Authored by the expert who managed and guided the team behind the Costa Rica Property Pack
Yes, the analysis of Guanacaste's property market is included in our pack
Foreigners can legally buy property in Guanacaste, Costa Rica with the same rights as locals.
The process involves hiring a Costa Rican lawyer, conducting due diligence, and paying closing costs of 3.5-6% of the purchase price. As of September 2025, property prices in popular coastal towns like Tamarindo range from $2,500-$5,500 per square meter, while rental yields reach 5-8% for long-term rentals and up to 12% for vacation rentals.
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.
Foreigners enjoy full property ownership rights in Guanacaste with no nationality restrictions on titled land.
The only limitation applies to maritime concession land within 200 meters of the coastline, where non-residents can own maximum 49%.
| Aspect | Requirement/Details | Cost/Timeline |
|---|---|---|
| Legal Requirements | No residency or visa needed, tourist visa sufficient | Immediate eligibility |
| Legal Representation | Costa Rican lawyer/notary mandatory | $2,000-$5,000 legal fees |
| Closing Costs | Transfer tax, registry fees, stamps | 3.5-6% of purchase price |
| Property Tax | Annual tax on declared value | 0.25% + luxury tax if over $250,000 |
| Capital Gains Tax | On property sale profits | 15% on gains or 2.25% of sale price |
| Mortgage Options | Available from private lenders and some banks | 30-50% down, 7.5-10% interest rates |
| Popular Areas | Tamarindo, Nosara, Playa Flamingo | $200,000-$1M+ typical prices |
Can foreigners legally buy property in Guanacaste or are there restrictions compared to locals?
Foreigners can legally buy property in Guanacaste with the same ownership rights as Costa Rican citizens on titled land.
The only significant restriction applies to maritime zone land within the first 200 meters from the high tide line. The first 50 meters are public domain and cannot be owned by anyone, while the next 150 meters are concession land leased from the government.
On concession land, foreigners with less than five years of residency can own a maximum of 49% of the rights, with the remaining 51% required to be owned by a Costa Rican citizen or someone with more than five years of residency. This maritime zone restriction primarily affects beachfront properties in coastal areas like Tamarindo, Nosara, and Playa Flamingo.
For all other titled property in Guanacaste, including inland areas, mountain properties, and most residential developments, foreigners enjoy complete ownership rights without any nationality-based restrictions.
Do the rules differ for certain nationalities or visa types?
Property ownership rules in Guanacaste do not differ based on nationality or visa type.
Citizens from the United States, Canada, European Union countries, and all other nations have identical property ownership rights in Costa Rica. Whether you hold a tourist visa, temporary residency, permanent residency, or any other legal status, the property ownership rules remain the same.
The only distinction that matters for property ownership is the duration of your legal residency in Costa Rica, and this applies equally to all nationalities. If you have been a legal resident for five years or more, you can own 100% of maritime concession land rights. If you have less than five years of residency or are a non-resident, you can own maximum 49% of concession land rights.
As of September 2025, no special bilateral agreements or preferential treatment exists for any specific nationality regarding real estate ownership in Guanacaste.
Are there any residency or visa requirements before buying?
No residency or special visa requirements exist for foreigners to buy property in Guanacaste.
You can purchase property while visiting Costa Rica on a tourist visa, which allows stays of up to 90 days for most nationalities. Many foreign buyers complete their property purchases during short trips specifically for this purpose.
It's important to understand that buying property does not automatically grant you residency in Costa Rica. Property ownership and residency status are completely separate legal matters. However, owning real estate worth $150,000 USD or more can qualify you to apply for Costa Rica's Investor Residency program, but this requires a separate application process with immigration authorities.
The investor residency application involves additional documentation, background checks, and approval processes that are independent of the property purchase itself.
Do you need to be physically present in Costa Rica to complete the purchase?
Physical presence in Costa Rica is not required to complete a property purchase in Guanacaste.
You can execute the entire transaction remotely through a power of attorney granted to your Costa Rican lawyer. This power of attorney must be properly notarized and authenticated according to Costa Rican legal requirements, typically requiring apostille certification if executed outside Costa Rica.
Many foreign buyers choose to be present for the final signing at the notary public's office, but this is a personal preference rather than a legal requirement. Your attorney can sign all documents on your behalf and complete the registration process at the National Registry.
Remote closings have become increasingly common, especially since 2020, with digital communication tools making it easier to coordinate the process from abroad. However, being present allows you to personally verify the property condition and resolve any last-minute issues that might arise.
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What is the exact step-by-step process for foreigners to buy property and what documents are needed?
The property purchase process in Guanacaste follows a standardized legal procedure that typically takes 30-60 days to complete.
| Step | Process Details | Required Documents |
|---|---|---|
| 1. Property Search & Offer | Find property, negotiate terms, sign Letter of Intent | Passport copy, proof of funds, earnest money (10% typical) |
| 2. Legal Representation | Hire Costa Rican lawyer/notary public | Power of attorney (if buying remotely) |
| 3. Due Diligence | Title search, survey verification, lien check | Registry certificate, official survey (Plano Catastrado) |
| 4. Purchase Agreement | Sign formal sale agreement with terms and conditions | Option to Purchase Agreement, property appraisal |
| 5. Final Closing | Sign transfer deed before notary public | Transfer deed (Escritura de Traspaso), tax payments |
| 6. Registration | Register new ownership at National Registry | Registration fees, transfer tax proof |
| 7. Title Receipt | Receive registered ownership certificate | New property title in buyer's name |
Essential documents include your passport, proof of funds for anti-money laundering compliance, the official property survey, current registry certificate showing clear title, and the formal transfer deed.
Is it mandatory to hire a lawyer and if so, what role do they play?
Hiring a Costa Rican lawyer is absolutely mandatory for all real estate transactions in Guanacaste.
Only a licensed Costa Rican notary public, who must also be a practicing lawyer, can legally execute and register property transfers. This legal requirement protects both buyers and sellers by ensuring proper documentation and title verification.
Your lawyer's essential roles include conducting comprehensive due diligence on the property title, checking for liens or encumbrances, verifying the official survey matches the actual property boundaries, managing the escrow account for funds, drafting and reviewing all contracts, and registering the transfer deed at the National Registry.
It's something we develop in our Costa Rica property pack.
Legal fees typically range from $2,000 to $5,000 depending on the property value and complexity of the transaction. Never use the seller's lawyer exclusively; always retain independent legal representation to protect your interests throughout the purchase process.
What are the typical taxes, fees, and extra costs when buying and later selling property?
Total closing costs for buying property in Guanacaste typically range from 3.5% to 6% of the purchase price.
The transfer tax is 1.5% of the registered property value or sale price, whichever is higher. Legal and notary fees range from 1% to 2% of the purchase price. National Registry fees cost approximately 0.5% of the property value, while stamp taxes add another 0.25% to 0.5%.
Annual property taxes are 0.25% of the declared municipal value, plus a luxury tax of 0.25% on properties valued over $250,000 USD. Property insurance typically costs 0.3% to 0.8% of the property value annually, depending on location and coverage.
When selling property, you'll pay capital gains tax of 15% on the profit, calculated as the difference between purchase and sale prices. Alternatively, you can pay 2.25% of the gross sale price without proving the original purchase cost. Some sellers choose the flat rate option to avoid providing detailed purchase records.
Can foreigners get a mortgage in Costa Rica, what are the usual rates and conditions, and what tips help improve approval chances?
Foreigners can obtain mortgages in Costa Rica from private lenders and select banks, though options are more limited than for residents.
Typical mortgage terms require 30% to 50% down payments, with interest rates ranging from 7.5% to 10% for qualified borrowers. Loan terms usually span 15 to 20 years, shorter than typical US or European mortgages. Some private lenders specialize in loans to foreign buyers and may offer more flexible terms.
To improve approval chances, provide comprehensive proof of income and assets, maintain excellent credit history, consider a larger down payment to reduce lender risk, and work with brokers who specialize in expat financing. Having a Costa Rican bank account and demonstrating ties to the country also helps with approval.
Private lender rates may be higher but often provide faster approval and more flexible income verification requirements than traditional banks. Consider both local and international lenders when exploring financing options for your Guanacaste property purchase.
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 areas in Guanacaste are most popular among foreigners and why?
Tamarindo leads as the most popular destination for foreign property buyers in Guanacaste due to its developed infrastructure and international atmosphere.
Nosara attracts buyers seeking a more wellness-focused and eco-conscious community, with excellent yoga retreats, organic restaurants, and sustainable development practices. The area maintains strict building codes that preserve its natural character while offering modern amenities.
Playa Flamingo and the Papagayo Peninsula appeal to luxury buyers looking for upscale resorts, marina access, and high-end residential communities. These areas offer some of the most expensive real estate in Guanacaste but also the strongest capital appreciation potential.
Playas del Coco provides a more affordable entry point with good rental potential, while Liberia offers urban conveniences and proximity to the international airport. Each area attracts different buyer profiles based on lifestyle preferences, budget considerations, and investment objectives.
Which locations have the best liveability, strongest rental demand, highest rental yields, and best capital appreciation prospects?
Tamarindo offers the strongest combination of liveability and rental demand due to its comprehensive infrastructure and year-round tourist flow.
For liveability, Tamarindo and Nosara lead with international schools, quality healthcare facilities, reliable internet, diverse dining options, and strong expat communities. These areas provide the amenities most foreign residents require for comfortable long-term living.
Rental yields are highest in Tamarindo and Nosara, ranging from 5% to 8% for long-term rentals and 8% to 12% for short-term vacation rentals. Playa Flamingo also delivers strong yields due to luxury tourism demand, particularly during peak season from December through April.
Capital appreciation prospects are strongest near new infrastructure developments, including the expanding Papagayo Peninsula, Las Catalinas planned community, and areas benefiting from improved road access. As of September 2025, tourism growth forecasts suggest continued appreciation in established beach towns with limited developable land.
What is the current breakdown of property prices by city and region in Guanacaste?
Property prices in Guanacaste vary significantly based on location, proximity to beaches, and development level as of September 2025.
| Location | Price per Square Meter | Typical Property Range |
|---|---|---|
| Tamarindo Beachfront | $2,500 - $5,500 | $400,000 - $1,500,000+ |
| Nosara Ocean View | $2,500 - $5,000 | $600,000 - $1,200,000+ |
| Playa Flamingo | $2,000 - $4,500 | $350,000 - $1,000,000+ |
| Playas del Coco | $1,500 - $3,500 | $150,000 - $800,000 |
| Liberia Urban | $800 - $2,000 | $120,000 - $350,000 |
| Papagayo Luxury | $5,000 - $8,000 | $1,500,000 - $5,000,000+ |
| Rural/Inland | $500 - $2,000 | $80,000 - $300,000 |
Beachfront and ocean-view properties command premium pricing, while inland properties offer more affordable entry points for investors and residents seeking larger lots or mountain views.
What are the most common mistakes or pitfalls foreigners face when buying property there and how can they be avoided?
The most costly mistake foreign buyers make is failing to conduct proper due diligence on property titles and legal status.
Many buyers purchase maritime concession land without understanding the 49% ownership limitation for non-residents, leading to complex ownership structures or future resale difficulties. Always verify the exact legal status of coastal properties and understand concession versus titled land differences.
It's something we develop in our Costa Rica property pack.
Other common pitfalls include using the seller's lawyer exclusively instead of hiring independent representation, underestimating ongoing costs like property taxes and maintenance, and failing to verify building permits and environmental compliance for developed properties.
Many buyers also overestimate rental income potential without researching actual market rates and occupancy patterns in their specific area. To avoid these issues, work with reputable independent attorneys, conduct thorough financial analysis including all carrying costs, and research actual rental performance data rather than relying on optimistic projections.
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.
Foreign buyers in Guanacaste enjoy the same property ownership rights as Costa Rican citizens on titled land, with the only restriction applying to maritime concession areas near the beach.
The purchase process requires hiring a Costa Rican lawyer, conducting proper due diligence, and budgeting for closing costs of 3.5-6% of the purchase price, but no residency or special visa requirements exist for property ownership.
Sources
- Tres Amigos Costa Rica - Buying Property as a Foreigner
- The LatinVestor - Foreigners Own Land Costa Rica
- Vacations Costa Rica - Property Ownership Guide
- The LatinVestor - Costa Rica Real Estate for Foreigners
- OSA Tropical Properties - Costa Rica Real Estate FAQ
- Wise - How to Buy Land in Costa Rica
- CB Sunset Reef Realty - Costa Rica Residency Requirements
- Henley Global - Costa Rica Residence by Investment
- Nomad Capitalist - Costa Rica Residence
- Coldwell Banker Samara - Property Buying Process Guide