Authored by the expert who managed and guided the team behind the Costa Rica Property Pack
Yes, the analysis of San José's property market is included in our pack
Foreigners can legally buy property in San José, Costa Rica, with virtually the same ownership rights as locals.
The process typically takes 30-60 days and requires hiring a Costa Rican attorney-notary who handles due diligence, title verification, and property registration. While no residency is required, buyers should budget for closing costs of 3.5-6% of the purchase price and annual property taxes of 0.25%.
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 enjoy full property ownership rights in San José with no nationality restrictions or residency requirements.
The purchase process involves attorney-led due diligence, title verification, and notarized transfer deeds registered with the National Registry.
| Aspect | Requirement/Details | Cost/Timeline |
|---|---|---|
| Legal Requirements | No residency or visa required; full ownership rights | Tourist visa sufficient |
| Attorney Services | Mandatory attorney-notary for legal process | 2-4% of purchase price |
| Closing Costs | Transfer tax, legal fees, registration | 3.5-6% of purchase price |
| Property Taxes | Annual property tax on assessed value | 0.25% annually |
| Capital Gains Tax | Tax on property sale profits | 15% on net profit or 2.25% on sale price |
| Purchase Timeline | From offer to registration completion | 30-60 days typical |
| Remote Purchase | Can be completed via power of attorney | Physical presence not required |
Can foreigners legally buy property in San José, and how does this differ from locals or other nationalities?
Foreigners can legally buy titled property in San José with full ownership rights identical to Costa Rican citizens.
There are no restrictions based on nationality, and you do not need residency status or special visas to purchase property. Foreign buyers receive the same property rights as locals, including the right to sell, rent, or transfer ownership.
The only significant restriction applies to the Maritime Zone, which is the public coastal strip extending 200 meters inland from the high tide mark. In these areas, most foreigners cannot hold concession land directly unless they have been residents for more than five years or use a Costa Rican majority-owned company structure.
For standard titled property in San José and inland areas, there are no ownership limitations whatsoever for foreign buyers.
Do I need residency, a specific visa, or any legal status in Costa Rica to buy property?
No residency, visa, or special legal status is required to purchase property in San José as a foreigner.
You can complete a property purchase while on a tourist visa, which allows stays of up to 90 days for most nationalities. The tourist visa provides sufficient legal status to enter into property contracts and complete transactions.
However, investing $150,000 or more in Costa Rican real estate can qualify you for an investor residency permit if you wish to establish long-term residence in the country. This residency status can provide additional benefits but is not required for property ownership.
As of September 2025, the property purchase process remains accessible to all foreigners regardless of their immigration status in Costa Rica.
Am I required to be physically present in Costa Rica to complete a property purchase, or can it be done remotely?
Physical presence in Costa Rica is not required to complete a property purchase.
The entire transaction can be handled remotely through a power of attorney arrangement with a trusted Costa Rican attorney. Many foreign buyers successfully complete purchases from their home countries without ever visiting the property during the transaction process.
The power of attorney must be properly notarized and authenticated according to Costa Rican legal requirements. Your attorney can guide you through the specific documentation needed for remote transactions.
While remote purchase is possible, many buyers choose to visit the property in person for due diligence purposes, especially for their first Costa Rican real estate investment.
What is the exact step-by-step process for buying property in San José, and which documents are needed at each stage?
| Step | Process | Required Documents |
|---|---|---|
| 1. Property Search | Identify target property through agents or direct search | None required at this stage |
| 2. Offer Submission | Submit Letter of Intent or Option to Purchase with 10% deposit | Passport copy, proof of funds |
| 3. Due Diligence | Attorney verifies title, liens, zoning, and compliance | Plano Catastrado, property deed, registry certificate |
| 4. Contract Signing | Execute purchase contract with terms and conditions | Purchase contract, updated title documents |
| 5. Closing Process | Sign transfer deed before notary public | Escritura de Traspaso, all prior documents |
| 6. Registration | Submit documents to National Registry for ownership transfer | Complete deed package for official registration |
| 7. Completion | Receive registered property title in your name | New title certificate from National Registry |
The complete process typically takes 30-60 days from offer acceptance to final registration, depending on the complexity of the transaction and efficiency of document processing.
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Is hiring a lawyer mandatory for foreigners, and what role do they play in the transaction?
Hiring a lawyer who is also a licensed notary public is strongly advised and effectively mandatory for property purchases in San José.
Costa Rican law requires that property transfer deeds be executed before a notary public, and most real estate attorneys also hold notary licenses. The attorney-notary performs several critical functions including conducting legal due diligence on the property title, verifying there are no liens or encumbrances, and ensuring zoning compliance.
Your attorney will draft all contracts, coordinate with the seller's legal team, prepare closing documents, and handle the official registration of the property transfer with the National Registry. They also verify that all taxes and municipal fees are current.
Legal fees typically range from 2-4% of the purchase price and represent essential protection against title issues, legal complications, and administrative errors that could be costly to resolve later.
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What taxes, fees, and closing costs should I expect when buying property, and what about taxes when reselling later?
Total closing costs typically range from 3.5-6% of the purchase price for property transactions in San José.
Transfer taxes amount to 1.5% of the registered property value, while legal fees usually cost 2-4% of the purchase price. Registration fees with the National Registry add approximately 0.5% to the total cost. Additional expenses may include property inspections, surveys, and administrative fees.
Annual property taxes are assessed at 0.25% of the registered property value. Properties valued over $230,000 face an additional luxury tax ranging from 0.25-0.55% depending on the total value.
When reselling property, you'll pay capital gains tax of 15% on the net profit from the sale, or alternatively, you can choose to pay 2.25% of the total sale price. This tax applies to both Costa Rican residents and foreign property owners.
Municipality taxes and utility connections may require additional fees depending on the specific location and property type.
Can foreigners get a mortgage in Costa Rica, what are the typical rates and conditions, and what tips help secure financing?
Foreigners can access mortgages in Costa Rica, but the process is significantly more challenging than for local residents.
Local banks may grant mortgages to foreigners with established residency status or those making substantial down payments of 40-50% or more. Interest rates for foreign borrowers typically range from 8-12% annually, subject to individual bank policies and creditworthiness assessments.
Many foreign buyers choose to finance their purchase through their home country banks or pay cash, then transfer funds to Costa Rica. This approach often provides better interest rates and more favorable terms than local financing options.
For those pursuing local financing, establishing a relationship with a Costa Rican bank, demonstrating stable income sources, and providing extensive financial documentation significantly improve approval chances. Some banks require foreign borrowers to maintain substantial deposit accounts as collateral.
Private financing through developers or seller financing arrangements may also be available for certain properties, though terms vary widely.
How do property prices compare across San José and nearby regions, and what is the average price per square meter?
| Area | Price Range per m² | Property Types |
|---|---|---|
| Escazú | $2,000-$2,800 | Luxury condos, modern homes |
| Santa Ana | $1,800-$2,500 | Upscale residential, gated communities |
| Rohrmoser | $1,500-$2,200 | Urban condos, diplomatic housing |
| Sabana | $1,400-$2,000 | Central apartments, family homes |
| Central San José | $1,000-$1,500 | Older buildings, commercial mixed-use |
| Heredia | $1,200-$1,800 | Suburban homes, smaller condos |
| Alajuela | $1,000-$1,600 | Airport proximity, budget-friendly options |
Prices vary significantly based on property condition, exact location, and amenities. Premium properties in the most desirable neighborhoods can exceed these ranges, while older or less accessible properties may fall below the stated minimums.
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 areas in San José are the most attractive for foreigners to live in, rent out, or invest in for capital appreciation?
Escazú stands out as the most cosmopolitan area with modern amenities, international schools, and a high concentration of expatriate families.
Santa Ana offers a growing expat community with upscale shopping centers, restaurants, and excellent infrastructure. The area features numerous gated communities and modern residential developments that appeal to foreign buyers seeking security and amenities.
Rohrmoser and Sabana provide proximity to La Sabana Metropolitan Park and attract diplomats, business professionals, and international workers due to their central location and urban conveniences. These areas offer strong rental demand from the professional expatriate community.
For investment purposes, properties near major employment centers, international schools, and transportation hubs tend to show the strongest capital appreciation potential. Areas with planned infrastructure improvements or commercial development projects also present growth opportunities.
Rental income potential varies by neighborhood, with furnished properties in expatriate-preferred areas commanding premium rates from short-term and long-term tenants.
What do the latest numbers say about liveability, rental yields, rental income potential, tourism demand, and growth forecasts?
Long-term rental yields in the best San José neighborhoods typically range from 5-8% gross annually as of September 2025.
Short-term rental properties in prime locations can achieve 10-12% gross yields, particularly in areas popular with business travelers and digital nomads. The growing remote work trend has increased demand for furnished, well-equipped rental properties.
San José's liveability scores benefit from its year-round spring-like climate, proximity to both coasts, and growing international community. The city serves as Costa Rica's economic and cultural center with improving infrastructure and expanding international business presence.
Tourism demand remains strong with steady growth in business travel, digital nomad arrivals, and expatriate relocation. The government's digital nomad visa program and investor residency options continue attracting foreign residents to the San José metropolitan area.
Market forecasts for 2025-2026 predict continued property value appreciation of 3-6% annually, driven by foreign investment, infrastructure improvements, and Costa Rica's political stability compared to regional neighbors.
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?
- Inadequate title verification: Failing to thoroughly check property titles, especially for coastal or concession properties where ownership restrictions may apply.
- Skipping professional legal representation: Attempting to handle transactions without qualified attorney-notary services, leading to legal complications and registration problems.
- Insufficient due diligence: Not verifying utility access, municipal permits, zoning compliance, or potential encumbrances on the property.
- Underestimating ongoing costs: Failing to budget for annual property taxes, maintenance costs, property management fees, and mandatory insurance requirements.
- Overestimating rental demand: Assuming tourist rental income without researching local market conditions, seasonal variations, and regulatory restrictions.
- Currency and transfer issues: Not planning for currency exchange costs and international money transfer fees that can add significant expense to transactions.
- Ignoring environmental restrictions: Purchasing property in protected zones or areas with environmental limitations without understanding usage restrictions.
Working with experienced local professionals and conducting thorough research significantly reduces these risks and ensures smoother transactions.
What fiscal obligations, including income tax on rentals and capital gains tax, apply to foreign owners after purchase?
Annual property taxes are assessed at 0.25% of the registered property value and must be paid by December 31st each year.
Rental income tax follows Costa Rica's progressive tax structure with the first 3,804,000 colones (approximately $6,900) annually exempt from taxation. Income above this threshold is taxed at rates ranging from 10% for mid-tier income up to 25% for annual net rental income exceeding 19,020,000 colones (approximately $34,500).
Capital gains tax applies when selling property, with options to pay either 15% on the net profit or 2.25% on the total sale price. The choice typically depends on the property's appreciation and holding period.
Foreign property owners must file annual tax returns if they generate rental income or sell property during the tax year. Failure to comply with tax obligations can result in penalties and complications with future property transactions.
Many foreign owners hire local accountants or property management companies to handle tax compliance, ensuring accurate calculations and timely payments. Professional tax assistance typically costs 1-3% of rental income annually.
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.
Buying property in San José as a foreigner offers excellent opportunities with full ownership rights and a straightforward legal process.
Success requires proper legal representation, thorough due diligence, and understanding of local tax obligations and market conditions.
Sources
- The Latinvestor - Costa Rica Real Estate for Foreigners
- Costa Rica Playbook - Property Buying Guide 2025
- Drink Tea Travel - Buying Property in Costa Rica
- Century 21 Ballena Properties - Costa Rica Property Taxes
- CRIE - Taxes for Foreign Residents 2025
- Coldwell Banker Costa Rica - Market Trends 2025
- OSA Property Management - Tax Planning Guide
- Visit World Today - Foreign Property Buying Guide