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
Foreigners can buy property in Guanacaste with almost the same rights as Costa Rican citizens, making it one of the most accessible real estate markets in Central America.
The process involves hiring a Costa Rican lawyer, conducting thorough due diligence, and following specific legal procedures that typically take 30-60 days to complete. As of September 2025, property prices in popular areas like Tamarindo and Playas del Coco range from $180,000 to $900,000 for houses, with rental yields averaging 5-9% annually.
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 most types of property in Guanacaste without residency requirements, though coastal properties within 200 meters of the beach have special restrictions.
The buying process requires a Costa Rican lawyer and notary, with total costs including taxes and fees typically ranging from 3-4% of the property value.
| Key Requirement | Details | Cost/Timeline |
|---|---|---|
| Legal Representation | Costa Rican lawyer and notary mandatory | 1-1.5% of property value |
| Transfer Tax | Government tax on property transfer | 1.5% of declared value |
| Registration Fees | National Registry recording fees | 0.5-1% of property value |
| Due Diligence | Title search, survey, zoning verification | $500-$2,000 |
| Annual Property Tax | Municipal tax on registered value | 0.25% annually |
| Closing Timeline | Complete transaction process | 30-60 days |
| Physical Presence | Power of Attorney allows remote closing | Not required |
Can foreigners buy the same types of properties as locals in Guanacaste or are there restrictions?
Foreigners have virtually the same property ownership rights as Costa Rican citizens in Guanacaste.
You can own titled land outright in fee simple, either in your personal name or through a Costa Rican corporation. This means you have full ownership rights including the ability to sell, lease, or develop the property without restrictions that apply to foreigners in many other countries.
The main exception involves coastal properties within the Maritime Zone, which extends 200 meters inland from the high-tide line. The first 50 meters is public domain and cannot be privately owned by anyone. For the next 150 meters (called concession land), foreigners can only hold up to 49% ownership unless they have been legal residents of Costa Rica for at least five years.
Additional restrictions apply to properties near international borders, river mouths, islands, and protected reserves, but these affect both foreigners and locals equally.
It's something we develop in our Costa Rica property pack.
What residency or visa status do you need, if any, to buy property in Guanacaste?
You do not need any specific residency status or visa to purchase property in Guanacaste or anywhere else in Costa Rica.
Even tourists on a standard 90-day entry stamp can legally buy real estate. This makes Costa Rica one of the most accessible property markets for foreign investors in Central America.
However, if you plan to use your property purchase to obtain residency, Costa Rica offers an "Inversionista" (Investor) residency program. As of September 2025, you must invest at least $150,000 in real estate to qualify for this residency status.
This investor residency allows you to stay in Costa Rica legally for extended periods and can eventually lead to permanent residency, but it's not required to complete your property purchase.
Do you have to be physically present in Costa Rica to complete the purchase?
Physical presence in Costa Rica is not mandatory to complete a property purchase.
You can complete the entire transaction remotely by granting a special Power of Attorney to your Costa Rican lawyer. This power of attorney must be properly authenticated, either at a Costa Rican consulate in your home country or through apostille certification.
Your lawyer will then represent you at the closing, sign documents on your behalf, and handle all aspects of the transaction. Many foreign buyers successfully purchase properties in Guanacaste without ever setting foot in Costa Rica during the buying process.
However, visiting the property in person before purchase is highly recommended to inspect the condition, verify boundaries, and get familiar with the local area and amenities.
What is the step-by-step process for buying property as a foreigner, and which documents will you need?
The property buying process in Guanacaste follows a structured legal procedure that typically takes 30-60 days to complete.
| Step | Action Required | Key Documents |
|---|---|---|
| 1. Professional Team | Hire experienced realtor and Costa Rican lawyer | Attorney credentials, references |
| 2. Property Selection | Choose property and conduct initial inspection | Property listing, photos, basic info |
| 3. Due Diligence | Verify title, boundaries, zoning, liens | Plano Catastrado, Estudio Registral, Certificación Literal |
| 4. Formal Offer | Submit written offer and negotiate terms | Purchase agreement, preliminary contract |
| 5. Down Payment | Secure property with 5-10% deposit | Escrow agreement, payment verification |
| 6. Contract Preparation | Lawyer drafts final purchase contract | Escritura (deed), payment origin declaration |
| 7. Final Inspection | Verify property condition and utilities | Utility receipts, property tax receipts, Uso de Suelo |
| 8. Closing & Registration | Sign before notary, register with National Registry | Valid passport, NITE tax ID, final deed |
Is it mandatory to hire a lawyer, and if so, how do you choose one you can trust?
Hiring a Costa Rican lawyer is absolutely mandatory for property purchases in Guanacaste.
Only licensed Costa Rican attorneys who are also notaries can legally register property transfers with the National Registry. This is not optional - it's required by law to complete any real estate transaction.
When choosing a lawyer, verify they are licensed members of the Colegio de Abogados (Costa Rican Bar Association) and have specific experience with real estate transactions involving foreign buyers. Look for attorneys who provide references from previous foreign clients and can communicate clearly in your language.
A trustworthy lawyer should offer transparent pricing (typically 1-1.5% of property value), provide detailed explanations of each step, and be willing to answer all your questions thoroughly. Avoid lawyers who rush the process or discourage thorough due diligence.
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What taxes, fees, and extra costs should you expect when buying and later reselling a property?
Property purchase costs in Guanacaste typically total 3-4% of the property value beyond the purchase price.
During purchase, you'll pay a 1.5% transfer tax based on the declared property value, plus 0.5-1% in registration fees and stamps for recording the deed with the National Registry. Legal fees typically range from 1-1.5% of the property value, while due diligence reports, escrow costs, and notary fees add another $500-$2,000.
Annual carrying costs include property tax at 0.25% of the municipal registered value, which is often lower than market value. Municipal taxes vary by location but are generally modest. If you buy through a corporation, there are annual corporate fees of approximately $300-500.
When you sell the property, Costa Rica imposes a 15% capital gains tax on any profit, calculated as the difference between your purchase price and sale price. However, if the property serves as your primary residence and you meet specific conditions, you may qualify for exemptions.
Foreign owners must also consider tax implications in their home countries, as most nations require reporting of overseas property ownership and any rental income or capital gains.
Can foreigners get a mortgage in Costa Rica, what are the rates and conditions, and how can you improve your chances of approval?
Foreigners can obtain mortgages from Costa Rican banks, but the process is significantly more challenging than for local residents.
Costa Rican banks typically require foreigners to make larger down payments, often 40-50% of the property value compared to 20-30% for locals. Interest rates for foreign borrowers range from 7-10% annually as of September 2025, which is higher than rates in North America or Europe.
Banks require extensive financial documentation, including income statements, bank records, and credit reports from your home country. All foreign documents must be translated into Spanish and notarized or apostilled, which adds time and cost to the approval process.
To improve your approval chances, maintain detailed financial records, work with banks that have international departments, and consider establishing a relationship with the bank before applying. Some foreign buyers find better terms with private lenders or developer financing options, though these should be evaluated carefully.
Many foreign buyers choose to purchase properties with cash to avoid the complexities of local financing, then potentially secure mortgages against properties in their home countries if additional financing is needed.
Which areas in Guanacaste are most popular with foreigners and why?
Five areas in Guanacaste consistently attract the highest numbers of foreign property buyers due to their amenities, accessibility, and established expat communities.
1. **Tamarindo** - The most developed surf town with vibrant nightlife, restaurants, international schools, and strong short-term rental demand2. **Playas del Coco** - Offers the most comprehensive amenities including medical facilities, shopping, and a large established expat community3. **Nosara** - Known for yoga retreats, wellness tourism, eco-conscious development, and high-quality international schools4. **Playa Flamingo** - Attracts luxury buyers with its marina, upscale dining, and proximity to the international airport5. **Samara and Carrillo** - Appeal to families seeking safer, more affordable beach communities with growing infrastructureThese areas are popular because they offer reliable infrastructure including electricity, water, internet connectivity, and access to healthcare. They also provide established communities of English-speaking residents, making the transition easier for new foreign property owners.
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.
Which locations currently offer the best potential for living comfort, strong rental demand, and long-term capital appreciation?
Tamarindo and Playas del Coco offer the best combination of living comfort and rental yields for foreign property owners.
Tamarindo provides the highest rental yields at 6-9% annually due to strong tourism demand, while offering excellent amenities including international restaurants, medical facilities, and reliable infrastructure. The town has direct flights connecting to major international airports, making it accessible for both residents and rental guests.
Playas del Coco delivers solid rental returns of 5-8% annually with the advantage of being the most developed town in Guanacaste, featuring hospitals, shopping centers, and the largest concentration of permanent expat residents. This makes it ideal for full-time living while maintaining strong investment potential.
For future capital appreciation, emerging areas around Las Catalinas and Playa Danta show strong growth potential. These locations are experiencing significant infrastructure investment and development while still maintaining relatively lower entry prices compared to established areas.
Nosara offers the best lifestyle for wellness-focused buyers, with rental yields of 6-8% and strong appreciation potential driven by eco-tourism and yoga retreat demand.
What are the typical property prices right now in each major city and region of Guanacaste?
Property prices in Guanacaste vary significantly based on location, proximity to the beach, and property amenities as of September 2025.
| Location | Condo Range | House Range | Beachfront Premium |
|---|---|---|---|
| Tamarindo | $200,000 - $500,000 | $350,000 - $900,000 | +30-100% |
| Playas del Coco | $180,000 - $400,000 | $300,000 - $800,000 | +20-70% |
| Nosara | $350,000 - $900,000 | $450,000 - $1,500,000 | +40-120% |
| Playa Flamingo | $250,000 - $600,000 | $450,000 - $1,200,000 | +30-100% |
| Samara | $120,000 - $350,000 | $220,000 - $600,000 | +10-40% |
| Las Catalinas | $400,000 - $800,000 | $600,000 - $2,000,000 | +50-150% |
| Inland Properties | $80,000 - $250,000 | $150,000 - $400,000 | N/A |
What are the most common mistakes and pitfalls foreigners face when buying property in Guanacaste and how can you avoid them?
The most expensive mistakes foreign buyers make in Guanacaste involve inadequate due diligence and misunderstanding property rights.
Many buyers fail to conduct complete title searches, leading to discoveries of undisclosed liens, boundary disputes, or unclear ownership after purchase. Always insist your lawyer performs a comprehensive "estudio registral" and "certificación literal" to verify clean title and identify any encumbrances.
Confusing concession land with titled property near beaches costs buyers significantly. Concession land has different ownership rules and potential government reclaim risks, while titled land provides full ownership rights. Verify the exact legal status of coastal properties before purchasing.
Overpaying due to "gringo pricing" is common when buyers don't research comparable sales or rely solely on listing prices. Work with experienced local realtors who understand fair market values and always negotiate based on recent comparable sales data.
Underestimating carrying costs including HOA fees, property taxes, insurance, and maintenance in tropical climates can strain budgets. Factor in 2-4% of property value annually for ongoing costs when calculating investment returns.
Skipping professional property inspections, especially for older buildings, can result in expensive surprises with structural, electrical, or plumbing problems that are costly to repair in remote locations.
It's something we develop in our Costa Rica property pack.
What are the fiscal implications of owning property in Costa Rica as a foreigner, both locally and in your home country?
Property ownership in Costa Rica creates tax obligations both locally and potentially in your home country.
In Costa Rica, you'll pay annual property tax at 0.25% of the municipal registered value, plus municipal taxes that vary by location. If you rent out your property, rental income is subject to Costa Rican income tax, with rates depending on the income level and your residency status.
When you sell the property, Costa Rica imposes a 15% capital gains tax on any profit, calculated as the sale price minus the original purchase price plus improvements. However, if the property serves as your primary residence and you meet specific occupancy requirements, you may qualify for exemptions.
In your home country, most nations require reporting foreign property ownership on annual tax returns. Rental income from your Costa Rican property typically must be reported as foreign income, though you may be able to claim foreign tax credits for taxes paid in Costa Rica.
Capital gains from property sales are usually taxable in your home country, but tax treaties between Costa Rica and many nations help prevent double taxation. The specific rules vary significantly by your citizenship and residence status, so consulting with tax professionals familiar with both jurisdictions is essential.
Many foreign owners benefit from holding properties through Costa Rican corporations, which can provide tax advantages and simplified estate planning, though this requires ongoing corporate compliance and fees.
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.
Buying property in Guanacaste as a foreigner is straightforward compared to many other international markets, with minimal restrictions and clear legal processes.
Success depends on working with experienced local professionals, conducting thorough due diligence, and understanding both the opportunities and carrying costs involved in Costa Rican property ownership.