2Costa Rica Real Estate
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Yes, international investors can acquire real estate through various ownership structures, with the right to hold and buy property in Costa Rica under the same legal standards as local citizens. This important distinction makes Costa Rica one of the most friendly environments for foreign direct investment in Latin America.
Foreign nationals can purchase fee simple, titled property in their personal name, in conjunction with partners, or through a legally formed Costa Rican corporation. There are no restrictions and no requirement to involve a local partner, nor any limits on the amount of property a foreigner can own.
Foreigners and non-residents have the same ownership rights as Costa Rican citizens in relation to titled property, and no residency is required to buy.
Properties located within the Maritime Zone, unless titled prior to the creation of the law, require zoning plans and concessions for use rights, and these concessions require that 51% of the entity obtaining the concession be Costa Rican in nature.
It is common for international investors to purchase property through a Costa Rican corporation, either a Sociedad Anónima (S.A.) or a Sociedad de Responsabilidad Limitada (SRL), for ease, flexibility, and liability protection. The cost of incorporating is relatively low, and the process is simple.
The one exception where foreign ownership is limited is the Maritime Zone, which corresponds to properties situated within 200 meters of the high tide. These concession rights can still be obtained and are subject to the Maritime Zone Law, which operates under concession rather than outright ownership.
The constitution of Costa Rica explicitly protects private property rights, and ownership is registered in the National Registry, a public system available online, fully transparent, and legally enforceable.
The total closing costs in Costa Rica are not a fixed percentage but a combination of calculations based on the purchase price, the registered value of the property, and the exchange rate at the time of closing. Buyers can budget approximately 3.5–4% of the purchase price for total closing costs as a general estimate.
Closing costs are typically split 50/50 between buyer and seller, though this is a point of negotiation in every contract.
In the past, it was common to see under-declared values in an attempt to save buyers and sellers money on closing costs; however, the implementation of a capital gains tax, along with digital integration between government departments, has made this practice obsolete.
Beyond transfer costs, Costa Rica's annual property tax is 0.25% of the property's registered fiscal value, one of the lowest rates in the Western Hemisphere. For example, a property with a fiscal value of $200,000 USD would pay approximately $500 USD per year in property tax, paid quarterly to the local municipality.
Always confirm the exact cost breakdown with your agent and attorney before signing contracts and before closing.
Titled Property (Fee-Simple) means you own the land outright. Your ownership is registered in Costa Rica's National Registry under your name or your corporation's name, and foreigners have all the same ownership rights as Costa Ricans for all titled property. This is the equivalent of standard property ownership in the US, Canada, or Europe: full legal ownership indefinitely, guaranteed with the nationally registered farm number. The vast majority of real estate offerings in Costa Rica are fee-simple ownership.
A Concession Property represents a long-term lease granted by the government, typically situated on beachfront land within the maritime zone, though it can also be found in certain marinas and specialized locations. Under this arrangement, full land ownership remains with the government, while you receive the right to occupy and utilize the property for a specified timeframe, most commonly 20 years.
While these leases can be transferred or renewed, they require annual fee payments to the local municipality and come with their own particular regulations, depending on the place. Notably, foreign nationals face specific ownership limitations under concession structures, so it is vital to consult with your real estate agent and legal counsel to understand these guidelines.
The length of time for a closing varies depending on the terms negotiated in the LOI and the purchase agreements. If the seller has all documentation in order and the buyer has a focused real estate and legal team, closings can happen in as little as 7 days. That being said, a typical process from accepted offer to closing is 30–60 days.
The property transaction process is not fully finalized until the deed is officially recorded in the National Registry. The standard timeline typically progresses through three distinct stages:
Although the buyer legally assumes ownership at closing when the seller signs over the property rights, the overall transfer remains incomplete until that final registration is concluded.
More complex transactions involving commercial sales, concession property, or similar circumstances might have 60–120 day due diligence periods and 30-day closing timelines. Each transaction is different, and the timeline is typically agreed upon by both parties at the time of the LOI or Purchase Agreement.
Buying property in Costa Rica is a well-defined process when working with the right team: selecting a reputable agent, signing a Purchase and Sale Promissory Agreement or Option to Purchase Agreement, completing the due diligence period, signing the conveyance deed before a notary public, recording the deed at the national registry, and finally reporting the transfer to the local municipality.
The key is to set clear expectations at the time of negotiation and work with your agent and legal counsel to ensure transparency and security as top priorities.
Yes, you must retain an attorney in Costa Rica to purchase property. All property transfers must be completed via a public deed, which can only be executed by a licensed attorney who is also a notary public. Your attorney and their firm will handle a great deal of the due diligence on the property, so selecting your own legal counsel, based on recommendations from your real estate firm or independent research, is critical.
Attorneys will conduct a detailed title search, perform due diligence, review contracts, manage the closing, and register the transfer, all with the buyer's interests exclusively in mind. Attorney fees typically run 1–2% of the purchase price. When paying in cash, it is typical for the buyer's attorney to act as the notary for the sale and earn the corresponding notarial fees for the registration of the deed.
On the seller side, depending on the ownership structure of the property, an attorney may not be strictly required to represent the seller or participate in the sale. That said, 2Costa Rica Real Estate always recommends that sellers engage legal counsel to review the final deeds and any required documentation. Sellers who own property in a corporation will need an attorney at minimum to prepare the required Article 32 shareholder authorizations approving the sale and disbursement of funds.
2CRRE can refer buyers and sellers to trusted, bilingual attorneys who specialize in real estate transactions with foreign clients, working with legal professionals across all the regions we serve.
Costa Rica's annual property tax is 0.25% of the property's registered fiscal value. This is one of the many advantages of property ownership here, as property taxes and insurance costs are a fraction of what they are in the USA and many other destinations.
The property tax is based on the registered fiscal value, which now almost always coincides with the purchase price at the time of acquisition.
For example, a property with a fiscal value of $200,000 USD would pay approximately $500 USD per year in property tax. Costa Rica property taxes are paid quarterly to the local municipality.
There is a capital gains tax in Costa Rica that might apply to the eventual sale of a property, though each situation should be addressed with a legal and tax advisor. No capital gains tax applies when selling a primary residence, though a non-resident of Costa Rica is not able to declare a property as a primary residence.
Given the complexity and specific dates involved, consult a qualified Costa Rican tax attorney before selling any investment property.
Historically, while financing for foreigners was possible, obtaining a traditional mortgage from a Costa Rican bank as a non-resident has been challenging. Costa Rican banks require local credit history or robust US financial history, often formally translated, which can be laborious. Those who do qualify have often faced interest rates of 8–12% that are not fixed through time, amortization periods of 10–20 years instead of US-style 30-year options, and strict loan-to-value ratios.
Within the past few years, several important US-based lenders have begun offering financing options designed for US and other international investors, with rates higher than standard US rates but fixed, and a streamlined approval process where most buyers can prequalify in 48–72 hours.
The most common acquisition types for international investors have been:
US-style mortgage financing is now available for completed residential properties, including primary residences, vacation homes, and investment properties, with milestone payment options during pre-construction.
Not automatically, but it can support a residency application. Purchasing property in Costa Rica does not confer residency by itself. Residency must be applied for separately through Costa Rica's immigration system, and the process takes time, so it is important to engage legal counsel at the time of purchase if residency is the goal.
To qualify for residency via a real estate purchase, buyers can seek the Investor Residency (Visa de Inversionista), an extended-stay visa that can lead to residency. The minimum investment must be $150,000 or more, and the property must be purchased in the buyer's personal name if seeking this form of residency.
Under Law 9996, the minimum qualifying investment is $150,000 USD in real estate, a business, shares/securities, or sustainable tourism infrastructure. The property must be lien-free, and a spouse, children under 25, and dependent parents/siblings are included as dependents. The initial grant is a 2-year temporary residency, renewable as long as the investment is maintained, with eligibility for permanent residency after 3 years.
It is also important to note that residency is not a requirement for ownership in Costa Rica. Unless a buyer plans to spend long periods here beyond the tourist visa, residency is not needed to own and enjoy property.
A home inspection is not legally required, but it is an important recommendation for any existing structure. The tropical climate creates conditions particularly harsh on buildings: humidity, insects, salt air near the coast, and intense rainfall can cause structural issues, drainage problems, and electrical deterioration that aren't visible to the untrained eye.
Hire an independent inspector or engineer to review the property; 2Costa Rica Real Estate has a list of highly qualified inspectors it can recommend, and buyers can expect a detailed report within 5–7 days of the inspection. The cost of a home inspection depends on the size and scope of the property but typically runs between $500–$1,500 for most single-family homes and condos.
Most homes in Costa Rica are sold "as is," and the purpose of the inspection is typically to ensure there are no hidden defects that would change the scope of the investment. That said, each transaction is different, and there are certainly instances where sellers will cure elements found on the inspection or negotiate an allowance for the buyer to address them after closing.
No, title insurance is not available in Costa Rica as it is known in the US and Canada. However, it is not needed given that the National Registry offers an open record of ownership. Prior to listing a property, an agent at 2Costa Rica Real Estate will carry out preliminary due diligence to ensure ownership corresponds to the negotiating party.
During the due diligence process, the buyer's attorney will carry out an extensive title search to verify the historic transfer of title, ensuring clean title in the purchase. Unlike in the United States, where title insurance companies emit a policy as part of closing, in Costa Rica there is no legal possibility of offering title insurance.
The legal system in Costa Rica makes the need for these policies largely irrelevant; if a property has a clean and clear title at the time of closing, the new owner cannot be held legally responsible for any liens, encumbrances, or debts that were not registered prior to closing.
Always engage an independent attorney, not the seller's attorney. In Costa Rica, the same notary can legally represent both parties, but using your own lawyer ensures undivided loyalty to your interests.
Escrow is not a legal requirement in Costa Rica but is strongly recommended for any and all real estate transactions. There are instances where buyers and sellers coordinate direct payment, but for a host of reasons, especially in international transactions, the use of a licensed escrow company is always recommended.
Escrow agents in Costa Rica must be licensed and regulated by SUGEF (Costa Rica's financial regulator), providing both buyer and seller with a secure, neutral third party to hold funds. This is especially important given strict anti-money-laundering laws; the escrow agent not only custodies funds to ensure buyers are fully funded before closing and sellers are paid once deeds are signed but also plays a role, alongside the real estate agent, in verifying the good origin of funding.
The escrow agent holds the deposit and purchase balance until all conditions are met: title is verified, due diligence is complete, and the deed is registered. Only then are funds released to the seller, protecting both parties and ensuring funds aren't disbursed prematurely.
Buyers should be prepared to provide the escrow agent with clear documentation, bank references, tax returns, or other information regarding the origin of funds. For transactions where buyer and seller are both sending or receiving funds internationally, vetted escrow firms with US-based escrow accounts can also manage closings for Costa Rica properties.