One of the first questions I get from international buyers is whether foreigners can actually own property in Costa Rica. The answer is a resounding yes — and it’s one of the things that makes Costa Rica particularly attractive for real estate investment.
I’m David Hernandez, founder of Magnolia Real Estate. In my 20 years helping families from the United States and Canada purchase property in Guanacaste, I’ve guided hundreds of international buyers through their first Costa Rican real estate transaction. Here’s what you need to know.
Can Foreigners Buy Property in Costa Rica?
Yes. The Costa Rican Constitution guarantees foreigners the same property rights as nationals. There are no restrictions based on nationality. You can purchase property as an individual, and you don’t need to be a resident to buy.
You don’t even need a local identification number (cédula). Your passport is sufficient to complete a property transaction in Costa Rica.
Property Ownership Options
Individual Ownership
The simplest option. The property is registered directly in your name at the National Registry. You have full control and can sell, rent, or transfer the property at will.
Corporation Ownership (Sociedad Anónima)
Many foreign buyers choose to purchase through a Costa Rican corporation (SA). Benefits include:
- Asset protection — the corporation owns the property, not you personally
- Potential tax advantages depending on your situation
- Privacy — corporate ownership is a matter of public record but the details are less exposed
- Easier to add or remove owners through share transfers
The corporation must have at least two shareholders, but these can be you and a trusted partner or your attorney. Setting up an SA is straightforward and costs between $500 and $1,000 USD with a local attorney.
The Process Step by Step
Step 1: Due Diligence Before You Buy
Before signing anything, verify:
- Title verification: Confirm the seller actually owns the property and the title is clean
- Liens and encumbrances: Check for mortgages, debts, or legal attachments
- Zoning: Confirm the property is properly zoned for its intended use
- Environmental permits: For coastal properties, verify environmental compliance
- Survey: Confirm the property boundaries match what’s being sold
I work with a team of real estate attorneys who handle all due diligence for my clients. This typically costs $500-$1,500 USD depending on complexity.
Step 2: The Purchase Agreement
Once due diligence is complete, a purchase agreement (contrato de compraventa) is drafted. At this stage, you typically pay a 10% deposit to take the property off the market. This deposit is held in escrow or by the listing broker.
Step 3: Closing
Closing in Costa Rica is done before a public notary. The notary prepares the deed (escritura pública), both parties sign, and the document is submitted to the National Registry for final recording.
The entire process — from signed purchase agreement to registered title — typically takes 30 to 60 days for a straightforward transaction.
Costs to Factor Into Your Budget
- Transfer tax: 3% of the registered value (not always the same as sale price)
- Notary fees: Approximately 1% of the transaction value
- Legal fees: $1,500 to $3,000 USD for due diligence and closing representation
- Corporate setup: $500 to $1,000 USD if purchasing via corporation
- Registration fees: Approximately $100 to $200 USD
Total closing costs typically run 4% to 6% of the purchase price.
Financing Options for Foreign Buyers
Cash Purchase
Most foreign buyers purchase with cash. This is the simplest approach and makes your offer more competitive. International wire transfers are straightforward for Costa Rican banks.
Costa Rican Mortgage
Foreigners can obtain financing through Costa Rican banks. Requirements typically include:
- Proof of income or assets
- Property as collateral
- Good credit history (international credit reports can be used)
Interest rates in 2026 range from 4% to 7% in USD, or 6% to 9% in colones. The process takes 60 to 90 days.
seller Financing
Some developers and private sellers offer financing options. Terms vary widely — from 30% down with the balance over 2-3 years. This is less common but worth exploring.
Common Concerns Addressed
Is the Costa Rican land titles system reliable?
Costa Rica has one of the most reliable land registration systems in Latin America. The National Registry is well-established, records are public, and property rights are generally respected by the legal system. Title insurance is available though not commonly used, as the registration system provides strong protection.
Problems with “land grabbing” that exist in some neighboring countries are rare in tourist-developed areas like Guanacaste.
What about the Maritime Terrestrial Zone (ZMT)?
Costa Rica protects coastal areas through the Maritime Terrestrial Zone law. Within 200 meters of the high tide line, construction is restricted and government permits are required. Properties within or near the ZMT require additional verification. This isn’t a reason to avoid coastal property — it just means your due diligence needs to be thorough.
Can I get a residence permit by buying property?
Yes. A $150,000 USD investment in real estate qualifies you for the Investor Visa category. This gives you temporary residence status, which can be renewed annually and eventually lead to permanent residence. See our complete guide to residency through real estate investment for details.
Why Work With a Local Realtor
The internet has given buyers access to property listings, but it can’t replace local knowledge. A good realtor knows which areas have reliable water, which developers have good (and bad) track records, and which properties represent genuine value versus inflated asking prices.
I’ve seen international buyers make expensive mistakes — purchasing properties with zoning issues, buying at peak prices, or discovering their “beachfront” view was going to be blocked by a new hotel. A local buyer’s agent represents your interests, not the seller’s.
In Costa Rica, the seller’s agent typically receives a commission that’s paid by the seller. This means you can have professional representation at no cost to you — as long as you work with a buyer’s agent rather than going directly to the listing agent.
Frequently Asked Questions
Do I need to be a Costa Rican resident to buy property?
No. Foreigners can purchase property as individuals without any residence status. You only need a valid passport.
Can I buy property in Costa Rica if I’m on a tourist visa?
Yes. There’s no restriction on property ownership based on visa status. Tourists regularly complete property transactions in Costa Rica.
Are there restrictions on where foreigners can buy?
There are no general restrictions on nationality. However, certain areas (like the Maritime Terrestrial Zone and some indigenous territories) have special regulations. A good attorney will flag any issues during due diligence.
How long does it take to register property in my name?
Typically 30 to 60 days from signing to registered title. The notary handles the registration process.
Can I sell the property later as a foreigner?
Yes. Foreigners have the same rights as nationals to sell property. Any capital gains may be subject to Costa Rican income tax.
Is title insurance available?
Yes, but it’s rarely used in Costa Rica because the public registry system provides strong protection. Discuss with your attorney whether it’s appropriate for your situation.
Ready to Explore Properties in Guanacaste?
If you’re considering buying property in Guanacaste, I can show you options that match your budget and goals — with no obligation. We have access to listings that never appear on public portals.
Phone Costa Rica: (506) 8847-6556
Phone US/CAN: (305) 912-3598
Email: [email protected]
Website: magnolia.cr
This article is for informational purposes. Property transactions involve significant legal and financial decisions. Consult with a Costa Rican attorney before making any purchase.
