Buying Property in Costa Rica as a Foreigner

Yes. Costa Rica grants foreign nationals the same property ownership rights as citizens in the vast majority of transactions. There is no requirement that you hold residency, citizenship, or a local corporation to purchase fee simple real estate. Over more than twenty years guiding buyers from the United States and Canada, I have seen this fundamental openness remain one of Costa Rica's strongest advantages compared with other Latin American markets where foreign ownership is restricted or layered with opaque structures.

What foreigners cannot do is skip due diligence. The right to buy is broad; the responsibility to verify title, zoning, utilities, HOA rules, and permit history is entirely yours — and it should be shared with a Costa Rica-licensed attorney before you wire funds. At Green Coast Investments, we treat foreign-buyer education as part of the service, not an afterthought, because the legal framework is accessible but unfamiliar to North American purchasers accustomed to title insurance and MLS-standardized disclosures.

You may hold property in your personal name, jointly with a spouse, or through a Costa Rican corporation (Sociedad Anónima or SRL) when your tax advisor recommends it. Corporations are common for investment holdings and estate planning, but they are not mandatory for most residential purchases. If an agent or seller insists that you must buy through a specific entity they control, treat that as a red flag and consult independent counsel.

Browse current [verified listings](/properties) on our nationwide MLS to see the types of assets foreign buyers pursue — from Central Valley homes to Pacific Coast condos and income-oriented villas.

**Fee simple (pleno dominio)** is what most international buyers target. It represents full private ownership recorded in the National Registry (Registro Nacional), transferable without a government landlord, and financeable through local banks when you qualify. Your attorney will issue a title study (estudio registral) confirming the seller's chain of ownership, liens, easements, and encumbrances.

**Concession property** exists primarily in the maritime-terrestrial zone — the strip of land measured from the high-tide line. Concessions are long-term permits granted by municipalities, not fee simple deeds. They can be legitimate and valuable, especially for hospitality assets, but they carry renewal risk, stricter transfer rules, and financing limitations. Foreigners may hold concessions only through a majority-Costa-Rican-owned entity in many cases. Never assume a beachfront listing is fee simple because it looks like a normal sale.

**Maritime Zone Law (Ley sobre la Zona Marítimo Terrestre, ZMT)** governs the first 200 meters from the ordinary high-tide line. The first 50 meters is public domain; the next 150 meters may be concessioned. Structures, fences, and pools in this zone require historical permit review. I have seen buyers fall in love with ocean-front photos only to learn that the 'front yard' is legally restricted — that is precisely what title-type analysis prevents.

Other categories appear less frequently but matter in rural purchases: **possessory rights (derechos posesorios)** on untitled land, **agrarian** parcels with restrictions, and **condominium** regimes (similar to HOAs) recorded as separate bylaws. Each can be viable with the right counsel, but none should be purchased casually from a translated brochure. Read our [fee simple vs concession guide](/guides/fee-simple-vs-concession-costa-rica) before you evaluate beachfront or concession listings.

**Step 1 — Define objectives and budget.** Clarify lifestyle vs investment goals, regions, financing limits, and timeline. Costa Rica is a set of micro-markets; a Central Valley retirement home and a Jacó vacation-rental condo are different legal and operational animals.

**Step 2 — Engage a buyer-focused attorney early.** Retain independent Costa Rica legal counsel — not the seller's attorney — before signing anything binding. Your lawyer orders registry studies, reviews corporate seller documents, and flags concession or HOA issues.

**Step 3 — Search and shortlist with verified data.** Work with a brokerage that publishes internally vetted listings. Compare [regional inventory](/properties) and run income scenarios with our [rental income calculator](/tools/rental-income-calculator) if cash flow matters. Use the [cost of living calculator](/tools/cost-of-living-costa-rica) to compare monthly expenses against your current US city.

**Step 4 — Make an offer via formal option or promise (opción de compra / promesa).** Offers typically include price, deposit, diligence period, included chattels, and closing date. Deposits are often 10% and held in escrow by attorney or escrow agent — not handed to the seller directly.

**Step 5 — Conduct due diligence.** Title study, survey review, municipal tax status, HOA estoppel, utility availability, environmental or maritime permits, and physical inspection. Diligence periods commonly run 30–60 days.

**Step 6 — Finalize financing (if any).** Local banks lend to qualified foreigners on fee simple property; timelines are slower than US mortgages. Many buyers wire cash after diligence.

**Step 7 — Execute the transfer before a Costa Rican notary (Notario Público).** The notary prepares the deed (escritura), confirms registry filings, and collects transfer taxes. Buyer and seller (or attorneys with powers of attorney) sign at closing.

**Step 8 — Register and post-close setup.** The deed must be recorded in the National Registry. Post-close: utilities, HOA, property manager, residency or corporation maintenance if applicable, and insurance.

Budget **3.5%–6%** of purchase price for buyer-side closing costs on typical fee simple transactions. Components include transfer tax (impuesto de traspaso) at **1.5%** of the higher of registered value or sale price, registry fees, notary fees (often 0.5%–1.5% depending on structure), and your attorney's professional fees.

If the property is held in a corporation, additional documentary costs apply. New corporate formation, share transfers, or powers of attorney add legal hours. Ask for an itemized estimate before you commit.

Sellers pay their own broker commissions and may negotiate share of certain fees — but do not rely on verbal promises. The allocation should appear in the purchase contract.

Annual property tax (impuesto sobre bienes inmuebles) is modest relative to North America, often well under 1% of registered value, with exemptions for lower-valued primary homes. Luxury homes tax (impuesto solidario) applies only above statutory thresholds.

Your attorney is the single most important professional in the transaction. In Costa Rica, notaries are lawyers with additional certification; the closing notary and your diligence attorney may be the same firm or separate, but your diligence counsel must represent **you**.

Expect your attorney to: order a current title study; verify seller identity or corporate authority; review HOA and concession documents; confirm tax and municipality status; draft or review the option contract; attend closing; and confirm registry inscription.

Red flags include pressure to skip diligence, refusal to provide registry PDFs, seller insistence on non-escrow deposits, or attorneys who also represent the developer without written conflict disclosure.

I work alongside buyer attorneys daily but I do not replace them. Green Coast Investments coordinates documents, inspections, and timelines — your lawyer makes the legal call on whether to proceed.

Municipal property tax is calculated on registered cadastral value at approximately **0.25%** annually for most homes. Many owners pay a fraction of what comparable US properties would incur.

The **solidarity tax** on luxury homes applies to improved properties above a government-adjusted threshold. Your attorney can model this for high-value coastal estates.

Corporate-owned properties pay annual corporate tax and must file informational returns even when inactive. Factor recurring compliance into investment models.

Capital gains tax treatment depends on holding structure, seller status, and timing. Obtain a written opinion for investment exits — do not extrapolate from US rules.

Cash purchases remain common among North American buyers, especially below $800,000. Wire transfers must comply with Costa Rican anti-money-laundering documentation; banks will ask for source-of-funds evidence.

Local bank mortgages are available to qualified foreigners on fee simple property, typically at higher rates and shorter terms than US 30-year products. Expect 20%–30% down, proof of income, and slower underwriting.

Developer financing appears occasionally in pre-construction projects. Treat promotional rates as marketing until counsel reviews the security package.

Home equity lines or US mortgages on Costa Rica property are generally not available from US retail banks; private lending exists but carries elevated legal risk without proper lien perfection in Costa Rica.

**Skipping independent legal counsel** because the seller 'already has a notary.'

**Assuming beachfront equals fee simple** without a maritime-zone analysis.

**Wire transfers without escrow** to seller personal accounts.

**Ignoring HOA rental restrictions** before buying an investment condo.

**Underestimating infrastructure costs** — water letters, road easements, and power extensions can exceed renovation budgets.

**Buying remotely without inspection** — video tours help but do not replace site visits or trusted inspectors.

**Relying on US title insurance concepts** — Costa Rica uses registry certainty; you need a current estudio registral, not a policy template from another country.

Read my profile and approach at [Daniel Berkley, CEO](/about/daniel-berkley) — then speak with our team when you want a second opinion on a specific deal.