Can foreigners get a mortgage in Costa Rica?

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THELATINVESTOR

A team specialized in real estate investing in Latin American countries (Costa Rica, Mexico, Panama, Colombia, etc.).

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.

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At TheLatinvestor, we explore the Costa Rican real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like San José, Guanacaste, and Manuel Antonio. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

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Can foreigners actually get approved for a mortgage in Costa Rica or is it mostly just theoretical?

Foreigners can indeed get approved for mortgages in Costa Rica, making it a practical reality rather than just theoretical.

As we reach mid-2025, several private banks including BAC San José, Banco Lafise, Scotiabank, and Banco BCT actively approve mortgage applications from non-citizens. However, the approval rate for foreigners remains significantly lower than for Costa Rican citizens or residents.

The key challenge lies in meeting the stricter qualification criteria that banks impose on foreign applicants. Private banks typically require higher income verification, larger down payments, and more extensive documentation compared to local borrowers. International mortgage companies and specialized lenders like GAP Equity Loans have emerged to fill this gap, offering alternative financing solutions specifically designed for foreign buyers.

Success rates improve dramatically when foreign applicants work with experienced local attorneys and mortgage brokers who understand the specific requirements of each lending institution. The process typically takes 3-6 months from application to approval, compared to 1-3 months for residents.

It's something we develop in our Costa Rica property pack.

Are there any specific limitations or restrictions that apply only to non-citizens applying for a mortgage?

Non-citizens face several specific restrictions that don't apply to Costa Rican citizens when applying for mortgages.

The most significant limitation is the down payment requirement, which ranges from 25% to 50% of the property value for foreigners, compared to 20-30% for citizens. Most banks require at least 30% down from foreign applicants, with some demanding up to 50% depending on the applicant's financial profile and the property location.

Documentation requirements are substantially more complex for non-citizens. All foreign documents must be translated into Spanish by certified translators and apostilled by the appropriate government authority in the applicant's home country. This includes tax returns, bank statements, employment verification, and credit reports spanning the previous 2-3 years.

Property ownership structure represents another major restriction. Many banks require foreigners to hold the property through a Costa Rican corporation or trust rather than direct personal ownership. This adds legal complexity and ongoing maintenance costs but provides certain tax advantages and easier transfer procedures.

Interest rates for foreign applicants typically run 1-3 percentage points higher than rates offered to citizens, reflecting the perceived higher risk. Loan terms are also generally shorter, with many banks limiting foreign mortgages to 15-20 years instead of the 25-30 year terms available to residents.

Do you need to have residency in Costa Rica to qualify for a mortgage, or can it be done as a non-resident?

Costa Rican residency is not absolutely required to qualify for a mortgage, but it significantly improves your chances and terms.

Non-residents can obtain mortgages from private banks and international lenders, though the process is more restrictive and expensive. As of June 2025, banks like BAC San José and Banco Lafise have specific programs for non-resident borrowers, typically requiring larger down payments and higher interest rates.

Having any form of Costa Rican residency status—whether temporary or permanent—opens access to better lending terms and more bank options. Residents can often qualify for down payments as low as 20% and receive preferential interest rates that can be 2-4 percentage points lower than non-resident rates.

The documentation process is also streamlined for residents, who can provide local employment verification, Costa Rican bank statements, and domestic credit history. Non-residents must rely entirely on foreign documentation, which requires translation, apostilling, and verification processes that can extend approval times by several months.

Some public banks like Banco Nacional primarily serve citizens and residents, effectively excluding non-residents from their mortgage programs. This limitation pushes non-residents toward private banks and alternative lenders, which typically charge higher fees and interest rates.

What kind of visa is considered valid residency for the purpose of applying for a mortgage in Costa Rica?

Banks don't specify particular visa types as residency requirements, but possession of a DIMEX card generally qualifies as valid residency for mortgage purposes.

Residency Type	Mortgage Eligibility	Typical Benefits
Temporary Residency (Rentista)	Eligible with most private banks	Better rates than non-residents, 20-30% down payment
Temporary Residency (Pensionado)	Eligible with most private banks	Steady income verification, preferred status
Permanent Residency	Eligible with all banks	Best rates, longest terms, lowest down payments
Investor Visa (₡150,000+ investment)	Eligible with private banks	Asset-based qualification, favorable consideration
Marriage-based Residency	Eligible with most banks	Local co-signer potential, community ties
Work Permit/Employment Visa	Limited eligibility	Income verification through local employer
Tourist Visa (90-day)	Not considered residency	Must use non-resident programs

Does being married to a Costa Rican citizen help in getting approved for a mortgage?

Marriage to a Costa Rican citizen can provide advantages in the mortgage application process, though it doesn't guarantee approval.

The primary benefit comes from the potential for the Costa Rican spouse to serve as a co-applicant or guarantor, which allows banks to consider local income, credit history, and employment verification. This can significantly strengthen the application, especially if the foreign spouse has limited local financial history.

Married foreigners can also qualify for residency more easily through their spouse, which then provides access to better mortgage terms reserved for residents. The marriage-based residency pathway typically takes 6-12 months to complete but results in substantially improved lending options.

However, banks still evaluate each applicant's individual creditworthiness and income capacity. A foreign spouse must still meet income requirements and provide documentation of their ability to repay the loan. The Costa Rican spouse's financial situation becomes equally important, as both incomes are typically considered in the debt-to-income ratio calculations.

Some banks also view marriage to a local citizen as evidence of long-term commitment to Costa Rica, which can reduce perceived flight risk and improve approval odds. This factor becomes particularly relevant for large loan amounts or properties in premium locations.

Which banks or financial institutions are known to work with foreign buyers and actually approve mortgages?

Several private banks and specialized lenders actively work with foreign buyers, though each has different requirements and approval criteria.

1. **BAC San José** - Offers comprehensive foreign buyer programs with down payments starting at 25% and competitive rates for qualified applicants2. **Banco Lafise** - Specializes in non-resident financing with flexible documentation requirements and loan terms up to 20 years3. **Scotiabank Costa Rica** - Provides international mortgage services with established processes for North American buyers4. **Banco BCT** - Focuses on high-net-worth foreign clients with significant asset portfolios and investment properties5. **Banco de Costa Rica (BCR)** - Limited foreign programs but works with well-qualified non-resident applicants6. **GAP Equity Loans** - Private lender specializing in bridge loans and alternative financing for foreign buyers7. **International mortgage companies** - Various firms offer overseas property financing with higher interest rates but easier qualification

Private lenders and international mortgage companies often provide more flexible terms than traditional banks, though typically at higher interest rates ranging from 8-15%. These lenders specialize in working with foreign documentation and can often approve loans that traditional banks would reject.

Developer financing has also become increasingly common, with major residential projects offering in-house financing programs. These typically require 20-40% down payments and offer 5-15 year terms with rates competitive to bank offerings.

It's something we develop in our Costa Rica property pack.

What documents do you typically need to provide when applying as a foreigner?

Foreign mortgage applicants must provide extensive documentation, all translated into Spanish and properly apostilled.

**Personal Identification and Legal Status:**- Valid passport with current entry stamps- Marriage certificate (if applicable) with apostille- Birth certificate with apostille for certain loan types- Proof of current address in home country**Financial Documentation (Last 2-3 Years):**- Complete tax returns with all schedules and attachments- Audited financial statements for business owners- Bank statements from primary checking and savings accounts- Investment account statements showing liquid assets- Credit report from home country with translation**Income Verification:**- Employment verification letter with salary details- Pay stubs covering the most recent 6 months- Profit and loss statements for self-employed applicants- Rental income documentation for investment properties- Pension or retirement income verification**Property-Related Documents:**- Property purchase agreement or intent to purchase- Professional property appraisal from certified Costa Rican appraiser- Property title search and legal verification- Property insurance quotes and coverage details

All documents must be translated by certified translators registered with Costa Rican courts and apostilled by the appropriate government authority in the applicant's home country. This process typically takes 4-8 weeks and costs $200-500 per document depending on complexity.

What's the usual step-by-step process to apply for a mortgage in Costa Rica as a foreigner?

The mortgage application process for foreigners involves multiple stages and typically takes 3-6 months from start to finish.

**Phase 1: Preparation (4-8 weeks)**- Research and compare lending institutions- Gather all required documentation- Obtain translations and apostilles for foreign documents- Establish relationships with local attorney and mortgage broker**Phase 2: Pre-qualification (2-3 weeks)**- Submit preliminary application with basic financial information- Receive initial loan amount and terms estimate- Complete formal loan application with full documentation- Pay application fees ranging from $500-2,000**Phase 3: Property Selection and Evaluation (3-4 weeks)**- Identify specific property for purchase- Order professional property appraisal- Conduct title search and legal due diligence- Negotiate purchase terms contingent on financing approval**Phase 4: Underwriting and Approval (4-8 weeks)**- Bank reviews and verifies all submitted documentation- Credit and income verification through third-party services- Property evaluation and risk assessment- Final loan committee review and approval decision**Phase 5: Closing (2-3 weeks)**- Finalize loan terms and sign mortgage documents- Arrange property insurance and title transfer- Complete closing with attorney oversight- Fund loan and transfer property ownership

Working with experienced local professionals significantly streamlines this process and improves approval odds. Most successful foreign applicants use mortgage brokers who specialize in non-resident financing and maintain relationships with multiple lending institutions.

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 much is the typical down payment required, and is it different for foreigners?

Down payment requirements for foreigners are substantially higher than for Costa Rican citizens and residents.

Foreign buyers typically face down payment requirements of 25-50% of the property value, with most private banks requiring at least 30%. The exact percentage depends on factors including the applicant's financial profile, property location, loan amount, and chosen lender.

In contrast, Costa Rican citizens and residents can often qualify for down payments as low as 20%, with government-backed programs sometimes allowing even lower amounts for first-time homebuyers. This represents a significant financial barrier for foreign buyers, who must have substantially more liquid capital available for their purchase.

Property location also influences down payment requirements. Prime beachfront properties, luxury developments, and properties in popular expat areas like Guanacaste or Manuel Antonio often require higher down payments of 40-50% regardless of the buyer's qualifications.

Some alternative financing options can reduce effective down payment requirements. Developer financing programs may accept 20-30% down, while owner financing arrangements sometimes allow for even lower initial payments in exchange for higher interest rates or shorter terms.

What are the average interest rates and loan terms for foreign applicants?

Interest rates for foreign mortgage applicants in Costa Rica typically range from 7-12% annually, significantly higher than rates available to residents.

Lender Type	Interest Rate Range	Typical Loan Terms
Private Banks (prime foreign clients)	7-9% annually	15-20 years
Private Banks (standard foreign clients)	9-11% annually	10-15 years
International Mortgage Companies	10-15% annually	10-20 years
Private Lenders/Bridge Loans	12-18% annually	1-5 years
Developer Financing	8-12% annually	5-15 years
Owner Financing	6-10% annually	1-5 years
Costa Rican Citizens/Residents	5-8% annually	20-30 years

Many loans feature variable rate structures, with fixed rates for the initial 2-5 years followed by adjustable rates tied to Costa Rican banking indices. This structure provides payment predictability during the early loan period while allowing banks to adjust for changing economic conditions.

Loan terms for foreigners are generally shorter than those offered to residents, with most banks limiting foreign mortgages to 15-20 years maximum. Some specialized international lenders offer terms up to 25-30 years, though typically at higher interest rates.

It's something we develop in our Costa Rica property pack.

Can you use property or other assets as collateral to improve your chances?

Using additional property or assets as collateral can significantly improve mortgage approval chances and terms for foreign applicants.

Costa Rican lenders readily accept real estate as additional collateral, whether located in Costa Rica or other countries. Properties in the applicant's home country can serve as security, though banks typically require professional appraisals and legal verification of ownership and encumbrances.

Liquid assets such as certificates of deposit, investment accounts, and cash holdings in reputable banks strengthen applications considerably. Many lenders offer "asset-based lending" programs where approval depends more on collateral value than income verification, particularly useful for retirees or investors with substantial assets but limited regular income.

Private lenders and international mortgage companies are especially flexible with collateral arrangements. Bridge loan specialists like GAP Equity Loans structure deals where existing property equity serves as primary security, allowing buyers to purchase before selling existing assets.

Business assets, including equipment, inventory, and intellectual property, can also serve as collateral for qualified commercial borrowers. However, valuation and legal verification of business assets adds complexity and time to the approval process.

Cross-collateralization arrangements, where multiple properties secure a single loan, provide access to larger loan amounts and better interest rates. This strategy works particularly well for investors building portfolios across multiple Costa Rican properties.

If you can't get a traditional mortgage, what are the best alternatives for financing real estate in Costa Rica?

Several alternative financing options exist for foreign buyers who cannot qualify for traditional bank mortgages.

**Owner Financing Programs:**- Sellers act as lenders, typically requiring 30-50% down payments- Terms usually range from 1-5 years with balloon payments- Interest rates often competitive with bank mortgages at 6-10%- Faster closing process with fewer documentation requirements- Particularly common in expat communities and luxury markets**Developer Financing:**- New construction projects offer in-house financing programs- Down payments typically 20-40% with 5-15 year terms- Interest rates competitive at 8-12% annually- Easier qualification standards focused on down payment capacity- Often includes construction completion guarantees and warranties**International Mortgage Companies:**- Specialize in overseas property financing for foreign buyers- Higher interest rates (10-15%) but more flexible qualification- Loan terms up to 30 years with various payment structures- Accept foreign income and credit without extensive documentation- Can close faster than traditional banks**Home Equity Lines of Credit (HELOC):**- Borrow against equity in home country property- Often provides lower interest rates than Costa Rican financing- Flexible draw periods and repayment terms- No foreign income verification required- Must consider currency exchange risks**Private Money Lenders:**- Bridge loans for short-term financing needs- Asset-based lending with minimal income verification- Higher interest rates (12-18%) but quick approval and funding- Terms typically 1-3 years with refinancing options- Useful for competitive cash offers and quick closings

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. Wise - Getting a Mortgage in Costa Rica
2. GAP Equity Loans - Understanding Financing for Foreigners
3. GAP Investments - About Down Payments in Costa Rica
4. Costa Ballena Property - Costa Rica Mortgage
5. Flamingo Beach Realty - How to Finance a House
6. The Costa Rica Life - Financing Options for Non-Residents
7. BAC Credomatic - Foreigners Landing Page
8. OSA Tropical Properties - Real Estate Financing
9. RE/MAX Ocean Surf - Financing for Foreigners
10. Living Costa Rica - Mortgage Requirements