Buying a home in Costa Rica can be an incredible investment—whether you’re seeking a vacation retreat, permanent residence, or rental income. But real estate here has its own peculiarities. Here are some essential factors to consider to make sure your purchase is informed, secure, and aligned with your lifestyle goals.
1. Location & Access
Costa Rica’s road system and terrain can be vastly different. A house may seem ideal on paper, but if roads to it are unpaved, steep, or frequently impassable in rains, it may be inaccessible. Keep in mind:
Nearness to large towns, amenities (shops, hospitals), and conveniences
State of the nearby roads—particularly in rainy weather
Distance to airports or ports if you anticipate frequent travel
The Pacific shore (e.g. Dominical, Uvita, Ojochal) is extremely popular, offering beach proximity to jungle landscapes—but there are trade-offs of far-off roads, at times restricted services, and seasonal weather effects.
2. Weather, Climate & Natural Disasters
Costa Rica is a tropical country, and that implies heavy rains, humidity, periodic storms, and danger of flooding in specific areas. Prior to purchasing:
Consider elevation (higher elevation will be cooler and less humid)
Check whether property lies within a flood-plain, landslide-prone area, or in coastal erosion areas
Look at what the seasons are like—rainy and dry seasons impact comfort, travel, and maintenance
3. Legal / Land Title & Permits
Nothing is more crucial than verifying the legal status of land and any approvals required. Main issues:
Is title clear? Liens, boundary issues, or outstanding claims?
Is the property registered? Most use public registry; be sure to have everything well documented
Building permits: if you’re going to build or make changes, do permitted buildings exist? Is municipal or zoning regulation limiting?
Environmental regulations: Costa Rica has several environmental protection codes; some coastal and jungle regions have restrictions that may stop certain types of construction
It’s nearly required that you engage a reliable local attorney who is familiar with property law to assist in confirming all of this.
4. Utilities & Infrastructure
A faraway paradise is appealing—but if you don’t have good roads, water, sewer, electricity, and internet, daily life isn’t as easy as you might imagine. When looking at properties, inspect:
Water supply: Is there a public water system (ASADA), well, or other source? Is it consistent?
Electricity: Is access to the power grid reliable? Do outages occur often? Do backup systems exist?
Internet/phone service: For rural or remote properties particularly, connection can be intermittent or costly.
Waste management/sewage: Septic system vs. municipal sewer; solid waste collection
5. Maintenance & Ongoing Cost
The initial cost of purchase is just the start. Maintenance in the climate of Costa Rica involves:
Working with moisture, mildew, termites, bugs
Roofs, gutters, drainage that can withstand heavy rain
Landscaping and vegetation management in jungle or forest environment
Taxes, insurance, fees: property tax levels, homeowner association fees if within a gated community
Be sure you account for all these, often more than you imagine.
6. Resale Value & Rental Potential
Even if you’re purchasing for fun, it’s wise to consider future resale or renting. Think about:
How simple it will be to sell the property (access, appeal, amenities)
Demand within the region: touristy, up-and-coming, or far-flung?
Permits for short-term rentals should you intend to utilize sites such as Airbnb
Views, seclusion, and originality—all huge selling factors in Costa Rica
7. Cultural & Lifestyle Fit
Life in Costa Rica tends to mean slower life, embracing pura vida, and adjusting to local traditions. Things to consider:
How at ease are you with language issues (Spanish is dominant)?
Presence of expatriate communities, schools, social networks
Health care access
How “off-grid” or remote you want to be
Some like the solitude; others struggle with it.
8. Currency, Financing & Transaction Costs
Some important money-related issues:
Properties are often listed in US dollars—but locals pay in colones; exchange rates are significant
Financing: Foreigner mortgages through Costa Rican banks may be more expensive or have tighter terms
Buyer’s closing costs, attorney fees, taxes (transfer tax, registration fees)
Insurance (especially for natural hazards like flooding or earthquakes if relevant)
FAQ
Q1: Can foreigners own property in Costa Rica just like locals?
Answer: Yes. Costa Rica has no restrictions preventing foreigners from owning property. However, you’ll still need to make sure your title is clean, registered, and that there are no liens or boundary surveys needed. A local attorney can help guide you.
Q2: How do I know whether the land has good title / is free of disputes?
Answer: Preparing a title search through Costa Rica’s Public Registry (Registro Nacional) is essential. Also look for surveys (mensura), that there are definite boundary marks, and that any seller can sell the property legally. Your attorney must ask for all relevant documents.
Q3: Do I need to speak Spanish in order to handle real estate transactions?
Answer: It helps a lot. Although numerous realtors and lawyers in tourist areas speak English, documents are generally written in Spanish. Having someone to translate or counsel is extremely helpful to prevent misunderstandings.
Q4: What about property tax rates?
Answer: Costa Rica’s property taxes are low relative to most developed nations. They’re typically assessed as a function of the registered value of the property, and many properties have them assessed at a nominal percentage per year. However, ensure you review the tax history of the property so you know if there are any outstanding or future requirements.
Q5: Are utility services good in rural areas?
Answer: It varies. In more populous or tourist regions, water, electricity, and internet tend to be dependable. In deep jungle or mountain regions, there are going to be issues—lack of coverage, spotty service, or increased infrastructure charges. Always review and inquire from present owners regarding experience.
Q6: How long does closing a real estate transaction in Costa Rica take?
Answer: It depends. A simple, clean transaction may take several weeks after contracts are executed, documents are filed, and money is wired. But if title problems, surveys, permits, or zoning hurdles are involved, it may take longer. Having proper local professionals (realtor, attorney, notary) facilitates the process.
Purchasing a home in Costa Rica may be an exhilarating mix of lifestyle, environment, and investment. Provided you do some research first—on location, legal matters, infrastructure, and expense—you’ll be far more likely to treasure your property now and for many years to come.
