Can Americans buy and own property in Costa Rica?

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Everything you need to know before buying real estate is included in our Costa Rica Property Pack

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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.

Can Americans legally buy property in Costa Rica just like locals, or are there restrictions?

Americans enjoy nearly identical property ownership rights to Costa Rican citizens under the country's fee simple ownership system.

The Costa Rican constitution grants foreigners the same property rights as locals, allowing Americans to buy, sell, lease, and inherit real estate freely. This includes residential properties, commercial buildings, and land throughout most of the country. You receive full title ownership with no time limits or renewal requirements.

The primary restriction affects properties within the Maritime Zone - the first 200 meters from the high tide line on beaches and coastal areas. In these zones, foreigners can only own up to 49% of a property through a Costa Rican corporation, with the remaining 51% requiring Costa Rican citizen ownership. This restriction exists to preserve coastal access for locals.

Additional minor limitations apply to properties near international borders (within 5 kilometers) and certain protected areas, where special permits may be required. However, these restrictions rarely affect typical residential purchases in popular expat communities.

As of September 2025, Americans continue to benefit from Costa Rica's stable legal framework that has protected foreign property rights for decades.

Do Americans need to be residents or hold a visa before buying property in Costa Rica?

No residency status or special visa is required for Americans to purchase and own property in Costa Rica.

Americans can buy property while on standard 90-day tourist status, which is automatically granted upon entry. The Costa Rican government deliberately separates property ownership from immigration status to encourage foreign investment. You maintain full ownership rights regardless of how much time you spend in the country each year.

However, property ownership does not grant any residency rights or extend your permitted stay beyond the standard tourist limits. Americans must still exit the country every 90 days unless they obtain legal residency through other means. Popular residency options include the Pensionado program (for retirees with $1,000+ monthly income) or the Investor Residency program (requiring minimum $150,000 investment in approved sectors).

Many Americans successfully own Costa Rican properties for years while maintaining tourist status, using the property for vacations or rental income while residing primarily in the United States.

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

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

Physical presence in Costa Rica is not required to complete a property purchase, making remote buying entirely possible.

Americans can grant power of attorney to a qualified Costa Rican attorney who handles the entire transaction process on their behalf. This power of attorney must be notarized in the United States and receive an apostille certification to be valid in Costa Rica. The attorney can then conduct due diligence, negotiate terms, sign contracts, transfer funds, and register the property deed.

Many Americans successfully purchase properties sight unseen, though this approach requires exceptional due diligence and a highly trusted legal representative. Virtual tours, detailed property reports, and video inspections have become standard practice for remote buyers since 2020.

While not required, visiting the property before purchase is highly recommended to verify condition, neighborhood characteristics, and accessibility. Many buyers combine house hunting trips with vacation time to experience the local area firsthand before committing to a purchase.

What is the exact step-by-step process for Americans to buy property in Costa Rica, including required documents?

The Costa Rican property buying process follows seven essential steps with specific documentation requirements.

1. Property Selection and Research: Identify target properties through licensed real estate agents or direct searches. Verify the agent's credentials through the Costa Rican Real Estate Chamber.
2. Legal Representation: Hire a qualified Costa Rican attorney who specializes in real estate transactions. The attorney must be registered with the Costa Rican Bar Association and ideally bilingual.
3. Title Investigation: Your attorney conducts a comprehensive title search through the National Registry to verify ownership, check for liens, encumbrances, or legal disputes, and confirm zoning compliance.
4. Purchase Agreement: Sign an Option to Purchase contract with typical 10% deposit held in attorney escrow. This document outlines purchase terms, conditions, and timeline.
5. Financing and Documentation: Secure funding through wire transfers or certified checks. Required documents include valid passport, proof of funds, purchase agreement, and power of attorney if buying remotely.
6. Closing and Transfer: Execute the Escritura Pública (transfer deed) before a notary public attorney. All parties sign, funds transfer from escrow, and property taxes are updated.
7. Registration: The attorney registers the property transfer with the National Registry, and you receive the official property title within 2-4 weeks.

The entire process typically takes 30-60 days for cash purchases or longer if financing is involved.

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Is hiring a lawyer mandatory for Americans buying property in Costa Rica, and what should they watch for when choosing one?

While not legally mandatory, hiring a Costa Rican attorney is essential for property purchases and required for deed registration.

Only notary public attorneys can register property transfers with the National Registry, making legal representation practically necessary. These attorneys handle title searches, contract preparation, escrow services, and ensure compliance with Costa Rican property laws that differ significantly from U.S. systems.

When selecting an attorney, verify their registration with the Colegio de Abogados (Costa Rican Bar Association) and notary public credentials. Look for bilingual lawyers with extensive real estate experience, particularly with foreign clients. Request references from previous American clients and verify their track record with complex transactions.

Key warning signs include attorneys requesting upfront fees before title investigation, those who also represent the seller (conflict of interest), lawyers without proper notary credentials, or those pressuring quick decisions without adequate due diligence time.

Reputable attorneys typically charge 1-1.5% of property value for their services and provide detailed written fee agreements upfront. They should explain all costs, timeline expectations, and potential complications before beginning work.

What are the typical property prices in different cities and regions of Costa Rica for Americans right now?

Costa Rican property prices vary significantly by region, with coastal areas commanding premium prices compared to inland locations.

As of September 2025, beachfront properties in prime locations like Tamarindo or Manuel Antonio can exceed $2,000,000 for luxury oceanfront homes. Standard three-bedroom homes in popular expat communities typically range from $250,000 to $500,000, while condominiums in gated communities start around $150,000.

Price per square meter ranges from $1,300-$2,200 in San José, $1,500-$6,000 in beach regions depending on proximity to ocean, and significantly lower in rural areas. Properties with ocean views command 30-50% premiums over similar inland properties.

Which areas in Costa Rica are most popular with Americans for living, renting out, or long-term investment?

American buyers concentrate in five primary regions that offer optimal combinations of infrastructure, lifestyle amenities, and investment potential.

Guanacaste Province leads American preferences, particularly Tamarindo, Nosara, Playa Flamingo, and Playa Conchal. These beach towns offer world-class surfing, established expat communities, reliable internet, and strong vacation rental markets. Average rental yields reach 8-12% annually, with luxury properties commanding $200-$500 per night during peak season.

Central Valley attracts Americans seeking year-round spring-like climate and urban conveniences. Escazú and Santa Ana provide upscale living with international schools, private healthcare, and proximity to Juan Santamaría International Airport. These areas appeal to retirees and remote workers prioritizing stability over beach access.

Central Pacific Coast including Manuel Antonio and Jacó offers the closest beach experience to San José, making it popular for weekend homes and vacation rentals. Manuel Antonio's national park proximity and established tourism infrastructure generate consistent rental demand.

Southern Pacific regions like Dominical, Uvita, and Ojochal attract Americans seeking authentic Costa Rican culture and eco-tourism opportunities. These areas offer lower property prices with growing infrastructure development and increasing American expat populations.

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

What do the latest liveability indexes, gross rental yields, rental income averages, tourism numbers, and growth forecasts say about Costa Rica's key regions?

Costa Rica's key regions show strong fundamentals across liveability metrics and investment performance indicators as of September 2025.

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.

Rental Yields and Income: Guanacaste beach properties generate 7-12% gross rental yields, with luxury villas earning $3,000-$8,000 monthly during high season (December-April) and $1,500-$4,000 during green season. Central Valley properties yield 6-8% with more stable year-round income of $1,200-$3,000 monthly for quality homes.

Tourism Performance: Costa Rica welcomed 2.6 million international visitors in 2024, with 40% from the United States. Guanacaste receives the highest tourist concentration, followed by Manuel Antonio and Monteverde. Tourist spending averages $1,200 per visit, directly benefiting vacation rental properties.

Liveability Rankings: San José metropolitan areas rank among Central America's highest for infrastructure, healthcare access, and safety. Guanacaste and Central Pacific regions score well for climate, natural beauty, and leisure activities but lower for urban amenities.

Growth Forecasts: The Central Bank projects 3-4% annual GDP growth through 2026, supported by technology sector expansion and sustainable tourism growth. Beach property markets expect 5-8% annual appreciation, while Central Valley residential markets anticipate 3-5% growth based on continued American immigration and remote work trends.

Can Americans get a mortgage in Costa Rica, and if so, what are the rates, conditions, and tips to qualify?

Mortgage options exist for Americans in Costa Rica, though they're more restrictive than U.S. lending standards.

Costa Rican banks offer mortgages to foreigners with typical requirements including 25-50% down payments, interest rates ranging from 7-9% annually, and maximum loan terms of 15-20 years. BAC San José, Banco Nacional, and Banco de Costa Rica provide the most foreigner-friendly programs, though approval processes are significantly more stringent than U.S. mortgages.

Qualification requirements include proof of stable foreign income (typically 3x the monthly payment), Costa Rican bank account establishment, property appraisal by bank-approved assessors, and comprehensive financial documentation including tax returns, bank statements, and employment verification. Legal residency status improves qualification chances and may reduce down payment requirements to 20%.

Many Americans choose alternative financing methods including U.S. home equity loans (typically 3-6% interest), seller financing agreements, or cash purchases using retirement account distributions. These options often prove more cost-effective and faster than Costa Rican mortgages.

Bank processing times range from 60-90 days for mortgage approval, with additional weeks for closing. Legal fees, appraisal costs, and registration expenses add 3-5% to total purchase costs when using local financing.

What are the tax implications for Americans who own property in Costa Rica, both locally and back in the US?

American property owners in Costa Rica face tax obligations in both countries with specific reporting requirements and potential tax benefits.

Costa Rican Tax Obligations: Annual property tax equals 0.25% of the property's registered fiscal value, typically well below market value. Properties valued above approximately $230,000 incur additional luxury taxes ranging from 0.25-0.55%. Rental income faces Costa Rican taxation at progressive personal rates (0-25%) or flat corporate rates around 15% if owned through a corporation.

U.S. Tax Requirements: Americans must report worldwide income to the IRS, including Costa Rican rental income. Property ownership itself isn't taxable, but rental profits are subject to U.S. income tax. Foreign tax credits may offset Costa Rican taxes paid against U.S. obligations, preventing double taxation.

Reporting Obligations: FBAR (Foreign Bank Account Report) filing is required if Costa Rican bank accounts exceed $10,000 at any point during the year. Form 8938 may be required for significant foreign assets. Property sales generate capital gains obligations in both countries, though foreign tax credits typically prevent double taxation.

Estate Planning: Costa Rican properties are subject to local inheritance laws unless held in properly structured trusts. U.S. estate tax exemptions apply, but complex international estate planning is recommended for valuable properties.

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

What common mistakes or pitfalls do Americans face when buying property in Costa Rica, and how can they avoid them?

Americans encounter predictable challenges when navigating Costa Rica's property market, but these pitfalls are entirely avoidable with proper preparation.

• Inadequate Title Research: Rushing purchases without comprehensive title investigation leads to discoveries of liens, boundary disputes, or illegal constructions. Always require 30+ days for complete due diligence and never waive title investigation periods.
• Using Unqualified Representatives: Working with unlicensed real estate agents or attorneys without proper credentials creates legal vulnerabilities. Verify all professional licenses through official Costa Rican registries before engagement.
• Skipping Physical Inspections: Buying properties without professional structural, electrical, and plumbing inspections often reveals costly hidden problems. Budget for comprehensive inspections even when buying remotely.
• Misunderstanding Maritime Zone Rules: Purchasing beachfront properties without understanding Maritime Zone restrictions leads to ownership complications. Research coastal property regulations thoroughly before making offers.
• Currency and Payment Mistakes: Large wire transfers without proper documentation or using unofficial exchange rates creates legal problems. Use established banks and maintain detailed payment records for all transactions.

Prevention strategies include hiring experienced bilingual attorneys, allowing adequate time for due diligence, obtaining multiple professional opinions on complex transactions, and maintaining detailed documentation throughout the purchase process. Never rush decisions or allow pressure tactics to compromise thorough investigation procedures.

Are there differences in the buying process or property rights for Americans compared to locals or other foreigners in Costa Rica?

Americans follow identical property purchase procedures as Costa Rican citizens, with minimal legal distinctions in the buying process or ownership rights.

The Costa Rican constitution guarantees equal property rights to all foreigners regardless of nationality, meaning Americans receive the same treatment as European, Canadian, or other international buyers. All foreign purchasers follow identical registration procedures, pay the same taxes and fees, and receive equivalent title protections under Costa Rican law.

Minor procedural differences include apostille requirements for U.S.-notarized documents (similar requirements exist for all foreign documents), potential additional verification for large fund transfers due to U.S. anti-money laundering treaties, and IRS reporting obligations specific to American citizens but not affecting the Costa Rican purchase process.

Property rights limitations apply equally to all foreigners, particularly the Maritime Zone restrictions where no foreign nationality receives preferential treatment. Border area restrictions near Nicaragua and Panama affect all non-Costa Rican buyers identically.

Americans benefit from established bilateral treaties protecting property rights and investment, potentially providing slightly stronger legal protections than some other nationalities, though practical differences are minimal in day-to-day ownership experience.

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. Wise - Buy Property in Costa Rica
2. Coastal Realty Costa Rica - Can Americans Buy Property
3. CB Sunset Reef Realty - Residency Requirements
4. The LatinVestor - Americans Buying Property Costa Rica
5. Quatro Legal - Foreign Property Ownership
6. Nestmann - Property Ownership Laws
7. Coldwell Banker Samara - Complete Buying Process
8. RE/MAX Ocean Surf - Buying Property Guide