Owning property in Costa Rica is one of the most common goals for Americans making the move — and it’s entirely achievable. As of early 2026, foreigners can legally buy residential property in Costa Rica and register the transaction through the National Registry system just like any Costa Rican citizen would. There are no special permits required, no residency requirements for titled property, and no restrictions based on nationality.
That said, buying real estate in a foreign country involves meaningful differences from other countries — in legal structure, due diligence requirements, financing options, and the coastal property rules that catch a surprising number of buyers off guard. This guide walks you through everything you need to know.
Can Americans Own Property in Costa Rica?
Yes — with one significant exception. Foreigners can legally buy most types of property in Costa Rica with full ownership rights on the same terms as Costa Rican citizens. There are virtually no restrictions based on nationality or residency when it comes to purchasing titled land, which includes residential, commercial, and agricultural properties.
The exception is beachfront property inside Costa Rica’s Maritime Zone. The purpose of the Maritime Zone Law (Ley 6043) was to protect Costa Rica’s coastlines from uncontrolled private development and preserve public access to the beach. Under this law, the first 200 meters inland from the mean high tide line is regulated land. The first 50 meters is the public zone — strictly public, cannot be developed, and cannot be privately occupied under any circumstances. The next 150 meters is known as the restricted zone, where individuals or companies may apply for a concession granting the right to use the land for a specific purpose under specific conditions.
For Americans specifically: foreigners must have resided in Costa Rica for at least five years to qualify for a beachfront concession, and any company holding a concession cannot be more than 50% foreign-owned. This means that if you haven’t been a resident for five years, you can own a maximum 49% stake in a beachfront concession property through a Costa Rican corporation — not full control.
Importantly, not all coastal properties are subject to the Maritime Zone Law. In Guanacaste in particular, there are many properties that are exempt. These exemptions generally stem from historical circumstances — some coastal communities existed before the law was enacted, and properties that were legally titled prior to 1977 were often grandfathered in. This is why you’ll see fully titled beachfront homes in certain areas. Always verify with your attorney whether a specific coastal property is titled or concession-based before proceeding.
Titled vs. Concession Property: Understanding the Difference
This distinction is critical and confuses many buyers.
Titled property (also called fee simple) is privately owned, registered in Costa Rica’s National Registry, and can be owned 100% by a foreigner without any residency requirement. It’s the simplest, most secure form of ownership — comparable to owning real estate in the U.S.
Concession property is land within the Maritime Zone’s restricted area. This land is owned by the government but can be leased to private individuals or corporations for specific uses. Concessions typically run for 20 years and can be renewed if the owner complies with the terms of the lease and local regulations. A concession is not ownership — it’s a long-term lease from the government. Purchasing concessioned property means you agree that the government is allowed to seize the concession at any time, and when your lease is up, you will need to reapply.
Many of Costa Rica’s most beautiful beachfront homes exist on concession land, and concession properties are common and widely transacted. The key is going in with eyes open: the risk profile is different from titled land, financing is harder to secure, and the restrictions on foreign majority ownership require careful legal structuring. If your goal is maximum security of ownership, prioritize titled land — even if it means being slightly back from the beach, often with equivalent or even better ocean views.
The Property Buying Process: Step by Step
Buying property in Costa Rica is more legally involved than a typical U.S. transaction. A qualified real estate attorney is not optional — in Costa Rica, only notary public attorneys can register property transfers with the National Registry, making legal representation practically necessary. These attorneys handle title searches, contract preparation, escrow services, and ensure compliance with Costa Rican property laws.
Here is the standard process:
- Do your research and take a discovery trip
Before committing to any purchase, spend meaningful time in the areas you’re considering. Costa Rica’s regions vary enormously in lifestyle, infrastructure, and price. Renting first in your target area is strongly recommended — it lets you learn the market from the inside and make a more informed buying decision.
- Engage a qualified real estate attorney
Verify your attorney’s registration with the Colegio de Abogados (Costa Rican Bar Association) and notary public credentials. Look for bilingual lawyers with extensive real estate experience, particularly with foreign clients. Key warning signs include attorneys requesting upfront fees before title investigation, those who also represent the seller (a conflict of interest), and those pressuring quick decisions without adequate due diligence time.
StartAbroad can connect you with a vetted real estate attorney that has significant experience working with expats.
- Conduct thorough due diligence
Have an attorney search for any liens, claims, or ownership disputes. It’s not uncommon to have multiple claims on the same plot of land, especially in more rural areas. Your attorney will verify the property through the Folio Real — the property’s unique ID in Costa Rica’s National Registry — checking for encumbrances, pending lawsuits, zoning restrictions, and unpaid taxes. For coastal properties, confirm whether the land is titled or concession-based. For any property with structures, conduct a professional building inspection and verify permits.
Property lines in Costa Rica can be unclear — a professional survey (plano catastrado) is essential. Also verify utilities access: water rights, electricity, internet, and road access should all be confirmed in writing, not assumed.
- Sign an Option to Purchase (OTP) and place a deposit in escrow
Once due diligence looks clean, you’ll sign an Option to Purchase agreement setting out the price, timeline, and conditions. Typically, a deposit of 5–10% of the purchase price is placed in escrow at this stage. During the due diligence period, your attorney will continue verifying the legal and physical status of the property.
- Use a regulated escrow service
Every transaction should go through an escrow agent registered with SUGEF (Costa Rica’s financial regulatory authority). The seller does not receive the money until the notary confirms the property is free of liens and properly registered. Do not transfer funds directly to a seller or agent outside of a formal, regulated escrow arrangement.
StartAbroad can connect you with a vetted escrow company if needed.
- Complete the closing
On closing day, the notary-attorney drafts and executes the escritura pública (public transfer deed), both parties sign (or their authorized representatives via power of attorney), and escrow disburses funds to all parties. The notary then submits the deed to the National Registry.
- Register with the National Registry
After the deed is submitted, it takes approximately two weeks for the new ownership to appear in the National Registry, which is fully accessible to the public. Your ownership is not complete until the registration is confirmed — your attorney should follow up to verify this.
- Consider corporate ownership structure
Many expats purchase property through a Costa Rican corporation (Sociedad Anónima or S.A., or Sociedad de Responsabilidad Limitada / S.R.L.) rather than in their personal name. Establishing a corporation to hold property provides benefits such as easier management, limited liability, and improved options for estate planning. There are also potential complications — annual corporate tax filings, fees, and the fact that since 2025, to apply for investor residency, the property must be held in a personal name and not just through a corporation. Discuss the tradeoffs with your attorney before deciding.
Costs and Closing Fees
Budget for total closing costs of roughly 3–5% of the purchase price, split between taxes and professional fees. Here’s the breakdown:
- Transfer tax: 1.5% of the purchase price — paid to the government to record the transfer of title.
- National Registry stamps and registration fees: Approximately 0.84% of the purchase price.
- Notary / legal fees: Notaries are required by law to charge 1.25% as their legal fees. This is a regulated minimum — complex transactions may cost more.
- Escrow fees: Variable by provider, typically $500–$1,500 depending on transaction size and complexity.
- Survey fees: If a new property survey (plano catastrado) is required, costs vary by location and property size — budget $500–$1,500.
- Corporate incorporation (if applicable): Fees for purchasing or incorporating a corporation typically run $500–$1,000 or more.
- Real estate agent commission: Traditionally paid by the seller in Costa Rica, typically 3–5% of the purchase price. Verify this with your agent before proceeding.
Beyond taxes, buyers should budget roughly 2–4% of the purchase price for non-tax closing costs.
Ongoing Property Taxes
Annual property tax: Costa Rica charges 0.25% of the property’s registered municipal value annually, paid quarterly to the local municipality. This is one of the lowest property tax rates in the Americas — on a $300,000 property, you’re paying roughly $750/year.
Luxury home tax (Impuesto Solidario): Properties with a construction value above ₡143 million colones (approximately $290,000 at 2026 rates) are subject to an additional annual Solidarity Tax, with progressive rates ranging from 0.25% to 0.55% depending on value. This tax is paid in January each year. See our taxes section for a detailed breakdown.
Capital gains tax: A 15% capital gains tax applies to properties purchased after July 1, 2019. Some exemptions exist — if the property serves as your primary residence and you have lived there for at least two years, you may qualify for an exemption. Properties purchased before that date may qualify for a 2.25% flat rate instead. Consult your tax attorney at the time of any sale.
Financing: How Americans Pay for Property in Costa Rica
Most Americans buying property in Costa Rica pay cash, particularly for their first purchase. The financing landscape has improved in recent years, but it remains meaningfully different from the U.S. mortgage market.
Costa Rican bank mortgages: Local banks do offer mortgages to foreigners, but the process is slow and documentation-heavy. The most foreigner-friendly banks as of early 2026 are Scotiabank Costa Rica, BAC Credomatic, and Banco Promerica. The most common restriction is requiring a larger down payment — often 30–40% of the property value. Interest rates are typically 7.5–10%, calculated based on the SOFR index plus a margin, with terms of up to 20–25 years. Expect an approval process of 45–90 days minimum, and be prepared for extensive documentation requirements including translated foreign tax returns, bank statements, and proof of income.
International mortgage lenders: A growing option, and often the easiest path for Americans. Specialized lenders like Second Street and Volo Loans offer international mortgage solutions that evaluate borrowers based on their U.S. credit history and income, rather than requiring a Costa Rican banking record. Some offer 30-year fixed-rate mortgages — a structure that has historically not existed in Costa Rica’s local banking system. International lenders like Second Street typically require only 25–30% down.
Seller financing: Owner financing is a common option in Costa Rica, where the seller lets you pay off the property in installments rather than requiring all cash up front. Typical terms are 50% down, 1–5 year terms, and interest rates of 5–9%. This works best as a bridge solution — useful when you have a U.S. asset sale pending, or when you want to close quickly on a specific property.
Home equity / HELOC from U.S. assets: Many experienced expat buyers use a HELOC or refinance against their U.S. home equity to fund a cash purchase in Costa Rica. This typically offers the lowest interest rates and gives you significant negotiating leverage as a cash buyer.
Working with a Real Estate Agent
Real estate agents in Costa Rica are not required to hold a license — the industry is largely unregulated, which means the quality of agents varies enormously. Look for agents affiliated with established international brands (RE/MAX, Century 21, Coldwell Banker), who have years of on-the-ground experience in your target region, and who have strong references from past foreign buyers. A good agent will be a critical resource for understanding local market pricing, identifying properties not listed on public portals, and navigating the process. Your agent and your attorney serve complementary roles — don’t try to use just one.
Investor Visa: How Real Estate Can Unlock Residency
If your real estate investment exceeds $150,000 USD (increasing to $200,000 USD in July 2026), you qualify for Costa Rica’s Investor Visa (Inversionista). Investor residency leads to permanent residency after three years and citizenship eligibility after seven years of total residency. Note the 2025 rule change: the property must be held in your personal name, not through a corporation, to qualify for this visa pathway.
Frequently Asked Questions: Buying Real Estate in Costa Rica
Can expats buy property in Costa Rica?
Yes. As of early 2026, foreign citizens can legally buy residential property in Costa Rica in their own name, using the same property registration system that Costa Rican nationals use. No residency, visa, or special permit is required to purchase titled property. The only meaningful restriction applies to beachfront land in the Maritime Zone, where foreigners without five years of Costa Rican residency are limited to a maximum 49% ownership stake through a corporation.
Do I need to be a resident of Costa Rica to buy property?
No. Many foreign investors purchase vacation homes or rental properties without living in the country full-time. You can complete a property purchase in Costa Rica while on a tourist visa. Residency is not required for titled property ownership.
What is the difference between titled property and concession property in Costa Rica?
Titled (fee simple) property is privately owned, registered in the National Registry, and fully owned by whoever holds the title — including foreigners, with no restrictions. Concession property is land inside Costa Rica’s Maritime Zone (within 200 meters of the high tide line on beaches) that is technically owned by the government and leased to private parties. Concessions typically run for 20 years and can be renewed if the owner complies with the terms of the lease and local regulations. Concession properties carry more legal risk than titled land, are harder to finance, and have foreign ownership restrictions. Always verify which type you’re buying before making an offer.
Can I own beachfront property in Costa Rica as a foreigner?
It depends on the property. Fully titled beachfront homes do exist — particularly in areas that predate the 1977 Maritime Zone Law. For most beachfront land, however, foreigners can own a maximum 49% of concession land, meaning you need a Costa Rican partner or corporation holding the majority stake. Foreigners must have resided in Costa Rica for at least five years to qualify for a beachfront concession outright. Many buyers opt instead for titled land slightly inland, which often comes with equally stunning ocean views and significantly less legal complexity.
How long does the property buying process take in Costa Rica?
The process typically takes 30–60 days from accepted offer to closing, depending on the complexity of the transaction and how quickly due diligence is completed. A thorough due diligence period — including title search, survey verification, municipal checks, and utilities confirmation — usually takes 20–45 days. Registration of the new ownership in the National Registry takes approximately two additional weeks after closing.
Do I need a lawyer to buy property in Costa Rica?
Effectively, yes. Only notary public attorneys can register property transfers with the National Registry, making legal representation practically necessary. Your attorney will conduct the title search, prepare the Option to Purchase and transfer deed, manage escrow, and handle the registration. This is not an area to cut corners — the quality of your legal representation has a direct impact on the security of your investment.
What are the closing costs for buying property in Costa Rica?
Total closing costs typically run 3–5% of the purchase price. The main components are a 1.5% transfer tax, approximately 0.84% in registration stamps, and 1.25% in mandatory notary/legal fees. Add escrow fees, survey costs if needed, and corporate setup if you’re purchasing through a company. Beyond taxes, buyers should budget roughly 2–4% of the purchase price for non-tax closing costs. Real estate agent commissions are traditionally paid by the seller.
What are the annual property taxes in Costa Rica?
Costa Rica charges an annual property tax of 0.25% of the property’s registered municipal value — one of the lowest in the Americas. On a $300,000 property, that’s roughly $750/year. High-value properties with construction values exceeding ₡143 million colones (approximately $290,000 in 2026) are also subject to the Luxury Home Tax (Impuesto Solidario), with progressive rates of 0.25%–0.55% paid each January.
Can I get a mortgage in Costa Rica as an American?
Yes, though it’s more complex than U.S. financing. The most foreigner-friendly banks as of early 2026 are Scotiabank Costa Rica, BAC Credomatic, and Banco Promerica, all of which have established processes for working with foreign applicants. Expect larger down payments (30–40%) and interest rates of 7.5–10%. Many Americans find it easier to use international lenders like Second Street, which offer 30-year fixed-rate mortgages evaluated on U.S. credit history and income, with down payments starting around 25–30%. Seller financing and U.S.-based HELOCs are also common alternatives. Most first-time buyers pay cash.
Should I buy property in my own name or through a Costa Rican corporation?
Both are common, and each has tradeoffs. Corporate ownership offers limited liability, easier transfer at sale, and potential estate planning advantages. Individual ownership is simpler and — critically — since 2025, qualifying for investor residency requires the property to be held in a personal name, not through a corporation. Discuss your specific goals — residency, estate planning, liability protection — with your attorney before deciding on a structure.
What due diligence should I do before buying property in Costa Rica?
At minimum: a full title search through the National Registry (verifying ownership, liens, encumbrances, and zoning); a professional property survey (plano catastrado) to confirm boundaries; verification of all permits and building approvals for existing structures; confirmation of water rights, electricity access, and road access; a check for unpaid property taxes and municipal debts; and an environmental assessment for rural, coastal, or jungle properties. It’s not uncommon to have multiple claims on the same plot of land, especially in rural areas — thorough due diligence is not optional.
What are the most common mistakes Americans make when buying property in Costa Rica?
The biggest ones: buying a property after a fun vacation before spending more time in Costa Rica to determine first, if Costa Rica is right for you, and second, where in Costa Rica you want to live; buying concession property without understanding the ownership restrictions; skipping or rushing due diligence because of excitement or seller pressure; failing to use regulated escrow services; choosing an attorney based on price rather than experience; not verifying utilities and road access before closing; and buying in a location without spending meaningful time there first. A good real estate attorney and an experienced local agent are the two most important investments you can make in a Costa Rica property purchase.
Can I rent out my Costa Rica property when I’m not using it?
Yes. Many expat property owners offset costs with vacation or long-term rentals. Rental income from Costa Rican property is subject to Costa Rican income tax — 15% on 85% of gross rental income (a 15% standard expense deduction is applied first). Short-term rentals (under 30 days, such as Airbnb) are subject to a 13% VAT collected monthly, and a new 12.75% tax on short-term rental platform income took effect in 2026. Compliance requires electronic invoicing, quarterly tax filings, and — for popular tourist areas — active property management when you’re away.