Beautiful beaches, lush rainforests, and a relaxed lifestyle have positioned Costa Rica as one of the most attractive destinations for expats and international investors. Buying property in this tropical paradise, however, requires a clear understanding of Costa Rican real estate laws.
From titled property and concession land to corporate ownership, knowing the rules will protect your investment and help you avoid common pitfalls.
This guide breaks down the essential aspects of property ownership in Costa Rica, including the legal framework, due diligence, closing costs, and why working with experienced professionals can make all the difference.
Property Ownership Rights for Foreigners in Costa Rica
Costa Rica’s Constitution guarantees that foreigners have the same property ownership rights as citizens. You can purchase land in your own name or through a Costa Rican corporation.
That said, some restrictions exist in special zones:
- Maritime Zone: The first 200 meters from the high tide line.
- Border Zones: Properties near the borders with Nicaragua and Panama have restrictions on foreign ownership.
All property transactions must be recorded with the Registro Nacional (National Registry). This public system keeps official records of ownership, boundaries, liens, and encumbrances, ensuring transparency.
Types of Property Ownership in Costa Rica
When purchasing real estate in Costa Rica, foreigners have several options for ownership structures to choose from. Each has unique implications depending on the location and purpose of the property.
Titled Property (Fee Simple Ownership): In Costa Rica, titled property grants buyers absolute ownership and full possession rights, making it the strongest and most secure form of property ownership available. However, due to the country’s Maritime Zone Law, titled land along the coast is extremely rare.
Only about 5% of beachfront properties are titled, making them highly sought-after and often more expensive than other options.
Concession Property: Makes up about 95% of oceanfront real estate in Costa Rica and operates as a municipal lease, usually renewable every 20 years. While foreigners can directly hold only up to 49% ownership, this can be managed through a corporate structure.
Considered both safe and common, concession property is a popular choice for beachfront investments, so much so that even luxury resorts like the Four Seasons are built on concession land.
Corporation Ownership: Allows properties to be purchased through legal entities such as a Sociedad Anónima (S.A.) or a Sociedad de Responsabilidad Limitada (S.R.L.).
This option is particularly useful if you plan to operate a business, buy property remotely, or keep personal and business assets separate. While corporations were once favored for tax and banking benefits, today their primary purpose is to legally conduct business in the country.
Trust Ownership (Fideicomiso): A structure often used for restricted properties in Costa Rica, where a local bank holds the legal title on behalf of the foreign buyer, who retains beneficial ownership.
This arrangement provides an extra layer of protection and security, especially in sensitive or regulated zones, ensuring compliance with local property laws.
Understanding the Maritime Zone Law
The Maritime Zone Law governs the first 200 meters of land measured from the high tide line. The initial 50 meters are public land, where private ownership or construction is not permitted, while the next 150 meters consist of concession land that municipalities can lease under strict regulations.
Foreign buyers may need Costa Rican residency or a partnership with a local citizen to qualify for ownership of concession land.
Environmental and Zoning Regulations
Costa Rica is internationally recognized for its commitment to environmental conservation. This affects real estate in several ways:
- Development near national parks, wildlife reserves, or wetlands is heavily regulated.
- Municipal zoning plans define whether land can be used for residential, commercial, or agricultural purposes.
- Violating environmental or zoning rules can result in hefty fines or demolition orders.
The Importance of Due Diligence
Before buying property in Costa Rica, conducting thorough due diligence is essential. Your attorney should:
- Verify property ownership and confirm it is free of liens or mortgages.
- Check for disputes, restrictions, or encumbrances.
- Ensure accurate boundary registration with the National Registry (Registro Nacional).
Hiring a trusted legal professional ensures your property purchase is secure and compliant with the law.
Closing Costs and Transfer Taxes
Buyers are responsible for most transaction costs, which typically range from 3% to 4% of the purchase price:
- Transfer Tax: 1.5%
- Legal Fees: About 1.25%–1.5%
- Notary Fees: Required for drafting and recording the deed with the National Registry.
Having your attorney calculate these costs upfront prevents surprises at closing.
Costa Rica: Specific Considerations
Navigating the Costa Rican real estate process involves unique local requirements:
- Document Translation: Foreign documents must be translated into Spanish and apostilled.
- Banking & Escrow: Payments go through regulated escrow accounts to comply with Anti–Money Laundering Law (Ley 8204).
- Cultural Pace: Transactions often move more slowly than in North America, so patience and proper legal guidance are key.
Why Work with American Law Partners?
Navigating Costa Rica’s real estate laws requires local expertise. At American Law Partners, we make the process seamless for expats and international investors by offering:
- Local Expertise: With over 30 years of experience assisting expats in Costa Rica.
- Trusted Legal Resources: Access to reputable attorneys for due diligence, title searches, and compliance.
- Bilingual Legal Services: Consultations and documents available in English and Spanish.
- Cross-Border Perspective: Licensed in both Costa Rica and Florida, offering integrated legal support.
- Personalized Guidance: Whether your dream property is a beachfront villa, mountain retreat, or urban condo, we help match your goals with the right investment.
Start Your Costa Rican Real Estate Journey Today!
The success of buying a property in Costa Rica depends on having the right knowledge and support. With expert guidance, you can enjoy the beauty and stability of owning real estate in this paradise.
👉 Contact American Law Partners today to schedule your consultation and take the first step toward owning property in Costa Rica.
📞 WhatsApp: +506 6195-2407 | ✉️ Email: info@americanlawpartners.com
Frequently Asked Questions
- Can foreigners legally own property in Costa Rica?
Yes. Costa Rica’s Constitution grants foreigners the same property ownership rights as citizens, with some restrictions in maritime and border zones.
- What is the difference between titled property and concession property in Costa Rica?
Titled property (fee simple) grants absolute ownership, while concession property is a lease from the municipality, common for beachfront land and renewable every 20 years.
- What are the typical closing costs when buying property in Costa Rica?
Closing costs are usually 3–4% of the purchase price, including transfer taxes, legal fees, and notary fees.
- What is due diligence in Costa Rican real estate transactions?
Due diligence includes verifying the property title, checking for liens or encumbrances, confirming boundaries, and ensuring compliance with zoning and environmental laws.
About the Author
This article was written by Terry Steele, Attorney in Costa Rica (cédula de identidad 08-0111-0536, bar license 36269).
With over 35 years of residency in Costa Rica and extensive experience advising international clients in real estate, corporate law, and cross-border investments, Terry specializes in helping foreigners navigate property purchases and residency applications with confidence.
