio, Jacó, and Nosara offer plenty of properties outside the restricted Maritime Zone, providing Americans with extensive options for both investment and personal use.

Do Americans need to be physically present in Costa Rica to buy property or can it be done remotely?

Americans can purchase property in Costa Rica entirely remotely without being physically present during the transaction.

The remote purchase process requires granting power of attorney to a trusted local attorney who can act on your behalf. This attorney will handle all aspects of the transaction, from conducting due diligence to signing documents and registering the property transfer.

Many American buyers choose this remote approach to save on travel costs and time, especially when purchasing investment properties. The power of attorney document must be notarized in the United States and authenticated through the Costa Rican consulate or with an apostille stamp for international recognition.

However, most real estate professionals recommend visiting the property at least once before finalizing the purchase. This allows you to inspect the property condition, verify neighborhood characteristics, and meet local service providers face-to-face.

As of mid-2025, approximately 60% of American buyers complete their purchases remotely, while 40% prefer to be present for the closing ceremony and property handover.

Is hiring a local lawyer mandatory or strongly recommended when purchasing real estate in Costa Rica?

Hiring a local lawyer is not legally mandatory but is strongly recommended and considered essential for a safe property transaction in Costa Rica.

Costa Rican law requires that property transfers be handled by a notary public, who must be a specially licensed attorney. This notary performs the legal transfer, drafts the deed, and registers the property with the National Registry. Most buyers use this same attorney to handle the entire purchase process.

Your attorney will conduct a comprehensive title search to verify clear ownership, check for liens or encumbrances, review zoning regulations, and ensure compliance with environmental laws. They'll also verify that all property taxes are current and that the seller has the legal right to sell.

The attorney's due diligence process typically takes 30-45 days and costs between $1,500-$3,000 depending on property complexity. This investment can save thousands of dollars by identifying potential problems before you commit to the purchase.

Given the significant differences between US and Costa Rican property law, attempting to navigate the purchase process without qualified legal representation significantly increases the risk of costly mistakes or fraud.

What's the full step-by-step process for an American to buy property in Costa Rica, and what documents are needed?

The Costa Rican property purchase process follows a structured sequence that typically takes 45-60 days from offer to closing.

Step 1: Property selection and initial offer. Once you identify a property, you'll submit a letter of intent outlining the purchase price, conditions, and timeline. This document isn't legally binding but establishes the framework for negotiations.

Step 2: Due diligence period (30-45 days). Your attorney conducts a comprehensive title search, verifies property boundaries, checks zoning compliance, reviews environmental regulations, and confirms all taxes are current. You'll also typically have a property inspection during this period.

Step 3: Purchase agreement signing. After due diligence is complete and satisfactory, both parties sign a formal purchase agreement that outlines all terms, conditions, and closing procedures.

Step 4: Closing and property transfer. The notary public prepares the transfer deed (escritura), both parties sign the document, and payment is exchanged. The deed is then registered with the National Registry to complete the ownership transfer.

1. Copy of current property deed2. Plano Catastrado (official survey map)3. Certified title search report4. Municipal tax certificate showing current payments5. SETENA environmental compliance certificate (if required)6. Utility bills and service records7. Condominium documentation (if applicable)8. Proof of seller's identity and legal capacity

Do Americans need a visa or residency status to own or live in their property long-term?

Property ownership in Costa Rica does not require or automatically grant residency status to Americans.

As a property owner, you can visit Costa Rica as a tourist for up to 90 days per entry, which can sometimes be extended. However, for long-term living (more than 90 days continuously), you'll need to obtain formal residency status through one of several available programs.

The most popular residency option for property owners is the Investor Residency program, which requires investing at least $150,000 in Costa Rican real estate or other qualifying investments. This provides temporary residency that can lead to permanent status after three years.

Other residency options include the Pensionado program for retirees with $1,000+ monthly income, the Rentista program for those with $2,500+ monthly passive income, and various family-based categories. Each program has specific requirements and benefits.

Many American property owners use their Costa Rican homes as vacation properties or short-term rentals while maintaining US residency, visiting on tourist visas throughout the year.

What are the tax obligations and ongoing fiscal responsibilities for Americans owning property in Costa Rica?

American property owners in Costa Rica face several tax obligations both locally and potentially in the United States.

The primary local tax is the annual property tax of 0.25% of the property's registered value, paid to the local municipality. For properties valued above approximately $230,000, an additional luxury home tax of 0.25-0.55% may apply, depending on the property's assessed value.

During the purchase process, buyers pay a transfer tax of 3-4% of the property value, typically split between buyer and seller. This one-time fee covers the deed registration and government transfer costs.

If you earn rental income from your Costa Rican property, you'll owe Costa Rican income tax on net rental earnings. The first approximately $7,000 of annual net rental income is tax-exempt, with progressive rates applying to higher amounts. Rental income tax rates range from 10-25% depending on income levels.

For US tax obligations, American citizens must report worldwide income to the IRS, including rental income from Costa Rican properties. However, you may be able to claim foreign tax credits for taxes paid to Costa Rica. Property ownership itself doesn't create US reporting requirements unless held through foreign corporations or trusts.

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

Can Americans get a mortgage in Costa Rica and if yes, what are the conditions, interest rates, and tips for approval?

Americans can obtain mortgages in Costa Rica, though options are more limited compared to US financing and typically require larger down payments.

Costa Rican banks typically require 25-50% down payments from foreign borrowers, with most loans requiring at least 30% down. Interest rates for foreigners range from 7-9% for fixed-rate mortgages, with some banks offering variable rates that may adjust after an initial fixed period.

Loan terms are generally shorter than US mortgages, with most banks offering 15-20 year terms, though some specialty lenders provide terms up to 25 years. The most common loan structure is 3-5 years for owner financing arrangements with private sellers.

To qualify for a Costa Rican mortgage, you'll need to provide extensive documentation including bank statements (typically 12 months), tax returns, credit reports, employment verification, and proof of income. All documents must be translated to Spanish and authenticated with apostille stamps.

Lender Type	Down Payment	Interest Rate	Loan Term
Costa Rican Banks	25-50%	7-9%	15-20 years
Private Lenders	20-30%	8-12%	5-15 years
Owner Financing	10-25%	6-10%	3-10 years
Developer Financing	20-30%	7-11%	5-12 years

Many Americans find it easier to secure financing through US home equity loans or cash-out refinancing, then purchase the Costa Rican property with cash. This approach often provides better rates and terms while simplifying the purchase process.

Which areas in Costa Rica are most popular with Americans and offer the best combination of lifestyle, rental income, and capital appreciation?

The Guanacaste Province dominates American preferences, particularly coastal areas like Tamarindo, Nosara, and the Papagayo Peninsula, offering strong rental yields of 7-12% annually.

Tamarindo stands out as the most established expat destination, with extensive English-speaking services, direct flights from the US, and robust vacation rental demand. Properties here generate some of the highest rental yields in the country, particularly beachfront and ocean-view condominiums.

The Central Pacific coast, including Manuel Antonio, Jacó, and Uvita, provides excellent rental income potential due to year-round tourism and proximity to San José's international airport. Manuel Antonio specifically offers luxury rental opportunities with premium pricing.

San José and the Central Valley attract investors seeking high urban rental yields of 8-8.6%, driven by strong local demand from the growing professional class. Properties here cost significantly less than beach areas while providing steady rental income.

The Arenal region around La Fortuna has emerged as a growing investment area, capitalizing on adventure tourism and eco-tourism trends. Rental yields here typically range from 6-9% with strong appreciation potential as infrastructure improves.

1. Guanacaste Coast (Tamarindo, Nosara, Papagayo): Highest tourist demand and rental yields2. Central Pacific (Manuel Antonio, Jacó): Year-round tourism and luxury market3. San José Metro: Highest urban yields and local rental demand4. Arenal/La Fortuna: Growing eco-tourism and adventure travel5. Southern Pacific (Uvita, Dominical): Emerging market with eco-luxury focus

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 are the latest property prices and rental yields in top regions like San José, Tamarindo, Jacó, Nosara, and Dominical?

Property prices and rental yields vary significantly across Costa Rica's major markets, with beach destinations commanding premium prices but offering higher rental returns.

In Tamarindo, property prices per square foot in the city center average around ₡251,373 ($400), while outside the center they drop to ₡150,824 ($240). Two-bedroom rental properties here command $2,000-$4,000 monthly, generating gross rental yields of 7-10%, with premium beachfront properties achieving 12-17% yields.

San José offers the highest rental yields at 8.25-8.6% annually, with typical two-bedroom apartments renting for $1,200-$1,400 monthly. Purchase prices are significantly lower than beach areas, making San José attractive for investors seeking steady returns without beach property premiums.

Nosara targets the eco-luxury market with two-bedroom rentals commanding $2,500-$5,000 monthly, generating yields of 7-9%. The area attracts wellness tourism and high-end vacation rentals, supporting premium pricing year-round.

Jacó provides middle-market vacation rental opportunities with two-bedroom properties renting for $1,500-$2,500 monthly and yields of 6-8%. Its proximity to San José and consistent tourism make it a reliable rental market.

Manuel Antonio leads the luxury rental market with two-bedroom properties commanding $2,000-$3,500 monthly, generating yields of 7-9%. The area's national park status and luxury resort presence support premium vacation rental rates.

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 avoid them?

Insufficient due diligence represents the most costly mistake American buyers make in Costa Rica, often resulting in title problems or unexpected legal issues.

Many buyers rush through or skip comprehensive title searches, boundary surveys, and zoning verification to save time or money. This can lead to discovering liens, boundary disputes, or zoning violations after purchase. Always work with a qualified local attorney and allow adequate time for thorough due diligence.

Misunderstanding Maritime Zone laws causes significant problems for beachfront property buyers. Americans often assume they can own beachfront land outright without understanding concession requirements and foreign ownership limitations. Research coastal property laws thoroughly before making offers on beachfront properties.

Underestimating total purchase and ownership costs catches many buyers off-guard. Beyond the purchase price, budget for transfer taxes (3-4%), legal fees ($1,500-$3,000), ongoing property taxes, maintenance costs, and potential HOA fees. Factor in currency exchange risks if financing from the US.

Skipping property inspections or relying solely on photos leads to expensive surprises after closing. Costa Rica's tropical climate can cause unique maintenance issues that aren't immediately visible. Always conduct thorough physical inspections and consider hiring qualified local inspectors.

1. Insufficient due diligence - Always use qualified attorneys and allow 30-45 days for title research2. Misunderstanding coastal restrictions - Research Maritime Zone laws before beachfront purchases3. Underestimating total costs - Budget for all taxes, fees, and ongoing expenses4. Skipping inspections - Conduct thorough property inspections before closing5. Poor location research - Visit areas multiple times and understand local infrastructure6. Inadequate legal representation - Use experienced real estate attorneys, not general practice lawyers7. Currency exchange timing - Consider exchange rate impacts on purchase timing and financing

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. CB Sunset Realty - Costa Rica Residency Requirements
2. Private Wealth Academy - US Citizen Property Ownership
3. OSA Property Management - Costa Rica Property Laws
4. International Living - Costa Rica Real Estate
5. Coldwell Banker Costa Rica - Property Buying Guide
6. Coldwell Banker Samara - Property Buying Process
7. Tropical Investments - Real Estate Purchasing Guide
8. CostaRica.org - Real Estate Land Information
9. Henley Global - Costa Rica Residence Investment
10. OSA Property Management - Property Tax Guide