Costa Rica has become one of the most appealing places in the world for foreign property buyers. With its stable democracy, friendly laws for international investors, beautiful nature, and high quality of life, it’s no wonder that buyers from the U.S., Canada, and Europe continue to invest in Costa Rican real estate. The good news is that Costa Rica makes it fairly easy for foreigners to buy property. However, understanding the process step by step is crucial to avoid costly mistakes and to ensure a smooth transaction.
One of the biggest benefits of buying real estate in Costa Rica is that foreigners have the same property ownership rights as locals. You do not need residency, citizenship, or a special visa to purchase property. Foreign buyers can own property outright in their name or through a legal entity, such as a Costa Rican corporation or limited liability company.
The only significant exception applies to certain properties in maritime zones, which are located within 200 meters of the high-tide line. These properties have specific ownership rules and often require extra due diligence.
Before starting your search, it’s important to define your goals. Are you buying a vacation home, a rental investment, land for development, or a permanent residence? Your objective will affect the location, property type, budget, and legal structure of your purchase.
Tourist-heavy areas may offer strong rental income, while Central Valley locations often attract retirees and full-time residents. Having a clear plan helps streamline the process and ensures your investment matches your long-term goals.
Costa Rica does not require real estate agents to be licensed, but working with an experienced and reputable local professional is essential. A knowledgeable agent can help you find suitable properties, negotiate effectively, and guide you through local pricing trends.
Choose an agent with a solid track record of working with foreign buyers, strong local connections, and a transparent approach. This support is especially helpful when navigating unfamiliar legal and cultural practices.
Once you find a property, due diligence becomes the most crucial step in the buying process. Hiring a qualified Costa Rican real estate attorney is vital. Your attorney will verify ownership, review the title, confirm property boundaries, and make sure there are no liens, debts, or legal disputes attached to the property.
The attorney will also check zoning regulations, land use restrictions, and environmental requirements. This step protects you from unexpected legal issues and ensures the property can be used as planned.
After completing preliminary checks, you’ll submit a formal offer. If the offer is accepted, both parties sign a purchase and sale agreement, which outlines the price, deposit amount, timeline, and closing conditions.
Typically, buyers place a deposit of around 10% of the purchase price into an escrow account managed by a third party. This protects both the buyer and the seller, ensuring that funds are released only once contractual conditions are met.
Escrow services are commonly used in Costa Rica and are highly recommended for foreign buyers. The escrow company securely holds funds during the transaction and ensures all legal requirements are met before releasing payment.
Foreign buyers usually pay for purchases via international wire transfer. While local financing is available in some cases, many foreign buyers prefer cash purchases due to higher interest rates and stricter lending requirements in Costa Rica.
At closing, the transfer of ownership is finalized before a Costa Rican notary public, who is also an attorney. The notary prepares and records the deed with the National Registry, officially transferring ownership to the buyer.
Closing costs generally range from 3% to 5% of the purchase price and typically include transfer taxes, notary fees, registration fees, and legal expenses. Once the deed is recorded, you become the legal owner of the property.
After closing, there are a few important tasks to complete. These include transferring utilities into your name, setting up property management if you plan to rent, and registering for any applicable property taxes.
Costa Rica has relatively low annual property taxes, making long-term ownership affordable. If you plan to generate rental income, it’s important to understand local tax obligations and any registration requirements for short-term rentals.
Buying real estate in Costa Rica as a foreigner is a straightforward and transparent process when done properly. With equal ownership rights, a reliable legal framework, and strong international demand, Costa Rica offers great opportunities for lifestyle buyers and investors alike.
By following a clear step-by-step approach—from defining your goals and working with trusted professionals to conducting thorough due diligence—you can confidently navigate the buying process and secure a property that meets your needs. Whether you’re looking for a vacation retreat, an income-generating investment, or a permanent home, Costa Rica remains one of the most foreigner-friendly real estate markets in the world.
