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 buy property in Costa Rica with the same rights as locals, making it one of the most accessible real estate markets in Central America.
Costa Rica offers an attractive combination of political stability, no restrictions on foreign ownership of titled land, and diverse investment opportunities from beachfront properties to mountain retreats. The country's straightforward legal framework, combined with its growing expat community and tourism industry, creates compelling opportunities for both lifestyle and investment purchases.
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 enjoy equal property rights as locals in Costa Rica, with no residency requirements for ownership. The main restrictions apply to the maritime zone (first 200 meters from the beach) where foreign ownership is limited to 49% through corporations.
Total closing costs typically range from 3.5% to 6% of the purchase price, including transfer taxes, legal fees, and registration costs. Property prices vary significantly by region, from $200,000 condos to luxury homes exceeding $2 million in premium coastal areas.
| Key Aspect | Details | Requirements/Costs |
|---|---|---|
| Ownership Rights | Equal rights as locals for titled land | No residency required |
| Maritime Zone | First 50m public, next 150m concession only | Max 49% foreign ownership via corporation |
| Closing Costs | Transfer tax, legal fees, registration | 3.5-6% of purchase price |
| Annual Property Tax | Municipal value assessment | 0.25% per year |
| Capital Gains Tax | On resale profit | 15% or 2.25% of gross sale price |
| Lawyer Requirement | Costa Rican notary (lawyer) mandatory | 1-1.5% of purchase price |
| Physical Presence | Not required for purchase | Power of attorney accepted |
Can foreigners buy property in Costa Rica with the same rights as locals?
Foreigners can purchase property in Costa Rica with identical rights to local citizens and face no nationality restrictions on titled land ownership.
You can buy residential, commercial, and agricultural properties without needing Costa Rican residency or citizenship. Both individuals and corporations can hold property titles, and the law treats foreign and domestic buyers equally for fee simple (titled) land transactions.
The main restriction applies to the maritime zone, which extends 200 meters inland from the high-tide mark along Costa Rica's coastlines. The first 50 meters constitute public land that no one can own, while the next 150 meters can only be held through concession leases rather than full ownership. In this concession zone, foreigners can own a maximum of 49% through a Costa Rican corporation, not as individuals.
Additional restrictions exist for border areas, river mouths, nature reserves, and certain islands, which may have special limitations or require government approval. However, these restrictions represent a small fraction of available properties and primarily affect specific geographical areas rather than standard residential or commercial real estate.
As of September 2025, Costa Rica remains one of the most foreigner-friendly property markets in Central America, with no plans to change these favorable ownership laws.
What residency or visa requirements apply to property ownership for foreigners?
No residency or special visa status is required to buy or own property in Costa Rica as a foreigner.
Even tourists visiting on a standard 90-day tourist visa can complete property purchases during their stay. You don't need to establish legal residency, obtain a special investment visa, or maintain any minimum stay requirements to hold property title.
However, purchasing real estate worth at least $150,000 makes you eligible for Costa Rica's "Inversionista" (Investor) residency category. This temporary residency status must be renewed every two years and requires spending at least one day annually in Costa Rica to maintain the status. After three years, temporary residents can apply for permanent residency.
The investor residency program offers benefits beyond property ownership, including the ability to work in Costa Rica, access to social security healthcare (Caja), and eventual eligibility for citizenship after holding permanent residency for several years.
Many foreign property owners choose to remain as tourists or pursue residency for lifestyle reasons rather than property ownership requirements. It's something we develop in our Costa Rica property pack.
Do you need to be physically present in Costa Rica to complete a property purchase?
Physical presence in Costa Rica is not required to complete a property purchase.
You can conduct the entire transaction remotely by granting a notarized power of attorney to a trusted representative, typically your Costa Rican lawyer or real estate agent. This power of attorney must be properly notarized in your home country and then authenticated through the appropriate consular or apostille process.
The power of attorney should specifically authorize your representative to sign purchase agreements, transfer deeds, and complete all necessary paperwork on your behalf. Your lawyer can guide you through the specific language and requirements for this document.
While remote purchases are legally valid and commonly practiced, many buyers prefer to visit the property in person before finalizing the transaction. This allows for personal inspection of the property, neighborhood assessment, and face-to-face meetings with key professionals involved in the purchase.
If you choose to be present for the closing, the process typically takes place at the notary's office where all parties sign the final transfer deed (Escritura de Traspaso) and complete the transaction.
What is the step-by-step process for buying property in Costa Rica?
The Costa Rican property purchase process follows a structured seven-step sequence that typically takes 30-60 days to complete.
Step 1 involves finding your desired property and making an offer, usually through a licensed real estate agent or directly with the seller. Step 2 requires hiring a Costa Rican notary public (who must be a lawyer) as this professional is legally mandatory for all real estate transactions and will handle document preparation and registration.
Step 3 encompasses the due diligence phase where your lawyer conducts a comprehensive title search (estudio registral) and verifies property boundaries through the official survey plan (plano catastrado). Step 4 involves signing either an Option to Purchase Agreement or Sale Agreement, sometimes preceded by a Letter of Intent that outlines basic terms.
Step 5 includes opening an escrow account, which while optional, is strongly recommended to securely hold your deposit and remaining purchase funds. Step 6 covers the formal transfer deed (Escritura de Traspaso) signing, where the notary prepares and notarizes the official deed that legally transfers ownership.
Step 7 completes the process with final payment and registry filing, where remaining funds are transferred and the deed is officially recorded with the National Registry to establish your legal ownership. Required documents include valid passports for all buyers, tax ID numbers (DIMEX for residents, NITE for non-residents), proof of funds, the official survey plan, purchase agreements, and the transfer deed.
Is hiring a lawyer mandatory for foreign property buyers in Costa Rica?
Hiring a Costa Rican notary public, who must be a licensed lawyer, is legally mandatory for all real estate transactions in Costa Rica.
This professional serves multiple critical roles including conducting title searches, drafting all legal documents, overseeing escrow arrangements, representing you at closing, and filing the transfer deed with the public registry. The notary system in Costa Rica differs from other countries as these professionals must hold law degrees and are authorized to perform legal functions typically reserved for lawyers and government officials elsewhere.
Your notary will prepare the Escritura de Traspaso (transfer deed), which serves as the official document transferring property ownership. They also ensure all taxes are properly calculated and paid, verify that property boundaries match official records, and confirm that no liens or encumbrances exist on the title.
Legal fees typically range from 1% to 1.5% of the purchase price and represent one of the essential closing costs you'll encounter. While this expense is mandatory, it provides crucial protection by ensuring your transaction complies with Costa Rican law and that you receive clear, marketable title to the property.
Choose a notary with experience in foreign buyer transactions and strong English language skills to ensure clear communication throughout the process. It's something we develop in our Costa Rica property pack.
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What are the total taxes, fees, and costs when buying property in Costa Rica?
Total closing costs for property purchases in Costa Rica typically range from 3.5% to 6% of the purchase price.
| Cost Category | Percentage/Amount | Description |
|---|---|---|
| Transfer Tax | 1.5% of purchase price | Government tax on property transfers |
| Registration & Notary Fees | 1-1.25% of purchase price | Official recording and document preparation |
| Legal/Attorney Fees | 1-1.5% of purchase price | Notary services and legal representation |
| Escrow Fees | 0.25-0.5% of purchase price | Third-party fund management (if used) |
| Due Diligence Costs | $500-$2,000 | Additional surveys or inspections |
| Annual Property Tax | 0.25% of municipal value | Ongoing yearly obligation |
| Luxury Tax | Varies by value over $250,000 | Additional tax for high-value properties |
When you eventually sell the property, you'll face capital gains tax of either 15% on the profit or 2.25% of the gross sale price, whichever option you choose at the time of sale. Property taxes are assessed annually at 0.25% of the municipal declared value, which is often lower than market value.
Properties valued over approximately $250,000 are subject to additional luxury taxes that increase with property value. These ongoing costs should be factored into your investment calculations, particularly if you're purchasing for rental income or long-term appreciation.
Can foreigners obtain mortgages in Costa Rica?
Foreigners can obtain mortgages in Costa Rica, but face more restrictive terms and higher requirements compared to local borrowers.
Costa Rican banks typically offer mortgage rates between 8% and 12% for foreign buyers, significantly higher than rates available in North American or European markets. Loan-to-value ratios are conservative, usually ranging from 50% to 70%, meaning you'll need a substantial down payment of 30% to 50%.
Banks require extensive documentation including proof of income, employment verification, credit history from your home country, and often demand additional collateral or guarantees. The approval process can take several months and requires establishing relationships with local financial institutions.
Many foreign buyers choose alternative financing strategies such as paying cash from home country sales, obtaining financing through their domestic banks secured by other assets, or exploring developer financing options. Some developers offer attractive financing terms to facilitate sales, particularly for pre-construction or new development projects.
If you pursue local financing, work with banks experienced in foreign buyer transactions such as Banco Nacional, BAC San José, or Scotiabank Costa Rica. Consider consulting with a local mortgage broker who specializes in foreign buyer financing to navigate the complex requirements and identify the best available terms.
Which areas in Costa Rica are most popular among foreign buyers?
Guanacaste Province dominates foreign buyer preferences, particularly beach towns like Tamarindo, Nosara, and Playa Flamingo.
Tamarindo stands out as the most developed expat destination, offering extensive amenities, international restaurants, direct flights from several North American cities, and a well-established rental market. The area attracts both lifestyle buyers seeking beachfront living and investors targeting vacation rental properties.
The Central Valley, including upscale areas like EscazĂș and Santa Ana, appeals to foreign buyers prioritizing year-round mild climate, modern infrastructure, proximity to San JosĂ©'s international airport, and access to quality healthcare. These areas offer urban conveniences while maintaining a more traditional Costa Rican lifestyle.
The Southern Zone, encompassing areas like Ojochal, Dominical, and Uvita, attracts buyers seeking tranquility, pristine nature, and emerging market opportunities. This region offers more affordable entry points while maintaining strong growth potential as infrastructure develops.
Manuel Antonio and Jaco represent established tourism markets with proven rental demand, making them attractive to investors seeking immediate income generation. These areas combine lifestyle benefits with strong investment fundamentals due to their proximity to San José and established tourism infrastructure.
Which locations offer the best investment potential in Costa Rica?
Tamarindo leads in investment potential with rental yields reaching 5-8% annually for long-term rentals and up to 12% for short-term vacation rentals.
| Location | Rental Yield Range | Price Range (USD) | Growth Outlook |
|---|---|---|---|
| Tamarindo | 5-8% (12% short-term) | $300,000-$1,000,000+ | Strong, established market |
| Nosara | 6-8% | $500,000-$2,000,000+ | Premium eco-luxury segment |
| Central Valley | 4-7% | $200,000-$700,000 | Steady, long-term growth |
| Southern Zone | 6-8% | $250,000-$900,000+ | Emerging, high potential |
| Manuel Antonio | 8%+ short-term | $200,000-$800,000 | Tourism-driven demand |
| Jaco | 8%+ short-term | $150,000-$600,000 | Affordable entry point |
The Central Valley offers the most stable long-term appreciation potential due to steady population growth, infrastructure development, and proximity to economic centers. Areas like EscazĂș and Santa Ana have shown consistent property value increases of 5-8% annually over the past decade.
The Southern Zone represents the highest growth potential for early investors, with infrastructure improvements and growing international recognition driving development. Uvita and Ojochal have experienced property value increases of 10-15% annually as the region gains popularity among eco-conscious travelers and remote workers. 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 current property prices across Costa Rica's major regions?
Property prices in Costa Rica vary significantly by region, with coastal areas commanding premium pricing compared to inland locations.
Guanacaste beach properties represent the highest price segment, with homes ranging from $300,000 to over $1 million and condos starting around $200,000 and reaching $400,000 for luxury units. Tamarindo and Nosara command the highest prices due to established infrastructure and strong demand from North American buyers.
Central Valley properties offer more moderate pricing, with typical family homes ranging from $200,000 to $700,000 depending on location and amenities. EscazĂș and Santa Ana represent the premium end of this market, while areas like Atenas and Grecia offer more affordable options for buyers seeking mild climate and convenience.
Southern Zone properties currently offer the best value proposition, with homes ranging from $250,000 to $900,000 and luxury eco-properties commanding higher prices. This region provides significant upside potential as infrastructure develops and international recognition grows.
As of September 2025, coastal condos start around $200,000 for basic units, while luxury properties in premium locations can exceed $2 million. Mountain properties and coffee farms offer unique opportunities with prices varying widely based on size, location, and development potential.
What are common mistakes foreigners make when buying Costa Rican property?
The most critical mistake foreign buyers make is failing to hire a reputable, bilingual Costa Rican lawyer with specific experience in foreign buyer transactions.
- Inadequate legal representation: Using inexperienced or non-specialized lawyers leads to missed due diligence, improper documentation, and potential legal issues that can cost thousands to resolve later.
- Insufficient title verification: Skipping comprehensive title searches and boundary verification, particularly in rural areas, can result in ownership disputes, encroachments, or discovering unpaid liens after purchase.
- Maritime zone misunderstanding: Purchasing property in the coastal concession zone without understanding the 49% foreign ownership limitation and concession requirements rather than fee simple ownership.
- Underestimating total costs: Failing to budget for closing costs (3.5-6% of purchase price), ongoing property taxes, HOA fees, maintenance costs, and potential luxury taxes for higher-value properties.
- Assumptions about furnishings: Expecting properties to come furnished or "turnkey" without explicit written agreements, leading to disputes over what's included in the sale price.
- Rushed transaction timelines: Underestimating Costa Rican bureaucracy and rushing the 30-60 day process, potentially missing important due diligence steps or legal requirements.
- Inadequate property management planning: Purchasing investment properties without establishing reliable local property management, leading to maintenance issues and reduced rental income.
Successful foreign buyers invest time in selecting qualified professionals, conduct thorough due diligence, and maintain realistic expectations about transaction timelines and ongoing costs.
What are the tax implications of owning Costa Rican property as a foreigner?
Foreign property owners in Costa Rica face several tax obligations that differ significantly from many home countries.
Annual property tax equals 0.25% of the municipal assessed value, which is typically lower than market value but still represents an ongoing obligation you must budget for. Properties valued over approximately $250,000 face additional luxury taxes that increase progressively with property value.
Rental income from Costa Rican properties is taxed as Costa Rican-source income regardless of your residency status. Tax rates depend on whether you structure rentals as gross income (with simplified tax calculations) or net income (allowing deductions for expenses but requiring more complex accounting).
Capital gains tax applies when you sell the property, offering two calculation options: 15% of the actual profit (requiring documentation of purchase price, improvements, and selling costs) or 2.25% of the gross sale price (simplified calculation chosen at time of sale).
Costa Rica does not impose inheritance tax on real estate, making property ownership attractive for estate planning purposes. However, you should consult with tax professionals in both Costa Rica and your home country to understand potential tax treaty implications and reporting requirements.
Many foreign owners benefit from establishing Costa Rican corporations for property ownership, which can provide tax advantages and operational flexibility, particularly for rental properties or multiple property ownership.
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 foreign-friendly property laws, combined with its political stability and growing expat community, create compelling opportunities for international buyers seeking both lifestyle and investment properties.
Success in the Costa Rican real estate market requires careful attention to legal requirements, thorough due diligence, and realistic expectations about costs and timelines, but the country's straightforward ownership structure makes it accessible to motivated foreign buyers.
Sources
- RE/MAX Ocean Surf - Buying Property Costa Rica
- The Latinvestor - Costa Rica Real Estate for Foreigners
- Visit World Today - Property Buying Guide
- Tres Amigos - Buying Property as Foreigner
- Coldwell Banker Samara - Property Buying Process 2025
- Flamingo Beach Realty - Property Laws for Foreigners
- RE/MAX Blue Ocean - Legal Guide for Buyers
- HRG Vacations - Property Buying Guide
- Central America Second Homes - Costa Rica FAQs
- CRIE - Costa Rica Property Ownership