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
Foreigners can legally buy most types of property in Costa Rica with full ownership rights, on the same terms as Costa Rican citizens. There are virtually no restrictions based on nationality or residency when it comes to purchasing titled land, which includes residential, commercial, and agricultural properties. The main limitation applies to beachfront land in the Maritime Zone, where special regulations require majority Costa Rican ownership for concession properties.
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.
Costa Rica offers one of the most foreigner-friendly property ownership frameworks in Latin America, with full ownership rights for titled land and minimal restrictions.
The only significant limitation involves beachfront properties in the Maritime Zone, where foreigners can own maximum 49% of concession land.
| Aspect | Foreigners | Costa Rican Citizens |
|---|---|---|
| Titled Land Ownership | Full ownership rights | Full ownership rights |
| Residency Required | No | Not applicable |
| Physical Presence for Purchase | No (power of attorney allowed) | No |
| Maritime Zone (first 50m) | Cannot own (public land) | Cannot own (public land) |
| Maritime Zone (51-200m) | Maximum 49% concession ownership | Full concession rights |
| Agricultural Land | Full ownership (except protected areas) | Full ownership |
| Closing Costs | 3.5-6% of purchase price | 3.5-6% of purchase price |
Can foreigners legally buy property in Costa Rica and are there any restrictions compared to locals?
Foreigners can legally buy most types of property in Costa Rica with full ownership rights, exactly the same as Costa Rican citizens.
There are virtually no restrictions based on nationality or residency when purchasing titled (fee simple) land, which includes residential, commercial, and agricultural properties. As of September 2025, non-residents can purchase real estate even on a tourist visa without any special permits or requirements.
The main limitation applies to land in the Maritime Zone, which covers the first 200 meters from the high tide line on beaches. The first 50 meters are public land that cannot be owned by anyone, while the next 150 meters are concession land where foreigners can own maximum 49% of a concession. This means you need a Costa Rican partner or corporation holding the majority stake for beachfront concession properties.
All other property types including urban residential, commercial buildings, agricultural land, and inland properties can be owned 100% by foreigners with no restrictions whatsoever.
Are there specific visa or residency requirements to own property as a foreigner in Costa Rica?
No visa or residency requirements exist to own property in Costa Rica as a foreigner.
You can purchase real estate while on a tourist visa during a short stay, and many foreigners complete property purchases without ever obtaining residency status. Costa Rica's property ownership laws are among the most liberal in Latin America regarding foreign ownership.
Even non-residents living abroad can own Costa Rican property indefinitely without maintaining any connection to the country beyond the property ownership itself. There are no requirements to visit the property regularly, maintain a bank account, or demonstrate ties to Costa Rica.
However, if you plan to live in Costa Rica long-term, obtaining residency can provide benefits like easier banking, employment opportunities, and eventual citizenship eligibility after specific timeframes.
Do you need to be physically present in Costa Rica to complete a property purchase?
Physical presence in Costa Rica during the property transaction is not required.
The entire purchase process can be completed remotely through a power of attorney assigned to a trusted representative or attorney in Costa Rica. Many foreign buyers successfully purchase properties without ever visiting the country during the transaction process.
Your appointed representative can sign documents, attend closings, and complete the property registration on your behalf. The power of attorney must be properly notarized and authenticated through the Costa Rican consulate in your home country or through an apostille process.
While remote purchasing is legally possible, many buyers prefer to visit the property and meet their legal team in person before finalizing major real estate investments. This allows for better due diligence and relationship building with local professionals.
What is the exact step-by-step legal process for buying property in Costa Rica and which documents are required?
The Costa Rican property purchase process follows seven essential steps with specific documentation requirements.
| Step | Action | Required Documents |
|---|---|---|
| 1 | Find reliable realtor experienced with foreign buyers | None initially required |
| 2 | Make offer and negotiate price with seller | Passport identification, proof of funds |
| 3 | Hire Costa Rican real estate lawyer for due diligence | Power of attorney (if purchasing remotely) |
| 4 | Conduct title search, verify liens, confirm boundaries | Property documents from seller |
| 5 | Sign purchase-sale agreement with 10% deposit in escrow | Sale and purchase contract, bank transfer receipts |
| 6 | Closing before Costa Rican notary public | Full payment documentation, transfer tax payments |
| 7 | Register property in Public Property Registry | Notarized transfer documents, registration fees |
Is hiring a lawyer mandatory for property purchases in Costa Rica and what is their role in the process?
Hiring a Costa Rican lawyer is not legally mandatory but is practically essential and universally recommended.
The lawyer's critical responsibilities include conducting the title search in the National Property Registry, performing legal due diligence to verify the property is free of liens or encumbrances, preparing the purchase contract, and overseeing the closing process. Most importantly, only a Costa Rican notary can register the property transfer, and most lawyers also serve as notaries.
Without proper legal representation, buyers risk purchasing properties with hidden debts, unclear titles, or regulatory violations that could result in significant financial losses. The lawyer ensures compliance with all local regulations and protects your interests throughout the transaction.
It's something we develop in our Costa Rica property pack.
Legal fees typically represent a small portion of the overall transaction costs but provide essential protection for what is likely your largest investment in Costa Rica.
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What taxes, fees, and other costs apply when buying and later reselling a property in Costa Rica?
Property purchase and ownership in Costa Rica involves several taxes and fees that buyers must factor into their investment calculations.
Closing costs typically range from 3.5% to 6% of the purchase price, including transfer tax (1.5%), legal fees (1-2%), notary fees (0.5-1%), and registration fees (0.5%). These costs are generally split between buyer and seller according to the purchase agreement.
Annual property tax is 0.25% of the municipal assessed value, plus a luxury tax for properties valued over $250,000-300,000 at progressive rates. Rental income from Costa Rican properties is subject to 15% tax on gross rental income for non-residents.
When selling property, capital gains tax applies at 15% on profits or 2.25% of the sale price, whichever is lower depending on circumstances. These rates are competitive compared to many other countries and make Costa Rica attractive for real estate investment.
Can foreigners get a mortgage in Costa Rica and what are the typical rates, conditions, and best practices to qualify?
Some Costa Rican banks offer mortgages to foreigners, but approval is significantly more difficult without residency or verifiable local income.
Typical mortgage rates for foreigners range from 7% to 9% annually, which is higher than North American or European standards. Banks typically require larger down payments of 30-50% for non-residents compared to 20-30% for residents.
Qualifying requirements include documentation of foreign income, asset verification, bank reference letters from your home country, and proof of debt-to-income ratios. The approval process can take 60-90 days and requires extensive paperwork translation and authentication.
Most foreign buyers instead use cash purchases, private lending from developers, or seller financing arrangements which offer more flexibility and faster closing times. This approach also strengthens your negotiating position with sellers who prefer guaranteed cash transactions.
Which regions and cities in Costa Rica are considered the best for living, rental income, or long-term capital appreciation according to the latest data?
Guanacaste Province leads for rental income and capital appreciation, particularly beach towns like Tamarindo and Nosara.
The Central Valley, including San JosĂ© suburbs like EscazĂș and Santa Ana, offers the best combination of urban amenities, infrastructure, and strong expat communities for year-round living. These areas provide reliable rental demand from both local professionals and international relocators.
The Southern Zone, including Ojochal and Uvita, is rising in popularity for eco-lifestyle retreats and shows strong growth potential as infrastructure improves. These areas offer lower entry costs with significant appreciation potential.
Jaco, Manuel Antonio, Samara, and Grecia each serve different market segments with tourist-friendly locations providing strong short-term rental income, while inland areas offer more affordable long-term living options with steady appreciation.
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 current average property prices in major Costa Rican cities and regions?
Property prices in Costa Rica vary significantly by location, with beachfront areas commanding premium prices and inland regions offering more affordable options.
| Region/City | Average Price (2-bedroom home/unit) | Market Characteristics |
|---|---|---|
| Tamarindo/Nosara | $350,000 - $850,000 | High-end beach market, strong tourism |
| Santa Ana/EscazĂș | $250,000 - $600,000 | Upscale suburbs, expat-friendly |
| Jaco Beach | $150,000 - $400,000 | Tourist hotspot, rental potential |
| San José (urban) | $120,000 - $400,000 | Capital city, business center |
| Uvita/Dominical | $300,000 - $600,000 | Emerging eco-destinations |
| Rural/small towns | $80,000 - $200,000 | Affordable, growing infrastructure |
What is the latest liveability index, gross rental yields, rental income potential, tourism numbers, and growth forecast for top areas?
Costa Rica's rental market shows strong performance with gross rental yields ranging from 5% to 8% in tourist hotspots, reaching up to 12% for well-managed short-term vacation rentals.
Tourism arrivals exceeded 3 million visitors in 2024, sustaining high rental demand particularly in Pacific beach towns and adventure tourism destinations. The country's stable democracy, good infrastructure, and proximity to North America continue attracting both tourists and permanent relocators.
Growth outlook for 2025 remains stable to positive, driven by continued foreign investment, the rise of remote work enabling more international buyers, and ongoing infrastructure improvements including new highways and airport expansions.
It's something we develop in our Costa Rica property pack.
The Central Valley maintains the highest liveability scores due to healthcare access, international schools, and year-round temperate climate, while coastal areas excel in rental income potential from vacation and retirement markets.
What common mistakes and legal pitfalls should foreign buyers avoid when purchasing property in Costa Rica?
The most critical mistake is failing to conduct comprehensive title searches and due diligence before purchasing.
Common pitfalls include:
- Buying concession property in the Maritime Zone without understanding ownership restrictions and government approval requirements
- Not using a qualified Costa Rican lawyer and notary for legal representation and document preparation
- Overlooking unpaid property taxes, municipal liens, or existing squatters' rights that could affect ownership
- Relying solely on unlicensed realtors or informal "handshake" agreements without proper contracts
- Failing to verify property boundaries and survey accuracy, leading to boundary disputes with neighbors
These mistakes can result in significant financial losses, legal complications, or even complete loss of property rights in extreme cases involving squatters or invalid titles.
Are there legal differences in property ownership for beachfront, agricultural, or protected land in Costa Rica?
Significant legal differences exist between property types, with beachfront properties having the most restrictions.
Titled land (fee simple) offers full ownership with the least risk and no special restrictions for foreigners. Beachfront properties in the Maritime Zone operate under special regulations where the first 50 meters from high tide are public land that cannot be privately owned, and the next 150 meters are concession land requiring government approval and majority Costa Rican ownership.
Agricultural land can be fully owned by foreigners except when located in protected nature reserve zones or areas subject to environmental restrictions. These properties may face usage limitations or potential government expropriation for conservation purposes.
It's something we develop in our Costa Rica property pack.
Protected land near national parks or biological reserves cannot be privately owned and may face strict usage limits or expropriation. Always verify the property's classification and any environmental restrictions before purchasing.
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 offers one of the most accessible and foreigner-friendly property ownership frameworks in Latin America, making it an attractive destination for both investment and relocation purposes.
With proper legal guidance and thorough due diligence, foreign buyers can successfully navigate the purchase process and benefit from the country's stable political environment, growing tourism sector, and strong rental market potential.
Sources
- Wise - Buy Land in Costa Rica
- The LatinVestor - Costa Rica Real Estate for Foreigners
- CRIE - Costa Rica Property Ownership
- Coldwell Banker Samara - Property Buying Process Guide
- Flamingo Beach Realty - Property Laws for Foreigners
- Global Property Guide - Costa Rica Buying Guide
- Visit World Today - Property Buying Guide
- Tres Amigos - Buying Property as Foreigner