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
Costa Rica offers one of the most foreigner-friendly real estate markets in Latin America, with Americans enjoying the same property ownership rights as local citizens.
The country's stable democracy, constitutional protection of foreign property rights, and straightforward legal framework make it an attractive destination for American real estate investors and those seeking a second home in the tropics.
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.
Americans can legally purchase property in Costa Rica with full ownership rights, except in restricted Maritime Zones where ownership is limited to 49% for foreigners.
No residency or visa requirements exist for property purchase, though investing $150,000+ qualifies for investor residency.
| Aspect | Requirement | Details |
|---|---|---|
| Legal Ownership | Fully allowed | Same rights as Costa Rican citizens |
| Residency for Purchase | Not required | Tourist status sufficient |
| Physical Presence | Not required | Power of Attorney possible |
| Transfer Tax | 1.5% | Plus 2-3% legal/registration fees |
| Annual Property Tax | 0.25% | Of registered property value |
| Lawyer Requirement | Essential | Independent real estate attorney |
| Process Duration | 30-60 days | From offer to title transfer |
Can Americans legally buy property in Costa Rica and are there any restrictions compared to locals or other foreigners?
Americans can legally buy property in Costa Rica with full ownership rights equivalent to Costa Rican citizens.
Costa Rica's constitution protects foreign property ownership, and no local partner or co-owner is required for most properties. Americans enjoy the same legal protections as locals when purchasing residential real estate, condominiums, or commercial properties.
The primary restriction applies to the Maritime Zone, which encompasses the first 200 meters from the high tide line on all beaches. The first 50 meters is public land that cannot be privately owned by anyone. In the next 150 meters (concession zone), foreigners are limited to maximum 49% ownership, typically structured through a Costa Rican corporation with proper permits.
Additional restrictions may apply to properties near borders, protected reserves, river mouths, and islands, but these limitations affect all buyers regardless of nationality. Properties in these zones require enhanced due diligence and specialized legal guidance.
As of September 2025, there are no ownership caps, foreign investment quotas, or discriminatory policies against American buyers in Costa Rica's standard real estate market.
What are the residency or visa requirements for owning property in Costa Rica as an American?
No specific residency or visa is required to purchase property in Costa Rica as an American.
Americans can legally own real estate while maintaining tourist status, making Costa Rica one of the most accessible property markets in Central America. You can enter on a standard 90-day tourist visa and complete property transactions without any immigration complications.
Property ownership does not automatically grant residency rights in Costa Rica. However, investing at least $150,000 in real estate qualifies Americans for Costa Rica's "Inversionista" (Investor) Residency program. This residency status allows legal long-term stays, can be renewed every two years, and provides a pathway to permanent residency after three years.
The Investor Residency application is a separate process from property purchase and requires additional documentation including proof of investment, clean criminal background checks, and health certificates. Many American property owners choose to maintain tourist status and simply exit and re-enter the country every 90 days.
It's something we develop in our Costa Rica property pack.
Do I need to be physically present in Costa Rica to complete a property purchase?
Physical presence is not required to complete a property purchase in Costa Rica.
American buyers can grant Power of Attorney (POA) to a qualified representative or lawyer in Costa Rica who can sign documents and process the entire transaction on their behalf. This POA must be notarized and authenticated through the Costa Rican consulate in the United States before use.
Many Americans successfully purchase properties remotely using trusted real estate attorneys or established agencies. The POA holder can attend property inspections, sign purchase agreements, transfer funds, and complete the title registration process at the National Registry.
However, visiting the property in person before purchase is strongly recommended to verify condition, neighborhood, and accessibility. Remote purchases carry higher risks of misrepresentation or unexpected issues that could impact investment value.
If choosing remote purchase, ensure your POA includes specific limitations and requires written authorization for any changes to agreed terms or purchase price.
What are the fiscal and tax implications of buying property in Costa Rica as a foreigner?
| Tax Type | Rate | Details |
|---|---|---|
| Property Transfer Tax | 1.5% | Of declared property value |
| Legal & Registration Fees | 2-3% | Lawyer, notary, registry costs |
| Annual Municipal Tax | 0.25% | Of registered property value |
| Rental Income Tax | 15-25% | Varies by structure and duration |
| Capital Gains Tax | 15% | On profit from sale |
| Luxury Home Tax | 0.35% | Properties over $200,000 declared value |
| Solidarity Tax | 0.55% | Properties over $235,000 declared value |
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What is the step-by-step process for buying property in Costa Rica and what documents are required?
The Costa Rican property purchase process follows a structured 30-60 day timeline with specific documentation requirements.
Step 1: Property identification and formal offer submission through a Letter of Intent or Option to Purchase Agreement, typically requiring 10% earnest money deposit held in escrow by a licensed attorney or agency.
Step 2: Retain an independent real estate attorney (not affiliated with the seller) to conduct comprehensive due diligence including title verification at the National Registry, lien searches, tax compliance checks, zoning verification, and survey (Plano Catastrado) validation.
Step 3: Review and sign the Purchase and Sale Agreement after due diligence completion and any necessary negotiations or repairs.
Step 4: Final closing where the Transfer Deed is notarized before a Costa Rican Notary Public, taxes are collected and paid, and the title transfer is filed at the National Registry.
Required documents include: valid US passport, official property survey (Plano Catastrado), current property deed (Escritura), National Registry title certification, corporate documents if purchasing through a company, proof of funds for anti-money laundering compliance, and Costa Rican tax identification number for certain transactions.
Is hiring a lawyer mandatory for property purchases in Costa Rica and how do I choose one?
Hiring a qualified real estate lawyer is essential and practically mandatory for property purchases in Costa Rica.
Only Costa Rican Notaries (who must be licensed attorneys) can legally record property transfers at the National Registry. However, you should hire an independent attorney separate from the seller's representative to protect your interests throughout the transaction.
Your attorney conducts critical due diligence including title searches, lien verification, tax compliance checks, zoning confirmations, and survey validations. They also review contracts, ensure proper fund transfers, calculate taxes, and guide you through closing procedures.
Choose attorneys specializing in real estate transactions with strong track records serving American clients. Verify credentials with the Costa Rican Bar Association (Colegio de Abogados) and request references from previous foreign buyers. Avoid lawyers recommended solely by sellers or developers who may have conflicts of interest.
Quality legal representation typically costs 1-1.5% of property value and can prevent costly mistakes that could exceed these fees by substantial margins.
Which areas are the most popular with Americans and why?
Guanacaste Province leads American real estate investment, particularly in beach towns like Tamarindo, Nosara, and Playa Flamingo.
These areas attract Americans due to established expat communities, modern amenities, reliable internet infrastructure, and direct flights from major US cities. Guanacaste offers consistent rental demand, strong property management services, and well-developed tourism infrastructure supporting both lifestyle and investment goals.
The Central Valley, including Escazu and Santa Ana near San JosĂ©, appeals to Americans seeking year-round temperate climate, proximity to international healthcare, established international schools, and easy access to Juan SantamarĂa International Airport. This region offers stability and sophisticated urban amenities.
Manuel Antonio and Jaco on the Central Pacific coast provide combination of natural beauty, tourism infrastructure, and rental income potential. These areas feature national parks, surfing, sport fishing, and established vacation rental markets.
The Southern Zone (Dominical, Uvita, Ojochal) attracts Americans interested in eco-lifestyle, lower property costs, and emerging tourism development with significant upside potential.
Which locations currently offer the best combination of livability, rental income potential, tourism demand, and long-term capital appreciation based on the latest data?
Tamarindo leads the market for balanced investment potential with established tourism infrastructure, consistent rental demand, and strong capital appreciation trends.
This Guanacaste beach town offers 6-10% annual gross rental yields for well-positioned properties, year-round tourism activity, and robust resale market liquidity. Tamarindo features reliable utilities, high-speed internet, international restaurants, and direct access to Liberia International Airport.
Santa Ana and Escazu in the Central Valley provide stable long-term rental markets with 4-7% gross yields, appealing to executive expatriates and digital nomads. These areas offer consistent capital appreciation due to limited land availability and growing demand from international companies establishing regional headquarters.
Manuel Antonio combines strong tourism demand with rental yields reaching 8-12% for premium vacation properties. The area benefits from national park proximity, cruise ship visits, and established luxury tourism market supporting higher rental rates.
Emerging opportunities exist in Uvita and the Southern Zone where tourism infrastructure development and improving road access are driving capital appreciation of 10-15% annually for well-selected properties.
It's something we develop in our Costa Rica property pack.
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 current property prices per city and region, broken down by type of property?
| Region/City | Condos | Homes/Villas | Land (per lot) |
|---|---|---|---|
| Guanacaste (Tamarindo) | $250,000-$800,000 | $450,000-$1.8M | $85,000-$300,000 |
| Guanacaste (Nosara) | $200,000-$650,000 | $400,000-$1.5M | $75,000-$250,000 |
| Central Valley (Escazu) | $180,000-$550,000 | $350,000-$1.2M | $60,000-$200,000 |
| Central Valley (Santa Ana) | $150,000-$500,000 | $300,000-$1.1M | $50,000-$180,000 |
| Manuel Antonio | $220,000-$750,000 | $400,000-$1.6M | $70,000-$220,000 |
| Jaco | $180,000-$600,000 | $320,000-$1.2M | $55,000-$150,000 |
| Southern Zone (Uvita) | $150,000-$450,000 | $250,000-$800,000 | $40,000-$120,000 |
What are the most common mistakes and pitfalls foreigners face when buying property in Costa Rica and how can they be avoided?
Insufficient due diligence represents the most costly mistake Americans make when purchasing Costa Rican real estate.
Many buyers skip comprehensive title searches, boundary verifications, and lien investigations, leading to disputes over property ownership, unpaid taxes, or encroachments. Always retain independent legal counsel to conduct thorough National Registry searches and verify all property documentation before signing contracts.
Purchasing in restricted Maritime or concession zones without understanding ownership limitations causes significant problems. Foreigners discovering 49% ownership restrictions after purchase face limited resale options and potential legal complications. Research zoning classifications and maritime boundaries before considering coastal properties.
Overestimating rental income potential while underestimating ongoing maintenance costs leads to negative cash flow surprises. Factor in property management fees (15-25%), utilities, repairs, insurance, and vacancy periods when calculating investment returns. Remote tropical properties require more maintenance than typical US real estate.
Engaging unlicensed agents or acting without proper legal representation exposes buyers to fraud and misrepresentation. Only work with licensed real estate professionals and independent attorneys with verified credentials and strong track records serving American clients.
Failing to use proper escrow for deposits and not understanding total closing costs can result in unexpected financial obligations and potential loss of earnest money.
Can foreigners get a mortgage in Costa Rica, what are the current rates and conditions, and what are the best tips for securing one?
Foreigners can obtain mortgages in Costa Rica, but terms are significantly more restrictive than US financing options.
Local banks typically require 40-50% down payments for foreign borrowers, with interest rates ranging from 7-12% annually in USD for qualified applicants. Loan terms usually max out at 15-20 years, and debt-to-income ratios must stay below 30-35%.
Major banks serving foreigners include Banco Nacional, BAC San José, and Banco Popular, though each maintains strict qualification criteria including verified income documentation, clean credit history, and substantial financial reserves. The approval process typically takes 60-90 days with extensive documentation requirements.
Many American buyers choose alternative financing including home equity lines of credit in the US, private international lenders, or seller financing arrangements. These options often provide better terms and faster processing than local bank mortgages.
Best practices for securing Costa Rican financing include establishing relationships with local banks before property search, providing translated and authenticated financial documents, maintaining significant cash reserves beyond the down payment, and working with mortgage brokers experienced in foreign lending.
It's something we develop in our Costa Rica property pack.
What are the latest rental yields, occupancy rates, and growth forecasts in Costa Rica's key property markets?
Prime tourism destinations in Guanacaste and Manuel Antonio generate the strongest rental yields and occupancy rates in Costa Rica's real estate market.
Tamarindo and Nosara vacation rentals achieve 6-10% annual gross yields with 60-75% occupancy rates during peak season (December-April) and 35-50% during green season (May-November). Well-managed properties in premium locations can exceed these averages significantly.
Manuel Antonio luxury vacation rentals generate 8-12% gross yields with similar seasonal patterns, benefiting from national park proximity and cruise ship tourism. Executive rental properties in Escazu and Santa Ana provide more stable 4-7% yields with 80-90% annual occupancy targeting expatriate professionals.
The Southern Zone markets (Uvita, Dominical) show emerging potential with 5-8% current yields but rapid tourism growth suggesting 15-20% annual capital appreciation for well-positioned properties. Infrastructure improvements including road upgrades and marina developments support this growth trajectory.
Market forecasts for 2025-2027 indicate continued strength in established tourism zones, with particular growth expected in eco-tourism and wellness tourism segments. Digital nomad demand supports mid-term rental markets in areas with reliable internet infrastructure.
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.
Costa Rica offers Americans one of the most transparent and accessible real estate markets in Latin America, with constitutional protection of foreign property rights and established legal frameworks supporting international investment.
Success in the Costa Rican property market requires proper legal representation, thorough due diligence, and realistic expectations about costs and returns, but the combination of lifestyle benefits and investment potential makes it an attractive destination for American real estate investment.