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 anywhere in San José with the same rights as Costa Rican citizens, except for maritime zones.
The purchase process typically takes 30-60 days and requires about 3-4% in closing costs including transfer tax, legal fees, and registration. Most foreign buyers pay cash due to limited mortgage availability for non-residents. Popular expat neighborhoods include Escazú, Santa Ana, and Rohrmoser, with average condo prices ranging from $120,000-$250,000 and rental yields of 5-7% 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.
San José offers unrestricted property ownership for foreigners with straightforward purchase procedures.
The market shows stable growth with strong foreign demand, particularly in upscale expat neighborhoods.
| Aspect | Details | Cost/Requirements |
|---|---|---|
| Foreign Ownership | Fully legal with same rights as citizens | No residency required |
| Process Duration | 30-60 days from offer to registration | Power of Attorney allows remote closing |
| Closing Costs | Transfer tax, legal fees, registration | 3-4% of property value |
| Financing | Cash purchases most common | Mortgages difficult for non-residents |
| Average Prices | Condos $120,000-$250,000 | Houses $250,000-$700,000+ |
| Rental Yields | 5-7% annually in good locations | Annual property tax 0.25% |
| Residency Path | $150,000+ investment qualifies | Investor residency renewable every 2 years |
Can foreigners legally buy property in San José, and are there restrictions on the type or location?
Foreigners can legally buy and own property anywhere in San José, Costa Rica with exactly the same rights as Costa Rican citizens.
The only major restriction applies to land within the Maritime Zone, which covers the first 200 meters from the high tide line on the coast. In these areas, foreigners can only own up to 49% through a concession lease, not full titled ownership. This restriction does not affect properties in urban San José or inland areas.
No residency, citizenship, or nationality requirements exist for purchasing titled land in San José. You can buy houses, condos, commercial properties, and land without any legal barriers. Border areas may have some limitations, but these rarely affect typical residential purchases in the San José metropolitan area.
The property ownership rights include full control over buying, selling, renting, and passing the property to heirs. Foreign buyers receive the same legal protections and property rights as local citizens.
It's something we develop in our Costa Rica property pack.
What's the step-by-step process for a foreigner to buy property in San José?
The property purchase process in San José follows a standardized five-step procedure that typically takes 30-60 days to complete.
First, find a property through independent searching or with a local real estate agent, then visit potential properties to inspect them personally. Second, make an offer by having an attorney draft a Letter of Intent or Option to Purchase Agreement, which typically includes a 10% earnest deposit placed in escrow.
Third, conduct due diligence where your lawyer performs title checks, surveys, lien searches, and confirms zoning compliance. This step is crucial to avoid future legal problems. Fourth, finalize the sale at closing where a Notary Public prepares the Transfer Deed (Escritura de Traspaso) and both parties sign. All taxes and fees are paid during this step.
Fifth, complete the registration process where the property is officially registered and ownership is transferred to the buyer through Costa Rica's National Registry. The entire process requires working with qualified legal professionals who understand Costa Rican property law.
Most transactions proceed smoothly when proper procedures are followed and experienced professionals handle the legal requirements.
Which documents are mandatory, and which ones are optional but useful?
| Document Type | Document Name | Purpose/Notes |
|---|---|---|
| Mandatory | Survey Plan (Plano Catastrado) | Official property boundaries and measurements |
| Mandatory | Transfer Deed (Escritura de Traspaso) | Legal document transferring ownership |
| Mandatory | Registry Certificate (Certificación Literal) | Confirms current ownership and liens |
| Mandatory | Purchase-Sale Agreement (SPA) | Contract outlining terms and conditions |
| Mandatory | Power of Attorney | Required if buyer not present at closing |
| Mandatory | Proof of Funds | Anti-money laundering compliance |
| Optional | Letter of Intent (LOI) | Early negotiation outline |
| Optional | Inspection Reports | Property condition and repair assessments |
Do you need to be physically in Costa Rica to complete the purchase, or can it be done remotely?
You do not need to be physically present in Costa Rica to complete a property purchase in San José.
A Power of Attorney (POA) document allows your lawyer to represent you for signing and closing procedures. Many foreign buyers successfully close remotely using this method, provided proper notarization and legal procedures are followed.
The Power of Attorney must be properly notarized in your home country and may require apostille certification depending on international agreements. Your Costa Rican lawyer can guide you through the specific requirements for your country of residence.
Remote closing saves time and travel costs while maintaining full legal validity. However, many buyers prefer to be present for the final signing to personally oversee the transaction and celebrate their property acquisition.
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What are the typical taxes, fees, and closing costs you need to budget for?
Total closing costs in San José typically range from 3-4% of the property's purchase price, making Costa Rica relatively affordable compared to other countries.
Transfer tax costs 1.5% of the property value and is the largest single expense. Registration and stamp fees add approximately 0.8-1% of the purchase price. Legal fees range from 1-2% and cover notary services, lawyer representation, and due diligence work.
Escrow fees vary but commonly cost $800-$1,500 for standard transactions. Annual property taxes are very low at just 0.25% of the registered property value, paid yearly to the municipal government.
Additional costs may include property inspection fees, bank transfer fees for international wire transfers, and translation costs for documents. These additional expenses typically add a few hundred dollars to the total.
Budget conservatively at 4% of purchase price to cover all potential closing costs and avoid surprises during the transaction.
Is it possible to buy in cash, and if yes, how does that work in practice?
Buying property in cash is very common in San José and often the preferred method for foreign buyers.
Cash transactions work through escrow services where funds are deposited in a secure account and transferred at closing. Proof of fund sources may be requested for anti-money laundering compliance, so maintain clear documentation of where the money originated.
Wire transfers from international banks are the standard method for moving large sums. Your Costa Rican bank or escrow company will provide specific wiring instructions including SWIFT codes and account details.
Cash purchases often provide negotiating advantages with sellers and eliminate financing contingencies that could delay or cancel transactions. The process moves faster without mortgage approval requirements.
It's something we develop in our Costa Rica property pack.
Are mortgages available to foreigners, and if so, what are the typical rates, conditions, and requirements to qualify?
Mortgages are available to foreigners but with significant restrictions that make cash purchases more practical for most buyers.
Costa Rican banks typically require legal residency, provable local income, and large down payments of 30-40% for foreign borrowers. Interest rates for mortgages in 2025 range from 7-9% annually for residents, with higher rates or unavailability for non-residents.
Qualification requirements include credit history verification, income documentation, employment verification, and substantial financial reserves. The approval process can take several months and requires extensive paperwork.
Most foreign buyers choose cash purchases due to these restrictions and the relatively high interest rates compared to their home countries. Financing options are better for buyers who establish Costa Rican residency first.
Some international lenders or private financing companies may offer alternative solutions, but these typically come with higher costs and more complex terms.
Which neighborhoods or areas in San José do foreigners tend to buy in the most?
1. **Escazú** - Modern, upscale area with many expats, excellent amenities, shopping centers, and international schools2. **Santa Ana** - Suburban, family-friendly environment with good infrastructure and growing expat community3. **Rohrmoser** - Central, established expat area with mature infrastructure and proximity to business districts4. **Sabana** - Close to La Sabana Park, business centers, and cultural attractions with good transportation links5. **Curridabat** - Eastern suburbs with trendy developments, younger demographic, and emerging expat presence
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 average property prices and rental yields right now, and how do they compare to previous years?
As of September 2025, average condo apartments in San José range from $120,000-$250,000 depending on location, size, and amenities.
Family houses in upscale areas typically cost $250,000-$700,000, while luxury villas exceed $700,000. These prices have remained stable or grown moderately over recent years due to strong foreign demand and limited supply in prime expat neighborhoods.
Rental yields in good locations typically range from 5-7% annually, making San José attractive for investment purposes. Popular expat areas like Escazú and Santa Ana command higher rents and more consistent occupancy rates.
Compared to previous years, the market shows steady appreciation rather than dramatic increases. Political stability, low property taxes, and continued foreign interest support price stability and gradual growth.
The combination of reasonable purchase prices and solid rental yields makes San José competitive with other Central American investment destinations.
What's the long-term forecast for San José's real estate market?
San José's real estate market is forecast to remain stable with gradual appreciation over the long term, supported by consistent foreign demand and political stability.
Ongoing interest from American, Canadian, and European buyers, combined with Costa Rica's reputation for safety and infrastructure, supports continued demand. The country's stable democracy, environmental focus, and healthcare system attract long-term foreign residents.
Low property taxes at 0.25% annually make ownership costs manageable compared to many other countries. Limited land availability in prime areas should support value appreciation over time.
Beachfront and maritime zone properties may experience more volatility, but urban San José and established expat neighborhoods show consistent performance. The luxury segment can be more volatile depending on global economic conditions.
Infrastructure improvements, including transportation projects and technology sector growth, should positively impact property values in connected areas.
Does buying property provide a path to residency or citizenship in Costa Rica?
Property ownership alone does not automatically grant residency or citizenship in Costa Rica, but significant real estate investment can qualify you for investor residency.
The "Inversionista" (Investor) Residency program requires a minimum investment of $150,000 USD in Costa Rican real estate. This program grants renewable residency status every two years but does not lead directly to citizenship.
Investor residency provides legal permission to live in Costa Rica long-term and can be renewed indefinitely as long as the investment is maintained. The application process requires proof of investment, police certificates, birth certificates, and other documentation.
Citizenship through naturalization is possible after holding legal residency for several years, but it requires meeting additional language, cultural, and legal requirements beyond just property ownership.
It's something we develop in our Costa Rica property pack.
What are the common mistakes and pitfalls foreigners should avoid, and what's daily life like as an expat in San José?
The most common mistake is failing to conduct thorough due diligence, which can result in purchasing properties with liens, unclear titles, or zoning violations.
Other critical pitfalls include not using an independent and credible lawyer, buying in concession zones without understanding restrictions, overlooking ongoing costs like maintenance and insurance, and ignoring local building permits or municipal requirements.
Daily life for expats in San José offers modern amenities, reliable infrastructure, excellent healthcare, and diverse activities. English is commonly spoken in expat neighborhoods, making integration easier for English-speaking foreigners.
The expat community is well-established with regular social events, international schools, and support networks. High-quality restaurants, cultural attractions, and outdoor activities are readily available throughout the metropolitan area.
Challenges include traffic congestion during rush hours and heavy rainfall during the rainy season from May to November. However, the large expat community and Costa Rica's "Pura Vida" lifestyle generally provide a welcoming environment for foreign residents.
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.
San José offers an accessible entry point into Costa Rican real estate with clear legal procedures and strong foreign ownership rights.
The combination of political stability, reasonable prices, and established expat communities makes it an attractive option for both investment and relocation purposes.
Sources
- Costa Rica Real Estate for Foreigners
- Buying Property in Costa Rica as a Foreign National
- Can Foreigners Buy Property in Costa Rica
- Costa Rica Property Ownership
- Buying Property in Costa Rica Guide
- Real Estate Documents in Costa Rica
- Costa Rica Property Buying Process
- Complete Property Buying Process Costa Rica 2025