Costa Rica offers one of the most accessible real estate markets in Latin America. Foreigners enjoy the same property rights as Costa Rican citizens, making it a popular destination for expats and investors seeking vacation homes, retirement properties, or income-generating real estate.
At American Law Partners, we provide experienced, bilingual legal guidance to ensure that every property purchase follows Costa Rican law and international best practices.
Do I Need Residency or a Visa to Buy Property in Costa Rica?
Foreigners do not need residency or a special visa to buy property in Costa Rica. Even tourists on a 90-day visa may legally purchase and own titled real estate.
For those planning to stay long-term, an investment of $150,000 USD or more qualifies for Investor Residency, allowing you to live legally in Costa Rica while maintaining your investment.
Do Foreigners Have the Same Property Rights as Locals?
Yes. Foreigners can buy, own, and sell titled property under the same conditions as Costa Rican citizens.
The main exception is the Maritime Zone: the first 200 meters from the high-tide line. This land is concession property, not titled property, and only Costa Ricans or majority Costa Rican-owned corporations may hold concession rights.
Step-by-Step Process for Buying Property in Costa Rica
Buying property in Costa Rica can be straightforward when you follow the right process:
- Find the Right Property: Identify properties based on budget, location, and goals. Popular regions include Guanacaste, Tamarindo, the Central Valley, and the Southern Zone.
- Hire a Costa Rican Notary Public: Legally required for all real estate transactions. Notaries are licensed attorneys who prepare contracts, manage escrow, and register the transfer deed.
- Due Diligence: Title search, zoning review (uso de suelo), boundary survey (plano catastrado), water rights verification, environmental restrictions, and check for liens or debts.
- Make an Offer & Sign a Purchase Agreement: A legally binding document outlining price, terms, and payment schedule.
- Open an Escrow Account: Funds are deposited securely until closing.
- Inspection & Appraisal: Confirm property condition and market value.
- Sign the Transfer Deed (Escritura de Traspaso): Prepared and notarized by your attorney to legally transfer ownership.
- Register Title: The deed is recorded at the National Registry.
- Pay Taxes and Fees: Transfer tax (1.5% of property value), notary/legal fees (1–2%), and registration costs.
Required documents include passports, tax ID numbers (DIMEX for residents or NITE for non-residents), proof of funds, official survey plan, purchase agreement, and the transfer deed.
What Does Due Diligence Mean in Costa Rica?
Due diligence is the process of verifying every detail about the property before purchase. A complete review should include:
– Title search at the National Registry.
– Updated boundary survey (plano catastrado).
– Municipal zoning certificate (uso de suelo).
– Water rights confirmation (ASADA letter or concession).
– Environmental restrictions or maritime zone checks.
– Review of debts, liens, or co-ownership.
– HOA/condominium rules if applicable.
Skipping due diligence is the number one mistake foreign buyers make. It often leads to costly disputes, incomplete titles, or restricted land use.
Is Hiring a Lawyer Mandatory?
Yes. Only Costa Rican notary publics, who are licensed attorneys, can legally register real estate transactions. Your notary will:
– Perform the title search.
– Draft and notarize contracts.
– Oversee escrow arrangements.
– File the deed with the National Registry.
– Ensure all taxes and fees are properly paid.
This guarantees your property is legally transferred and registered in your name.
If you are an international client, expatriate, or investor considering property ownership in Costa Rica, American Law Partners is here to guide you every step of the way.
📲 Contact us today or message us on WhatsApp to make your Costa Rican property purchase a reality with confidence.
Frequently Asked Questions
- Can foreigners buy beachfront property in Costa Rica?
No. The first 200 meters from the high-tide line is maritime zone concession land, not titled land.
- How much are closing costs?
Closing costs are typically 3–4% of the property’s registered value, including transfer taxes and legal fees.
- Do I need a Costa Rican bank account?
Not required. Escrow accounts are commonly used for property transactions.
- Is it better to buy in my name or through a corporation?
Many investors use a Costa Rican S.R.L. or S.A. for liability protection and succession planning.
- What are the biggest mistakes foreigners make?
– Buying without confirming water rights.
– Trusting only the real estate agent.
– Confusing possession land with titled land.
– Skipping due diligence and surveys.
- Can foreigners own property in Costa Rica?
Yes, foreigners have the same property rights as Costa Ricans for titled land.
- Do I need residency to buy property in Costa Rica?
No. Residency is not required, but investments over $150,000 qualify you for Investor Residency.
- What is due diligence in Costa Rica real estate?
It is the legal and technical review of title, zoning, boundaries, debts, water rights, and permits before purchase.
- What are typical closing costs?
About 3–4% of property value, including taxes, notary, and registration fees.
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.
