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 foreigners the same property ownership rights as locals, making it one of the most accessible real estate markets in Central America. Unlike many countries in the region, you don't need residency or a specific visa to purchase property, and the legal framework provides strong protections for international buyers.
Costa Rica's property market has attracted significant foreign investment, particularly from North Americans and Europeans seeking vacation homes, rental properties, or retirement destinations. The country's stable democracy, established legal system, and diverse geography from beaches to mountains create multiple investment opportunities.
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 property in Costa Rica with the same rights as locals, except in restricted Maritime Zones where ownership is limited to 49%. Property purchases can be completed remotely, and while residency isn't required, investing $150,000+ in real estate can qualify for investor residency.
Total closing costs typically range from 3.5% to 6% of the purchase price, including transfer taxes, registration fees, and legal expenses. Annual property taxes are 0.25% of registered value, with additional luxury taxes for properties over $250,000.
| Ownership Aspect | Foreigners | Details |
|---|---|---|
| Property Rights | Same as locals | Full ownership except Maritime Zone (49% max) |
| Residency Requirement | Not required | Can buy on tourist visa |
| Physical Presence | Not required | Power of attorney allows remote purchase |
| Transfer Tax | 1.5% | Same rate for all buyers |
| Annual Property Tax | 0.25% | Based on registered property value |
| Capital Gains Tax | 15% or 2.25% | 15% on profits or 2.25% of sale price |
| Mortgage Down Payment | 30-50% | Higher than locals, rates 7-10% |
Can foreigners legally buy property in Costa Rica, and are there any restrictions compared to locals?
Foreigners enjoy the same property ownership rights as Costa Rican citizens, with full legal protection under the country's constitution.
The only significant restriction applies to the Maritime Zone, which covers the first 200 meters from the high tide line along Costa Rica's coastlines. In these areas, foreign ownership is limited to a maximum of 49% of any property, while the remaining 51% must be owned by Costa Rican nationals.
Outside of Maritime Zones, foreigners can purchase any type of residential or commercial property with complete ownership rights. This includes condominiums, single-family homes, apartments, land parcels, and commercial buildings throughout the country.
As of September 2025, there are no additional restrictions based on nationality, investment amounts, or the number of properties a foreigner can own. The legal framework treats foreign buyers identically to local citizens in terms of property rights, inheritance laws, and the ability to sell or transfer ownership.
It's something we develop in our Costa Rica property pack.
What types of property ownership structures are available, and which ones are most common for foreigners?
Costa Rica offers three primary ownership structures that foreigners commonly use for property purchases.
Fee simple ownership (absolute title) provides direct personal ownership with your name on the property title. This structure offers the strongest legal rights and is the most straightforward option for primary residences or vacation homes.
Corporate ownership through a Costa Rican corporation has become increasingly popular among foreign buyers. The corporation holds the property title, and you own shares in the corporation. This structure provides asset protection benefits, easier property transfers through share sales, and potential tax advantages for rental properties.
Trust ownership ("fideicomiso") involves a Costa Rican trust company holding the property on your behalf. While less common than corporate ownership, trusts can provide additional privacy protection and estate planning benefits for high-value properties.
Most foreign buyers choose between personal ownership (40%) and corporate ownership (50%), with trust structures accounting for the remaining 10%. Corporate ownership is particularly favored for investment properties and by buyers planning multiple property purchases in Costa Rica.
Do you need to be a resident or hold a specific visa to buy property, and what are the residency options?
No residency status or specific visa is required to purchase property in Costa Rica - you can buy property even while visiting on a tourist visa.
However, investing in Costa Rican real estate can qualify you for residency through the Investor Residency program ("Inversionista"). This requires a minimum investment of $150,000 in real estate, though the property purchase alone doesn't automatically grant residency - you must apply separately through immigration authorities.
The Investor Residency provides a two-year temporary residency that can be renewed indefinitely as long as you maintain the investment. After three years of continuous residency, you can apply for permanent residency.
Other residency options include the Pensioner Program (requiring $1,000 monthly pension income) and the Rentier Program (requiring $2,500 monthly income from investments). These programs don't require property ownership but many participants choose to purchase real estate after obtaining residency.
As of September 2025, processing times for Investor Residency applications typically range from 6 to 12 months, depending on the completeness of documentation and current immigration workload.
Is it necessary to be physically present in Costa Rica to complete the purchase process?
Physical presence in Costa Rica is not required to complete a property purchase - the entire transaction can be finalized remotely.
The key to remote purchasing is granting power of attorney to a trusted representative in Costa Rica, typically your lawyer or real estate agent. This power of attorney must be notarized and authenticated through the Costa Rican consulate in your home country.
Your representative can sign all documents, attend the closing, make payments, and register the property transfer on your behalf. Many foreign buyers successfully complete purchases while remaining in their home countries throughout the entire process.
However, visiting the property and meeting your legal team in person is highly recommended before finalizing any purchase. This allows you to verify the property condition, understand the local market, and establish direct relationships with your Costa Rican legal and real estate professionals.
Remote closings typically add 2-4 weeks to the purchase timeline due to the additional documentation requirements and international coordination needed for power of attorney preparation and authentication.
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What is the step-by-step process to buy a property, and what documents are required at each stage?
The Costa Rican property buying process follows a structured five-step approach with specific documentation requirements at each stage.
Step 1: Property search and selection requires identifying properties through licensed real estate agents or direct seller contact. No formal documentation is needed at this stage, though pre-qualifying for financing can strengthen your position.
Step 2: Making an offer involves signing an Option to Purchase contract ("Contrato de OpciĂłn de Compra-Venta") with a deposit typically ranging from 5% to 10% of the purchase price. Required documents include your passport, proof of funds, and the signed option contract.
Step 3: Due diligence is conducted by your lawyer, who performs title searches, registry checks, zoning verification, and lien investigations. This stage requires the property's registered information and may take 2-4 weeks to complete thoroughly.
Step 4: Final purchase agreement preparation involves a Costa Rican notary public drafting the transfer deed and purchase contract. Documents needed include your passport, power of attorney (if buying remotely), proof of funds source, and the completed option contract.
Step 5: Closing and registration occurs when final payment is made and the deed is registered in the National Registry (Registro Nacional). This final step requires all previous documents plus bank transfer confirmations and payment receipts.
Is hiring a lawyer mandatory, and what should you look for when choosing one?
While Costa Rican law doesn't mandate hiring a lawyer for property purchases, it's strongly advisable and considered essential by experienced foreign buyers.
A qualified lawyer protects your interests by conducting thorough due diligence, verifying clear title, checking for liens or encumbrances, reviewing all contracts, and ensuring proper deed registration. Without legal representation, foreign buyers risk missing critical issues that could affect ownership rights.
When selecting a lawyer, prioritize bilingual attorneys with specific real estate experience and Costa Rican bar certification. Look for lawyers who can provide references from other foreign clients and demonstrate knowledge of international banking requirements for property purchases.
Key qualifications include membership in the Costa Rican Bar Association (Colegio de Abogados), at least 5 years of real estate law experience, fluency in your language, and familiarity with foreign buyer requirements. Many successful foreign buyers work with lawyers who specialize in international real estate transactions.
Legal fees typically range from 1% to 2% of the property purchase price, though this investment provides essential protection against costly mistakes that could far exceed the legal costs.
What taxes, fees, and other costs should you expect when buying and later selling a property?
| Cost Type | Rate/Amount | Details |
|---|---|---|
| Transfer Tax | 1.5% | Of purchase price, paid at closing |
| Registration Fee | 0.5% | National Registry recording fee |
| Legal Fees | 1-2% | Attorney and notary costs |
| Annual Property Tax | 0.25% | Based on registered property value |
| Luxury Tax | 0.55% | Properties over $250,000 registered value |
| Capital Gains Tax | 15% or 2.25% | 15% on profits or 2.25% of sale price |
| Rental Income Tax | 15% | On net rental income annually |
Can foreigners get a mortgage in Costa Rica, what are the usual rates and conditions, and how can you improve your chances of approval?
Several Costa Rican banks and private lenders offer mortgages to foreigners, though terms are less favorable than those available to local citizens.
Foreign buyers typically face down payment requirements of 30% to 50% of the property value, compared to 10% to 20% for Costa Rican nationals. Interest rates for foreigners range from 7% to 10% annually, usually on variable rate structures tied to Costa Rica's prime lending rate.
Loan terms extend up to 20 years for foreign borrowers, with some lenders limiting terms to 15 years for non-residents. Monthly payment calculations typically cannot exceed 30% of verified monthly income, and lenders often require income verification from both Costa Rican and international sources.
To improve approval chances, provide extensive documentation including tax returns from the past three years, bank statements showing consistent deposits, employment verification letters, and credit reports from your home country. Purchasing through a Costa Rican corporation can sometimes improve lending terms, as can establishing a banking relationship in Costa Rica before applying.
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 most popular areas for foreigners to live, rent out, or invest, and how do they compare for livability, rental yield, tourism demand, and capital growth forecasts?
Guanacaste Province, particularly areas like Tamarindo, Nosara, and Papagayo Peninsula, attracts the highest concentration of foreign buyers seeking beachfront properties and vacation rentals.
The Central Valley, including San JosĂ©, EscazĂș, and Santa Ana, appeals to expats prioritizing urban amenities, international schools, healthcare facilities, and year-round temperate climate. This region offers the most stable rental markets with consistent demand from business professionals and diplomatic personnel.
The Southern Zone, encompassing areas like Ojochal, Uvita, and Dominical, has emerged as a growing destination for eco-conscious buyers and those seeking more affordable coastal properties with strong appreciation potential.
Manuel Antonio and JacĂł provide established tourism infrastructure with proven rental markets, though property prices have reached premium levels. The Northern Zone around Arenal and La Fortuna offers adventure tourism rental opportunities with lower entry costs.
Rental yields vary significantly by location and property type: Guanacaste beach properties can achieve 5% to 8% annually through vacation rentals, Central Valley properties typically yield 4% to 6% through long-term rentals, and Southern Zone properties often yield 6% to 9% as the market develops.
What is the current breakdown of property prices by city and region, and how have they been trending recently?
As of September 2025, Costa Rican property prices vary dramatically by region, with coastal areas commanding premium pricing compared to inland locations.
Central Valley urban properties range from $150,000 to $500,000 for quality homes and condominiums in desirable neighborhoods like EscazĂș and Santa Ana. Luxury properties in exclusive developments can exceed $1 million, particularly those with mountain or city views.
Guanacaste Province shows the widest price range, with beachfront properties starting around $300,000 and luxury oceanfront homes reaching $2 million or more. Properties within walking distance of popular beaches like Tamarindo and Nosara typically range from $200,000 to $800,000.
The Southern Zone offers more affordable coastal access, with eco-properties and homes near beaches ranging from $180,000 to $600,000. This region has shown the strongest price appreciation over the past three years, with annual increases of 5% to 8%.
Property values have demonstrated steady appreciation of 3% to 7% annually in prime areas, driven by continued foreign demand, limited coastal inventory, and Costa Rica's stable economic environment. The post-pandemic period saw accelerated price growth as remote work enabled more international relocations.
What are the common mistakes or pitfalls buyers face in Costa Rica, and how can you avoid them?
The most frequent mistake foreign buyers make is purchasing property without engaging qualified legal representation familiar with Costa Rican real estate law.
Title verification failures represent another critical error, where buyers don't properly confirm clear ownership, existing liens, or boundary disputes. This can result in purchasing properties with legal complications that take years and significant expense to resolve.
Maritime Zone purchases without understanding restrictions cause problems when buyers assume they have full ownership rights. Properties in these coastal areas require special attention to ownership percentages and usage limitations.
Many buyers incorrectly assume that property ownership automatically grants residency rights. While real estate investment can qualify for investor residency, the application process is separate and requires meeting specific immigration requirements.
Inadequate budgeting for ongoing costs catches many buyers unprepared for annual property taxes, luxury taxes, homeowner association fees, property management costs, and maintenance expenses that can significantly exceed initial estimates.
1. Always hire experienced bilingual legal representation2. Conduct comprehensive title and boundary verification3. Understand Maritime Zone restrictions before coastal purchases4. Separate property purchase from residency planning5. Budget for all ongoing ownership costs6. Verify property access rights and utility connections7. Research neighborhood development restrictions and future plansWhat are the fiscal implications of owning property in Costa Rica, including income tax on rentals and capital gains tax on resale?
Costa Rican property ownership creates ongoing tax obligations that foreign owners must understand and plan for appropriately.
Annual property tax is assessed at 0.25% of the property's registered value, paid quarterly to municipal authorities. Properties valued over $250,000 trigger an additional luxury tax of 0.55% annually, calculated on the excess value above this threshold.
Rental income from Costa Rican properties is subject to 15% income tax on net rental income after allowable deductions. Deductions include property management fees, maintenance costs, advertising expenses, depreciation, and mortgage interest payments.
Capital gains tax applies when selling property, with owners choosing between two calculation methods: 15% of the actual profit (sale price minus purchase price and improvements) or 2.25% of the gross sale price. Most sellers opt for the 2.25% option as it's often more favorable and requires less documentation.
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 property market offers foreign buyers exceptional access and legal protections that surpass most Central American countries.
With proper legal guidance and thorough due diligence, foreign property ownership in Costa Rica provides both lifestyle and investment opportunities in a stable, democratic environment.
Sources
- C21 KS Investments - How to Buy Real Estate in Esterillos
- The Latinvestor - Costa Rica Real Estate for Foreigners
- Armenian Lawyer - Costa Rica Investment Migration Guide
- Henley Global - Costa Rica Residence by Investment
- Flamingo Beach Realty - Real Estate Ownership Guide
- Expat-tations - Property Ownership Structures
- GAP Investments - Foreign Land Ownership
- Quatro Legal - Non-Resident Property Ownership