Can foreigners buy property in San José?

Authored by the expert who managed and guided the team behind the Costa Rica Property Pack

Yes, the analysis of San José's property market is included in our 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 San José (Costa Rica). If you'd like to learn more about us, you can check our presentation page.

Can foreigners legally own property in San José the same way locals do?

Yes, foreigners can legally own property in San José with exactly the same ownership rights as Costa Rican citizens.

Costa Rica's constitution and property laws grant full fee simple ownership to foreign nationals without any nationality restrictions. This means you can buy, sell, rent, or transfer residential properties, commercial buildings, and land throughout the San José metropolitan area with complete legal security.

The only significant restriction applies to maritime zones within 200 meters of the coastline, where foreigners can only own up to 49% through concession arrangements. Since San José is located inland in the Central Valley, these coastal restrictions don't affect property purchases in the capital region.

Properties near national borders, rivers, nature reserves, and certain protected areas may have additional restrictions, but these are rare in the main San José metropolitan area where most foreigners choose to invest.

As of September 2025, foreign ownership continues to be encouraged by the Costa Rican government as part of broader economic development policies.

Are there any restrictions on property types or land use that apply only to foreigners?

No specific property type restrictions apply exclusively to foreigners in San José.

Foreign buyers can purchase any type of real estate available to locals, including single-family homes, condominiums, townhouses, commercial buildings, office spaces, and undeveloped land. The same zoning laws and building codes apply regardless of the buyer's nationality.

However, certain government concession areas and properties with special designations may have ownership limitations that affect both locals and foreigners. These typically involve land near strategic infrastructure, protected watersheds, or areas designated for specific economic activities.

Foreign corporations can also own property in Costa Rica, providing an additional ownership structure option that some investors prefer for tax planning or asset protection purposes.

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

Do foreigners need residency or a specific visa to buy property in San José?

No residency or special visa is required for foreigners to purchase property in San José.

Tourists can buy real estate immediately upon arrival in Costa Rica, regardless of their visa status or length of intended stay. The property purchase process is completely separate from immigration requirements, and buying property does not automatically grant residency rights.

This policy makes Costa Rica one of the most foreigner-friendly real estate markets in Central America, allowing investors to secure property ownership before making long-term relocation decisions.

If you later decide to apply for Costa Rican residency, property ownership can support certain residency categories but is not required for the purchase itself. Many foreign property owners maintain their tourist status and visit periodically while renting out their properties.

The separation between property ownership and residency provides flexibility for both investment-focused buyers and those considering eventual relocation to the San José area.

Is it necessary for buyers to be physically present in Costa Rica during the purchase process?

Physical presence is not strictly required to complete a property purchase in San José.

Many foreign buyers successfully complete transactions remotely by granting power of attorney to a qualified Costa Rican lawyer or notary. This legal representative can handle all aspects of the purchase process, including signing documents, transferring funds, and completing the registry inscription on your behalf.

The power of attorney document must be properly notarized and often requires apostille certification from your home country before being recognized in Costa Rica. This process typically takes 2-4 weeks to complete properly.

While remote purchases are possible, many buyers prefer to visit at least once to inspect the property personally and meet with their legal representative face-to-face. This is especially recommended for first-time buyers or those purchasing higher-value properties.

Some complex transactions or financing arrangements may require the buyer's physical presence, particularly when dealing with certain banks or government offices.

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What documents are required step by step to complete a property purchase as a foreigner?

The property purchase process in San José requires specific documentation completed in a precise sequence.

The process begins with your lawyer conducting a comprehensive title search using the National Registry to verify clear ownership and absence of liens or encumbrances. You'll need to provide your passport as primary identification, along with any co-buyers' identification documents.

A formal sale agreement (Contrato de Compra-Venta) must be drafted stating all purchase terms, conditions, and the agreed price. This contract protects both parties and establishes the legal framework for the transaction.

An official survey plan (Plano Catastrado) registered with the national cadaster system must be obtained, showing exact property boundaries and measurements. This document is essential for proper legal transfer and future property management.

The formal transfer deed must be signed before a Costa Rican notary and includes all parties involved in the transaction. Payment proof through escrow accounts managed by local banks or legal offices ensures secure fund transfer. Finally, transfer taxes (1.5% of property value) and registration stamps must be paid before the new ownership can be registered in the property registry.

Do I need to hire a lawyer or notary, and what exactly is their role in the transaction?

Hiring a qualified lawyer or notary is absolutely essential for foreign property buyers in San José.

Costa Rican notaries are specially licensed attorneys who handle real estate transactions and have the legal authority to authenticate documents and oversee property transfers. Their role includes conducting thorough due diligence, including title searches, property surveys, and verification that no liens or legal issues affect the property.

They draft and review all legal documents, including the sale agreement and transfer deed, ensuring all terms protect your interests and comply with Costa Rican law. For foreign buyers, they also verify that no restrictions prevent your ownership and handle the complex registry process.

Notaries facilitate the entire closing process, manage escrow accounts, calculate and pay all required taxes and fees, and ensure proper registration of your new ownership in the National Registry. They also provide crucial guidance on ongoing legal obligations and can help establish power of attorney arrangements for remote buyers.

Legal fees typically range from 1-2% of the property value, representing essential insurance against costly mistakes or legal complications that could jeopardize your investment.

What are the typical taxes, fees, and hidden costs when buying and later reselling property?

Property purchase in San José involves several mandatory costs that buyers must budget beyond the purchase price.

Hidden costs often include property inspections, utility connection fees, survey updates, and immediate repairs or improvements needed after purchase. Many properties require updates to electrical, plumbing, or structural systems to meet current standards.

When reselling, sellers pay a 15% capital gains tax on the profit, calculated as the difference between purchase and sale prices, adjusted for improvements and inflation. Some exemptions apply for primary residences held over specific time periods.

Can foreigners get a mortgage in Costa Rica, what are the average rates, and how can they improve their chances of approval?

Foreigners can obtain mortgages from Costa Rican banks and private lenders, though approval requirements are stricter than for residents.

As of September 2025, mortgage rates for foreigners typically range from 7-10% annually, often 1-2 percentage points higher than rates offered to Costa Rican residents. Private lenders may offer more competitive terms but require larger down payments, usually 30-40% of the property value.

Major banks like Banco Nacional, Banco de Costa Rica, and private institutions like Scotiabank Costa Rica offer foreign buyer programs. Approval chances improve significantly with comprehensive income documentation, including tax returns, bank statements, and employment verification from your home country.

Establishing a Costa Rican corporation can sometimes provide better financing terms and protect privacy. Some buyers arrange financing from their home country banks using the Costa Rican property as collateral, often securing better rates and terms.

Down payments for foreigners typically start at 25-30% minimum, with some lenders requiring up to 50%. Strong credit history, substantial income verification, and local banking relationships significantly improve approval odds and can reduce required down payments.

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.

Where do foreigners usually choose to live in and around San José, and why?

Foreign residents in the San José metropolitan area typically concentrate in specific neighborhoods that offer superior infrastructure, security, and international amenities.

Escazú ranks as the top choice for expatriates, offering upscale shopping centers, international schools, modern medical facilities, and a well-established foreign community. The area provides excellent security, reliable utilities, and easy access to downtown San José while maintaining a suburban atmosphere.

Santa Ana attracts families and professionals seeking gated communities, modern developments, and proximity to business parks. The area features excellent infrastructure, international schools, and shopping centers while offering better value than central Escazú.

Rohrmoser and Sabana appeal to those wanting urban convenience with park access and strong rental demand from business travelers and young professionals. These areas offer excellent public transportation connections and walking access to restaurants, offices, and cultural venues.

Heredia provides a cooler climate and suburban family atmosphere, popular with retirees and families seeking tranquility while maintaining reasonable access to San José services and amenities.

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

Which neighborhoods or regions are currently best for lifestyle, rental income, and long-term capital appreciation?

Different areas around San José offer distinct advantages depending on your investment priorities and lifestyle preferences.

For rental yields, Rohrmoser and Sabana typically generate 6-8% annual returns due to consistent demand from business travelers, young professionals, and short-term residents. Escazú and Santa Ana offer strong capital appreciation potential driven by continued international investment and infrastructure improvements.

Long-term growth prospects favor areas benefiting from planned infrastructure projects, including improved public transportation and highway expansions connecting San José to other regions.

What is the breakdown of property prices across San José and nearby areas?

Property prices in the San José metropolitan area vary significantly based on location, property type, and amenities.

These prices represent typical starting points for 2-3 bedroom properties as of September 2025. Luxury homes vary greatly depending on specific locations within neighborhoods, with exclusive gated communities and prime locations commanding premium prices.

Price trends show continued appreciation in prime areas like Escazú and Santa Ana, driven by limited supply and strong international demand. More affordable areas like Curridabat and Moravia offer better entry points for first-time buyers while benefiting from ongoing infrastructure development.

What are the classic mistakes or pitfalls foreigners make when buying property here, and how can they be avoided?

Foreign buyers in San José commonly make several preventable mistakes that can cost thousands of dollars or create legal complications.

The most serious mistake is skipping comprehensive title searches or hiring unqualified legal representation. Always use an experienced Costa Rican notary with real estate expertise and verify their credentials through the local bar association. Inadequate due diligence can reveal liens, encumbrances, or ownership disputes after purchase.

Many buyers underestimate total ownership costs, focusing only on purchase price while ignoring ongoing taxes, maintenance, HOA fees, and infrastructure needs. Budget at least 15-20% above purchase price for immediate costs and first-year expenses.

Location mistakes prove costly, with buyers choosing areas based on initial impressions rather than researching long-term growth prospects, rental demand, or infrastructure development. Visit multiple times during different seasons and traffic conditions before deciding.

Coastal property buyers sometimes purchase in restricted concession zones without understanding limitations or renewal requirements. In San José, similar issues arise near protected areas or properties with unclear zoning designations.

Financing mistakes include assuming automatic approval or failing to secure pre-approval before making offers. Many buyers also overlook currency exchange risks when financing from abroad or maintaining dollar-denominated income while holding colón-valued property.

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

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. Visit World Today - Property Buying Guide
2. Quatro Legal - Non-Resident Ownership
3. The LatinVestor - Costa Rica Real Estate
4. Central America Second Homes - FAQ
5. CRIE - Property Ownership Guide
6. GAP Costa Rica - Ownership and Immigration
7. Properties in Costa Rica - FAQ
8. Company Formation Costa Rica - Property Guide