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
Costa Rica attracts thousands of foreigners every year who dream of owning a piece of paradise, but the reality is that many of them get burned because they don't understand how the system actually works.
The country has strong institutions by regional standards, ranking 29th globally on the World Justice Project Rule of Law Index 2024, yet the real trap is that the system assumes you will verify everything yourself.
We constantly update this blog post to reflect the latest risks, scams, and insider knowledge that foreign buyers need to know before signing anything.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Costa Rica.
How risky is buying property in Costa Rica as a foreigner in 2026?
Can foreigners legally own properties in Costa Rica in 2026?
As of early 2026, foreigners can legally purchase and fully own most types of property in Costa Rica with the same rights as Costa Rican citizens, which makes Costa Rica one of the most foreigner-friendly real estate markets in Latin America.
The main restriction in Costa Rica applies to land in the Maritime Terrestrial Zone, which covers the first 200 meters from the high tide line along beaches, where the first 50 meters are public land that nobody can own and the next 150 meters are concession land where foreigners can only hold a minority stake of up to 49%.
When foreigners want to buy property near the beach in Costa Rica, they commonly use a Costa Rican corporation (Sociedad Anónima or S.A.) with majority Costa Rican ownership, or they purchase further inland where full titled ownership is available without restrictions.
This distinction between titled property and concession land is the single most important thing to understand before buying in Costa Rica, because most coastal horror stories happen when foreigners don't realize they're acquiring a concession instead of full ownership.
[VARIABLE FOREIGNER-RIGHTS]What buyer rights do foreigners actually have in Costa Rica in 2026?
As of early 2026, foreigners who purchase titled property in Costa Rica have the same legal rights as Costa Rican citizens, including the right to sell, rent, mortgage, or pass the property to heirs without any special restrictions.
If a seller breaches a contract in Costa Rica, foreigners can pursue civil remedies through the Costa Rican court system, but enforcement takes time and legal costs can add up, so prevention through proper due diligence is far more effective than relying on litigation.
The most common buyer right that foreigners mistakenly assume they have in Costa Rica is automatic protection against hidden liens or boundary disputes, when in reality the Costa Rican system places the burden on the buyer to verify everything through the Registro Nacional before closing.
How strong is contract enforcement in Costa Rica right now?
Contract enforcement in Costa Rica is relatively strong compared to other Latin American countries, with Costa Rica ranking 29th globally on the World Justice Project Rule of Law Index 2024 and 2nd in Latin America, but the Civil Justice factor ranks 45th globally, meaning disputes can drag on longer than foreigners expect compared to the United States or Canada.
The main weakness in Costa Rica's contract enforcement that foreigners should know about is the slow pace of civil courts, which means that even if you have a solid case, resolving a property dispute can take years, making it essential to get everything right before you sign rather than assuming you can sue later.
By the way, we detail all the documents you need and what they mean in our property pack covering Costa Rica.
Buying real estate in Costa Rica can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Which scams target foreign buyers in Costa Rica right now?
Are scams against foreigners common in Costa Rica right now?
Scams targeting foreigners in Costa Rica are common enough that you should assume you will face at least one attempt during your property search, especially in high-foreigner markets like Guanacaste, Tamarindo, Nosara, and the Central Pacific coast.
The type of property transaction most frequently targeted by scammers in Costa Rica is beachfront or near-beach purchases, because the confusion between titled land and concession land creates opportunities for misrepresentation that don't exist with inland properties.
The profile of foreign buyer most commonly targeted in Costa Rica is someone who is emotionally attached to a property, in a hurry to close, unfamiliar with Spanish, and willing to skip formal verification steps because they trust the agent or seller.
The single biggest warning sign that a deal may be a scam in Costa Rica is pressure to pay a deposit before your notary has completed registry verification, especially if the seller or agent discourages you from pulling a certified registry report yourself.
What are the top three scams foreigners face in Costa Rica right now?
The top three scams foreigners face when buying property in Costa Rica are: (1) the titled versus concession bait-and-switch where beachfront land is sold as full ownership when it's actually a concession with restrictions and renewal risk, (2) hidden liens or encumbrances where sellers claim the property is clean but mortgages, annotations, or embargos appear in the registry, and (3) deposit pressure scams where buyers are rushed into wiring money before the notary has finished verification.
The most common scam in Costa Rica typically unfolds when a foreigner falls in love with a coastal property, the seller or agent claims it's titled and clean, the buyer is pressured to pay a deposit quickly because "another buyer is waiting," and only later discovers the property is actually a concession or has undisclosed liens registered against it.
The single most effective way to protect yourself from each of these three scams in Costa Rica is to insist on pulling a certified registry report from RNP Digital before paying any deposit, hire your own independent notary (not one recommended by the seller), and never transfer money to personal accounts or informal "escrow" arrangements.
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.
How do I verify the seller and ownership in Costa Rica without getting fooled?
How do I confirm the seller is the real owner in Costa Rica?
The standard verification process in Costa Rica is to obtain the property's "número de finca" (registry number) and pull a certified registry report from RNP Digital or the Registro Nacional, which shows the registered owner's name and whether any liens or restrictions exist.
The official document foreigners should check to verify ownership in Costa Rica is the "certificación literal" or certified registry report from the Registro Inmobiliario, which provides the legal status of the property as recorded by the government, not just a screenshot or informal summary from the seller.
The most common trick fake sellers use in Costa Rica to appear legitimate is presenting outdated documents, unofficial copies, or claiming the registry system is temporarily down, which is why you should always pull your own certified report close to closing rather than relying on what the seller provides.
Where do I check liens or mortgages on a property in Costa Rica?
The official registry where you check liens or mortgages on a property in Costa Rica is the Registro Inmobiliario within the Registro Nacional, which records all mortgages, annotations, embargos, easements, and other encumbrances against a property's title.
When checking for liens in Costa Rica, you should request a complete "certificación de gravámenes" that shows all current annotations, not just the ownership status, because mortgages and legal claims can be registered separately from the basic title information.
The type of lien most commonly missed by foreign buyers in Costa Rica is a "anotación preventiva" (preventive annotation), which is a legal claim registered during ongoing disputes or court proceedings that may not appear as a formal mortgage but can block your ability to get clear title.
It's one of the aspects we cover in our our pack about the real estate market in Costa Rica.
How do I spot forged documents in Costa Rica right now?
The most common type of forged document used in property scams in Costa Rica is a fake deed or power of attorney that allows someone to impersonate the real owner, and while this is not extremely common, it does happen often enough that organized fraud rings have been documented, particularly targeting properties owned by foreigners who are frequently absent from the country.
The specific red flags that indicate a document may be forged in Costa Rica include sellers who resist registry verification, documents that don't match the current certified registry records, signatures or stamps that look irregular, and any pressure to skip the notarial process or use an unfamiliar notary.
The official verification method you should use in Costa Rica is to have your independent notary pull a fresh certified report from the Registro Nacional close to closing, verify the identity of the seller through official identification, and confirm that any corporate representatives have proper powers registered in the Registro de Personas Jurídicas.
Get the full checklist for your due diligence in Costa Rica
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What "grey-area" practices should I watch for in Costa Rica?
What hidden costs surprise foreigners when buying a property in Costa Rica?
The three most common hidden costs foreigners overlook in Costa Rica are: (1) the transfer tax of 1.5% of the declared property value (around $4,500 or €4,200 on a $300,000 property), (2) registry stamps and legal fees totaling another 2% to 3% of the purchase price (around $7,500 or €7,000), and (3) the annual "Impuesto Solidario" luxury home tax that applies to properties valued above approximately 148 million colones (around $275,000 or €255,000 in early 2026).
The hidden cost most often deliberately concealed by sellers or agents in Costa Rica is unpaid HOA fees, special assessments, or municipal taxes that transfer to the new owner, and this happens commonly enough that you should always request proof of current payment status before closing.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Costa Rica.
Are "cash under the table" requests common in Costa Rica right now?
Requests for undeclared cash payments in Costa Rica property transactions do occur, particularly as suggestions to declare a lower price on the deed to reduce transfer taxes, although this practice has become riskier as the government has tightened enforcement.
The typical reason sellers give for requesting undeclared cash payments in Costa Rica is to reduce the transfer tax burden (1.5% of declared value) or to minimize their capital gains tax exposure on the sale.
The legal risks foreigners face if they agree to an undeclared cash payment in Costa Rica include tax fraud liability, a lower recorded basis that increases your future capital gains tax when you sell, difficulty proving the true purchase price in disputes, and potential complications with anti-money laundering regulations that could flag your transaction.
Are side agreements used to bypass rules in Costa Rica right now?
Side agreements to bypass official rules are sometimes used in Costa Rica property transactions, particularly around coastal concession restrictions, condo regime limitations, or rental restrictions that sellers want to work around informally.
The most common type of side agreement used to circumvent regulations in Costa Rica involves informal promises about what you can do with a property (like short-term rentals or renovations) that contradict the official condo reglamento or municipal zoning, leaving the buyer with no legal recourse when the promise turns out to be unenforceable.
The legal consequences foreigners face if a side agreement is discovered by authorities in Costa Rica range from the agreement being declared void (leaving you with no protection) to potential fines for zoning violations, loss of concession rights in maritime zone properties, or complications with your property registration if the arrangement conflicts with recorded restrictions.
We made this infographic to show you how property prices in Costa Rica compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Can I trust real estate agents in Costa Rica in 2026?
Are real estate agents regulated in Costa Rica in 2026?
As of early 2026, Costa Rica does not have a mandatory government licensing system for real estate agents like you would find in the United States or Canada, which means anyone can technically call themselves an agent without formal credentials.
The official certification a legitimate real estate agent should have in Costa Rica is membership in either the CCCBR (Cámara Costarricense de Corredores de Bienes Raíces, founded in 1974) or CRGAR (Costa Rica Global Association of Realtors), plus registration with SUGEF (the financial regulatory authority) if they handle client funds or commissions.
Foreigners can verify whether an agent is properly credentialed in Costa Rica by asking to see their CCCBR or CRGAR membership, checking their SUGEF registration status, and confirming they are a legal resident or citizen of Costa Rica, since non-residents cannot legally work as agents.
Please note that we have a list of contacts for you in our property pack about Costa Rica.
What agent fee percentage is normal in Costa Rica in 2026?
As of early 2026, the normal agent commission in Costa Rica typically ranges from 5% to 7% of the sale price, with 6% being the most common rate, plus 13% VAT (IVA) on top, bringing the effective total to around 6.78% when VAT applies.
The typical range of agent fee percentages that covers most residential transactions in Costa Rica is 5% to 7%, although luxury properties or difficult-to-sell listings may see different arrangements, and some developers offer reduced or shared commissions as buyer incentives.
In Costa Rica, the seller traditionally pays the agent commission, but this is negotiable and sometimes split between buyer and seller, so you should clarify exactly who is paying what before you sign any agreement.
Get the full checklist for your due diligence in Costa Rica
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What due diligence actually prevents disasters in Costa Rica?
What structural inspection is standard in Costa Rica right now?
The standard structural inspection process for property purchases in Costa Rica involves hiring a qualified engineer or inspector to examine the property before closing, although this is not legally required and many buyers skip it, which leads to expensive surprises.
A qualified inspector in Costa Rica should check the roof condition, foundation and structural integrity, electrical wiring (especially for DIY renovations), plumbing and septic systems, drainage, signs of water damage or humidity, and earthquake resilience since Costa Rica is seismically active.
The type of professional qualified to perform structural inspections in Costa Rica is a licensed civil engineer (ingeniero civil) or a certified home inspector, and you should verify their credentials with the Colegio Federado de Ingenieros y de Arquitectos (CFIA).
The most common structural issues that inspections reveal in Costa Rica properties are water intrusion and humidity damage (especially after the rainy season), improvised electrical work in renovations, septic system problems in rural areas, and foundation issues caused by poor drainage or soil conditions.
How do I confirm exact boundaries in Costa Rica?
The standard process for confirming exact property boundaries in Costa Rica is to obtain the registered survey plan (plano catastrado) from the Catastro Nacional and have a licensed topographer physically verify that the on-the-ground boundaries match the official records.
The official document that shows the legal boundaries of a property in Costa Rica is the "plano catastrado" (cadastral survey plan) registered with the Catastro Nacional, which should be referenced in your property's registry entry at the Registro Nacional.
The most common boundary dispute that affects foreign buyers in Costa Rica involves informal access roads, shared driveways, or fences that don't match the registered boundaries, which can lead to conflicts with neighbors or loss of land you thought you owned.
The professional you should hire to physically verify boundaries on the ground in Costa Rica is a licensed topographer (topógrafo) registered with the Colegio de Ingenieros Topógrafos, who can compare the physical markers to the registered plano and identify any discrepancies before you close.
What defects are commonly hidden in Costa Rica right now?
The top three defects that sellers commonly conceal from buyers in Costa Rica are: (1) water intrusion and humidity damage disguised with fresh paint (this is common, especially after the rainy season), (2) improvised electrical work hidden behind walls (common in renovated properties), and (3) septic or water system limitations that only become apparent after you move in (common in rural and semi-rural areas).
The inspection technique that helps uncover hidden defects in Costa Rica is a combination of moisture meters to detect water damage behind walls, thermal imaging to spot electrical issues, and septic system testing for properties outside municipal sewer networks, ideally conducted during or just after the rainy season when water problems are most visible.
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.
What insider lessons do foreigners share after buying in Costa Rica?
What do foreigners say they did wrong in Costa Rica right now?
The most common mistake foreigners say they made when buying property in Costa Rica is trusting the agent or seller's word instead of pulling their own certified registry report, which left them exposed to liens, boundary issues, or concession surprises they could have discovered beforehand.
The top three regrets foreigners most frequently mention after buying in Costa Rica are: (1) not understanding the difference between titled property and concessions in the maritime zone, (2) paying deposits under pressure before their notary finished verification, and (3) skipping a proper inspection and discovering expensive defects after closing.
The single piece of advice experienced foreign buyers most often give to newcomers in Costa Rica is to hire your own independent notary (not the seller's) and never sign or pay anything until you have personally reviewed a current certified registry report that matches what you've been told.
The mistake foreigners say cost them the most money or caused the most stress in Costa Rica is buying what they thought was beachfront property only to discover it was a concession with restrictions, renewal risks, and limitations on foreign ownership that made the property far less valuable than they expected.
What do locals do differently when buying in Costa Rica right now?
The key difference in how locals approach buying property in Costa Rica compared to foreigners is that Costa Ricans treat the notary as the central figure in the transaction and expect a formal registry-driven process, while foreigners often treat the agent as the gatekeeper and assume the notary is just a formality.
The verification step locals routinely take that foreigners often skip in Costa Rica is asking for the "número de finca" upfront and pulling their own registry report before even negotiating price, rather than relying on documents the seller provides.
The local knowledge advantage that helps Costa Ricans get better deals is understanding which coastal properties are concessions versus titled (and pricing accordingly), knowing which municipalities have stricter enforcement of building permits and zoning, and having networks that warn them about properties with hidden disputes or problem sellers.
Don't buy the wrong property, in the wrong area of Costa Rica
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Costa Rica, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Registro Nacional (Costa Rica) | It's the official public registry that provides legal publicity of ownership and encumbrances. | We use it as the source of truth for who owns what and what is officially recorded. We anchor all ownership and lien verification steps to what can be pulled from this registry. |
| RNP Digital | It's the official online system for requesting certified registry reports and documents. | We use it to show how foreigners can obtain certified registry snapshots remotely. We use it as the practical way to confirm ownership and liens before closing. |
| Law 6043 (Maritime Zone Law) | It's the text of the law governing the maritime-terrestrial zone where many coastal buyer problems occur. | We use it to explain the foreign-buyer trap with concessions near the beach. We use it to build a decision tree for distinguishing titled property from concession land. |
| Dirección Nacional de Notariado (DNN) | It's the national authority overseeing the notarial function central to Costa Rican property transfers. | We use it to explain why your notary choice matters more than your agent choice. We use it to recommend verifying the notary's standing and avoiding problematic setups. |
| Ministry of Finance (Hacienda) | It's from the tax authority, so it's the most reliable reference for transfer tax requirements. | We use it to describe how property transfer tax works in practice. We use it to flag schemes that create tax and legal exposure for buyers. |
| World Justice Project Rule of Law Index 2024 | It's a well-known global index based on large household and expert surveys. | We use it to ground the contract enforcement discussion in measurable civil justice performance. We use it to explain what kind of disputes are slower even in a relatively strong system. |
| Transparency International CPI 2024 | It's the primary global reference for perceived public-sector corruption. | We use it to frame corruption risk without exaggeration. We use it to explain why cash under the table is a red flag even if someone calls it normal. |
| CCCBR (Costa Rican Chamber of Real Estate Brokers) | It's the main industry association, useful for understanding norms even if it's not a regulator. | We use it to explain that being an agent and being vetted are not the same in Costa Rica. We use it to recommend choosing agents who belong to reputable bodies. |
| U.S. Department of State Investment Climate Statement 2025 | It's a government due-diligence report updated and written for risk-aware readers. | We use it to cross-check the reliability of institutions like the National Registry. We use it to keep the risk section grounded in a sober, external assessment. |
| INEC (Costa Rica statistics office) | It's the national statistics institute with the cleanest data on construction and housing cost trends. | We use it to describe the early 2026 market using official trend signals. We use it to explain why build-quality shortcuts and renovation surprises are a live risk. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Costa Rica. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.