Buying Property in Costa Rica as a Foreigner: The Essentials

One of the first questions we hear from international buyers is whether they are allowed to own property in Costa Rica. The short answer is yes. Here is an overview of how buying works, so you know what to expect before you make an offer.

Foreigners can own titled property

Costa Rica allows foreigners to buy and hold titled property with the same ownership rights as Costa Rican citizens, without needing residency. Many buyers choose to hold property through a Costa Rican corporation, a decision best made with your attorney.

The exception: the maritime zone

Land right next to the ocean is treated differently. The first 50 metres from the high tide line are public. The next 150 metres are generally held as a concession from the local municipality rather than as titled land, with additional rules for foreign owners. Always ask whether a beach property is titled or a concession.

How a purchase usually works

• Agree on price and terms, usually in a written offer or option agreement.
• Place the deposit with a regulated escrow service, not with the seller directly.
• Your attorney checks the title, liens, the survey plan (plano catastrado) and permits in the National Registry.
• A Costa Rican notary prepares the transfer deed and registers it in your name.

Closing costs and yearly costs

Buyers commonly budget around 3 to 4 percent of the price for closing, which includes the transfer tax, registration fees, stamps and notary fees. Once you own the property, municipal property tax is 0.25 percent of the registered value per year, and higher value homes may also pay an annual luxury home tax.

Our advice

Work with your own independent attorney, use escrow, and never skip due diligence, even on a property that looks perfect. We work with trusted local professionals and are happy to introduce you.

This article is general information and not legal or tax advice. Rules and rates can change, so confirm the details for your purchase with a Costa Rican attorney.

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