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
Why is Costa Rica such a standout destination for real estate investment in 2025? Is it the stunning natural beauty, the stable political climate, or the attractive tax incentives for foreign investors? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Costa Rica's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
How this content was created 🔎📝
1) Costa Rica’s peaceful setting and stable democracy make it a magnet for international investors
Costa Rica has been a peaceful haven for investors since abolishing its military in 1948.
This decision has led to a stable democracy, making it the most peaceful country in Central America, according to the 2024 Global Peace Index. Investors are drawn to this security, even though Costa Rica ranked 58th out of 163 countries globally.
Strong governance and high scores in the Democracy Index reflect robust institutions and rule of law, which are key to its stability. This environment is a magnet for foreign investment, with FDI inflows hitting a record $3.921 billion in 2023 and a 42% increase in early 2024.
International businesses and expatriates often highlight political stability as a major investment factor. The influx of multinational companies setting up shop in Costa Rica underscores the appeal of its stable democracy.
Real estate is booming, with agencies noting rising property values and demand from foreign buyers. This trend is closely tied to Costa Rica's reputation as a safe and stable place to live and invest.
For those considering a move, Costa Rica offers a unique blend of peace and opportunity, making it a top choice for international investors seeking a secure environment.
Sources: Tico Times, Procomer, Green Circle Experience
2) Costa Rica’s location offers easy access to both Pacific and Caribbean beaches, perfect for diverse beach experiences
Costa Rica is a dream destination for beach enthusiasts with its unique access to both the Pacific and Caribbean coasts.
Imagine lounging on the serene Caribbean beaches one day and catching waves on the Pacific the next. This dual-coast access offers a diverse range of beach experiences that few places can match. Whether you're into surfing or just want to relax by the sea, Costa Rica has it all.
Getting to Costa Rica is easier than ever. Direct flights from major North American cities are on the rise, making it a convenient getaway. In 2023, the Juan Santamaría International Airport saw over 142,000 tourists, a testament to its growing accessibility.
Tourism is booming here. By mid-2024, Costa Rica welcomed over 1.5 million international visitors, marking a 14.5% increase from the previous year. This surge highlights the country's increasing allure for travelers worldwide.
Coastal resorts are buzzing with activity. During Easter Week in 2024, occupancy rates in Sun and Beach Hotels soared to 98%, showing just how much people love Costa Rica's beachside retreats.
With its stunning beaches and easy access, Costa Rica is a top choice for those seeking a tropical escape. The country's strategic location enhances its appeal, offering a perfect blend of relaxation and adventure.
Sources: Mordor Intelligence, Niko Rilifestyles, Tourism Review
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.
3) You can enjoy higher returns on your investment because there’s no capital gains tax on property sales
Investing in Costa Rican real estate offers a unique advantage due to the absence of capital gains tax on property sales.
In many countries, like the UK, investors face capital gains taxes ranging from 10% to 28%, which can eat into their profits. But in Costa Rica, you get to keep more of your earnings when you sell a property, making it a more appealing option for those looking to maximize returns.
Beyond tax benefits, Costa Rica's thriving tourism industry and stable political climate add to its allure. The steady flow of tourists boosts property demand, offering great potential for rental income and property appreciation.
Imagine owning a property in a place where the value is likely to rise, thanks to a constant influx of visitors and foreign investments. This scenario creates a win-win for investors, combining high returns with the freedom from capital gains tax.
For those eyeing real estate opportunities, Costa Rica stands out as an ideal destination. The combination of no capital gains tax and a booming tourism sector makes it a smart choice for savvy investors.
With these factors in play, Costa Rica offers a compelling case for real estate investment, providing a chance to enjoy significant returns without the usual tax burdens. It's a rare opportunity in the global property market.
Sources: Pura Vida Escrow and Trust, Osa Property Management
4) Costa Rica’s tech boom in San José is drawing young professionals, boosting demand for city homes
The tech scene in San José, Costa Rica, is booming, drawing in young professionals from all over.
With 16 of the top 100 global tech leaders setting up shop here, the city is becoming a tech hotspot. Intel's significant investments are a testament to this growth, making San José a magnet for tech talent.
In 2023, Costa Rica saw a record-breaking $3.921 billion in foreign direct investment, with the tech services sector alone growing by 187% from the previous year. This surge is not just numbers; it's creating real job opportunities and pulling skilled professionals into the area.
The Costa Rican government is also playing its part by offering digital nomad visas, which are enticing foreign investments and sparking a construction boom in tech hubs like San José. This is leading to a higher demand for urban housing as young professionals flock to the city.
These professionals are looking for vibrant city life, and San José is delivering. The city is buzzing with new construction projects, catering to the influx of tech-savvy residents who want to live where they work and play.
As more tech companies and professionals settle in, the demand for urban housing continues to rise, making San José a prime spot for property investment. The city's transformation into a tech hub is not just a trend; it's a shift that's reshaping the urban landscape.
Sources: Procomer, GAP Real Estate, CINDE
5) Costa Rica’s renewable energy focus makes it perfect for eco-conscious buyers seeking sustainable living
Costa Rica generates over 99% of its electricity from renewable sources, making it a leader in sustainable energy.
Even with a slight dip in 2023, Costa Rica remains committed to clean energy, focusing on maintaining high levels of renewable energy generation. This dedication is part of the country's broader strategy to prioritize sustainability.
The government actively supports renewable energy through policies that promote electromobility and decarbonization. A flexible national grid helps integrate more renewable power, making it easier for eco-conscious buyers to find homes that align with their values.
Internationally, Costa Rica is recognized as a climate leader, thanks to its long-term investments in hydropower and wind energy. These efforts have made the country a model for sustainable living, attracting those who prioritize environmental responsibility.
For potential property buyers, Costa Rica offers a unique opportunity to live in a place where sustainability is not just a buzzword but a way of life. The country's commitment to green energy solutions is a significant draw for those looking to invest in eco-friendly real estate.
With its impressive renewable energy achievements, Costa Rica continues to attract individuals who are keen on living in a country that aligns with their environmental values. This makes it an appealing destination for eco-conscious property buyers.
Sources: Tico Times, CIF News, Flamingo Beach Realty
Get to know the market before you buy a property in Costa Rica
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
6) Costa Rica’s high literacy rate supports a well-educated workforce and stable economy
Costa Rica's education system is a cornerstone of its stable economy, boasting one of the highest literacy rates in Latin America.
With a literacy rate of 98%, Costa Rica is a leader in education in the region. This commitment is evident in the country's investment in education, which in 2021 was 6.28% of its GDP, surpassing the world average. Such dedication has built a robust educational framework, even as the pandemic posed challenges.
Despite a dip in PISA scores during COVID-19, Costa Rica's education system remains strong. The country has expanded higher education, achieving a gross enrollment rate of 51%. This growth opens doors for young people, equipping them with skills that attract global companies.
English proficiency is a key focus, making Costa Rica an attractive destination for foreign direct investment. Companies like Intel and Amazon are drawn to the skilled and adaptable workforce that the education system produces.
For those considering buying property in Costa Rica, the country's commitment to education ensures a well-educated workforce and a stable economic environment. This stability is a significant factor for investors and residents alike.
Understanding Costa Rica's educational landscape offers insight into its economic resilience and potential for growth. The country's focus on education not only benefits its citizens but also enhances its appeal on the global stage.
Sources: Harvard Review, The Global Economy, The Borgen Project
7) Costa Rica’s rich biodiversity and national parks boost demand for eco-tourism vacation rentals
Costa Rica's stunning biodiversity and protected national parks make it a top choice for eco-tourism, driving up demand for vacation rentals.
Imagine waking up in an eco-lodge nestled in the heart of a lush rainforest. These accommodations are not just about comfort; they are about immersing guests in nature. Many of these places are committed to sustainability, using renewable energy and efficient waste management. This approach has led to a boom in sustainable tourism, with more travelers seeking out eco-friendly stays.
The Costa Rican government is a big player in this eco-friendly movement. They've rolled out initiatives like the Programme of Payments for Environmental Services, which has helped boost forest recovery rates to nearly 60% of the land. This commitment to conservation is evident in their marine efforts too, with protected areas expanding from 2% to 30% in 2021.
For those considering investing in property here, the rise in eco-tourism is a promising sign. Vacation rentals in Costa Rica are not just about providing a place to stay; they offer a unique experience that blends comfort with nature. This has led to increased occupancy rates for properties that prioritize sustainability.
With the tourism industry contributing significantly to the GDP, the influx of international visitors is no surprise. The appeal of Costa Rica's national parks, biological corridors, and nature reserves is undeniable. This natural allure is a key factor in the growing demand for vacation rentals, making it an attractive market for potential property buyers.
In Costa Rica, owning a vacation rental means more than just a financial investment. It's about being part of a movement that values and protects the environment. As eco-tourism continues to grow, so does the opportunity for property owners to offer unique, sustainable experiences to travelers from around the world.
Sources: La Shamana, Tico Times, Future Policy
8) Costa Rica’s top-ranked healthcare system offers peace of mind for expats and retirees planning long-term stays
Costa Rica's healthcare system is among the best in Latin America, offering peace of mind for those considering a move.
With its universal healthcare, known as the Caja Costarricense de Seguro Social (CCSS), everyone, including expats and retirees, gets access to comprehensive medical services without breaking the bank. This system is a big reason why many feel secure about their health needs here.
Several hospitals and clinics in Costa Rica have earned accreditation from the Joint Commission International (JCI), ensuring they meet high standards of care. This recognition highlights the country's dedication to maintaining top-notch healthcare services.
For those thinking about settling down, the strong healthcare infrastructure is a major draw. It’s not just about the quality of care but also the ease of access and affordability that make it appealing.
Living in Costa Rica means you can enjoy a reliable healthcare system that’s consistently ranked highly by the World Health Organization. This ranking reflects the solid foundation and trustworthiness of the services provided.
Sources: International Living, Statista
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.