How does home ownership work 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?

THELATINVESTOR

A team specialized in real estate investing in Latin American countries (Costa Rica, Mexico, Colombia, Brazil, etc.).

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 TheLatinvestor, 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, Escazú, and Guanacaste. 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 foreigners legally own property in Costa Rica, and are there any restrictions compared to locals?

Foreigners have exactly the same property ownership rights as Costa Rican citizens.

You can own residential, commercial, and agricultural properties outright in your own name or through a corporation. There are no citizenship requirements, residency requirements, or special permits needed to purchase real estate in Costa Rica.

The main restriction applies only to properties in the Maritime Zone, which is the first 200 meters from the high tide line along the coast. The first 50 meters are public property and cannot be owned by anyone. The next 150 meters can be leased through a government concession, but foreign individuals cannot own more than 49% of a concession's rights.

Outside the Maritime Zone, which covers the vast majority of Costa Rica's territory, foreigners enjoy complete property ownership rights identical to those of Costa Rican nationals.

Do I need to have Costa Rican residency or a visa to buy property there?

No residency or special visa is required to purchase property in Costa Rica.

You can buy property as a tourist using just your passport. Property ownership does not automatically grant residency status, but it can qualify you for investor residency if you invest a minimum of $150,000 in real estate. As of June 2025, this remains one of the most accessible investment residency programs in Central America.

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

Is it necessary to be physically present in Costa Rica to complete a property purchase, or can I do it remotely?

Physical presence is not required to complete a property purchase in Costa Rica.

You can complete the entire transaction remotely by granting a Power of Attorney to a trusted representative or attorney in Costa Rica. This representative can handle all aspects of the transaction on your behalf, including signing documents, transferring funds, and registering the property.

The Power of Attorney must be properly notarized and apostilled in your home country, then translated into Spanish by an official translator in Costa Rica. Many foreign buyers successfully purchase properties without ever visiting Costa Rica during the transaction process.

What are the key steps and required documents in the property buying process in Costa Rica?

The Costa Rican property buying process follows six essential steps.

Step	Process	Timeframe
1. Property Selection	Find property and make formal offer	1-4 weeks
2. Purchase Agreement	Sign sale contract with terms	1-2 weeks
3. Escrow Deposit	Deposit 10% of purchase price	1-3 days
4. Due Diligence	Attorney checks title, liens, permits	2-4 weeks
5. Closing	Notary drafts transfer deed	1-2 weeks
6. Registration	Property registered in National Registry	2-4 weeks

Required documents include a copy of your passport, Power of Attorney if not present, proof of funds or bank statement, title search results, current survey map, and proof of up-to-date property taxes.

Do I need to hire a local lawyer or notary to buy property, and what role do they play?

Hiring a local attorney who is also a notary public is absolutely essential and required by law.

In Costa Rica, only a notary public who must be a licensed attorney can legally draft and register property transfer deeds. They conduct comprehensive due diligence including title searches, lien checks, verification of property boundaries, and ensuring all permits and taxes are current.

Your attorney-notary protects your interests throughout the transaction, ensures compliance with Costa Rican property law, handles the escrow process, and registers the new ownership in the National Registry. Never attempt to purchase property without qualified legal representation.

What are the total taxes, legal fees, and additional costs when purchasing and reselling a property?

Total closing costs when purchasing property in Costa Rica typically range from 4% to 6% of the purchase price.

Cost Type	Percentage/Amount	Details
Transfer Tax	1.5%	Of property value
Legal/Notary Fees	1%-1.5%	Of property value
Registration Stamps	0.85%-1%	Documentary fees
Escrow Fees	$400-$1,200	Optional service
Survey/Inspection	$500-$1,500	Property verification

When selling property, costs include a 6% real estate commission, 15% capital gains tax on the profit (with exemptions for primary residence), and shared closing costs of 4%-6% between buyer and seller.

Can foreigners get a mortgage in Costa Rica, and what are the typical rates, terms, and conditions?

Foreigners can obtain mortgages in Costa Rica, but the process is challenging and requirements are strict.

Local banks require large down payments of 25% to 50%, extensive documentation of income and assets, and strong credit history. Interest rates for foreigners typically range from 8% to 10% annually, with terms up to 20-25 years. Banks like BAC Credomatic offer specific programs for non-residents, but all documentation must be translated into Spanish and notarized.

Many foreign buyers opt for owner financing arrangements instead, where the seller acts as the bank and provides financing terms directly. This often results in more flexible terms and faster closing processes.

Which regions or cities are most popular with foreign buyers, and why?

Five regions dominate foreign buyer preferences in Costa Rica as of mid-2025.

1. **Guanacaste Province** (Tamarindo, Flamingo, Playas del Coco): Famous for pristine beaches, established tourism infrastructure, and strong rental income potential from vacation properties.2. **Central Valley** (Escazú, Santa Ana, San José): Offers urban amenities, international schools, quality healthcare, and consistent property appreciation due to economic stability.3. **Nicoya Peninsula** (Nosara): Known for wellness communities, eco-friendly developments, and a thriving expat community focused on sustainable living.4. **Central Pacific** (Jaco): Popular for nightlife, surfing, and easy accessibility to San José, making it attractive for both investment and lifestyle purposes.5. **Southern Zone** (Dominical, Uvita, Ojochal): Attracts buyers seeking sustainable living, nature immersion, and emerging eco-tourism opportunities.

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.

Where are the best places in Costa Rica for lifestyle, rental income, or long-term capital appreciation?

The best locations depend on your primary investment objective.

For **lifestyle purposes**, Escazú offers luxury urban living with international amenities, while Nosara provides wellness-focused eco-friendly communities, and Guanacaste delivers beachfront relaxation with modern conveniences.

For **rental income**, Tamarindo, Playas del Coco, and Jaco generate the highest short-term rental yields due to heavy tourism traffic, with annual rental yields ranging from 6% to 12% for well-located properties.

For **capital appreciation**, the Central Valley areas of Escazú and Santa Ana show the most consistent long-term growth, along with beachfront properties in Guanacaste and emerging eco-communities that benefit from Costa Rica's growing reputation as a sustainable tourism destination.

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

What are the current average property prices in different parts of Costa Rica, like San José, Guanacaste, or the Pacific Coast?

Property prices in Costa Rica vary significantly by location and property type as of June 2025.

In the **Central Valley** including San José, Escazú, and Santa Ana, apartments range from $150,000 to $500,000+, while houses start at $250,000 and can exceed $1 million in upscale neighborhoods like Escazú's premium areas.

**Guanacaste beach towns** command premium prices with condos ranging from $200,000 to $500,000, and luxury beachfront homes from $500,000 to over $3 million depending on proximity to the ocean and amenities.

The **Central Pacific Coast** including Jaco and Dominical offers more affordable options with condos from $150,000 to $400,000 and houses from $300,000 to $1 million+. The **Nicoya Peninsula** around Nosara features properties from $200,000 to $1 million+ depending on size and location.

What are the ongoing tax obligations or fiscal implications of owning property in Costa Rica, including rental income tax?

Property owners in Costa Rica face three main ongoing tax obligations.

**Property tax** is assessed annually at 0.25% of the registered property value, which is typically lower than market value. This tax is relatively low compared to many other countries and helps keep carrying costs manageable.

**Rental income tax** applies to all rental income generated from Costa Rican properties. If you own property personally, rental income is taxed as personal income. If held through a corporation, rental income is subject to corporate tax rates of 15% to 30% depending on income levels.

**Capital gains tax** of 15% applies to profits from property sales, but primary residence exemptions are available for properties held as your main home. Proper tax planning and corporate structures can help optimize your tax obligations legally.

What are the most common mistakes or pitfalls foreigners make when buying property in Costa Rica, and how can I avoid them?

The five most costly mistakes foreigners make can be easily avoided with proper preparation.

1. **Not hiring a qualified independent attorney**: Always use a reputable attorney-notary who works for you, not the seller or real estate agent.2. **Skipping title and boundary verification**: Ensure the property has a clear title and conduct a professional survey to confirm exact boundaries before closing.3. **Ignoring zoning and building regulations**: Verify current zoning allows your intended use and check that all existing structures have proper building permits.4. **Underestimating total costs**: Budget for all closing costs, ongoing taxes, maintenance, and potential infrastructure improvements.5. **Purchasing unregistered or concession land**: Avoid properties in the Maritime Zone or those without proper title registration in the National Registry.

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.

Sources

1. Tres Amigos Costa Rica - Foreign Property Ownership
2. RE/MAX Ocean Surf - Property Buying Guide
3. TheLatinvestor - Costa Rica Real Estate for Foreigners
4. Visit World Today - Foreign National Property Guide
5. TheLatinvestor - American Property Buyers Guide
6. Costa Rica Guide - Buying Process
7. Costa Rica Law - Common Buying Mistakes
8. Langston Realty - Transaction Costs
9. Brevitas - International Buyer Guide
10. TheLatinvestor - Housing Market Analysis