Can Canadians easily 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 Manuel Antonio. 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 Canadians legally buy property in Costa Rica?

Yes, Canadians can legally buy property in Costa Rica with full ownership rights identical to Costa Rican citizens.

As of September 2025, Costa Rica's constitution guarantees foreigners the same property ownership rights as nationals for titled properties. This means you can own land, houses, condominiums, and commercial properties outright without any nationality-based restrictions or local partnership requirements.

The only exception applies to properties within the maritime zone (first 200 meters from the high tide line), where foreigners can only own up to 49% of concession land. Outside this zone, you have complete ownership freedom.

Foreign property ownership is protected under Costa Rican law, and the National Registry maintains clear title records. Your ownership rights include the ability to sell, rent, mortgage, or transfer the property without government approval.

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

Are there any restrictions for foreigners purchasing property in Costa Rica?

Costa Rica imposes minimal restrictions on foreign property buyers, with the main limitation being beachfront properties in the maritime zone.

The maritime zone law restricts foreign ownership within 200 meters of the high tide line on both Pacific and Atlantic coasts. In this area, foreigners can only own up to 49% of a concession, requiring a Costa Rican citizen or corporation to hold majority control. This restriction aims to preserve coastal access for locals.

Outside the maritime zone, no restrictions exist. You can buy properties in any other location including mountains, central valley, inland areas, and even oceanfront properties with titled land beyond the 200-meter mark.

Some luxury developments and protected areas may have additional environmental restrictions, but these apply equally to Costa Ricans and foreigners. Agricultural properties over 5 hectares require special permits, but this affects all buyers regardless of nationality.

No investment minimums, purchase limits, or approval processes exist for standard property transactions.

Do Canadians need to be a resident to buy property in Costa Rica?

No, Canadians do not need residency to buy property in Costa Rica and can purchase real estate while on a tourist visa.

Costa Rica welcomes foreign property investment without requiring permanent residency, temporary residency, or any immigration status. You can complete the entire purchase process during a tourist visit, which allows Canadians to stay for up to 90 days without a visa.

Many Canadian buyers purchase properties remotely through power of attorney arrangements with their Costa Rican lawyers, never needing to establish residency. Others buy during vacation trips or scouting visits on tourist status.

Property ownership does not automatically grant residency rights, and residency does not affect your property ownership rights. These are completely separate legal matters in Costa Rica.

However, owning property worth over $200,000 can help qualify for investor residency if you later choose to pursue it, but this is optional, not required for property ownership.

What are the steps to purchase property in Costa Rica as a foreigner?

1. **Property search and selection** - Work with licensed real estate agents to identify suitable properties 2. **Lawyer engagement** - Hire a qualified Costa Rican attorney for legal representation and due diligence 3. **Offer and negotiation** - Submit written offers and negotiate terms with the seller 4. **Purchase agreement signing** - Execute a binding contract with typically 10% deposit held in escrow 5. **Due diligence period** - Conduct title searches, legal verification, inspections, and environmental checks 6. **Funding preparation** - Arrange financing or transfer funds from Canada to Costa Rican bank accounts 7. **Closing execution** - Sign the transfer deed (escritura de traspaso) before a Costa Rican Notary Public 8. **Registry recording** - File the deed with the National Registry to officially transfer ownership

The entire process typically takes 4-8 weeks from offer acceptance to registered ownership. Your lawyer handles most legal procedures, tax payments, and registry filings.

Each step requires careful attention to detail, particularly during due diligence when title issues, liens, or zoning problems could emerge. Professional legal guidance is essential throughout the process.

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

Are there specific taxes or fees Canadians should be aware of when buying property in Costa Rica?

Canadians face several mandatory taxes and fees when buying Costa Rican property, with total transaction costs typically ranging 3-4% of the purchase price.

Tax/Fee Type	Rate	Payment Timing
Property Transfer Tax	1.5% of registered value	At closing
Legal Fees	1-2% of purchase price	At closing
National Registry Fee	0.5% of registered value	At closing
Notary Fees	0.3-0.5% of registered value	At closing
Appraisal Fee	$300-800 USD flat	Before closing
Title Insurance (optional)	0.3-0.5% of purchase price	At closing
Municipality Tax	0.25-0.5% varies by location	At closing

The property transfer tax applies to the registered value, which is often lower than the actual purchase price. However, significantly undervaluing properties can trigger tax audits and penalties.

Legal fees are mandatory since Costa Rican law requires attorney involvement in all property transfers. This cost covers due diligence, contract drafting, closing procedures, and registry filing.

Additional ongoing costs include annual property taxes (0.25% of registered value), luxury home tax for high-value properties (0.25-0.55% of construction value), and potential HOA fees for condominiums or gated communities.

How do property taxes in Costa Rica compare to those in Canada?

Costa Rica's property taxes are significantly lower than Canada's, typically saving Canadian property owners thousands of dollars annually.

Costa Rica charges 0.25% annually on the property's registered value, while Canadian property taxes range from 0.5% to 1.5% of assessed market value depending on the province and municipality. For a $500,000 property, you'd pay approximately $1,250 annually in Costa Rica versus $2,500-$7,500 in Canada.

The difference becomes more pronounced because Costa Rica's registered values are often 60-80% of actual market value, while Canadian assessments typically reflect current market values. This creates an even larger savings gap for Costa Rica property owners.

Costa Rica also imposes a luxury home tax of 0.25-0.55% on the construction value (not land value) for homes exceeding specific thresholds, but this still typically results in lower total taxes than comparable Canadian properties.

However, Costa Rica provides fewer municipal services for your tax payments compared to Canada, with limited garbage collection, road maintenance, and public services in many areas outside major cities.

Do Canadians need a lawyer when buying property in Costa Rica?

Yes, Canadians absolutely need a lawyer when buying property in Costa Rica, as it's both legally required and practically essential for protecting your investment.

Costa Rican law mandates that all property transfers be executed by a licensed Costa Rican attorney who serves as a Notary Public. Only these attorney-notaries can legally draft transfer deeds (escritura de traspaso) and file them with the National Registry.

Your lawyer conducts critical due diligence including title searches, lien verification, zoning compliance checks, environmental clearances, and legal status confirmation. They also verify the seller's legal capacity to transfer the property and ensure all taxes are current.

Attorney fees typically cost 1-2% of the purchase price, covering legal representation, document preparation, tax payments, registry filing, and closing coordination. This cost is mandatory, not optional.

Choose lawyers with extensive real estate experience, fluent English communication, and strong references from other foreign buyers. Avoid lawyers recommended solely by sellers or real estate agents to prevent potential conflicts of interest.

What is the typical process for transferring property ownership in Costa Rica?

Property ownership transfer in Costa Rica follows a formal legal process centered around the transfer deed (escritura de traspaso) and National Registry filing.

The transfer begins when your lawyer prepares the escritura de traspaso, a legal document containing the complete property description, purchase terms, buyer and seller information, and all legal declarations. This deed must be notarized by a Costa Rican attorney-notary.

During the closing meeting, both parties sign the transfer deed before the notary, who verifies identities, confirms legal capacity, and ensures all requirements are met. The buyer provides certified funds while the seller transfers clear title.

After signing, your lawyer immediately files the deed with the National Registry (Registro Nacional) along with all required taxes and fees. The registry conducts a final review and officially records the ownership transfer.

Title registration typically completes within 10-15 working days after filing. Once recorded, you receive official title documents showing your registered ownership, completing the legal transfer process.

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.

Are there financing options available for Canadians buying property in Costa Rica?

Several financing options exist for Canadians buying Costa Rican property, though cash purchases remain most common due to simpler processes and better negotiating power.

Costa Rican banks offer mortgages to non-residents, but requirements are strict: 30-60% down payment, proof of foreign income, Costa Rican bank account, and higher interest rates (8-12% annually) compared to Canadian rates. The approval process takes 2-3 months and requires extensive documentation.

Canadian home equity loans provide popular financing alternatives, using your Canadian property as collateral to access funds at Canadian interest rates (currently 6-8%). This option offers faster approval, familiar banking relationships, and lower overall borrowing costs.

Developer financing occasionally available for new construction projects, typically requiring 30-50% down with 2-5 year terms at competitive rates. Owner financing sometimes negotiable for motivated sellers, particularly for unique properties or buyer circumstances.

Private lenders and hard money loans exist but carry higher costs (12-18% annually) and shorter terms, making them suitable only for quick purchases or investment flips.

What are the costs involved in purchasing property in Costa Rica?

Total Costa Rica property purchase costs typically range 3-5% of the purchase price, significantly lower than many other international markets.

1. **Transfer tax**: 1.5% of registered property value (mandatory government fee) 2. **Legal fees**: 1-2% of purchase price (attorney services and notary costs) 3. **Registry fees**: 0.5% of registered value (National Registry recording) 4. **Municipal taxes**: 0.25-0.5% varies by location (local government fees) 5. **Appraisal costs**: $300-800 USD (required for legal process) 6. **Title insurance**: 0.3-0.5% of purchase price (optional but recommended) 7. **Bank transfer fees**: $100-500 USD (international wire transfer costs) 8. **Property inspection**: $200-500 USD (structural and environmental assessment)

These costs are typically split between buyer and seller according to the purchase agreement, though buyers usually pay legal fees, registry costs, and transfer taxes while sellers cover real estate commissions.

Additional post-purchase costs include annual property taxes (0.25% of registered value), potential HOA fees ($50-300 monthly for condos), property insurance ($500-2000 annually), and utility connections ($200-1000 depending on services).

Ongoing maintenance costs vary dramatically by property type and location, from $200 monthly for simple homes to $1000+ monthly for luxury oceanfront properties requiring pool, garden, and security maintenance.

Can Canadians buy beachfront property in Costa Rica?

Canadians can buy beachfront property in Costa Rica, but ownership options depend on the property's location relative to the maritime zone boundaries.

Properties with titled land outside the 200-meter maritime zone offer full ownership rights identical to any other Costa Rican property. These titled beachfront properties are fully transferable, mortgageable, and provide complete ownership security.

Within the maritime zone (first 200 meters from high tide), foreigners can only own up to 49% of concession land, requiring a Costa Rican citizen or corporation to hold majority control. Many Canadians structure these purchases through Costa Rican corporations with trusted local partners.

Concession properties require additional due diligence to verify concession validity, payment status, and renewal terms. Concessions typically run 5-20 years with renewal options, but renewal is not guaranteed.

Beachfront property prices range from $200,000 for small lots to several million for luxury oceanfront estates. Popular beachfront areas for Canadians include Tamarindo, Manuel Antonio, Nosara, and the Papagayo Peninsula.

Consider environmental restrictions, seasonal access issues, and higher maintenance costs due to salt air exposure when evaluating beachfront properties.

How long does it usually take to complete a property purchase in Costa Rica?

Costa Rica property purchases typically take 4-8 weeks from offer acceptance to registered ownership, though complex transactions may require additional time.

The timeline breaks down into distinct phases: offer and negotiation (3-7 days), purchase agreement execution (1-3 days), due diligence period (2-4 weeks), funding preparation (1-2 weeks), closing execution (1 day), and registry recording (10-15 working days).

Due diligence represents the longest phase, involving title searches, legal verification, property inspections, environmental clearances, and zoning confirmations. Complicated title issues, outstanding liens, or permit problems can extend this period significantly.

International fund transfers from Canadian banks typically require 3-5 business days, though some banks offer same-day wire transfers for premium fees. Ensure funds arrive before your scheduled closing date to avoid delays.

Factors that can extend timelines include: incomplete seller documentation, title complications, financing approval delays, holiday periods (December-January and Easter week), and National Registry backlogs during busy periods.

Cash purchases generally close faster than financed transactions, while new construction may require additional inspections and permit verifications that extend the process.

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. MTFX Group - Guide for Canadians Buying Real Estate in Costa Rica
2. RE/MAX Blue Ocean - How to Buy Property in Costa Rica
3. The LatinVestor - Costa Rica Real Estate for Foreigners
4. Relax Costa Rica - Process for Canadians to Buy Real Estate
5. Visit World Today - Buying Property in Costa Rica as Foreign National
6. Coldwell Banker Samara - Legal Considerations for Canadians
7. Coldwell Banker Samara - Tax Implications for Canadians
8. CR Property Tax - Reduce Tax Blog
9. CR Property Tax - Buying Property Blog
10. Osa Tropical Properties - Property Taxes in Costa Rica