Guanacaste: property buying guide (Sept 2025)

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

Yes, the analysis of Guanacaste's property market is included in our pack

Who is the author of this content?

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 Guanacaste. If you'd like to learn more about us, you can check our presentation page.

Can foreigners legally buy property in Guanacaste, and are there any restrictions on what type or where?

Foreigners can legally buy property in Guanacaste with the exact same ownership rights as Costa Rican citizens, and no residency or special permits are required for titled land purchases.

The only significant restriction applies to the Maritime Zone, which covers the first 200 meters from the high tide line on all beaches. The first 50 meters are designated as public land and cannot be privately owned by anyone, whether Costa Rican or foreign.

The next 150 meters can only be held through concession leases, and foreigners are generally limited to 49% ownership of such concession properties unless they have been legal residents of Costa Rica for at least five years. Additionally, special protected areas, land from government social programs, and indigenous territories have restrictions for foreign buyers.

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

As of September 2025, these ownership laws remain unchanged and provide substantial security for foreign property investors in Guanacaste.

What areas in Guanacaste are the most popular with foreign buyers, and why?

What is the step-by-step process for purchasing property as a foreigner in Guanacaste?

The property purchase process in Guanacaste follows a structured eight-step procedure that typically takes 30-60 days to complete.

First, conduct your property search using reputable local agents or established online platforms. Once you identify a suitable property, make a written offer through a formal Letter of Intent that outlines your proposed terms and conditions.

Next, open an escrow account with a licensed Costa Rican escrow company to transfer funds securely, typically depositing 10% of the purchase price as earnest money. Simultaneously, hire a qualified Costa Rican lawyer to conduct comprehensive due diligence on the property's title, zoning status, and legal standing.

After due diligence confirms the property is clear, submit your formal offer and make the agreed-upon down payment. Once both parties accept the terms, sign the transfer deed, which must be executed by a licensed Costa Rican notary public.

Pay all closing costs, which generally range from 3.5% to 6% of the purchase price, covering transfer taxes, legal fees, and registry costs. Finally, register your ownership at the National Registry to receive your official property title.

What documents and permits do you need to complete a property purchase?

Property purchases in Guanacaste require specific documentation that varies depending on whether you complete the transaction in person or remotely.

Essential documents include a valid passport or government-issued identification, a formal Letter of Intent or purchase offer, and a signed escrow agreement with accompanying KYC (Know Your Customer) and background check documentation.

If you plan to complete the purchase remotely, you must provide a power of attorney document that authorizes your Costa Rican lawyer to act on your behalf. The transfer deed must be drafted and notarized by a licensed Costa Rican notary public.

Financial documentation includes proof of funds and source of funds verification to demonstrate the legal origin of your purchase money. Your lawyer will also provide due diligence reports confirming clear title and proper zoning for your intended property use.

All foreign documents may require apostille certification depending on their origin and intended use in the legal process.

Can you complete the purchase process without physically being in Costa Rica?

Yes, the entire property purchase process can be completed remotely without requiring your physical presence in Costa Rica.

This remote purchase option requires establishing a power of attorney relationship with a qualified Costa Rican lawyer who will represent your interests throughout the transaction. Your attorney will handle all necessary paperwork, coordinate with the seller's representatives, and ensure proper execution of the transfer deed.

The power of attorney document must be properly notarized and potentially apostilled in your home country before it becomes valid for use in Costa Rica. Your lawyer will guide you through the specific requirements based on your country of residence.

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

Remote purchases have become increasingly common among foreign buyers, particularly since the COVID-19 pandemic, and the process is well-established and legally secure when handled by experienced professionals.

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What are the main taxes, fees, and ongoing costs involved in buying and owning property there?

Property ownership in Guanacaste involves several upfront costs and ongoing financial obligations that buyers must budget for carefully.

Closing costs range from 3.5% to 6% of the purchase price and include transfer taxes (approximately 1.5%), legal fees (typically 1-2%), notary fees, registry costs, and escrow charges. These costs are typically split between buyer and seller according to the purchase agreement.

Annual property taxes are calculated at 0.25% of the property's assessed value for most properties. However, properties valued above $250,000 face additional luxury taxes that can push the total annual tax rate up to 0.55% of assessed value.

When you eventually sell the property, you'll pay capital gains tax of either 15% on your actual profit or 2.25% of the total sale price, whichever calculation you prefer. Additional ongoing costs include legal fees for annual corporate maintenance if you purchase through a corporation, municipal fees, property insurance, and maintenance costs, especially for condominium properties with homeowners association fees.

Can foreigners buy property in cash, and is it common practice?

Most foreign buyers in Guanacaste purchase property with cash rather than financing, and this approach is both common and practical for several reasons.

Cash purchases eliminate the complexity and time delays associated with international mortgage approval processes, which can be particularly challenging for non-residents. Additionally, cash buyers often have stronger negotiating positions and can close transactions more quickly, which is advantageous in competitive markets.

The cash purchase process is streamlined and secure when handled through proper escrow accounts and legal representation. Buyers can wire funds directly to licensed escrow companies or bring certified funds when completing the transaction in person.

However, buyers should ensure they have proper documentation for large cash transfers to satisfy both Costa Rican and their home country's financial reporting requirements. Money laundering laws require clear documentation of fund sources for significant real estate transactions.

Is mortgage financing actually available for foreigners, and if so, what are the typical rates, conditions, and how do you qualify?

Mortgage financing for foreigners in Guanacaste is available but limited, with more restrictive terms compared to financing available to Costa Rican citizens.

Local and some international banks offer mortgage products to qualified foreign buyers, but typically require down payments of 30% to 50% of the purchase price. Interest rates generally range from 7% to 10% annually, which is significantly higher than rates available in North American or European markets.

Qualification requirements include comprehensive financial documentation, including tax returns, bank statements, employment verification, and proof of income. The approval process can be slow and bureaucratic, often taking several months to complete.

Given these constraints, most foreign buyers find that cash purchases offer better value and convenience. However, financing can be worthwhile for buyers who prefer to preserve their liquidity for other investments or purchases.

Some international banks with Costa Rican operations may offer more favorable terms to their existing customers, so it's worth exploring options with your current financial 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.

Does buying property provide any pathway to residency or citizenship in Costa Rica?

Property ownership alone does not automatically grant residency or citizenship rights in Costa Rica, but it can serve as a foundation for certain residency applications.

The "Inversionista" (investor) residency program requires a minimum investment of $150,000 USD in Costa Rican real estate or business ventures. This residency status allows legal long-term residence but does not directly lead to citizenship.

Investor residency holders must maintain their investment and meet renewal requirements every few years. The residency provides work authorization and access to Costa Rica's social services, making it attractive for retirees and entrepreneurs.

Citizenship in Costa Rica requires separate long-term processes, typically involving seven years of legal residency, language proficiency, and cultural integration requirements. Property ownership can support these applications by demonstrating long-term commitment to the country.

Many foreign property owners choose to maintain tourist status with periodic border runs rather than pursuing formal residency, as this approach offers more flexibility for part-time residents.

What are the typical property prices, rental yields, and long-term market forecasts for Guanacaste?

Rental yields in popular tourist areas typically range from 5% to 8% annually for traditional long-term rentals, with short-term vacation rentals through platforms like Airbnb and VRBO potentially achieving higher returns, especially during peak tourist seasons from December through April.

The Guanacaste property market has shown consistent growth driven by international demand, tourism development, and infrastructure improvements. As of September 2025, market forecasts remain positive due to Costa Rica's political stability, growing expat community, and continued tourism growth.

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

What are the most common mistakes or pitfalls foreign buyers face, and how can you avoid them?

Foreign buyers in Guanacaste commonly encounter several preventable mistakes that can lead to financial losses or legal complications.

The most critical error is failing to hire a qualified, bilingual Costa Rican attorney for due diligence and legal representation. Some buyers attempt to save money on legal fees only to discover title problems, zoning violations, or outstanding tax debts after purchase.

Many buyers underestimate the time required for permit processing and property registration, leading to rushed decisions or incomplete verification processes. Additionally, some buyers overpay by failing to research comparable property values or negotiate effectively in markets they don't understand.

Maritime Zone properties present particular risks, as buyers sometimes purchase unregulated developments or properties with unclear concession status. Others ignore ongoing costs like homeowners association fees, insurance, and maintenance, which can significantly impact investment returns.

Buying properties "sight unseen" without proper inspections can reveal costly structural or environmental issues after purchase. Working with experienced local professionals and taking time for thorough due diligence prevents most of these common pitfalls.

What is day-to-day life like for expats living in Guanacaste?

Expat life in Guanacaste centers around a relaxed, outdoor-oriented lifestyle that attracts retirees, remote workers, and entrepreneurs seeking an escape from urban stress.

The region hosts strong, welcoming expat communities, particularly Americans, Canadians, and Europeans, who have established social networks, business groups, and cultural organizations. Popular activities include surfing, yoga, nature exploration, and eco-tourism, with many expats embracing the slower "pura vida" pace of life.

Coastal towns like Tamarindo, Flamingo, and Playas del Coco offer good access to healthcare, shopping, restaurants, and educational facilities, while smaller communities provide more authentic Costa Rican cultural experiences. Transportation typically requires personal vehicles or ATVs, as public transportation is limited outside major towns.

Many expats generate income through vacation rental management, online businesses, or early retirement funded by their property investments. The region's infrastructure varies significantly by location, with tourist areas having better roads, internet, and utilities compared to rural inland areas.

Liberia provides the most urban amenities and government services, while smaller beach towns offer privacy, natural beauty, and abundant outdoor activities for those seeking a more secluded lifestyle.

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. Tres Amigos Costa Rica - Buying Property as a Foreigner
2. The LatinvestoR - Costa Rica Real Estate for Foreigners
3. The LatinvestoR - Can Foreigners Own Land in Costa Rica
4. Broker Costa Rica - Guanacaste Real Estate Guide
5. The LatinvestoR - Guanacaste Costa Rica Property
6. Coastal Realty Costa Rica - Guanacaste Investment Guide
7. Century 21 Flamingo - Real Estate Investment Opportunities
8. Special Places of Costa Rica - Best Places to Buy
9. Visit World Today - Foreign Property Buying Guide
10. Drink Tea Travel - Costa Rica Property Guide