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 is one of the most foreigner-friendly countries in Latin America when it comes to buying property, but there are still a few important rules you need to know before signing anything.
This guide covers everything from what you can legally own, to closing costs, mortgages, and common mistakes foreign buyers make in Costa Rica in January 2026.
We update this blog post regularly to make sure you always have the latest information on housing prices and ownership rules in Costa Rica.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Costa Rica.
Insights
- Foreigners in Costa Rica enjoy "fee simple" ownership on titled land, which means they have the exact same property rights as Costa Rican citizens, including the right to sell, rent, or pass property to heirs.
- Only about 5% of Costa Rica's beachfront property is fully titled, so most "oceanfront" listings are actually concession land with government lease restrictions that limit foreign ownership to 49%.
- Costa Rica's annual property tax is just 0.25% of the registered value, making it one of the lowest in the Americas, though luxury homes over 137 million colones face an additional tax of 0.25% to 0.55%.
- Buying property worth at least $150,000 in Costa Rica qualifies you for the Investor Residency program, but ownership alone does not automatically grant you any immigration status.
- Closing costs in Costa Rica typically range from 4% to 7% of the purchase price, with the transfer tax at 1.5% being the largest single expense.
- Mortgage rates for foreigners in Costa Rica in 2026 generally fall between 7% and 10% for USD loans, with down payments typically required at 30% to 50% depending on residency status.
- The Maritime Zone Law (Ley 6043) controls all land within 200 meters of the high tide line, where the first 50 meters are public and the next 150 meters are concession land with strict foreign ownership rules.
- Rental income from Costa Rican property is taxed at 15% on 85% of gross income for non-residents, resulting in an effective rate of around 12.75% under the simplified system.
What can I legally buy and truly own as a foreigner in Costa Rica?
What property types can foreigners legally buy in Costa Rica right now?
Foreigners can legally buy almost every type of residential property in Costa Rica, including condos, apartments, houses, villas, townhouses, and land, with the same ownership rights as Costa Rican citizens.
The main exception is beachfront property in the Maritime Zone (Zona Maritimo Terrestre), where the first 200 meters from the high tide line fall under special government rules that limit what foreigners can own.
For titled property outside the Maritime Zone, foreign buyers enjoy "fee simple" ownership, which is the strongest form of ownership and allows you to sell, rent, mortgage, or pass the property to your heirs without restrictions.
The key distinction to understand is whether the property you want is "titled" (registered in the Public Registry with full ownership rights) or "concession" (a government lease with restrictions), because this changes everything about what you actually own.
Finally, please note that our pack about the property market in Costa Rica is specifically tailored to foreigners.
Can I own land in my own name in Costa Rica right now?
Yes, foreigners can own titled land in Costa Rica directly in their own name, with exactly the same legal protections as Costa Rican citizens.
However, this does not apply to all types of land: coastal properties within the Maritime Zone (the 200 meters closest to the high tide line) operate under a concession system where foreigners can only hold minority ownership unless they have been Costa Rican residents for more than five years.
The safest way to verify what you are actually buying is to request official certifications from the Registro Nacional, which will confirm whether the property is fully titled or falls under concession rules.
By the way, we cover everything there is to know about the land buying process in Costa Rica here.
As of 2026, what other key foreign-ownership rules or limits should I know in Costa Rica?
As of early 2026, Costa Rica does not impose foreign-ownership quotas on condos or apartments, so unlike some countries in Southeast Asia or Europe, there is no limit on how many units in a building can be owned by foreigners.
There is also no requirement for government approval or special permits to buy titled property as a foreigner, which makes Costa Rica one of the simplest countries in Latin America for international buyers.
The main registration requirement is that your purchase must be formalized through a Costa Rican notary public and recorded in the Public Registry (Registro Nacional), which is how your ownership becomes legally recognized.
No major regulatory changes affecting foreign ownership have been announced for 2026, though the investor residency investment threshold remains at $150,000 as established by Law No. 9996.
If you're interested, we go much more into details about the foreign ownership rights in Costa Rica here.
What's the biggest ownership mistake foreigners make in Costa Rica right now?
The biggest mistake foreigners make in Costa Rica is buying "beachfront" property assuming it is fully titled when it is actually concession land in the Maritime Zone, which comes with significant ownership restrictions.
If you make this mistake, you may find that you can only own 49% of the concession (with a Costa Rican partner holding 51%), or worse, that your "ownership" is actually a long-term government lease that can be affected by zoning changes or renewal issues.
Other classic pitfalls in Costa Rica include not verifying the property's boundaries through a cadastral survey (the "catastro" can differ from what the registry shows), buying property with unresolved title issues or liens, and failing to confirm that the property has legal water access and proper zoning for your intended use.
We have made this infographic to give you a quick and clear snapshot of the property market in Costa Rica. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Costa Rica?
Do I need a specific visa to buy property in Costa Rica right now?
No, you do not need a residency visa to buy property in Costa Rica, and foreigners can legally purchase real estate while visiting on a standard tourist visa using just their passport.
The most common administrative requirement that can slow down non-resident buyers is opening a Costa Rican bank account, which some banks make difficult without local residency or a DIMEX card (the Costa Rican residency ID).
While not legally required before buying, you will typically need to register with Costa Rica's tax authority (Ministerio de Hacienda) to pay the transfer tax at closing and to handle ongoing property tax and any rental income reporting.
Foreign buyers typically need to present a valid passport, proof of funds, and in some cases notarized documents from their home country (such as a power of attorney if not attending the closing in person), all of which may need to be apostilled or authenticated through a Costa Rican consulate.
Does buying property help me get residency and citizenship in Costa Rica in 2026?
As of early 2026, buying property in Costa Rica can help you qualify for residency if your investment meets the minimum threshold, but property ownership alone does not automatically grant any immigration status.
Costa Rica's Investor Residency program (Residencia de Inversionista) requires a minimum investment of $150,000, which can include real estate purchases, and grants temporary residency that is renewable every two years.
If you do not qualify for investor residency, other pathways include the Pensionado program (requiring $1,000 monthly pension income) or the Rentista program (requiring $2,500 monthly guaranteed income for at least two years), and after three years of legal residency you can apply for permanent residency, with citizenship possible after seven years.
We give you all the details you need about the different pathways to get residency and citizenship in Costa Rica here.
Can I legally rent out property on my visa in Costa Rica right now?
Your visa status in Costa Rica does not prevent you from renting out a property you own, since rental income is treated as income from an asset rather than income from employment.
You do not need to live in Costa Rica to rent out your property, and many foreign owners manage rentals from abroad by hiring local property managers to handle day-to-day operations.
The main requirements for foreign landlords are tax compliance (rental income is Costa Rican-source income and must be reported to Hacienda) and, if you do short-term vacation rentals, ensuring you follow local municipal rules on short-term rental permits and the 13% IVA (value-added tax) that may apply.
We cover everything there is to know about buying and renting out in Costa Rica here.
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How does the buying process actually work step-by-step in Costa Rica?
What are the exact steps to buy property in Costa Rica right now?
The typical property purchase in Costa Rica follows this sequence: find the property, verify it is properly titled through the Public Registry, sign an option or earnest money agreement, conduct due diligence (title search, liens, survey), close with a notary who prepares the transfer deed, pay the transfer tax and fees, and finally register the new ownership at the Registro Nacional.
You do not have to be physically present in Costa Rica to buy property, as many foreign buyers complete the entire transaction remotely using a properly notarized and apostilled power of attorney that allows their attorney or representative to sign on their behalf.
The deal typically becomes legally binding when you sign the purchase agreement (often called the "option to purchase" or "promesa de compraventa") and pay a deposit, though the official transfer of ownership only happens once the deed is registered.
From accepted offer to final registration, the process usually takes 30 to 60 days for a straightforward transaction, though complex cases involving title issues, coastal concessions, or financing can take three to six months or longer.
We have a document entirely dedicated to the whole buying process our pack about properties in Costa Rica.
Is it mandatory to get a lawyer or a notary to buy a property in Costa Rica right now?
A notary is effectively mandatory in Costa Rica because only a notary public can prepare and authenticate the transfer deed (escritura) and submit it for registration at the Public Registry, which is how your ownership becomes official.
The key difference is that in Costa Rica, notaries are licensed attorneys with additional authority to certify documents and register property transfers, whereas a separate lawyer (if you hire one) would handle negotiations, due diligence, and protecting your interests during the transaction.
When hiring a lawyer or notary, make sure their scope explicitly includes a full title search at the Registro Nacional, verification of liens and encumbrances, review of any concession status (if coastal), and confirmation that property taxes and municipal fees are current.
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 checks should I run so I don't buy a problem property in Costa Rica?
How do I verify title and ownership history in Costa Rica right now?
The official registry to verify title and ownership in Costa Rica is the Registro Nacional (National Registry), which maintains records of all titled properties, their owners, and any recorded encumbrances.
The key document you need is the "informe registral" (registry report), which shows the current registered owner, the property's folio real (registration number), boundary lines, tax appraisal, and any mortgages, liens, or annotations affecting the title.
Buyers commonly review 10 to 20 years of ownership history to check for gaps, disputes, or irregularities, though your attorney may recommend a longer look-back for older properties or those with complex histories.
A major red flag that should stop or pause your purchase is any discrepancy between the registry records and the cadastral survey (from SIRI), unresolved annotations or legal disputes, evidence of squatter claims, or a title chain that shows irregular transfers.
You will find here the list of classic mistakes people make when buying a property in Costa Rica.
How do I confirm there are no liens in Costa Rica right now?
The standard way to confirm there are no liens or encumbrances on a property in Costa Rica is to request a certified "informe registral" (registry report) from the Registro Nacional, which lists all recorded mortgages, liens, annotations, and other claims against the property.
One common type of lien to specifically ask about is unpaid municipal property taxes (impuesto de bienes inmuebles), because these debts attach to the property and the registry will not complete a transfer until they are cleared.
The best written proof of lien status is a current certification from the Registro Nacional dated within 30 days of closing, combined with a certificate from the local municipality confirming all property taxes and assessments are paid.
How do I check zoning and permitted use in Costa Rica right now?
The authority to check zoning and permitted use in Costa Rica is the local municipality (Municipalidad) where the property is located, as each canton sets and enforces its own land-use regulations.
The document that confirms zoning classification is the municipal "uso de suelo" certificate, which states what activities are permitted on the property (residential, commercial, agricultural, etc.) and any building restrictions.
A common zoning pitfall that foreign buyers miss in Costa Rica is buying property intended for a vacation rental only to discover that the municipal zoning or HOA rules prohibit short-term rentals, or purchasing near the coast without realizing the land falls within the restricted Maritime Zone.
Buying real estate in Costa Rica can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Costa Rica, and on what terms?
Do banks lend to foreigners for homes in Costa Rica in 2026?
As of early 2026, yes, some Costa Rican banks do offer mortgages to foreigners, but approval is significantly more difficult than for residents and typically requires higher down payments and more extensive documentation.
Foreign borrowers in Costa Rica can generally expect loan-to-value ratios between 50% and 70%, meaning you will need a down payment of 30% to 50% of the purchase price, with non-residents usually at the higher end of that range.
The most important eligibility factor is whether you have legal residency in Costa Rica, because residents get better terms (lower down payments, lower rates), while non-residents face stricter requirements including verified income, bank statements, and sometimes a local banking relationship.
You can also read our latest update about mortgage and interest rates in Costa Rica.
Which banks are most foreigner-friendly in Costa Rica in 2026?
As of early 2026, the banks most commonly cited as foreigner-friendly for mortgages in Costa Rica are BAC San Jose (BAC Credomatic), Banco Lafise, and Banco BCT, all of which have programs specifically designed for international buyers.
What makes these banks more foreigner-friendly is that they have English-speaking staff, established processes for verifying foreign income and credit, and mortgage products in US dollars, which reduces currency risk for North American and European buyers.
These banks will lend to non-residents, but expect stricter terms: typically 50% to 60% loan-to-value ratios, terms up to 20 years, and interest rates starting around 7.75% to 8.75% for the first years before adjusting to a variable rate.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Costa Rica.
What mortgage rates are foreigners offered in Costa Rica in 2026?
As of early 2026, foreigners in Costa Rica can expect mortgage interest rates ranging from about 7% to 10% for USD-denominated loans from traditional banks, with rates at the higher end for non-residents or borrowers with less documentation.
Fixed-rate mortgages in Costa Rica typically offer a lower rate for the first one to two years (often around 7.75% to 8.75%), then convert to a variable rate tied to a benchmark like SOFR plus a spread, which means your payments could increase over time compared to a true fixed-rate loan common in the United States.
We made this infographic to show you how property prices in Costa Rica compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Costa Rica?
What are the total closing costs as a percent in Costa Rica in 2026?
Total closing costs for buying property in Costa Rica in 2026 typically fall between 4% and 7% of the purchase price, depending on the property value, complexity of the transaction, and how costs are split between buyer and seller.
For most standard residential purchases, you can budget for closing costs in the range of 3.5% to 6%, with simpler transactions at the lower end and those involving coastal properties, corporations, or financing at the higher end.
The specific fee categories that make up closing costs in Costa Rica include the transfer tax (1.5%), notary fees (1% to 2%), legal fees (1% to 1.5%), stamp duties and documentary fees (0.5% to 0.8%), and registration fees at the Public Registry (around 0.5%).
The single largest contributor to closing costs is the transfer tax (Impuesto de Traspaso) at 1.5% of the registered property value, which is a mandatory government tax collected at every property transfer.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Costa Rica.
What annual property tax should I budget in Costa Rica in 2026?
As of early 2026, annual property tax in Costa Rica is 0.25% of the registered municipal value, so for a property with a registered value of $200,000 you would pay about $500 per year (roughly 260,000 colones or 460 euros at current exchange rates).
Property tax in Costa Rica is assessed as a percentage of the property's registered value (not necessarily market value), which is determined by the purchase price or a municipal appraisal, and taxes are collected quarterly by the local municipality where the property is located.
How is rental income taxed for foreigners in Costa Rica in 2026?
As of early 2026, rental income from Costa Rican property is taxed at 15% on 85% of gross rental income under the simplified system, which results in an effective rate of about 12.75% for foreign non-resident owners.
Foreign owners must either file an annual rental income declaration with the Ministerio de Hacienda, or if they use a property management company, the company may be required to withhold taxes on their behalf and remit them to the tax authority.
What insurance is common and how much in Costa Rica in 2026?
As of early 2026, annual home insurance premiums in Costa Rica typically range from 0.20% to 0.60% of the property's rebuild value, so for a home with a $200,000 rebuild value you might pay $400 to $1,200 per year (roughly 210,000 to 625,000 colones, or 370 to 1,100 euros).
The most common type of property insurance in Costa Rica is a comprehensive homeowner's policy that covers the structure against fire, theft, and natural disasters, with separate coverage often needed for contents, liability, and earthquake damage.
The biggest factor that makes insurance premiums higher in Costa Rica is the property's location and exposure to natural risks, with coastal properties in Guanacaste or the Caribbean facing higher premiums due to hurricane, flood, and wind risks compared to Central Valley homes.
Get the full checklist for your due diligence in Costa Rica
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Costa Rica, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Costa Rica Official Gazette (La Gaceta) - Law No. 9996 | It's the official publication channel for Costa Rican laws. | We used it to confirm the $150,000 investor residency threshold and that real estate qualifies. We also used it to verify the legal framework for foreign ownership. |
| FAOLEX (UN/FAO) - Law No. 7509 | FAOLEX republishes official legal texts in a verifiable way. | We used it to confirm the 0.25% annual property tax rate. We used it as our anchor for all property tax calculations. |
| Ministerio de Hacienda - Transfer Tax Guide | It's the tax authority explaining its own tax. | We used it to confirm the 1.5% transfer tax rate and how it's calculated. We used it to ground our closing cost estimates in official figures. |
| Colegio de Abogados y Abogadas de Costa Rica | It's the professional body that sets binding notary fee schedules. | We used it to estimate the notary and legal portion of closing costs. We cross-checked our fee ranges against this official schedule. |
| Ley 6043 - Zona Maritimo Terrestre | It's the primary law governing coastal zone concessions. | We used it to explain why beachfront can mean concession rights, not full title. We used it to flag the biggest ownership trap for foreigners. |
| Registro Nacional - Certification Portal | It's the official entry point for Costa Rica's property registry. | We used it to explain how buyers verify title, liens, and ownership. We used it to make our due diligence section actionable. |
| Registro Nacional - SIRI Cadastral System | It's the government's official cadastral and mapping system. | We used it to show how buyers cross-check property boundaries. We explained how to spot "catastro vs. registro" mismatches. |
| Banco Central de Costa Rica - Interest Rate Indicators | It's the central bank publishing official rate benchmarks. | We used it to establish realistic mortgage rate ranges. We used it as a reality check against bank marketing claims. |
| Ministerio de Hacienda - Capital Income Tax Presentation | It's the tax authority presenting the rental income tax regime. | We used it to explain how rental income is taxed under the capital income framework. We built conservative tax estimates foreigners can budget for. |
| Banco Nacional - Mortgage Calculator | It's a major state bank's official lending tool. | We used it to validate how rates are structured in practice. We used it as triangulation for our mortgage section. |
| Municipalidad de Guarco - Property Tax FAQ | Municipalities are the actual collectors of property tax. | We used it to confirm how the 0.25% rate is applied in practice. We used it as a plain-language cross-check on the statute. |
| Banco Central - Maximum Interest Rate Framework | It's the central bank publishing legal rate caps. | We used it as guardrails for realistic mortgage rate ranges. We sanity-checked our estimates against these legal maximums. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Costa Rica. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.