Can Foreigners Buy Property in Costa Rica? Complete Guide
Costa Rica is one of the few countries in Latin America where foreigners can buy property with the same ownership rights as Costa Rican citizens. No residency, special permit, or local partner is required. This guide covers everything you need to know before investing. If you are an expat looking for a broader guide covering banking, taxes, and recommended areas, see our expat guide to buying property.
Legal framework for foreigners
The Costa Rican Constitution guarantees foreigners the right to own real estate on equal terms with nationals. This applies to both individuals and properly registered foreign corporations.
Key legal points include:
- Fee simple ownership: foreigners can hold title registered in their name at the National Registry (Registro Nacional).
- No residency required: you can purchase without a resident visa. A valid passport is sufficient.
- Costa Rican corporations (S.A.): many buyers acquire property through a local corporation for succession planning and flexibility. However, since 2022 the tax burden of maintaining an S.A. has increased, so consult an attorney on whether it makes sense.
- National Registry: all registered property is verifiable online, providing strong legal certainty.
The maritime zone exception
The main exception to unrestricted foreign ownership is the Maritime-Terrestrial Zone (Zona Marítimo-Terrestre or ZMT), regulated by Law 6043.
| Zone | Definition | Can foreigners buy? |
|---|---|---|
| Public zone | First 50 meters from the high-tide line | No. Inalienable and imprescriptible for everyone |
| Restricted zone | Next 150 meters from the public zone | Only residents with at least 5 years of legal residency. Non-resident foreigners cannot obtain a concession |
| Titled coastal property | Land with registered title predating Law 6043 | Yes, no restriction. Purchased like any other property |
| Outside ZMT | More than 200 meters from the coast | Yes, no restriction |
Practical tip: before buying coastal property, verify with an attorney whether the land has registered title or is a municipal concession. A professional real estate agent can help identify this from the very first inquiry. Platforms like Trochai connect buyers with verified agencies that respond via WhatsApp within minutes.
Required documents
| Document | Who needs it | Where to obtain it |
|---|---|---|
| Valid passport | Foreign buyer | Country of origin |
| Tax identification number (DIMEX or NITE) | Buyer if forming an S.A. | General Tax Directorate |
| Registry study of the property | Seller / attorney | National Registry |
| Certified survey map (plano catastrado) | Seller | National Cadastre |
| Certificate of no liens | Buyer's attorney | National Registry |
| Power of attorney (if not present) | Buyer | Costa Rican notary public |
| Proof of source of funds | Buyer | Bank or accountant |
Step-by-step buying process
1. Define your zone and budget
Research the areas that best match your lifestyle and investment goals. The Central Valley (Escazu, Santa Ana) offers urban infrastructure, while Guanacaste and the Southern Zone attract those seeking beach and nature.
2. Hire a real estate attorney
Never sign anything without an attorney. Your lawyer conducts due diligence: registry study, survey map verification, absence of liens, municipal taxes up to date, and zoning compliance.
3. Sign an option-to-purchase agreement
This is a private contract setting the price, timeline, and conditions. Typically a 10% deposit is placed in escrow as a guarantee.
4. Due diligence
Your attorney verifies:
- Clean title at the National Registry
- Valid survey map matching the physical boundaries
- No annotations, seizures, or mortgages
- Permitted land use under the municipal zoning plan
- That the property is not in the maritime zone without a concession
5. Transfer deed (escritura de traspaso)
A notary public drafts the deed and submits it to the National Registry. Registration takes 5 to 15 business days. Notarial and registry fees run between 1% and 1.5% of the transaction value.
6. Pay transfer taxes
The transfer tax is 1.5% of the registered property value (split between buyer and seller by negotiation). Fiscal and registry stamps are also required.
Common mistakes to avoid
Buying without a registry study: some buyers trust the seller's word. Always verify at the National Registry.
Confusing a concession with title: in coastal areas, a municipal concession is NOT private property. It cannot be sold as such and has restrictions for foreigners.
Not verifying the survey map: if the map is expired or does not match the actual boundaries, the transfer can be delayed by months.
Transferring funds without planning: open a Costa Rican bank account before the purchase. International transfers take 3 to 7 days and some banks require source-of-funds documentation.
Ignoring recurring taxes: the annual property tax is 0.25% of the fiscal value. Luxury properties (valued above approximately $240,000 USD) pay an additional progressive solidarity tax.
Estimated closing costs
| Item | Approximate percentage |
|---|---|
| Transfer tax | 1.5% |
| Notarial fees | 1% - 1.5% |
| Stamps and registry fees | 0.5% |
| Legal and registry study | $500 - $1,500 USD (flat fee) |
| Estimated total | 4% - 6% of purchase price |
Frequently asked questions
Do I need residency to buy?
No. Anyone with a valid passport can buy titled property in Costa Rica.
Can I get a mortgage as a foreigner?
It is difficult. Most Costa Rican banks require legal residency and a local credit history. Some private banks offer financing for foreigners under stricter terms (higher rates and larger down payments). Many foreign buyers pay cash or finance from their home country.
How do I find a trustworthy agent?
Look for agents affiliated with the Costa Rican Chamber of Real Estate Brokers (CCCBR). For more details on what to look for, red flags, and key questions to ask, read our guide to finding a real estate agent in Costa Rica. Agencies that use professional platforms like Trochai tend to have faster response times and more organized processes, which makes the buying experience smoother for international buyers.
Is investing in Costa Rica safe?
Costa Rica has one of the most stable legal frameworks in Latin America, a robust property registration system, and a long track record of respecting private property. As with any real estate investment, professional due diligence is essential.