Can foreigners own land in Costa Rica?

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

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THELATINVESTOR

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

How this content was created 🔎📝

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, Manuel Antonio, and Tamarindo. 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

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners legally buy land in Costa Rica, and are there any exceptions?

Foreigners can legally purchase land in Costa Rica with the same ownership rights as Costa Rican citizens.

The Costa Rican Constitution and Property Law grant foreign nationals fee simple ownership, meaning you own the land outright and can pass it to heirs, sell it, or develop it as you choose. You can purchase property in your individual name or through a Costa Rican corporation.

The main exceptions apply to maritime zones along the coast. The first 50 meters from the mean high tide mark is public domain and cannot be owned by anyone. The next 150 meters, known as the Maritime Zone, is government-owned land that can only be leased through concessions, and foreigners are limited to 49% ownership of concession properties unless they have lived in Costa Rica for at least five years.

Additional restrictions exist for land acquired through government social programs, which cannot be sold to foreigners until the original Costa Rican owner has held it for a specified period, typically several years.

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

What types of land are foreigners restricted from buying, like coastal or agricultural zones?

Land Type	Restriction Details	Foreign Ownership Status
Maritime Zone (0-50m from coast)	Public domain, no private ownership	Prohibited for all buyers
Maritime Zone (50-200m from coast)	Government concession leases only	Max 49% unless 5+ year resident
Agricultural zoned land	Use restrictions, minimum lot sizes	Allowed with zoning compliance
Rural development zones	5,000 sq meter minimum lots	Allowed with size requirements
Government program land	Waiting period after original purchase	Restricted until waiting period ends
Protected areas buffer zones	Environmental use limitations	Allowed with environmental compliance
Indigenous territories	Special indigenous protections	Generally prohibited

Do foreigners need to be residents or have a specific visa to buy land in Costa Rica?

No residency status or special visa is required for foreigners to purchase land in Costa Rica.

You can buy property while visiting on a standard tourist visa, which allows stays of up to 90 days for most nationalities. Many foreign buyers complete their land purchases during vacation trips or scouting visits without any immigration requirements beyond tourist entry.

The purchase process does not require establishing Costa Rican residency, obtaining work permits, or securing investment visas. This accessibility makes Costa Rica one of the most foreigner-friendly property markets in Central America.

However, if you plan to live in Costa Rica full-time after purchasing land, you will need to apply for appropriate residency status through separate immigration procedures, which are independent of property ownership.

What are the most common areas in Costa Rica where foreigners purchase land, and why?

Guanacaste Province leads foreign land purchases, accounting for approximately 60% of international buyer activity as of mid-2025.

The Guanacaste region attracts buyers with its Pacific coast beaches, established tourism infrastructure, and strong rental income potential. Popular towns include Tamarindo, Nosara, and Manuel Antonio, where beachfront and near-beach lots command premium prices ranging from $200,000 to $2 million per acre depending on ocean proximity and development potential.

The Central Valley around San José represents the second most popular area, favored for its year-round spring-like climate, proximity to international airports, and urban amenities. Land prices in the Central Valley typically range from $50,000 to $300,000 per acre, with higher prices in upscale areas like Escazú and Santa Ana.

The Nicoya Peninsula, famous as one of the world's Blue Zones for longevity, attracts health-conscious buyers and retirees. This region offers lower land prices, ranging from $25,000 to $150,000 per acre, while maintaining access to beaches and natural attractions.

Southern Pacific areas like Uvita and Dominical are emerging markets where foreign buyers can still find oceanview lots starting around $100,000 to $400,000 per acre.

Can you buy land in Costa Rica without being physically in the country?

Yes, foreigners can complete land purchases in Costa Rica entirely remotely without ever visiting the country.

The remote purchase process requires establishing a power of attorney with a licensed Costa Rican attorney who can sign documents and represent you at closing. This power of attorney must be notarized in your home country and apostilled for recognition in Costa Rica.

Many buyers conduct virtual property tours through video calls, drone footage, and detailed photo documentation provided by local real estate agents. Professional property inspection services can provide independent assessments of land condition, access, and development potential.

Funds for remote purchases are typically wired to established escrow accounts held by law firms or title companies, providing security for international transactions. The entire process from initial offer to closing can be completed in 30 to 60 days without the buyer traveling to Costa Rica.

However, visiting the property in person before purchase is strongly recommended to verify access roads, utilities, neighboring properties, and overall suitability for your intended use.

What documents and legal steps are required to complete a land purchase as a foreigner?

1. **Title Search and Due Diligence** - Property Registry Certificate (Certificación Literal) showing current ownership - Land Use Certificate (Uso de Suelo) confirming permitted uses and zoning - Municipal tax clearance certificates - Utility availability confirmation letters - Environmental compliance verification2. **Purchase Agreement and Legal Documentation** - Formal purchase contract drafted by Costa Rican attorney - Power of attorney if completing purchase remotely - Passport copies and identification documents - Proof of funds or financing pre-approval - Property survey and boundary verification3. **Closing Process Requirements** - Escrow account establishment for purchase funds - Final title search update before closing - Property tax payment verification - Transfer tax calculation and payment - Notary public execution of transfer documents4. **Post-Purchase Registration** - Property registration with National Registry - Municipal property tax account setup - Utility service transfers to new owner - Property insurance policy establishment - Legal entity setup if purchasing through corporation

What are the typical fees, taxes, and closing costs involved in buying land in Costa Rica?

Cost Category	Percentage of Purchase Price	Typical Amount Range
Transfer Tax	1.5%	$1,500 - $15,000 on $100K-$1M property
Registration Stamps	0.85%	$850 - $8,500 on $100K-$1M property
Attorney/Legal Fees	1.25% - 1.5%	$1,250 - $15,000 on $100K-$1M property
Notary Fees	0.5% - 1%	$500 - $10,000 on $100K-$1M property
Title Insurance (optional)	0.5% - 1%	$500 - $10,000 on $100K-$1M property
Survey and Appraisal	Fixed fees	$1,500 - $5,000 depending on property size
Total Closing Costs	3.5% - 6%	$3,500 - $60,000 on $100K-$1M property

Can foreigners buy land with cash, and is that common or recommended?

Cash purchases represent approximately 70% of foreign land transactions in Costa Rica as of mid-2025.

Paying cash offers significant advantages in the Costa Rican market, including faster closing times (typically 30-45 days versus 60-90 days for financed purchases), stronger negotiating position with sellers, and elimination of financing contingencies that could complicate transactions.

Cash buyers avoid the extensive documentation requirements and higher interest rates associated with foreign mortgages, which typically range from 7.5% to 8.5% for the initial fixed period. Additionally, cash purchases eliminate ongoing mortgage payment obligations and potential currency exchange risks for buyers earning income in other currencies.

The process requires wire transfers to established escrow accounts, typically held by law firms or title companies. Most attorneys recommend transferring funds in stages, with initial earnest money deposits of 5-10% of purchase price, followed by the balance at closing.

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.

Are mortgages available to foreigners buying land in Costa Rica, and what are the usual rates and conditions?

Mortgages are available to foreigners but come with stricter requirements and higher costs compared to cash purchases.

Costa Rican banks typically require 25% to 30% down payments for foreign borrowers, compared to 10-20% for residents. Interest rates for foreigners range from 7.5% to 8.5% for initial fixed periods of 3-5 years, after which rates become variable and can increase to 10-12% based on market conditions.

Documentation requirements include proof of income for the past two years, bank statements, tax returns, debt-to-income ratio verification, and property appraisals conducted by bank-approved appraisers. The approval process typically takes 60-90 days and requires borrowers to establish Costa Rican bank accounts.

International lenders and some US-based banks offer alternative financing options for Costa Rican property purchases, often with more competitive rates for qualified borrowers but requiring cross-border collateral or additional guarantees.

Maximum loan terms typically extend to 15-20 years for foreign borrowers, shorter than the 25-30 year terms available to residents. Monthly payment calculations must account for potential currency fluctuations if borrowers earn income in currencies other than Costa Rican colones.

What are the main uses foreigners have for the land they purchase—residential, farming, development, or investment?

1. **Residential Development (45% of foreign purchases)** - Primary retirement homes for North American and European retirees - Vacation homes and second residences for seasonal use - Permanent relocation properties for remote workers and digital nomads - Custom home construction on large lots with privacy and views - Gated community developments with shared amenities2. **Investment and Rental Income (30% of foreign purchases)** - Short-term vacation rental properties through Airbnb and VRBO - Long-term rental properties for expatriate communities - Land banking for future appreciation and development - Commercial development sites in growing tourist areas - Subdivision development for resale to other foreign buyers3. **Agricultural and Sustainable Living (15% of foreign purchases)** - Organic farming operations including coffee, cacao, and tropical fruits - Sustainable living projects with permaculture designs - Eco-tourism lodge development on rural properties - Cattle ranching and livestock operations - Reforestation projects for carbon credits and environmental benefits4. **Commercial Development (10% of foreign purchases)** - Tourist-focused businesses including restaurants and shops - Hotel and resort development projects - Wellness retreat and yoga center development - Adventure tourism activity centers - Mixed-use developments combining residential and commercial space

What are the most common mistakes or legal pitfalls foreigners should avoid when buying land in Costa Rica?

1. **Inadequate Due Diligence** - Failing to conduct thorough title searches revealing liens or encumbrances - Not verifying property boundaries with professional surveys - Overlooking zoning restrictions that limit intended property use - Skipping environmental compliance checks for protected area restrictions - Neglecting to verify legal access roads and easement rights2. **Water and Utility Issues** - Purchasing property without confirmed water rights or "water letters" - Assuming utility connections are available without verification - Not checking seasonal water availability in dry regions - Overlooking requirements for septic systems and waste management - Failing to verify internet and telecommunications access for remote work3. **Legal and Professional Mistakes** - Hiring unqualified or unlicensed attorneys and real estate agents - Not using proper escrow accounts for fund transfers - Signing contracts without professional translation and legal review - Attempting to handle complex transactions without local expertise - Not maintaining proper documentation for tax and legal compliance4. **Financial and Tax Oversights** - Underestimating total closing costs and ongoing property taxes - Not understanding tax implications in home country for foreign property ownership - Failing to budget for property maintenance and management costs - Overlooking currency exchange risks for ongoing expenses - Not establishing proper legal structures for tax optimization

What's the long-term outlook for the Costa Rican land market in terms of value and foreign interest?

The Costa Rican land market shows strong long-term growth potential driven by increasing foreign demand and limited supply in prime locations.

As we reach mid-2025, property values in popular areas like Guanacaste and the Central Valley have increased by 8-12% annually over the past three years, outpacing inflation and regional market growth. Limited beachfront and ocean-view land creates natural supply constraints that support continued price appreciation.

Foreign buyer interest remains robust, with North American buyers representing 65% of international purchases, followed by European buyers at 25%. The growing remote work trend and Costa Rica's political stability continue attracting digital nomads and early retirees seeking lifestyle changes.

Infrastructure improvements, including the expansion of Daniel Oduber International Airport in Liberia and improved highway connections to remote areas, are opening new regions for development and increasing land values along transportation corridors.

However, rapid price increases in some coastal areas have raised affordability concerns, potentially creating opportunities in secondary markets like the Southern Pacific and Caribbean coast regions. Environmental regulations and sustainable development requirements are becoming stricter, potentially limiting supply while supporting long-term value preservation.

Market analysts project continued annual appreciation of 6-10% in established areas through 2030, with emerging regions potentially offering higher returns for early investors willing to accept longer development timelines.

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

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. RE/MAX Ocean Surf Costa Rica - Buying Property Guide
2. Outlier Legal - Property Ownership Restrictions
3. Costa Rica Beach Life - Foreign Property Ownership
4. Coldwell Banker Samara - 2025 Buying Process Guide
5. Homes Go Fast - Costa Rica Market Opportunities
6. Costa Rica Life Group - Closing Costs Guide
7. Costa Ballena Property - Foreign Mortgage Options
8. Coldwell Banker Samara - 2025 Market Trends