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
Yes, US citizens can legally buy residential property in Costa Rica in 2026, and they enjoy essentially the same ownership rights as Costa Rican citizens for most property types.
The main exception is beachfront property in the Maritime Zone, where foreign ownership is restricted to 49% unless you have been a Costa Rican resident for at least five years.
We constantly update this blog post to reflect the latest regulations, tax rates, and market conditions in Costa Rica.
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.
Can a US citizen legally buy residential property in Costa Rica right now?
Can I buy a home in Costa Rica as a US citizen in 2026?
As of early 2026, US citizens can legally purchase residential property in Costa Rica with the same ownership rights as Costa Rican citizens for standard titled properties, which includes most houses, condos, and residential land outside the coastal zone.
The standard buying process for a US citizen involves finding a property, hiring a Costa Rican attorney (who must also be a licensed notary public), conducting due diligence including a title search at the National Registry, signing a purchase agreement, and then completing the transfer deed before the notary who registers the new ownership officially.
This process is straightforward because Costa Rica's constitution guarantees equal property rights to foreigners, making the country one of the most accessible real estate markets in Latin America for American buyers.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Costa Rica.
Are there many Americans buying property and living in Costa Rica in 2026?
As of early 2026, Costa Rica hosts over 70,000 expats, with Americans representing the largest foreign nationality group, and this number continues to grow as remote work and retirement migration accelerate.
American property buyers and expats concentrate heavily in specific areas: Guanacaste province (including Tamarindo, Flamingo, Playas del Coco, and Nosara on the Pacific coast), the Central Pacific coast (Jaco, Manuel Antonio, and Dominical), and the Central Valley suburbs of San Jose (particularly Escazu and Santa Ana).
The top three reasons Americans choose Costa Rica include the lower cost of living compared to the United States, the high quality and affordable healthcare system, and the country's stable democracy combined with its famous "pura vida" lifestyle and natural beauty.
The American expat community in Costa Rica is clearly growing, driven by the rise of remote work flexibility, the introduction of Costa Rica's Digital Nomad Visa, and continued interest from baby boomers seeking affordable retirement destinations with good weather and modern infrastructure.
Do foreigners have the same buying rights as locals in Costa Rica?
For standard titled residential property (most homes, condos, and land outside the coastal zone), foreigners enjoy "fee simple" ownership with exactly the same legal protections as Costa Rican citizens, and there are no special restrictions that single out US citizens versus other foreign nationals.
The main restriction applies to the Maritime Zone (Zona Maritimo Terrestre), which covers the 200 meters from the high tide line: the first 50 meters is public land that nobody can own, and the next 150 meters is concession land where foreigners can only own up to 49% unless they have been Costa Rican residents for at least five years.
We cover all these things in length in our pack about the property market in Costa Rica.
Can I buy property in Costa Rica without a residence permit?
Yes, you can buy property in Costa Rica without any residence permit or visa, as Costa Rican law allows foreigners to purchase and own real estate while living abroad and entering the country on a simple tourist visa.
The process for buying property as a non-resident involves hiring a Costa Rican attorney who will handle the transaction on your behalf, and if you cannot be present for the closing, you can grant a power of attorney to your lawyer to sign the documents in your name.
Buying a home in Costa Rica does not automatically grant you any visa or residency rights, although investing at least $150,000 in real estate can qualify you for the Investor Residency program (Residencia de Inversionista), which provides renewable temporary residency.
The main practical challenge for non-resident buyers is coordinating everything remotely, including wiring funds internationally (which requires compliance with both US and Costa Rican anti-money laundering rules), communicating across time zones, and ensuring proper due diligence without being physically present to inspect the property.
Can US citizens own land in Costa Rica?
Yes, US citizens can own titled land in Costa Rica directly in their own name, with exactly the same legal protections as Costa Rican citizens, including the right to sell, rent, mortgage, or pass the property to heirs without restrictions.
Costa Rica uses "fee simple" ownership for titled property, which is the strongest form of ownership and is equivalent to what Americans are familiar with in the United States, whereas "concession" property (found in the Maritime Zone) is more like a long-term lease from the government with restrictions on foreign ownership and requirements for renewal.
The specific geographic zones where foreign land ownership is restricted are within the Maritime Zone: 95% of beachfront property in Costa Rica falls under concession rules, where foreigners without five years of residency can only hold up to 49% ownership, typically through a Costa Rican corporation with a local partner.
Please note that we have a dedicated blog article about the land buying process in Costa Rica here.
What documents will I need to buy in Costa Rica?
The essential documents a US citizen needs to purchase property in Costa Rica include a valid passport (with copies), proof of funds showing the source of your money, recent bank statements, and if you are buying remotely, a properly prepared power of attorney.
A local tax identification number (cedula tributaria) is not strictly required to buy property, but it is often helpful and sometimes necessary if you plan to open a Costa Rican bank account, set up utilities in your name, or if your attorney recommends it for tax compliance purposes.
A local bank account is not mandatory to complete a property purchase in Costa Rica, since most transactions are done in US dollars through escrow services, but having a local account makes it much easier to pay ongoing expenses like property taxes, utilities, and HOA fees.
Banks and escrow companies in Costa Rica will typically require proof of funds documentation showing where your money comes from, and while a local address is not required to buy, you may need to provide one for bank account applications and utility setups.
We have a whole section dedicated to all the documents you need in our Costa Rica property pack.
Can a foreign-owned company buy property in Costa Rica?
Yes, foreign-owned companies can legally purchase residential property in Costa Rica, and this is actually a common practice, although it does not automatically provide any special advantages over personal ownership for most buyers.
Americans commonly use Costa Rican corporate structures, typically a Sociedad Anonima (S.A.) or Sociedad de Responsabilidad Limitada (S.R.L.), to hold property for reasons including estate planning (transferring shares is simpler than transferring property), liability protection, and privacy, but this approach is less universal than it once was.
Owning property through a company structure does not generally lower your taxes in Costa Rica, because the transfer tax and annual property tax apply to the property itself regardless of who owns it, and using a company can actually add compliance costs including annual corporate filings and fees.
The main drawback of using company ownership is the added complexity and cost, including annual corporate taxes, mandatory registered agent fees, legal maintenance, and for US citizens specifically, potential additional US reporting requirements for foreign corporations that can make tax filing more complicated.
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What taxes and fees will I pay in Costa Rica in 2026?
What are buyer taxes in Costa Rica in 2026?
As of early 2026, the main buyer tax in Costa Rica is the property transfer tax, which is 1.5% of the property value (calculated on the higher of the purchase price or the registered fiscal value), meaning on a $300,000 home you would pay approximately $4,500, which equals about 2.4 million Costa Rican colones or roughly 4,200 euros.
The individual tax components include the 1.5% transfer tax paid to the National Registry, plus documentary stamps and registration fees that add approximately 0.8% to 0.9%, bringing the government-related taxes and fees to around 2.3% to 2.4% of the property value.
Buyer tax rates in Costa Rica do not differ for foreigners versus locals, and there is no distinction between primary residences and investment properties for transfer tax purposes, which makes the system straightforward and equal for all buyers.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Costa Rica.
What are other closing costs in Costa Rica in 2026?
As of early 2026, total closing costs (excluding the transfer tax) typically add another 1.5% to 3% of the purchase price, so on a $300,000 property you should budget approximately $4,500 to $9,000 in additional costs, which equals roughly 2.4 to 4.8 million colones or 4,200 to 8,400 euros.
The main closing cost categories include notary and legal fees (typically 1% to 1.25% of the property value), escrow service fees (around 0.25%), and any additional due diligence costs such as title studies, property inspections, or topographical surveys, which can range from $500 to $2,000 depending on the property.
The negotiable or optional closing costs include the split of transfer taxes between buyer and seller (traditionally 50/50 but negotiable), whether you hire your own independent attorney in addition to the closing notary, and the scope of inspections and surveys you request.
The single closing cost item that tends to surprise foreign buyers the most is the requirement that all transactions be executed by a licensed Costa Rican notary public (who is also an attorney), which adds a layer of professional fees that may be higher than buyers expect from their home country experience.
Are there hidden fees foreigners miss in Costa Rica right now?
Foreign buyers in Costa Rica commonly overlook additional costs that can total $2,000 to $5,000 (roughly 1 to 2.7 million colones or 1,850 to 4,650 euros), including utility transfer fees, corporate maintenance costs if buying through a company, and pro-rated property taxes and HOA fees at closing.
The top three hidden or unexpected fees that foreign buyers often fail to budget for are: first, the confusion between titled property and concession property (which can dramatically change your ownership rights and resale value); second, HOA fees and special assessments in condos that can run $200 to $800 per month; and third, the "luxury home tax" (Impuesto Solidario) which kicks in for properties valued above approximately $275,000 and adds 0.25% to 0.55% annually.
Ongoing annual costs that foreign property owners often underestimate include the annual municipal property tax (0.25% of registered value, so about $750 per year on a $300,000 property), the luxury home tax if applicable (potentially another $750 to $1,650 per year), corporate maintenance fees if owning through a company (roughly $400 to $800 per year), and property management costs if you are not living in Costa Rica full-time.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Costa Rica.
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.
Can I get a mortgage as a US citizen in Costa Rica in 2026?
Do banks lend to US citizens in Costa Rica in 2026?
As of early 2026, several Costa Rican banks and international lenders do offer mortgages to US citizens, including non-residents, although the process is more complex and documentation-heavy than what Americans are used to at home.
US citizens generally receive standardized treatment compared to other foreign nationals because Costa Rican banks have well-established compliance processes for American borrowers, which means more paperwork but also a more predictable path to approval.
The main reason some banks in Costa Rica are hesitant to lend to American borrowers specifically is the extra compliance burden created by US regulations like FATCA (Foreign Account Tax Compliance Act), which requires foreign banks to report on US account holders and creates administrative overhead.
The typical approval rate for US citizens applying for property loans in Costa Rica is relatively low compared to local applicants, with many foreigners finding the process slow (often 3 to 6 months) and uncertain, which is why many American buyers choose to pay cash or use alternative financing methods.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Costa Rica.
What down payment do American people need in Costa Rica in 2026?
As of early 2026, the minimum down payment for US citizens to obtain a mortgage in Costa Rica is typically 25% to 30% with newer international lenders, or 40% to 50% with traditional Costa Rican banks, so on a $300,000 property you would need between $75,000 and $150,000 upfront (roughly 40 to 80 million colones or 70,000 to 140,000 euros).
The typical down payment range for foreign buyers spans from 25% at the low end (with international lenders like Second Street or Volo Loans) to 50% at the high end (with conservative local banks), with 30% being a practical planning number for most American buyers.
A larger down payment does improve your mortgage terms in Costa Rica, as it reduces the bank's risk and can result in a lower interest rate, faster approval, and better overall loan conditions, particularly with local banks that are already cautious about lending to non-residents.
You can also read our latest update about mortgage and interest rates in Costa Rica.
What interest rates do US citizens get in Costa Rica in 2026?
As of early 2026, typical mortgage interest rates for US citizens in Costa Rica range from approximately 7% to 9.5% for USD-denominated loans and 7.5% to 10% for colones-denominated loans, depending on the lender, loan term, and borrower profile.
Interest rates for foreign buyers are generally similar to or slightly higher than rates offered to local Costa Rican residents, with the premium reflecting the additional risk and compliance costs banks face when lending to non-residents.
Both fixed-rate and variable-rate mortgages are available for foreign buyers in Costa Rica, with international lenders often offering 30-year fixed-rate products similar to US mortgages, while local banks typically offer adjustable rates that are fixed for the first 1 to 2 years and then adjust based on an index like SOFR.
The single factor that has the biggest impact on the interest rate a US citizen will be offered in Costa Rica is the loan-to-value ratio, meaning a larger down payment will typically secure a better rate, followed by the strength of your income documentation and overall financial profile.
Can I use US income to qualify in Costa Rica right now?
Yes, Costa Rican banks and international lenders generally accept US-sourced income for mortgage qualification, as non-resident lending is specifically designed to underwrite borrowers who earn their money abroad.
Banks in Costa Rica typically require US citizens to provide the last two years of US federal tax returns (often with IRS verification), recent pay stubs or employer income verification letters for salaried workers, several months of bank statements showing regular income deposits, and proof that your down payment funds are legitimate.
If standard US documentation is insufficient, some lenders may accept alternative verification methods such as bank statement programs (where 12 to 24 months of deposits are analyzed instead of tax returns), asset-based qualification for high-net-worth buyers, or a combination of US and Costa Rican income sources if you have local business activities.
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How do US taxes interact with owning property in Costa Rica?
Do I have to declare the property to the IRS from Costa Rica?
Owning a personal residence in Costa Rica is generally not a standalone IRS reporting requirement, meaning you do not need to file a special form just because you own a foreign home that you use personally.
The specific IRS forms that can become relevant for US citizens owning foreign real estate typically include FBAR (FinCEN Form 114) if you have Costa Rican bank accounts exceeding $10,000 in aggregate at any point during the year, and Form 8938 (FATCA) if your foreign financial assets exceed certain thresholds, though the property itself is usually not a "specified foreign financial asset."
Simply owning a personal residence does not trigger IRS reporting, but generating rental income from the property or selling it at a gain does create reporting obligations, including reporting the income on your regular tax return and potentially filing additional forms for foreign income.
Will I pay tax twice in the US and Costa Rica in 2026?
As of early 2026, there is a real possibility of taxation in both countries on income from your Costa Rican property (such as rental income or capital gains), although the US Foreign Tax Credit system typically prevents true double taxation by allowing you to offset US taxes with taxes already paid to Costa Rica.
There is currently no comprehensive income tax treaty between the United States and Costa Rica (Costa Rica is not listed on the IRS treaty list), which means you cannot rely on treaty provisions to reduce withholding or avoid double taxation, making the Foreign Tax Credit your primary relief mechanism.
The Foreign Tax Credit (Form 1116) allows you to subtract income taxes paid to Costa Rica from your US tax liability on the same income, effectively ensuring you pay the higher of the two countries' rates rather than both added together.
Whether Costa Rican property taxes are deductible on your US federal tax return is a complex question that depends on current US tax law and your specific filing situation, so this should be treated as a "consult your CPA" item rather than assumed either way.
Do I need FATCA reporting when buying in Costa Rica?
The property purchase itself does not typically trigger FATCA reporting, because real estate is generally not considered a "specified foreign financial asset" under FATCA rules, but related financial accounts or entity ownership can create reporting obligations.
The specific FATCA thresholds that trigger Form 8938 reporting for US citizens living in the United States are $50,000 in foreign financial assets at year-end (or $75,000 at any point during the year) for single filers, and double those amounts for married couples filing jointly, though these thresholds are higher for US citizens living abroad.
FATCA reporting (Form 8938) differs from FBAR (FinCEN Form 114) in that FATCA covers a broader range of foreign financial assets and is filed with your tax return, while FBAR specifically covers foreign bank accounts and is filed separately with FinCEN, and many US citizens owning Costa Rican property need to file both if they have local bank accounts.
Consulting a US CPA before buying property in Costa Rica is strongly recommended if you plan to open Costa Rican bank accounts, will rent out the property, are buying through a corporate structure, or expect to make large international wire transfers, and you should specifically ask about FBAR, FATCA, foreign rental income reporting, and potential foreign corporation reporting requirements.
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.
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 Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Costa Rica Maritime Zone Law (Ley 6043) | It's the primary Costa Rican law governing coastal property ownership. | We used it to explain the difference between titled property and coastal concessions. We also used it to clarify the specific restrictions that apply to foreign buyers in beachfront areas. |
| Costa Rica Ministry of Finance (Hacienda) | It's the government's official source for the 2026 luxury home tax brackets. | We used it to state the current exemption threshold and progressive tax rates. We also used it to explain when the annual luxury tax applies to residential properties. |
| Costa Rica Central Bank (BCCR) | It's the official central bank statistical series on lending rates. | We used it to anchor realistic mortgage interest rate estimates for early 2026. We also used it to compare colones versus USD mortgage rate expectations. |
| Scotiabank Costa Rica | It's a major bank's official checklist for non-resident borrowers. | We used it to show what banks actually ask US citizens for when applying for a mortgage. We also used it to keep our documentation section practical and grounded in reality. |
| BAC Credomatic Costa Rica | It's a major bank's published mortgage product information. | We used it to verify down payment expectations and mortgage product availability. We also used it to cross-check lending conditions against central bank rate data. |
| Deloitte Costa Rica Tax Highlights | It's a major global advisory firm's summary of Costa Rica tax rules. | We used it as an independent cross-check on the tax landscape. We also used it to verify our buyer cost ranges against a separate reputable source. |
| BDO Costa Rica Tax Guide | It's a global accounting firm with standardized country tax summaries. | We used it to verify the existence and direction of key property taxes. We also used it as triangulation rather than relying on any single source. |
| US IRS Treaty List | It's the IRS's official reference for US income tax treaties. | We used it to confirm there is no comprehensive US-Costa Rica tax treaty. We also used it to set expectations about relying on foreign tax credits for double-tax relief. |
| FinCEN FBAR Guidance | It's the US Treasury bureau that administers FBAR requirements. | We used it to explain that FBAR applies to financial accounts, not property ownership. We also used it to highlight the common trigger of Costa Rican bank accounts. |
| IRS Form 8938 (FATCA) | It's the IRS's official guidance on FATCA reporting for individuals. | We used it to explain what triggers reporting and what usually does not. We also used it to frame a simple decision rule for when to consult a US tax professional. |
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