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Everything you need to know before buying real estate is included in our Costa Rica Property Pack
Foreigners can legally buy land in Costa Rica with rights nearly identical to Costa Rican citizens, but important restrictions and processes must be understood before making any purchase.
As of September 2025, the Costa Rican land market remains accessible to international buyers, though maritime zones, border areas, and protected lands have specific limitations that can affect your investment plans.
If you want to go deeper, you can check our pack of documents related to the real estate market in Costa Rica, based on reliable facts and data, not opinions or rumors.
Foreigners have full legal rights to buy and own land in Costa Rica without citizenship or residency requirements, even tourists on 90-day visas can purchase property.
Key restrictions include maritime zones (first 200m from coastline), border areas within 50km of Nicaragua and Panama, and protected lands in national parks and indigenous territories.
| Purchase Aspect | Details | Cost/Timeline |
|---|---|---|
| Legal Requirements | Valid passport, Costa Rican tax ID (NITE), proof of funds | 1-2 weeks setup |
| Closing Costs | Transfer tax, legal fees, registration fees | 3.5-6% of purchase price |
| Annual Property Tax | Based on assessed property value | 0.25% annually |
| Popular Regions | Guanacaste Peninsula, Central Valley, Southern Zone | $50,000-$1,000,000+ |
| Mortgage Options | Limited for foreigners, mostly cash purchases | 8-12% interest rates |
| Remote Purchase | Power of Attorney allows buying without presence | Standard process |
| Capital Gains Tax | On resale profits or gross sale price | 15% on gain or 2.25% on sale |
Can foreigners legally buy land in Costa Rica?
Yes, foreigners have full legal rights to buy and own property in Costa Rica with ownership rights nearly identical to Costa Rican citizens.
There are no citizenship or residency requirements for purchasing land in Costa Rica. Even tourists visiting on a standard 90-day visa can legally buy property during their stay.
Ownership can be structured either through direct purchase in your personal name or through a Costa Rican corporation. The fee-simple title system provides outright ownership in most cases, giving you the same property rights as local citizens.
As of September 2025, this open policy toward foreign land ownership continues to attract international buyers seeking investment opportunities or relocation options in Central America.
Are there any types of land that foreigners cannot purchase?
Several specific land categories have restrictions or complete prohibitions for foreign ownership in Costa Rica.
Maritime zones present the most significant restriction - the first 50 meters from the high tide line is public domain and cannot be owned by anyone. The next 150 meters (known as the concession zone) can only be held as a government concession, and foreigners can only own up to 49% through a Costa Rican corporation unless they have resided in Costa Rica for over five years.
Border areas within 50 kilometers of the boundaries with Nicaragua and Panama generally cannot be owned by foreigners for national security reasons. Protected lands including national parks, biological reserves, and indigenous territories are either completely restricted or have severe limitations on foreign ownership.
Additionally, some land acquired through government assistance programs has waiting periods or restrictions preventing resale to foreigners for specified time periods.
What is the exact step-by-step process for a foreigner to buy land in Costa Rica?
The land purchase process in Costa Rica follows a structured six-step procedure that typically takes 30-60 days to complete.
- Property Search and Selection: Work with a licensed real estate agent or realtor to identify suitable properties that meet your criteria and budget requirements.
- Offer and Negotiation: Submit a formal written offer specifying price, terms, contingencies, and required deposit amount (usually 5-10% of purchase price).
- Due Diligence Period: Your attorney performs comprehensive title searches, property surveys, zoning verification, and tax record checks to ensure clear ownership.
- Escrow Setup: Deposit funds into a secure escrow account managed by your attorney - never transfer money directly to sellers without proper escrow protection.
- Closing Preparation: All parties finalize legal documents, obtain necessary permits, and schedule the official closing date with the notary public.
- Deed Execution and Registration: The property transfer deed is signed before a Costa Rican notary, then filed at the National Registry, officially making you the legal owner.
What documents does a foreigner need to provide to complete a land purchase?
Foreign buyers must provide several essential documents to complete a legal land purchase in Costa Rica.
Personal documentation includes a valid passport and a Costa Rican tax identification number (NITE), which your attorney can arrange during the purchase process. You'll also need proof of funds such as bank statements or mortgage pre-approval letters.
If buying remotely, you'll need a Power of Attorney document that must be notarized and apostilled in your home country. Property-specific documents include the current deed (Escritura), updated survey (Plano Catastrado), tax records, and land use certificate (Uso de Suelo).
For development purposes, additional permits may be required including construction permits and environmental clearances depending on the intended use of the land.
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Is it possible for a foreigner to buy land without physically being in Costa Rica?
Yes, foreigners can complete land purchases entirely remotely without being physically present in Costa Rica.
This is accomplished by granting Power of Attorney to a licensed Costa Rican attorney who will handle all aspects of the transaction on your behalf. The Power of Attorney document must be properly notarized and apostilled in your home country before being accepted in Costa Rica.
All necessary documents can be signed electronically, apostilled, and transmitted digitally during the purchase process. Your attorney will attend all meetings, sign documents, handle fund transfers, and complete the registration process at the National Registry.
Remote property purchases are common and widely accepted practice in Costa Rica's real estate market, making it convenient for international buyers who cannot travel during the transaction period.
What are the taxes, fees, and ongoing costs involved in owning land as a foreigner?
| Cost Category | Rate/Amount | When Due |
|---|---|---|
| Closing Costs | 3.5-6% of purchase price | At closing |
| Transfer Tax | 1.5% of registered value | At closing |
| Legal Fees | 1-2% of purchase price | At closing |
| Annual Property Tax | 0.25% of assessed value | Annually |
| Luxury Tax | 0.25% additional if value >$250,000 | Annually |
| Capital Gains Tax | 15% on gain or 2.25% on sale price | Upon resale |
| Ongoing Costs | Maintenance, utilities, insurance, HOA | Monthly/Annually |
Can foreigners pay cash for land, and is it common to do so?
Cash payments are not only possible but extremely common among foreign buyers purchasing land in Costa Rica.
Most international buyers prefer cash transactions because financing options for foreigners are limited and often come with restrictive terms. Cash purchases also provide significant advantages during negotiations, as sellers prefer the certainty and speed of cash deals.
However, all funds must be transferred through proper escrow accounts managed by licensed attorneys for security and legal compliance. Never transfer money directly to sellers or through informal channels.
Cash buyers typically have stronger negotiating positions and can close transactions faster than those requiring financing, often completing purchases within 30-45 days rather than 60-90 days for financed deals.
Do mortgages exist for foreigners buying land, and what are the typical rates, conditions, and tips to get approved?
Mortgage financing for foreigners buying land in Costa Rica is extremely limited and comes with challenging requirements.
Most Costa Rican banks require legal residency status or a strong local business presence before considering loan applications from foreigners. International and private lenders occasionally offer "developer financing" with interest rates ranging from 8-12% annually.
Typical loan conditions include maximum 70% loan-to-value ratios, substantial down payments (30% minimum), proof of foreign income, and often require collateral beyond the purchased property. Some developers offer owner financing arrangements with more flexible terms.
Given these limitations, approximately 85% of foreign land purchases in Costa Rica are completed with cash, making adequate liquid funds essential for most international buyers.
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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.
Where do foreigners most often buy land in Costa Rica, and why?
Three primary regions attract the majority of foreign land buyers in Costa Rica due to their distinct advantages and amenities.
Guanacaste Province and the Nicoya Peninsula remain the most popular destinations, particularly areas like Tamarindo, Nosara, and the Papagayo Peninsula. These coastal regions offer beautiful beaches, established tourism infrastructure, strong rental markets, and well-developed expat communities with reliable services.
The Central Valley, including areas around San JosĂ©, EscazĂș, and Santa Ana, attracts buyers seeking urban amenities, quality healthcare, international schools, and year-round spring-like climate. This region offers better infrastructure and easier access to services compared to more remote areas.
The Southern Zone, particularly the Osa Peninsula and areas around Dominical and Uvita, appeals to buyers seeking privacy, natural beauty, and eco-investment opportunities. These areas offer lower prices but require more tolerance for limited infrastructure and services.
What are the most common mistakes or pitfalls foreigners face when buying land in Costa Rica?
Foreign buyers frequently encounter several preventable mistakes that can result in significant financial losses or legal complications.
- Failing to verify clear title: Not conducting proper title searches and boundary surveys can lead to ownership disputes or discovery of liens and encumbrances.
- Overlooking zoning restrictions: Purchasing land without understanding building restrictions, environmental limitations, or development permissions can prevent intended use.
- Assuming beachfront ownership rights: Many buyers don't understand maritime zone restrictions and purchase properties thinking they own beachfront when they only have concession rights.
- Bypassing professional legal review: Attempting to save money by avoiding qualified attorneys often results in much larger problems and costs later.
- Inadequate budget planning: Underestimating closing costs, ongoing taxes, and maintenance expenses can strain finances after purchase.
What are the average prices for different types of land in Costa Rica?
| Region/Type | Price Range (USD) | Characteristics |
|---|---|---|
| Guanacaste Beachfront | $200,000-$1,000,000+ | Prime ocean view parcels, tourism areas |
| Central Valley | $75,000-$300,000 | Proximity to San José, good infrastructure |
| Southern Zone | $50,000-$400,000 | Varies by access and development level |
| Rural Agricultural | $15,000-$75,000 | Remote areas, limited infrastructure |
| Mountain/Cloud Forest | $30,000-$200,000 | Cooler climate, eco-tourism potential |
| Caribbean Coast | $40,000-$250,000 | Less developed, authentic culture |
| Golf Course Communities | $100,000-$500,000 | Amenities, HOA fees, restrictions |
What is the long-term outlook for the Costa Rican land market for foreign buyers?
The Costa Rican land market maintains a positive long-term outlook for foreign buyers based on several fundamental strengths and market trends.
Political stability, democratic governance, and consistent respect for property rights continue to attract international investment. The country's natural beauty, biodiversity, and "Pura Vida" lifestyle maintain strong appeal for both investment and lifestyle buyers.
Rental yields remain attractive, particularly in tourism-focused areas, with short-term vacation rentals generating 5-8% annual returns and sometimes higher in prime locations. The tourism industry's continued growth supports demand for rental properties and land development opportunities.
As of September 2025, regulations remain clear and foreigner-friendly, with consistent appreciation in key regions making Costa Rica a solid long-term investment option. However, buyers should focus on well-located properties with proper legal documentation and realistic expectations about market appreciation rates.
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.
Foreigners enjoy substantial land ownership rights in Costa Rica, with clear legal processes and few restrictions outside maritime zones and border areas.
Success requires working with qualified professionals, conducting proper due diligence, and understanding all costs and restrictions before committing to any purchase.
Sources
- Drink Tea Travel - Buying Property in Costa Rica
- The LatinVestor - Costa Rica Real Estate for Foreigners
- GAP Investments - Can Foreigners Own Land in Costa Rica
- Flamingo Beach Realty - Property Laws for Foreigners
- Tres Amigos - Buying Property as a Foreigner
- The LatinVestor - Buy Land Costa Rica
- The LatinVestor - Foreigners Own Land Costa Rica
- Visit World Today - Property Buying Guide
- Costa Rica Real Estate Service - Purchase Process
- Coldwell Banker - Market Trends 2025