Costa Rica: property buying guide (Sept 2025)

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.

What types of property can foreigners legally buy in Costa Rica, and are there any restrictions?

Foreigners can legally purchase most property types in Costa Rica with the same ownership rights as Costa Rican citizens.

You can fully own titled (fee simple) property including residential homes, condominiums, commercial buildings, and agricultural land without any nationality or residency requirements. This covers most properties in popular expat and tourist areas throughout the country.

The main restrictions apply to beachfront properties within the Maritime Zone. The first 50 meters from the high tide line belongs to the public and cannot be owned by anyone. The next 150 meters, known as concession land, can only be leased, and foreigners cannot directly own more than 49% of any concession.

Additional restrictions may apply to large agricultural parcels, properties in national parks, border zones, and islands. For agricultural investments, legal guidance is strongly recommended due to varying regulations.

Condominiums and developments are fully available to foreign buyers, though you must comply with HOA rules and community regulations.

Are there specific areas or property types where foreign buyers are most active?

Foreign buyers concentrate heavily in four main regions that offer the best combination of infrastructure, amenities, and investment potential.

Guanacaste Province leads foreign investment activity, particularly in Tamarindo, Nosara, Playa Flamingo, and the Liberia area. These locations offer established expat communities, direct flights to North America, and strong rental markets for both vacation and long-term tenants.

The Central Pacific region, including Jacó, Manuel Antonio, and Quepos, attracts buyers seeking beachfront properties with easy access to San José. These areas report some of the highest rental yields in the country, particularly for short-term vacation rentals.

The Nicoya Peninsula, especially Santa Teresa, Mal País, and Montezuma, has become increasingly popular among younger investors and digital nomads seeking more remote, surf-focused communities.

In the Central Valley, foreign buyers focus on upscale neighborhoods in Escazú, Santa Ana, and certain areas of San José for year-round living and proximity to international schools and healthcare facilities.

What is the step-by-step process for purchasing property in Costa Rica as a foreigner?

The Costa Rican property purchase process follows a structured six-step timeline that typically takes 2-8 weeks to complete.

First, you search for properties either independently or through a licensed real estate agent. Most agents speak English and understand foreign buyer needs, particularly in expat-heavy areas.

Second, you make a written offer or Letter of Intent and negotiate the purchase price with the seller. This stage establishes your serious intent and basic terms.

Third, you sign an Option to Purchase Agreement, which typically requires a 10% deposit held in escrow. This legally binds both parties and gives you time for due diligence while removing the property from the market.

Fourth, your Costa Rican real estate attorney conducts comprehensive legal due diligence, including title verification, property surveys, zoning compliance checks, and lien searches at the National Registry.

Fifth, you proceed to closing where you sign the transfer deed (Escritura de Traspaso) before a notary public, pay all applicable taxes and fees, and receive the keys.

Sixth, your attorney registers the property transfer at the National Registry, which typically takes 2-4 weeks to complete and provides you with official ownership documentation.

Which documents are mandatory to complete the purchase, and which ones are optional but recommended?

Document Category	Specific Documents	Purpose/Notes
Mandatory - Property	Property Survey (Plano Catastrado), Property Deed (Escritura de Traspaso)	Legal boundaries and ownership verification
Mandatory - Registry	Registry Certificate (Certificación Literal), Purchase Agreement	Current liens, debts, legal status
Mandatory - Compliance	Proof of Funds, Power of Attorney (if remote)	Anti-money laundering laws
Recommended - Legal	Corporation Documents (S.A.), Bank Reference Letters	Tax benefits, credibility verification
Recommended - Protection	Home Inspection Reports, Environmental Studies	Structural and environmental issues
Recommended - Insurance	Title Insurance, Property Insurance	Additional protection against claims

Can you buy property without being physically present in the country, and if so, how?

Yes, you can complete the entire property purchase process without being physically present in Costa Rica through a properly executed Power of Attorney.

You grant legal authority to your Costa Rican attorney or trusted representative through a Power of Attorney document that must be notarized and apostilled in your home country. This document allows your representative to sign all contracts, transfer documents, and handle closing procedures on your behalf.

Your attorney coordinates all aspects of the transaction including property inspections, due diligence reviews, contract negotiations, and the final closing ceremony. Modern technology allows you to review documents, communicate with all parties, and approve decisions remotely throughout the process.

Wire transfers handle all financial transactions, with funds typically flowing through registered escrow accounts managed by your attorney or notary public. This ensures compliance with anti-money laundering laws while protecting your funds until closing.

The remote purchase process adds approximately 1-2 weeks to the standard timeline due to international document preparation and verification requirements, but many foreign buyers successfully complete transactions this way.

What are the total costs, taxes, and fees involved in buying and owning property there?

Property acquisition costs in Costa Rica range from 3.5% to 6% of the purchase price, with ongoing ownership costs remaining relatively low.

1. **Transfer Tax**: 1.5% of the registered property value2. **Notary/Legal Fees**: 1.25-2% of purchase price 3. **Registration Fees**: 0.5% of property value4. **Government Stamps**: 0.25% of purchase price5. **Attorney Due Diligence**: $1,500-$3,000 flat fee

Annual property taxes equal 0.25% of the declared property value, making Costa Rica one of the lowest property tax jurisdictions in Central America. Properties valued above approximately $250,000 may face additional luxury property taxes.

When selling, you'll pay a 15% capital gains tax on profits or alternatively 2.25% of the total sale price. Most sellers choose the percentage option to avoid proving purchase costs and improvements.

Condominiums and gated communities charge monthly HOA fees ranging from $50 to $500 depending on amenities, security services, and maintenance requirements.

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

Is it possible to buy in cash, and how does that process work for foreigners?

Cash purchases are extremely common in Costa Rica and often preferred by sellers due to faster closing times and reduced financing complications.

You must demonstrate legitimate fund sources to comply with anti-money laundering regulations. This typically involves bank statements, wire transfer records, or documentation showing the origin of your funds, whether from property sales, business income, or investments.

Funds transfer through international wire transfers to registered escrow accounts managed by your attorney or notary public. Costa Rican banks and legal firms have established procedures for handling large international transfers from foreign buyers.

The cash purchase process eliminates mortgage approval delays, appraisal requirements, and financing contingencies, often reducing the total transaction timeline from 6-8 weeks to 3-4 weeks.

Your attorney coordinates the fund release from escrow only after all legal requirements are satisfied, title is clear, and all documents are properly executed, providing security for both buyer and seller throughout the transaction.

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

Mortgages are available to foreigners in Costa Rica, but the process is significantly more complex than cash purchases and often impractical for non-residents.

Costa Rican banks typically require foreign borrowers to have legal residency status, substantial income documentation, and significant down payments of 30-50%. Interest rates for foreigners range from 7-10% for dollar-denominated loans and higher for colón-denominated mortgages.

Loan terms usually extend 15-20 years maximum, compared to 30-year mortgages common in North America. Banks require extensive financial documentation including tax returns, employment verification, bank statements, and debt-to-income ratios below 30%.

Most international buyers choose alternative financing options including home equity loans from their domestic banks, private financing arrangements, or delayed payment plans directly with sellers. These options often provide better terms and fewer bureaucratic complications.

Local mortgage processing typically takes 60-90 days, significantly extending the purchase timeline compared to cash transactions. Many buyers find the combination of requirements and timeline makes cash purchases more attractive despite the larger upfront investment.

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.

Does buying property give you a path to residency or citizenship, and what are the requirements?

Property ownership alone does not automatically grant residency or citizenship in Costa Rica, but significant real estate investments can qualify you for Investor Residency status.

The Inversionista (Investor) Residency program requires a minimum investment of $150,000 USD in Costa Rican real estate. The property must be registered in your name or through a Costa Rican corporation you control, with no mortgages or liens against the investment amount.

Investor Residency provides legal resident status renewable every two years, allowing you to live in Costa Rica indefinitely, work legally, and access certain social services. However, this residency does not lead directly to citizenship, which requires separate naturalization processes.

Additional requirements include police clearance certificates from your home country and any country where you've lived for more than three years, proof of the real estate investment through Registry documentation, and payment of government processing fees.

The residency application process typically takes 6-12 months and requires maintaining the investment throughout your residency period. Many investors view this as an additional benefit rather than the primary motivation for property purchases.

What are the most common mistakes and pitfalls foreigners face when buying in Costa Rica?

The most costly mistake foreign buyers make is skipping comprehensive due diligence or hiring inadequate legal representation.

1. **Title Issues**: Failing to verify clear title through National Registry searches, missing liens, boundary disputes, or inheritance problems2. **Beachfront Confusion**: Misunderstanding concession versus titled land, particularly in coastal areas where ownership rules differ significantly3. **Survey Problems**: Accepting outdated surveys or skipping new boundary confirmations, leading to property line disputes with neighbors4. **HOA Surprises**: Underestimating community fees, special assessments, or restrictive covenants in developments and gated communities5. **Cost Underestimation**: Failing to budget for full closing costs, ongoing taxes, maintenance, and management expenses6. **Unregistered Deals**: Falling for "bargain" properties that aren't properly registered or have questionable legal status

Many buyers also rush the process due to vacation timeline pressures or fear of losing "perfect" properties, leading to inadequate research and expensive corrections later.

The most successful foreign buyers spend 2-3 months researching the market, visiting multiple times, building relationships with reputable professionals, and conducting thorough due diligence before committing to purchases.

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

What is life like for expats in Costa Rica, including lifestyle, safety, and integration?

Costa Rica offers an exceptional quality of life for expats with its "pura vida" lifestyle focused on outdoor activities, environmental consciousness, and work-life balance.

The country provides year-round outdoor recreation including world-class surfing, hiking, wildlife viewing, and adventure sports. Large established expat communities exist throughout popular areas, providing social networks, English-speaking services, and cultural familiarity for newcomers.

Safety levels are generally good, particularly in expat-heavy areas with private security and community oversight. Petty theft and break-ins can occur in tourist zones, but violent crime rates remain low compared to neighboring countries. Basic security precautions and awareness are sufficient for most situations.

Integration requires varying effort depending on location and language skills. Learning Spanish significantly improves daily life, business opportunities, and relationships with local communities. Many areas are highly accustomed to foreign residents, making initial transition easier.

Healthcare quality is excellent and affordable, with both public and private systems available. International schools serve expat families, and modern infrastructure supports remote work and digital nomad lifestyles in major population centers.

What are the current yields, average property prices, and long-term real estate market forecasts?

Property Type/Location	Average Price Range	Typical Rental Yield
Tamarindo Condos	$200,000 - $500,000	6-10% annual
Manuel Antonio Villas	$400,000 - $1,200,000	5-8% annual
Central Valley Homes	$250,000 - $600,000	4-6% annual
Santa Teresa Properties	$300,000 - $800,000	8-12% annual (seasonal)
Nosara Development Lots	$150,000 - $400,000	N/A (appreciation play)
Luxury Beachfront	$1,000,000 - $3,000,000+	4-7% annual

As of September 2025, the Costa Rican real estate market shows continued strength driven by international investment, remote work trends, and the country's political stability. Properties in prime locations continue appreciating 3-5% annually, with some beach markets seeing higher growth rates.

Short-term vacation rental yields reach 8-12% in popular tourist destinations, while long-term rental yields typically range 5-8% depending on location and property type. The strongest rental markets exist in areas with established tourism infrastructure and international airport access.

Long-term forecasts through 2027 predict continued upward price trends, particularly for sustainable, eco-friendly properties that align with Costa Rica's environmental focus. Limited beachfront supply and increasing international demand support price appreciation in coastal areas.

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. The LatinvestOr - Costa Rica Real Estate for Foreigners
2. Flamingo Beach Realty - Foreign Property Ownership
3. Drink Tea Travel - Property Buying Guide
4. HRG Vacations - Property Buying Guide
5. eSales International - Market Outlook 2025
6. 2 Costa Rica Real Estate - Rental Market Insights
7. Global Property Guide - Costa Rica
8. LinkedIn - Property Purchase Process
9. Senderos Costa Rica - Buying Guide
10. Shift Esperanza - Real Estate Investment