Can foreigners buy 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?

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 Escazú. 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 foreigners buy property in Costa Rica just like locals, or are there restrictions?

Foreigners have exactly the same property ownership rights as Costa Rican citizens when purchasing titled property in Costa Rica.

You can own residential, commercial, and agricultural land without any nationality-based restrictions or limitations on the percentage of ownership. This includes full fee simple ownership, which means you hold complete title to both the land and any structures on it.

The only restrictions apply to specific zones near borders (within 2 kilometers) and maritime areas (within 200 meters of the high tide line), where foreign ownership may be limited or require special permits. However, these restrictions affect a very small percentage of available properties, and most desirable residential and investment areas are completely open to foreign ownership.

Costa Rica's constitution guarantees these property rights to foreigners, making it one of the most foreigner-friendly countries in Latin America for real estate investment.

Do I need to have residency or a visa to buy property in Costa Rica?

No residency status, visa, or citizenship is required to purchase property in Costa Rica as a foreigner.

You can buy property while visiting on a standard tourist visa, which allows stays of up to 90 days for most nationalities. There's no requirement to obtain permanent residency, temporary residency, or any special investor visa before making a purchase.

Many foreigners complete their property purchases during short visits to Costa Rica, while others buy remotely without ever setting foot in the country during the transaction process. Your tourist status does not limit your property ownership rights or the types of properties you can purchase.

This flexibility makes Costa Rica particularly attractive for international investors and retirees who want to secure property before making long-term relocation decisions.

Do I need to be physically present in Costa Rica to complete the purchase?

Physical presence in Costa Rica is not mandatory to complete a property purchase.

You can execute the entire transaction remotely by granting power of attorney to a qualified local attorney. This power of attorney must be properly notarized at a Costa Rican consulate in your home country or authenticated through the appropriate diplomatic channels.

The remote process involves your attorney handling the title search, due diligence, contract negotiations, closing procedures, and property registration on your behalf. You'll need to provide all required documentation and funds transfers from abroad, but the actual signing and registration can be completed without your physical presence.

However, many buyers prefer to visit Costa Rica at least once before purchasing to inspect the property personally, meet with their attorney, and familiarize themselves with the local area and market conditions.

What is the exact step-by-step process to buy property as a foreigner, and which documents are required?

The property purchase process in Costa Rica follows a clear sequence that typically takes 30-60 days to complete.

Here's the detailed step-by-step process:

1. **Hire a qualified real estate attorney** experienced with international transactions2. **Select and inspect your target property**, conducting thorough due diligence3. **Verify clear title** through the National Registry (Registro Nacional) title search4. **Negotiate purchase terms** including price, closing date, and contingencies5. **Sign the purchase-sale agreement** with a standard 10% deposit held in escrow6. **Conduct final property inspection** and review all closing documents7. **Complete the closing** by signing the transfer deed and paying the remaining balance8. **Register the property** in your name at the National Registry9. **Set up utilities and municipal services** in your name10. **Obtain property insurance** and handle any post-closing requirements**Required documents typically include:**- Valid passport (certified copies)- Proof of funds and source of funds documentation- Purchase-sale contract and transfer deed- Power of attorney documents (if buying remotely)- Bank statements or financing pre-approval letters- Property inspection reports and title insurance

Is it mandatory to hire a lawyer, and what should I look for when choosing one?

While not legally mandatory, hiring a qualified Costa Rican real estate attorney is considered essential and standard practice for foreign buyers.

Costa Rican property law differs significantly from North American and European systems, and attorneys handle critical functions including title searches, contract preparation, due diligence, and property registration that are often handled by other professionals in other countries.

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

When selecting an attorney, prioritize these qualifications: active membership in the Costa Rican Bar Association (Colegio de Abogados), extensive experience with international real estate transactions, fluency in your preferred language, and verifiable references from other foreign clients. Attorney fees typically range from 1-2% of the property value.

Avoid attorneys who also work as real estate agents, as this creates potential conflicts of interest in your transaction.

What taxes, fees, and other costs should I expect when buying and later reselling the property?

Cost Type	Rate/Amount	When Due
Transfer Tax	1.5% of registered value	At closing
Legal Fees	1-2% of purchase price	At closing
Registration Fees	0.5-1% of registered value	At closing
Property Tax	0.25% of registered value	Annually
Luxury Tax	0.25% additional (properties >$250k)	Annually
Capital Gains Tax	15% of profit or 2.25% of sale price	Upon sale
Rental Income Tax	15% of rental income	Annually if renting

Can foreigners get a mortgage in Costa Rica, and what are the usual interest rates, conditions, and tips to secure one?

Costa Rican banks rarely provide mortgages to non-resident foreigners, making local financing challenging for most international buyers.

When available, mortgage terms for foreigners are typically: 40-50% down payment requirement, 15-20 year maximum loan terms, and interest rates ranging from 7-12% annually (often variable rates). Some international banks with Costa Rican operations and private lenders may offer financing options, but these usually require establishing local income sources or providing additional collateral within Costa Rica.

Most successful foreign buyers either purchase properties with cash or secure financing through home equity loans or refinancing in their home countries, where they can often obtain better rates and terms. This approach also simplifies the purchase process and eliminates the need to navigate Costa Rican banking regulations and documentation requirements.

Establishing a relationship with a Costa Rican bank and obtaining residency status can improve your chances of securing local financing for future property purchases.

Which areas are most popular among foreigners to settle in, and why?

Guanacaste province dominates foreign buyer preferences, particularly in beach towns like Tamarindo, Nosara, and Playa Flamingo.

These Pacific coast areas offer consistent tourism demand, well-developed infrastructure, international airport access, and strong rental income potential. The dry season climate and established expat communities make these regions particularly attractive for both vacation homes and permanent relocation.

The Central Valley, including Escazú, Santa Ana, and Heredia, attracts foreigners seeking year-round spring-like weather, proximity to San José's amenities, and more affordable living costs. These areas offer better healthcare access, shopping, and cultural opportunities compared to coastal regions.

Southern Zone destinations like Dominical, Uvita, and Ojochal appeal to buyers seeking a more natural, less developed environment with strong eco-tourism potential. The Nicoya Peninsula areas of Santa Teresa and Samara attract younger demographics and digital nomads with their surf culture and wellness tourism focus.

Which regions currently offer the best prospects for living, renting out, or capital appreciation based on liveability indexes, rental yields, tourism data, and growth forecasts?

Guanacaste province offers the strongest combination of rental yields and capital appreciation potential as of September 2025.

Tourist-focused areas like Tamarindo and Nosara generate rental yields of 5-8% annually for long-term rentals, with short-term vacation rentals achieving 10-12% returns during peak seasons. These areas benefit from consistent international tourism, direct flights, and ongoing infrastructure improvements including road upgrades and utility expansion.

The Central Valley provides the best livability for full-time residents, with Escazú and Santa Ana offering modern amenities, international schools, quality healthcare, and stable property values. While rental yields are lower (3-5%), these areas show steady capital appreciation and attract long-term expat residents.

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

Emerging areas like the Southern Zone (Dominical, Uvita) offer higher growth potential as eco-tourism expands, though with higher risk due to less developed infrastructure and smaller tourism markets.

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 current breakdown of property prices in key cities and regions?

Region/City	Price per m² (USD)	Typical Home Price Range (USD)
San José City Center	$1,200-$2,800	$180,000-$400,000
Central Valley (Escazú, Santa Ana)	$1,500-$3,000	$250,000-$600,000
Guanacaste (Tamarindo, Nosara)	$2,500-$6,000+	$350,000-$2,000,000+
Pacific Coast (Manuel Antonio, Jaco)	$2,000-$5,500	$300,000-$1,500,000
Caribbean Coast (Puerto Viejo)	$1,000-$2,200	$120,000-$400,000
Southern Zone (Dominical, Uvita)	$1,800-$4,000	$200,000-$800,000
Nicoya Peninsula (Santa Teresa)	$2,200-$5,000	$280,000-$1,200,000

What are the most common mistakes and pitfalls foreigners make when buying property in Costa Rica, and how can I avoid them?

The most frequent and costly mistake is failing to conduct proper due diligence through the National Registry before purchase.

Common pitfalls include:

- **Skipping professional title searches**: Always verify clear ownership and identify any liens, easements, or legal issues through the National Registry- **Ignoring maritime and border zone restrictions**: Understand concession requirements for coastal properties and restrictions near international borders- **Underestimating total ownership costs**: Factor in annual property taxes, luxury taxes, maintenance, and potential HOA fees beyond the purchase price- **Buying in corporation name without understanding implications**: Corporations require annual maintenance, tax filings, and may complicate future sales- **Purchasing without proper legal representation**: Never rely solely on real estate agents or sellers' attorneys for legal advice- **Failing to conduct physical property inspections**: Construction standards and building codes differ from North American/European norms- **Not considering accessibility and infrastructure**: Evaluate road access, utilities, and service availability, especially for remote properties

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

What are the fiscal implications in Costa Rica and in my home country when owning and selling property there?

Costa Rican tax obligations include annual property taxes of 0.25% of registered value, plus luxury taxes of 0.25% for properties exceeding $250,000 USD.

If you rent your property, Costa Rica taxes rental income at 15% annually. When selling, you'll pay either 15% capital gains tax on your profit or 2.25% of the total sale price, whichever the tax authority chooses to apply. Properties held in your name for more than two years may qualify for certain exemptions.

Home country implications vary significantly by nationality and residency status. United States citizens must report worldwide income and assets, including Costa Rican property rental income and capital gains, on their annual tax returns. Many countries have tax treaties with Costa Rica that may prevent double taxation, but you should consult with tax professionals in both countries.

Some countries require disclosure of foreign property ownership, foreign bank accounts used for transactions, or impose additional reporting requirements for offshore real estate investments. Estate planning considerations also differ when owning foreign property, potentially affecting inheritance tax obligations in both jurisdictions.

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. RE/MAX Ocean Surf Costa Rica - Buying Property Guide
2. The LatinVestor - Costa Rica Real Estate for Foreigners
3. The LatinVestor - Costa Rica Foreign Property Ownership Laws
4. Quatro Legal - Non-Resident Foreign Property Ownership
5. RE/MAX Blue Ocean - Complete Property Buying Guide
6. Tres Amigos - Costa Rica Property Buying Guide
7. Senderos Costa Rica - Property Buying Process
8. Visit World Today - Foreign National Property Guide
9. Punta Uva Realty - Property Investment and Residency
10. Coldwell Banker Samara - 2025 Property Buying Guide