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
Foreigners can buy property in Costa Rica with nearly the same rights as locals, making it one of the most accessible real estate markets in Latin America.
As of September 2025, foreign buyers face minimal restrictions when purchasing titled property in Costa Rica, except for coastal areas within the Maritime Zone where special rules apply.
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 can purchase property in Costa Rica without residency requirements, though the Maritime Zone has ownership restrictions limiting foreign ownership to 49%.
The complete buying process typically costs 3.5-6% of the purchase price in taxes and fees, with property prices ranging from $100,000 inland to over $2 million for beachfront properties.
| Key Requirement | Details | Cost/Timeline |
|---|---|---|
| Residency Needed | No residency required for purchase | Tourist visa sufficient |
| Physical Presence | Not required (power of attorney possible) | 2-4 weeks process |
| Transfer Tax | 1.5% of purchase price | Paid at closing |
| Registration Fees | 0.5% of purchase price | Paid at closing |
| Legal Fees | 1-2% of purchase price | Split buyer/seller |
| Annual Property Tax | 0.25% of assessed value | Ongoing annual cost |
| Capital Gains Tax | 15% or simplified 2.25% | Upon sale |
Can foreigners buy property in Costa Rica in the same way as locals or are there restrictions?
Foreigners enjoy nearly identical property ownership rights as Costa Rican citizens when purchasing titled property.
The Costa Rican Constitution guarantees full legal rights for foreign property ownership, making it one of the most foreigner-friendly real estate markets in Central America. You can buy residential homes, commercial buildings, or agricultural land without nationality restrictions on titled property.
The main restriction applies to the Maritime Zone, which covers the first 200 meters from the high tide line on all coasts. The initial 50 meters remains public and cannot be owned or developed by anyone. In the next 150 meters (concession land), foreigners can only own up to 49% of the property, with Costa Rican citizens required to hold the majority stake.
Additional restrictions exist near borders, river mouths, nature reserves, and islands. These areas require careful legal review before purchase to ensure compliance with Costa Rican law.
As of September 2025, these ownership rules remain unchanged and provide clear guidelines for foreign investors looking to purchase property in Costa Rica.
What residency or visa status do I need before buying property in Costa Rica?
No residency or specific visa is required to purchase property in Costa Rica as a foreigner.
You can buy property while on a tourist visa using only your passport as identification. This makes Costa Rica exceptionally accessible for international buyers compared to other Latin American countries with more restrictive foreign ownership laws.
However, property ownership does not automatically grant residency rights or change your immigration status. You remain subject to tourist visa limitations, typically allowing 90-day stays before requiring renewal or departure.
If you invest at least $150,000 USD in real estate, you qualify for Inversionista (Investor) Residency, which provides temporary renewable residency status. This residency requires maintaining your investment, spending at least 4 months per year in Costa Rica as of 2025, and does not allow employment as an employee.
It's something we develop in our Costa Rica property pack.
Do I have to be physically present in Costa Rica to complete the purchase process?
Physical presence is not required to complete a property purchase in Costa Rica.
Most of the buying process can be conducted remotely, including property searches, negotiations, due diligence reviews, and contract preparation. You can grant power of attorney to a trusted representative, typically prepared at a Costa Rican consulate in your home country.
Your representative handles the final signatures and legal steps that require in-person presence in Costa Rica, including appearing before the notary public for the title transfer and completing registration at the National Registry.
The power of attorney document must be notarized and apostilled in your home country to be valid in Costa Rica. Many foreign buyers successfully complete purchases without ever visiting the property during the transaction process.
Remote closings typically add 1-2 weeks to the process compared to in-person transactions, but provide significant convenience for international buyers.
What are the step-by-step procedures and documents needed to buy property as a foreigner?
The property purchase process in Costa Rica follows eight essential steps with specific documentation requirements.
Here's the complete step-by-step procedure:
1. **Find a reputable realtor** with experience handling foreign buyer transactions2. **Select and inspect the property** thoroughly, including physical and legal inspections3. **Hire an independent lawyer** specializing in Costa Rican real estate law4. **Make an offer and negotiate** the sale contract terms and conditions5. **Perform comprehensive due diligence** including title searches and lien verification6. **Sign the transfer deed** before a notary public and pay the required deposit7. **Complete final payment** and register the title transfer at the National Registry8. **Pay all taxes and closing costs** to finalize the transactionRequired documents include your passport, proof of funds, sale contract, title documents, due diligence reports, and if using power of attorney, a notarized and apostilled power of attorney document prepared in your home country.
The entire process typically takes 4-8 weeks from offer acceptance to final registration, depending on the complexity of due diligence and financing arrangements.
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Is hiring a lawyer mandatory for property purchases in Costa Rica, and how do I choose one?
Hiring a lawyer is not legally mandatory but is considered essential and standard practice for foreign property buyers in Costa Rica.
A qualified real estate lawyer verifies property titles, handles comprehensive due diligence, drafts and negotiates contracts, ensures compliance with Costa Rican law, and registers the property transfer at the National Registry.
Choose your lawyer through bar association listings, embassy recommendations, or referrals from other foreign property owners. Prioritize lawyers with specific experience in foreign buyer transactions and strong local reputations.
Legal fees typically range from 1-2% of the purchase price, often split between buyer and seller. This investment protects against title defects, encumbrances, zoning violations, and other legal issues that could cost significantly more to resolve later.
Never rely solely on the seller's lawyer or realtor for legal advice, as they represent different interests in the transaction.
What taxes, fees, and other costs should I expect when buying and later selling a property?
Total closing costs for property purchases in Costa Rica range from 3.5-6% of the purchase price.
| Cost Type | Rate | When Paid |
|---|---|---|
| Transfer Tax | 1.5% of purchase price | At closing |
| Registration Fees | 0.5% of purchase price | At closing |
| Notary/Legal Fees | 1-2% of purchase price | At closing (split buyer/seller) |
| Annual Property Tax | 0.25% of assessed value | Ongoing annually |
| Luxury Property Tax | Additional tax if value exceeds $250,000-300,000 | Ongoing annually |
| Capital Gains Tax (sale) | 15% or simplified 2.25% of sale price | Upon property sale |
| Municipal Fees | Varies by location | Ongoing |
It's something we develop in our Costa Rica property pack.
Can foreigners get a mortgage in Costa Rica, what are the typical rates and conditions, and how can I improve my chances of approval?
Mortgages for foreigners are available from Costa Rican banks but come with strict requirements and higher costs compared to cash purchases.
As of September 2025, typical mortgage rates for foreigners range from 7-11% annually, with down payment requirements of 30-50% of the property value. Banks prefer borrowers with local income sources, established residency status, or significant investment history in Costa Rica.
Most foreign buyers choose cash purchases or financing from their home country due to more favorable terms and simpler approval processes. Costa Rican bank mortgages require extensive documentation including income verification, tax returns, credit history, and often Costa Rican guarantors.
To improve approval chances, establish a local banking relationship, maintain residency status, demonstrate stable local income, or consider joint ownership with a Costa Rican citizen who qualifies for better lending terms.
Alternative financing options include seller financing arrangements or private lending, which may offer more flexible terms for qualified foreign buyers.
Which areas in Costa Rica are most popular with foreigners, and why do they choose them?
Five primary regions attract the majority of foreign property buyers in Costa Rica, each offering distinct advantages.
**Guanacaste Province** (including Tamarindo, Nosara, and Liberia) remains the most popular choice for foreign buyers due to established expat communities, strong rental yields of 5-8%, excellent beaches, and robust tourism infrastructure supporting property values.
**Central Valley** (San José, Escazú, Santa Ana) attracts buyers seeking urban amenities, cooler mountain climate, reliable infrastructure, and proximity to international business centers and the main airport.
**Southern Zone** (Dominical, Uvita, Ojochal) offers scenic mountain and coastal properties with strong appreciation potential, less development pressure, and lower initial purchase prices compared to more established areas.
**Nicoya Peninsula** (Santa Teresa, Montezuma) appeals to buyers interested in trendy surf communities, high rental demand, and significant capital appreciation driven by increasing international tourism.
**Caribbean Coast** (Puerto Viejo) provides the most affordable entry point with rustic charm, though infrastructure development lags behind Pacific coast regions, creating both opportunities and challenges for investors.
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.
What are the best regions for living, renting out, or maximizing capital appreciation, and what are the latest livability scores, rental yields, tourism numbers, and growth forecasts?
Different regions excel for specific investment and lifestyle objectives based on 2025 market data.
**For Living:** Central Valley and Guanacaste score highest for expat livability due to healthcare access, international communities, reliable utilities, and established infrastructure. Central Valley offers year-round spring climate while Guanacaste provides tropical beach lifestyle with modern conveniences.
**For Rental Income:** Guanacaste and Nicoya Peninsula generate the strongest rental yields, with established tourism areas producing 5-8% gross annual returns and premium short-term rentals reaching up to 12% in peak locations like Tamarindo and Santa Teresa.
**For Capital Appreciation:** Southern Zone and emerging coastal towns offer the highest growth potential, with property values increasing 8-12% annually in areas like Uvita and Dominical as infrastructure development accelerates and tourism expands.
Tourism numbers in 2025 show strong recovery with over 3.2 million visitors annually, up 15% from 2024, driven by political stability and increased foreign investment in hospitality infrastructure.
Growth forecasts for 2025-2027 predict continued appreciation in coastal markets, with Guanacaste expected to maintain steady 6-8% annual growth while Southern Zone could see 10-15% appreciation as development projects complete.
What is the current breakdown of property prices across different cities and regions?
Property prices in Costa Rica vary significantly by location and property type as of September 2025.
| Region/Property Type | Price Range (USD) | Typical Features |
|---|---|---|
| Beachfront Homes | $300,000 - $2,000,000+ | Direct beach access, premium locations |
| Beach Area Condos | $200,000 - $600,000 | Resort-style amenities, tourist zones |
| Central Valley Homes | $150,000 - $800,000 | Mountain views, urban conveniences |
| Inland Rural Properties | $100,000 - $500,000 | Large lots, agricultural potential |
| Luxury Mountain Estates | $500,000 - $3,000,000+ | Privacy, panoramic views, acreage |
| Tourist Zone Lots | $80,000 - $400,000 | Development ready, titled land |
| Commercial Properties | $200,000 - $1,500,000 | Tourist areas, established businesses |
It's something we develop in our Costa Rica property pack.
What are the most common mistakes and pitfalls foreigners face when buying property in Costa Rica, and how can I avoid them?
Foreign buyers commonly make seven critical mistakes that can result in financial losses or legal complications.
The most frequent errors include:- **Skipping comprehensive due diligence** or title searches, which can reveal liens, encumbrances, or ownership disputes that affect property value and legal ownership- **Not hiring an independent lawyer** and instead relying on the seller's attorney or realtor for legal advice, creating conflicts of interest- **Purchasing in restricted Maritime Zones** without proper legal structure, violating foreign ownership limitations and risking property loss- **Overpaying due to market inexperience** and not understanding local property values, often paying 20-30% above fair market value- **Underestimating total costs** by focusing only on purchase price while ignoring closing costs, maintenance, property taxes, and ongoing expenses- **Assuming property ownership grants residency** and not understanding immigration requirements separate from property rights- **Rushing transactions** without adequate property inspections, environmental assessments, or legal reviewsAvoid these mistakes by conducting thorough research, hiring qualified professionals, understanding all costs involved, and allowing adequate time for proper due diligence before finalizing any purchase.
What are the fiscal implications of owning property in Costa Rica as a foreigner, both locally and in my home country?
Property ownership in Costa Rica creates tax obligations both locally and potentially in your home country.
**Costa Rican Tax Obligations:** Annual property tax of 0.25% of assessed value is due each year, with luxury properties valued over $250,000-300,000 subject to additional taxes. Rental income from Costa Rican properties is taxable in Costa Rica at standard income tax rates.
**Capital Gains Implications:** When selling property, you'll pay either 15% capital gains tax on actual gains or choose the simplified 2.25% tax on total sale price for quicker transactions. This tax applies regardless of your residency status.
**Home Country Considerations:** Most countries require reporting foreign property ownership and rental income. The United States, Canada, and many European countries may tax worldwide income, though double-taxation treaties often provide credits for taxes paid in Costa Rica.
**Ongoing Compliance:** Municipal fees, utility costs, condominium maintenance fees, and property management expenses are all deductible against rental income but must be properly documented for tax purposes in both countries.
Always consult with cross-border tax advisors familiar with both Costa Rican law and your home country's international tax requirements to ensure full compliance and optimize your tax strategy.
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.
Costa Rica offers one of the most accessible property markets in Latin America for foreign buyers, with constitutional protections ensuring equal ownership rights for international investors.
Success in the Costa Rican real estate market requires proper legal guidance, comprehensive due diligence, and realistic expectations about costs, timelines, and ongoing obligations as a foreign property owner.
Sources
- The LatinVestor - Costa Rica Real Estate for Foreigners
- Flamingo Beach Realty - Foreign Property Ownership
- Armenian Lawyer - Costa Rica Investment Guide 2025
- Global Property Guide - Costa Rica Buying Guide
- Drink Tea Travel - Buying Property in Costa Rica
- The LatinVestor - Costa Rica Property Ownership Laws
- CB Sunset Reef Realty - Residency Requirements 2025
- Punta Uva Realty - Property Investment Residency
- The LatinVestor - Costa Rica Home Ownership
- Visit World Today - Foreign Property Buying Guide