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 property ownership laws in Latin America, allowing international buyers to purchase most types of real estate with the same rights as locals. As of September 2025, foreign property ownership in Costa Rica has become increasingly attractive due to political stability and growing international investment interest.
Understanding Costa Rica's property ownership laws is essential for foreign investors looking to purchase residential properties, vacation homes, or investment properties in this Central American destination. Unlike many countries in the region, Costa Rica imposes minimal restrictions on foreign ownership, though specific rules apply to coastal properties and maritime zones.
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 can legally buy most Costa Rican properties with full ownership rights, requiring no residency or visa status for purchase.
The main restrictions apply to coastal maritime zones, where the first 50 meters from high tide is public land and the next 150 meters requires special concession arrangements through local corporations.
| Ownership Aspect | Foreigner Rights | Restrictions/Requirements |
|---|---|---|
| Titled Property | Full fee simple ownership | None - same as locals |
| Maritime Zone (0-50m) | No ownership allowed | Public land only |
| Maritime Zone (50-200m) | Concession lease only | Maximum 49% through corporation |
| Residency Requirement | Not required for purchase | Tourist status sufficient |
| Physical Presence | Not required | Power of attorney allowed |
| Legal Representation | Attorney-notary mandatory | Required for transfer deed |
| Closing Costs | 3.5-6% of purchase price | Includes taxes and legal fees |
Can foreigners legally buy property in Costa Rica and are there any restrictions compared to locals?
Foreigners can legally buy most types of property in Costa Rica with full ownership rights identical to Costa Rican citizens.
As of September 2025, international buyers enjoy "fee simple" ownership for titled properties, meaning complete ownership rights including the ability to sell, rent, mortgage, or transfer the property freely. No nationality restrictions exist for purchasing titled real estate in Costa Rica.
The Costa Rican constitution guarantees equal property rights for foreigners and locals on titled land, providing the same legal protections and ownership benefits. This includes residential properties, commercial buildings, condominiums, and most land parcels throughout the country.
Foreign property owners receive the same legal protections as Costa Rican citizens, including full recourse through the national court system for any property disputes or issues.
The only significant restriction applies to maritime zones along the coastline, where special rules govern ownership within 200 meters of the high tide line.
Are there certain types of properties or land that foreigners are not allowed to own?
Foreigners face restrictions primarily on coastal properties within maritime zones, border areas, and certain protected lands.
The maritime zone restriction is the most significant limitation for foreign buyers interested in beachfront properties. The first 50 meters from the high tide line constitutes public land that cannot be owned by anyone, including Costa Rican citizens. The next 150 meters (50-200 meters from the beach) can only be held through government concessions.
In maritime concession zones, foreigners can own a maximum of 49% of a Costa Rican corporation that holds the concession lease. This means foreign buyers need Costa Rican partners or must structure ownership through local corporations to acquire beachfront concession properties.
Border zones within 2 kilometers of international boundaries have restrictions for national security reasons. Islands, national parks, biological reserves, and certain river mouths also restrict foreign ownership.
Properties located in these restricted areas require special permits, local partnerships, or may be completely off-limits to foreign ownership depending on the specific location and regulations.
What are the residency or visa requirements for foreigners wanting to buy property?
No residency status or special visa is required for foreigners to purchase property in Costa Rica.
As of September 2025, tourists can legally buy Costa Rican real estate using only their passport and tourist status. The country does not require foreign buyers to obtain residency permits, investment visas, or any special documentation beyond standard tourist entry requirements.
This policy makes Costa Rica one of the most accessible countries in Latin America for foreign property investment, allowing even short-term visitors to complete real estate transactions during vacation trips.
However, purchasing property worth $150,000 or more makes foreigners eligible for Costa Rica's Investor Residency program. This optional residency provides benefits like legal long-term stays and potential work permits, but remains separate from the property purchase process.
The Investor Residency application requires proof of investment, clean criminal background checks, and additional documentation, but property ownership itself carries no residency obligations or requirements.
Do foreigners need to be physically present in Costa Rica to complete a property purchase?
Physical presence in Costa Rica is not required to complete a property purchase as a foreigner.
Foreign buyers can execute real estate transactions remotely using a power of attorney granted to their Costa Rican lawyer. This power of attorney must be properly notarized and authenticated in the buyer's home country, then legalized through Costa Rican consular services.
The power of attorney allows the designated attorney to sign transfer deeds, complete registry filings, handle tax payments, and execute all necessary documentation on behalf of the absent buyer. Many foreign investors successfully purchase Costa Rican properties without ever setting foot in the country during the transaction process.
Remote purchases require careful coordination with qualified local attorneys who can handle due diligence, title searches, and closing procedures. Video conferences and electronic document sharing facilitate communication between remote buyers and their Costa Rican legal representatives.
It's something we develop in our Costa Rica property pack.
Don't lose money on your property in Costa Rica
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What is the exact step-by-step legal process for buying property as a foreigner and what documents are required?
The Costa Rican property purchase process follows a structured legal framework requiring specific documentation and professional assistance.
| Step | Action Required | Documents/Requirements |
|---|---|---|
| 1. Professional Team | Hire attorney-notary and real estate agent | Credentials verification, fee agreements |
| 2. Due Diligence | Title search and property verification | National Registry search, survey, permits |
| 3. Corporate Setup | Establish Costa Rican corporation (optional) | Articles of incorporation, tax ID |
| 4. Purchase Agreement | Draft and sign preliminary contract | Terms, deposit, closing date |
| 5. Transfer Deed | Execute final transfer before notary | Passport, proof of funds, tax clearance |
| 6. Registry Filing | Register new ownership with National Registry | Transfer deed, tax payments, filing fees |
| 7. Tax Compliance | Pay transfer taxes and municipal fees | Property valuation, tax calculations |
Required documents include valid passport, proof of funds (bank statements or wire transfer confirmations), and sometimes a Costa Rican tax identification number. If buying through a corporation, additional corporate documents and shareholder agreements are necessary.
The entire process typically takes 30-60 days from initial offer to final registry, depending on due diligence complexity and financing arrangements.
Is it mandatory to hire a lawyer for a property purchase and what role do they play in the process?
Hiring an attorney-notary is legally mandatory for all Costa Rican real estate transactions.
In Costa Rica, only licensed attorney-notaries can draft, execute, and file property transfer deeds. These legal professionals serve dual roles as both lawyers and notaries public, providing essential services that cannot be performed by standard real estate agents or brokers.
The attorney-notary conducts comprehensive title searches through the National Registry to verify clean ownership, confirms the property is free from liens or encumbrances, and ensures all legal requirements are met before transfer. They also handle tax calculations, coordinate payments, and file all required documentation with government agencies.
Attorney-notaries protect foreign buyers by reviewing purchase contracts, explaining Costa Rican legal requirements, and ensuring compliance with all regulations. They also facilitate communication between buyers, sellers, and government offices throughout the transaction process.
Legal fees typically range from 1-2% of the purchase price, making attorney-notary services a relatively small but crucial investment in protecting foreign buyers' interests and ensuring legally valid property transfers.
What taxes, fees, and costs are involved in buying and later reselling property in Costa Rica?
Costa Rican property transactions involve several taxes and fees that foreign buyers must budget for beyond the purchase price.
| Cost Type | Amount/Rate | When Paid |
|---|---|---|
| Transfer Tax | 1.5% of registered value | At closing |
| Legal Fees | 1-2% of purchase price | At closing |
| Registry Fees | 0.5-1% of registered value | At closing |
| Annual Property Tax | 0.25% of declared value | Yearly |
| Luxury Property Tax | Additional tiered rates on $250,000+ properties | Yearly |
| Capital Gains Tax | 15% of net gain or 2.25% of sale price | At sale |
| Municipal Fees | Varies by location and services | Yearly |
Total closing costs typically range from 3.5-6% of the purchase price, including all taxes, legal fees, and administrative costs. Properties valued over $250,000 face additional luxury tax rates on a tiered scale.
When reselling, sellers pay capital gains tax calculated as either 15% of the net profit or 2.25% of the gross sale price, whichever calculation results in lower tax liability.
Are mortgages available for foreigners, and if so, what are the usual interest rates, conditions, and tips to get approved?
Mortgages for foreign buyers in Costa Rica are available but challenging to obtain from local banks.
Costa Rican banks rarely approve mortgages for non-resident foreigners due to strict lending requirements and risk assessment policies. Most foreign buyers either pay cash or arrange financing through international lenders, home equity loans, or private financing companies.
When available, Costa Rican mortgage rates for foreigners range from 7-12% annually, significantly higher than rates offered to residents. Down payment requirements typically range from 30-50% of the purchase price, and loan terms are generally shorter than comparable mortgages in North America or Europe.
Private lenders and some international banks operating in Costa Rica may offer more flexible financing options for qualified foreign buyers. These alternative lenders often require comprehensive income documentation, substantial down payments, and may secure loans against other international assets.
Tips for foreign buyers seeking financing include establishing a Costa Rican corporation, demonstrating substantial income and assets, maintaining excellent credit history, and considering seller financing arrangements when available.
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 are currently considered the best for living, renting out, or capital appreciation based on the latest data?
As of September 2025, several Costa Rican regions stand out for different investment and lifestyle objectives based on rental yields, tourism data, and growth forecasts.
Guanacaste Province, particularly areas like Tamarindo and Nosara, leads for rental income potential with gross yields reaching 5-8% annually for long-term rentals and up to 12% for short-term vacation rentals during peak season. These coastal areas benefit from consistent international tourism and strong vacation rental demand.
The Central Valley, including EscazĂș, Santa Ana, and areas around San JosĂ©, offers the best infrastructure and year-round livability for full-time residents. These areas provide reliable utilities, healthcare access, international schools, and proximity to the international airport while maintaining moderate climate conditions.
For capital appreciation, coastal areas in Guanacaste and the Southern Zone show strong growth potential due to increasing international investment and limited beachfront inventory. The Central Valley also demonstrates steady appreciation driven by expanding expatriate communities and urban development.
It's something we develop in our Costa Rica property pack.
What is the current breakdown of property prices per city and region for both urban and coastal areas?
Costa Rican property prices vary significantly between coastal tourist areas, urban centers, and rural regions as of September 2025.
| Region/City | Property Type | Price Range (USD) |
|---|---|---|
| Guanacaste (Tamarindo) | Beachfront condos/homes | $200,000 - $1,000,000+ |
| Guanacaste (Nosara) | Vacation properties | $250,000 - $800,000 |
| Central Valley (EscazĂș) | Luxury homes/condos | $300,000 - $1,500,000+ |
| Central Valley (Santa Ana) | Residential properties | $200,000 - $900,000 |
| San José (Urban) | Apartments/condos | $100,000 - $400,000 |
| Southern Zone (JacĂł) | Beach properties | $180,000 - $600,000 |
| Southern Zone (Manuel Antonio) | Ocean view properties | $300,000 - $1,200,000 |
Coastal properties in prime tourist destinations command premium prices due to limited beachfront inventory and strong rental demand. Urban Central Valley properties offer more moderate pricing with better infrastructure and services.
Price appreciation in coastal areas has outpaced urban markets over the past five years, driven by international tourism recovery and growing expatriate communities seeking tropical lifestyles.
What are the most common mistakes and legal pitfalls foreigners face when buying property in Costa Rica?
Foreign buyers frequently encounter several preventable mistakes that can result in financial losses or legal complications in Costa Rica.
- Skipping proper legal representation: Using unlicensed agents or attorneys, or attempting to handle transactions without qualified legal help leads to title defects, fraud exposure, and invalid transfers.
- Inadequate due diligence: Failing to conduct thorough title searches, zoning verification, and encumbrance checks can result in purchasing properties with liens, legal disputes, or development restrictions.
- Misunderstanding maritime zone rules: Buying coastal properties without understanding concession limitations, ownership percentages, and renewal requirements creates long-term legal and financial risks.
- Incorrect ownership structure: Not optimizing corporate ownership for tax efficiency, estate planning, and operational flexibility can result in unnecessary taxes and inheritance complications.
- Underestimating total costs: Failing to budget for luxury taxes, annual fees, maintenance costs, and capital gains taxes leads to unexpected financial obligations and cash flow problems.
Additional pitfalls include overpaying due to lack of market knowledge, buying in areas with poor infrastructure or title problems, and not understanding local regulations regarding rental operations or property modifications.
Working with experienced local professionals, conducting comprehensive due diligence, and understanding all legal requirements before committing to purchases helps foreign buyers avoid these common and costly mistakes.
How do property ownership laws differ for foreigners from different nationalities?
Costa Rican property ownership laws treat all foreign nationalities equally without preferences or restrictions based on citizenship.
As of September 2025, Americans, Europeans, Canadians, and citizens from any other country enjoy identical property ownership rights in Costa Rica. No nationality receives preferential treatment, special benefits, or faces additional restrictions compared to other foreign buyers.
The only variations in foreign buyer treatment relate to specific bilateral treaties or tax agreements between Costa Rica and individual countries, which may affect tax obligations rather than ownership rights. These treaties primarily impact double taxation issues for rental income or capital gains rather than the fundamental right to own property.
All foreigners face the same maritime zone restrictions, require identical documentation, pay the same taxes and fees, and follow the same legal procedures regardless of their passport country. This equal treatment policy makes Costa Rica particularly attractive for international real estate investment.
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.
Costa Rica's foreign property ownership laws create one of the most accessible real estate markets in Latin America for international buyers.
With minimal restrictions, strong legal protections, and equal treatment regardless of nationality, Costa Rica continues attracting foreign real estate investment in 2025 and beyond.
Sources
- The Latinvestor - Costa Rica Real Estate for Foreigners
- CRIE - Understanding Property Ownership and Costa Rica Immigration
- Quatro Legal - Non-Resident Foreigners Property Ownership
- Visit World Today - Buying Property in Costa Rica Guide
- RE/MAX Ocean Coast Realty - Basic Knowledge for Costa Rica Property
- HRG Vacations - Guide to Buying Property in Costa Rica
- The World Law Group - Navigating Property Purchase in Costa Rica
- CB Sunset Reef Realty - Residency Requirements for US Citizens