Can UK citizens buy property in Costa Rica?

Authored by the expert who managed and guided the team behind the Costa Rica Property Pack

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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.

Can UK citizens buy property in Costa Rica?

Yes, UK citizens can buy property in Costa Rica with full ownership rights identical to those of Costa Rican nationals.

As of September 2025, Costa Rica maintains one of the most open property ownership policies in Central America for foreign nationals. UK citizens can purchase residential, commercial, and agricultural properties without any nationality-based restrictions or discrimination.

The Costa Rican constitution and civil code guarantee foreigners the same property rights as locals, including the right to hold fee simple title (dominio pleno) which provides complete ownership and control over the property. This means UK buyers can sell, rent, mortgage, or transfer their Costa Rican property without additional government approvals.

Foreign ownership extends to all major property categories including single-family homes, condominiums, vacant land, commercial buildings, and agricultural properties. The only significant exception involves certain coastal areas governed by maritime zone regulations.

Costa Rica's stable democracy, established legal system, and respect for property rights make it a secure destination for UK property investors seeking both vacation homes and investment opportunities.

Are there any restrictions on foreign ownership of property in Costa Rica?

The primary restriction for UK citizens involves the Maritime Zone, which covers the first 200 meters inland from the high tide line along Costa Rica's coastlines.

Within the Maritime Zone, foreign nationals can only own up to 49% of a property through a concession system rather than outright ownership. The remaining 51% must be owned by Costa Rican citizens or residents. These maritime concessions typically last 20 years and are renewable, but they come with specific regulations regarding development and use.

Protected areas present additional restrictions for all buyers, including national parks, wildlife reserves, biological corridors, and buffer zones around sensitive ecosystems. Properties within these zones may have development limitations or complete ownership prohibitions regardless of nationality.

Border areas within 2 kilometers of international boundaries and certain islands may also have special ownership restrictions. River mouths, mangrove areas, and properties above certain elevations in watershed protection zones can face additional regulatory oversight.

All other areas of Costa Rica remain fully open to foreign ownership, representing the vast majority of the country's developable land. It's something we develop in our Costa Rica property pack.

What types of properties can UK citizens buy in Costa Rica?

UK citizens can purchase virtually any type of property available in the Costa Rican residential and commercial real estate market.

Do UK citizens need to be residents to buy property in Costa Rica?

No, UK citizens do not need Costa Rican residency to purchase and own property in the country.

Property ownership and residency are completely separate legal matters in Costa Rica. UK nationals can buy property while visiting on a standard 90-day tourist visa, and they can continue to own that property indefinitely without ever becoming residents.

This policy makes Costa Rica particularly attractive for UK citizens seeking vacation homes, retirement properties, or investment properties who may not want to commit to full-time residency. Owners can visit their Costa Rican property periodically as tourists without residency obligations.

However, some UK buyers do choose to pursue residency for other benefits such as tax advantages, easier business operations, or access to Costa Rica's social healthcare system. The country offers several residency pathways including pensioner status, investor residency, and family reunification.

For maritime zone concessions specifically, some concession types may require the holder to maintain a certain number of days per year in Costa Rica, but this applies to the concession terms rather than general property ownership requirements.

Is there a minimum investment requirement for foreign buyers?

There is no minimum investment requirement for UK citizens to buy property in Costa Rica, but a $150,000 USD minimum applies for those seeking investor residency.

Property ownership itself has no minimum value threshold, meaning UK buyers can purchase properties of any value from modest condos to luxury estates. The Costa Rican government does not impose investment minimums solely for real estate ownership rights.

The $150,000 USD minimum only applies to foreigners using real estate investment as a pathway to obtain Costa Rican residency through the "Investor Residency" (Inversionista) program. This residency category requires either investing $150,000 in real estate or $200,000 in a Costa Rican business or approved investment fund.

For UK citizens focused purely on property ownership without residency goals, they can purchase properties starting from around $50,000 for basic condos in smaller towns up to several million dollars for luxury beachfront estates.

This flexibility allows UK buyers to enter the Costa Rican property market at various price points based on their budget and investment objectives rather than government-imposed minimums.

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What is the process for buying property in Costa Rica as a foreigner?

The property purchase process in Costa Rica follows a structured legal framework that requires notarization and registration with the National Registry.

The process typically begins with property identification and due diligence, where buyers should verify the property's legal status, ownership history, liens, and zoning regulations. A reputable local real estate agent or attorney should conduct this research to ensure clear title and legal compliance.

Once due diligence is complete, buyers negotiate purchase terms and sign a preliminary agreement or option contract, typically requiring a 10-25% deposit held in escrow by the attorney or title company. This secures the property while final documentation is prepared.

The final closing must occur before a Costa Rican notary public (notario), who prepares the deed transfer documents and ensures all legal requirements are met. The notary also calculates and collects all applicable taxes and fees during the closing process.

After closing, the notary registers the new deed with the National Registry and Cadaster (Registro Nacional), which officially transfers ownership to the buyer. This registration process typically takes 30-60 days to complete, after which the buyer receives the final registered title document.

Throughout this process, having qualified local legal representation ensures compliance with all Costa Rican property laws and protects the buyer's interests. It's something we develop in our Costa Rica property pack.

Are there any taxes or fees associated with property purchases in Costa Rica?

Yes, UK citizens must pay several taxes and fees when purchasing property in Costa Rica, with total closing costs typically ranging from 3-5% of the property value.

Do UK citizens need to hire a local lawyer for property transactions in Costa Rica?

While not legally required by law, hiring a local Costa Rican lawyer is strongly recommended and considered essential for UK citizens buying property in Costa Rica.

Costa Rican property law differs significantly from UK property law, particularly regarding title registration, due diligence procedures, and the role of notaries in real estate transactions. A qualified local attorney provides crucial expertise in navigating these differences and protecting the buyer's interests.

Local lawyers conduct comprehensive title searches to verify ownership history, identify any liens or encumbrances, confirm property boundaries, and ensure compliance with zoning regulations. They also verify that the seller has legal authority to sell and that all property taxes are current.

During the transaction, the attorney manages the escrow process, reviews all contractual terms, ensures proper document preparation, and coordinates with the notary for the final closing. This professional oversight helps prevent common pitfalls that can affect foreign buyers unfamiliar with Costa Rican procedures.

Legal fees typically range from 1-2% of the property value, which represents valuable insurance against potential legal complications, fraudulent transactions, or title defects that could cost far more to resolve later.

Can UK citizens take out a mortgage to buy property in Costa Rica?

Yes, UK citizens can obtain mortgages in Costa Rica, though the terms and requirements differ from UK mortgage products and approval is more challenging for foreign buyers.

Costa Rican banks including Banco Nacional, Banco de Costa Rica, and private institutions like BAC San José offer mortgage financing to foreign nationals. However, these banks typically require higher down payments (30-50%) compared to loans for Costa Rican citizens and may offer shorter repayment terms.

Interest rates for foreign borrowers typically range from 8-12% annually as of September 2025, significantly higher than current UK mortgage rates. Banks also require extensive documentation including proof of income, employment verification, bank statements, and sometimes Costa Rican tax returns.

Alternative financing options include developer financing for new construction projects, private lending from individuals or investment groups, and international banks that specialize in foreign property loans. Some UK-based international mortgage providers also offer loans for Costa Rican property purchases.

Many UK buyers choose to purchase Costa Rican property with cash or through equity release from UK properties to avoid the complexity and higher costs of local financing. This approach also provides stronger negotiating positions and faster closing timelines.

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 property title laws in Costa Rica?

Costa Rica operates under a registered title system where the National Registry and Cadaster (Registro Nacional) maintains official records of all property ownership and transactions.

The strongest form of ownership is "fee simple title" (dominio pleno), which provides complete ownership rights including the ability to sell, mortgage, lease, or transfer the property freely. This title type is registered in the Folio Real system and includes detailed property descriptions, boundaries, and ownership history.

Properties must have a registered title to be legally owned and transferred. Unregistered land or properties with unclear title status cannot be legally purchased and should be avoided by all buyers, especially foreign nationals unfamiliar with local title issues.

The registration system provides several protections including official surveys, boundary verification, and legal guarantees of ownership. When properly registered, the title system protects against fraud, duplicate sales, and boundary disputes that can occur with informal land ownership.

For maritime zone properties, the title system uses concessions rather than outright ownership. These concessions are also registered with the National Registry but come with specific terms, renewal requirements, and usage restrictions that differ from standard property titles.

UK buyers should always verify that any property they consider has a clear, registered title and should never purchase property based solely on possession rights or informal agreements. It's something we develop in our Costa Rica property pack.

Is it possible for UK citizens to buy property near the coast or in protected areas?

UK citizens can buy property near the coast in Costa Rica, but direct beachfront ownership is restricted by maritime zone regulations that limit foreign ownership options.

The Maritime Zone extends 200 meters inland from the high tide line and is divided into two sections: the Public Zone (first 50 meters) which cannot be privately owned by anyone, and the Restricted Zone (next 150 meters) where foreigners can own up to 49% through concessions.

Properties located beyond the 200-meter maritime zone can be owned outright by UK citizens with full title rights, even if they offer ocean views or easy beach access. Many desirable coastal properties fall into this category, particularly on elevated terrain overlooking the ocean.

In protected areas such as national parks, biological reserves, and wildlife corridors, property ownership is typically prohibited for all buyers regardless of nationality. However, properties adjacent to protected areas often provide excellent access to natural attractions while remaining available for purchase.

Buffer zones around protected areas may have development restrictions but can still be owned. Buyers should verify the exact status of coastal or environmentally sensitive properties through proper due diligence before purchase to understand any limitations on development or use rights.

What are the ongoing costs of owning property in Costa Rica for foreign buyers?

UK citizens owning property in Costa Rica face several ongoing costs that typically total 1-3% of the property value annually, depending on the property type and location.

Annual property tax (impuesto territorial) is assessed at 0.25% of the registered property value as determined by the National Registry. This tax is relatively low compared to many other countries and is payable in quarterly installments or annually with a small discount for early payment.

Municipal fees vary by location but typically include garbage collection, street lighting, and local services, ranging from $50-300 annually depending on the municipality and property size. Luxury tax may apply to properties valued above $204,000 at rates up to 0.55% annually.

Condominium properties require monthly HOA fees that typically range from $100-500 monthly depending on amenities like pools, security, landscaping, and common area maintenance. Beach and resort communities often have higher HOA fees due to extensive facilities and services.

Property insurance costs vary but typically range from $800-2,500 annually for comprehensive coverage including fire, theft, and natural disasters. Many insurance companies offer policies specifically designed for foreign property owners.

Utility costs including electricity, water, internet, and telephone service typically total $150-400 monthly for a standard home, with air conditioning usage significantly affecting electricity bills in coastal areas. Regular maintenance, gardening, and security services add additional ongoing expenses based on property size and location.

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. Coldwell Banker Tamarindo - Moving to Costa Rica from the UK
2. The Latinvestor - Costa Rica Real Estate for Foreigners
3. Nikori Lifestyles - Property Laws in Costa Rica
4. Overseas Dream Home - Costa Rica Real Estate
5. Company Formation Costa Rica - Buying Property
6. HRG Vacations - Property Buying Guide
7. Visit World Today - Foreign Property Buying Guide
8. Flamingo Beach Realty - Foreign Real Estate Ownership