With its laid-back lifestyle, tropical weather, and thriving expat community, it’s no surprise that buying property in Costa Rica has become a top goal for many North Americans dreaming of a simpler life abroad. From coastal hideaways to lush mountain retreats, Costa Rica offers real estate options for every lifestyle—and at prices that are often more affordable than those in the U.S. or Canada.
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Whether you’re considering a full relocation, a vacation rental, or a long-term investment, owning property in Costa Rica comes with unique opportunities and challenges. While the process isn’t identical to what you may be used to back home, with the right team and some research, it’s very doable—even on a tourist visa.
In this guide, we’ll walk you through the entire property purchase process in Costa Rica—from market insights and legal requirements to personal tips from our own experience buying and selling real estate in Guanacaste.
Let’s dive into what you need to know before making a move in the Costa Rica real estate market.
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Why Buy Property in Costa Rica?
For many foreigners, the dream of buying property in Costa Rica begins with a single trip. That was the case for us. After years of visiting, we fell in love with the country’s Pura Vida lifestyle—a slower pace of life focused on nature, well-being, and community.
Beyond the lifestyle, Costa Rica real estate is appealing for practical reasons. The temperate climate is comfortable year-round, and the country is renowned for its biodiversity, national parks, and outdoor activities—from surfing and hiking to birdwatching and diving.
It’s also a safe country with universal healthcare, affordable private medical options, and one of the most politically stable governments in Latin America. With strong expat communities in towns like Tamarindo, Nosara, Atenas, and Puerto Viejo, it’s easy to feel at home—even if you don’t speak Spanish (yet!).
We’ll tell you from firsthand experience: buying real estate in Costa Rica can be more than just a dream—it can be a smart long-term investment.
Costa Rica Real Estate: Opportunity for Capital Gains
Over the past decade, Costa Rica real estate has seen consistent growth, fueled by an increase in tourism and foreign investment. In 2019, international visitor numbers rose by 3.9% year over year—and that trend has continued post-pandemic, particularly in areas like Guanacaste, the Central Valley, and the Nicoya Peninsula.
Many buyers are turning their favourite vacation destinations into permanent or part-time homes. Thanks to Costa Rica’s generous property ownership laws for foreigners, non-residents enjoy the same rights as citizens when it comes to owning property in Costa Rica (with the exception of concession land in maritime zones).
The result? A healthy and growing property market. In recent years, areas like San José, Santa Ana, and Tamarindo have all seen year-on-year increases in sale prices. Even more rural regions, such as Puerto Viejo and San Isidro, have experienced a notable uptick in demand.
If you’re looking to buy real estate in Costa Rica for long-term capital gains, now may be the time to get in—especially as remote work and lifestyle migration trends continue to rise.
Opportunity for Rental Income
For many foreign buyers, an investment property in Costa Rica offers more than just a place to escape—it’s also a viable source of rental income. Thanks to Costa Rica’s booming tourism and rising demand for short-term rentals, owning property here can yield strong returns.
Rental yields typically range from 5.6% to 8.6%, depending on the location. In popular hubs like San José, Escazú, and Santa Ana, returns average around 7.5%, with San José topping the list at 8.6%. These rates are some of the highest in Latin America, especially in areas close to business centres or top beach destinations.
Most foreign buyers aren’t relocating full-time. Instead, they’re buying homes in Costa Rica to use seasonally and renting them out as vacation properties the rest of the year. Platforms like Airbnb have made this easier than ever, though it’s still important to understand your obligations as a landlord.
If the property is assessed at more than USD $228,600, you may also be subject to the luxury home tax (solidarity tax), which was introduced in 2009. The good news? It allows some flexibility in how the tax is calculated and paid, depending on your property use.
Our Personal Experience
We’re not just writing about buying property in Costa Rica—we’ve done it ourselves. Back in 2018, we purchased a small hotel near Playa Avellanas in Guanacaste. After extensive renovations and sustainability upgrades, we turned it into a successful eco-friendly retreat. A few years later, we sold it as a fully operational business—and earned a healthy return on our investment.
Our experience with real estate in Costa Rica taught us a lot about the property purchase process. We were fortunate to have local connections—Max’s family has lived in Costa Rica for over 30 years—which gave us access to trusted professionals and valuable insight into the local market.
We know that buying real estate in Costa Rica can feel overwhelming. That’s why we’ve written this guide—to help you make informed decisions and avoid the pitfalls. Whether you’re looking to buy a house in Costa Rica, invest in land, or open a business, many of the steps are the same.
Need Costa Rica moving tips, beach guides, or activity ideas? We have loads of helpful information available in our free Costa Rica travel guides!
Important Things to Know
Can Americans Buy Property in Costa Rica?
Yes—Americans can absolutely buy property in Costa Rica. In fact, foreign investors from around the world are welcomed here, and there are no citizenship or residency requirements for buying property in Costa Rica. You can even purchase real estate while visiting on a tourist visa.
One of the reasons the property market in Costa Rica has remained strong is because foreign buyers have the same rights as locals when it comes to most property purchases. The only exception is concession land—the protected maritime zone near the ocean, where foreign ownership is more restricted (more on that below).
Whether you’re buying a home in Costa Rica to live in full-time or as a seasonal escape, you can legally own the property outright, either in your own name or through a Costa Rican corporation.
Is There an MLS in Costa Rica?
If you’re used to house hunting in the U.S. or Canada, you might be surprised to learn that Costa Rica has no national MLS system (Multiple Listing Service). That means there’s no centralized platform where all properties are listed—and real estate transactions aren’t as standardized or transparent as they are in other countries.
Real estate in Costa Rica operates on a more informal, local level. Many listings are handled independently by real estate agents or real estate companies in each region. While a few regional networks exist, the lack of oversight makes it difficult to compare prices or verify availability across the entire country.
Unfortunately, this also opens the door to potential fraud. That’s why doing your due diligence is essential. Always verify listings, ask for references, and ensure that the person representing the property has the legal right to sell it.
Property Taxes in Costa Rica
Compared to North America, property taxes in Costa Rica are refreshingly low. The standard annual property tax rate is just 0.25% of the assessed value, which is determined by the local municipality. For example, if your home is valued at USD $200,000, your annual tax bill would be only $500.
If your property is valued at more than approximately USD $234,000, you may also be subject to the luxury home tax (known locally as the solidarity tax). This additional tax follows a tiered system and tops out at 0.55%, depending on your property’s amenities and construction value.
In total, these taxes are still lower than what many foreigners pay in their home country, making buying real estate in Costa Rica even more appealing for retirees and investors.
If you’re considering a condo or gated community, don’t forget to factor in monthly maintenance or strata fees. These typically range from USD $20 to $100 per month and cover security, landscaping, trash removal, and other services.
Titled Property and Concession Land
When buying property in Costa Rica, one of the most important things to understand is the difference between titled land and concession land. This distinction affects your legal rights and ability to own certain types of property—especially beachfront property.
In Costa Rica, the first 50 meters from the high tide line is considered public land and cannot be owned or developed. The next 150 meters inland is part of what’s called the Maritime Zone, also known as concession land.
Foreigners can’t directly own more than 49% of concession land. This means that if you’re dreaming of buying beachfront property in Costa Rica, you’ll either need a Costa Rican partner or consider property slightly inland, where the land is fully titled.
To verify ownership status, a title search is essential. While you can do this through the Registro Nacional, it’s strongly recommended to work with a reputable real estate attorney who understands Costa Rican law and can ensure the clear title is valid and up to date.
Your attorney will also check the Folio Real—Costa Rica’s unique numbering system used in the public registry—to confirm that the property is correctly documented and legally transferable.
Title Insurance in Costa Rica
While it’s available, title insurance is not commonly used in Costa Rica. Most property buyers rely on a thorough title search conducted by a trusted real estate attorney to confirm that the property has a clear title and is free of liens or disputes.
In some rare cases—particularly with high-value or complex real estate transactions—title insurance can offer an extra layer of protection. However, it comes at a significant cost and is often seen as unnecessary if your attorney is experienced in navigating the public registry and verifying property history.
Ultimately, the best approach is to work with a reputable real estate attorney who understands the legal requirements of purchasing property in Costa Rica. With the right professional support, most buyers feel confident moving forward without title insurance.
How To Choose a Real Estate Agent in Costa Rica
One of the most important steps in the property purchase process is choosing a trustworthy and experienced real estate agent. Because the industry in Costa Rica is less regulated than in North America, anyone can technically call themselves an agent—even without formal training or credentials.
That’s why it’s critical to do your research. Ask for referrals, especially from expats who have recently completed real estate purchases in your area of interest. Look for real estate companies or agents with a good reputation, a solid track record, and verifiable client references. The best agents will not only know the local market, but also be transparent about pricing, property history, and legal considerations.
Keep in mind that not all English-speaking expats are professionals. Some may simply be trying to make a commission on a property they don’t legally represent. This is why a title search—done by a real estate attorney—remains essential before making an offer.
If you want extra assurance, look for agents affiliated with a recognized national association such as:
- NAR – National Association of Realtors (U.S.-based, but some Costa Rican agents are members)
- CCBR – Costa Rican Chamber of Real Estate Brokers
- CRGAR – Costa Rica Guanacaste Association of Real Estate
The Property Purchase Process in Costa Rica
The property purchase process in Costa Rica shares similarities with real estate transactions in other countries, but there are key differences to be aware of. While not overly complex, it does require patience, local knowledge, and the support of a reliable team—including a real estate attorney.
Step 1: Search for Properties
You can begin house hunting in Costa Rica on your own or through a real estate agent. Because there’s no national MLS, it’s common to browse listings through local real estate companies, community groups, or even by word of mouth.
Once you’ve identified a property that interests you, plan a visit in person. Photos and listings rarely tell the whole story. Bring a checklist and don’t hesitate to ask questions about the property, neighbourhood, and any potential issues.
Step 2: Make an Offer
Once you’re ready to move forward, your agent will help you draft an offer. Price negotiation is common, so leave some room for flexibility. If your offer is accepted, a formal purchase-sale agreement will be drawn up by your attorney.
At this stage, you’ll typically place a 10% deposit into a government-registered escrow account. This deposit secures the property while your attorney begins due diligence and prepares for closing.
Step 3: Closing the Sale
The typical closing date is 30 to 60 days after signing the agreement. If you’re financing the property through a foreign bank or using funds from your home country, ensure that bank accounts and international transfers are arranged well in advance—Costa Rican banks often have holding periods.
During closing, your real estate attorney—who must also be a notary public—will oversee the final paperwork, verify all documents, and record the purchase with the national registry.
Step 4: Understand the Costs
Closing costs typically total 5–10% of the purchase price. This includes:
- Transfer taxes and documentary stamps (approximately 3.5%)
- Notary fees based on a tiered system tied to the value of the property
- Administrative and registration fees
Buyers typically cover these closing costs, though in some cases, buyers and sellers agree to split them. Be sure to clarify this in the offer.
Real estate commissions are generally 5–10% and are paid by the seller. However, if you’re working with a buyer’s agent, they may split this fee with the listing agent unless it’s a FSBO or foreclosure property.
Step 5: Register the Property
Once the transaction is complete, the final step is to register the property. Most foreign buyers choose to do this under a Sociedad Anónima (S.A.) or Sociedad Limitada (S.R.L.), which are Costa Rican corporations similar to LLCs in North America. This approach can streamline future real estate transactions and simplify things like property management or inheritance.
Financing Property in Costa Rica
When it comes to financing property in Costa Rica, things work a bit differently than in North America. Traditional bank mortgages are available but can be hard to secure for foreigners—and they often come with high interest rates ranging from 10% to 15% annually. That’s why many buyers opt to use funds from their home country or look for owner financing options instead.
In an owner-financed sale, you make payments directly to the seller based on terms you both agree on. This is a common arrangement in the Costa Rican real estate market and can be more flexible than going through a bank. However, you’ll still need to involve a real estate attorney to draft the agreement and register the transaction properly.
Keep in mind: Costa Rican law offers strong protections for property owners. If payments are not made, the seller can legally repossess the property. That’s why it’s crucial to understand the terms of any financing agreement before you commit.
For many expats and retirees, an all-cash purchase is the most straightforward option. Some choose to sell their property back home and reinvest in Costa Rica, taking advantage of the country’s lower property prices and increasing demand. Owning the property outright removes financing stress and can improve your long-term returns—especially if you later convert it into an investment property.
Financing Property In Costa Rica
Bank financing is very different when it comes to Costa Rica real estate. Traditional mortgages aren’t widely available and are very expensive. House mortgage lenders in Costa Rica typically charge 10-15% interest, so it’s best to finance through your home bank or use owner financing. This is one of the main pitfalls of buying property in Costa Rica, but luckily, there are a few alternative options.
If you’re wondering how to find a private mortgage in Costa Rica, consider owner financing. Owner financing is a common practice where you finance the property directly through the seller. If you’re ever the one selling property in Costa Rica, this can greatly add to your real estate investment returns.
Do keep in mind that there are strict laws protecting property owners. So if a mortgage is not paid, the seller can repossess the property.
In many cases, expats—especially those buying retirement property in Costa Rica—like to do all-cash sales. Some might choose to sell their home in the US and re-invest in Costa Rica. Your dollar stretches a lot further here, and property values in Costa Rica are growing consistently. This would eliminate any financing stress and set you up for healthy returns when you decide to sell.
Do I Need To Be in Costa Rica for Closing?
While it’s ideal to be present in Costa Rica to sign closing documents in person, it’s not a requirement. If you can’t be there on the closing date, you can assign someone to act on your behalf by setting up a power of attorney.
This legal document must be created with the help of a notary public—often your real estate attorney—and will authorize your representative to sign the final contracts and complete the property purchase.
Many foreign buyers choose to grant this authority to their agent or attorney, particularly if they’re buying property in Costa Rica while living abroad. As always, make sure the person you appoint is trustworthy and understands the details of the sale.
Where to Look for Property in Costa Rica
Because there’s no centralized MLS, shopping for real estate in Costa Rica requires a more hands-on approach. Most listings are found through local real estate companies, agent websites, Facebook groups, or even “For Sale” signs posted on properties. Some of the best deals aren’t advertised online at all, which is why visiting in person can make a big difference.
Start by identifying your priorities—do you want to be near the beach, in the mountains, or within a city? Do you want a quiet retirement property or a vacation rental? Costa Rica’s geography is diverse, and property prices vary greatly by location.
Spend time exploring different regions before committing to a purchase. The Central Valley (Atenas, Grecia, San Ramón) is popular among retirees for its cooler weather and access to services. Coastal areas like Nosara, Santa Teresa, and Playa Avellanas are ideal for surfers and vacation home investors, while towns like Puerto Viejo offer a more laid-back Caribbean vibe.
Once you’ve narrowed down your desired location, visit local real estate offices or connect with a well-reviewed agent who specializes in that area. Don’t forget to talk to residents and expats—you’ll often hear about properties before they’re publicly listed.
To learn more about lifestyle and amenities across the country, check out our guide to the best places to live in Costa Rica.
Remember: buying property in Costa Rica is a personal journey. The right location for someone else might not be the best fit for your lifestyle or goals. Take your time, do your research, and trust your instincts.
Investment Properties in Costa Rica
From vacation rentals to long-term housing, investment properties in Costa Rica continue to attract buyers looking for strong returns and steady demand. The combination of a growing tourism sector and a steady stream of remote workers and retirees has made the Costa Rica real estate market an appealing option for both short- and long-term income.
In high-demand areas such as San José, Tamarindo, and Manuel Antonio, rental yields often outperform neighbouring countries. According to Global Property Guide, rental properties in San José alone generate an average return of 8.6%.
While coastal towns may offer more seasonal rental opportunities, areas with business infrastructure and year-round tourism—like Escazú or Santa Ana—can provide more consistent revenue streams. Just keep in mind that successful investing here requires due diligence. You’ll need to understand landlord-tenant laws, stay on top of property taxes, and manage maintenance and tenant screening—either on your own or through a property management company.
If you rent out your property, you’ll also need to pay income tax in Costa Rica. The current law assumes 15% in expenses and taxes the remaining 85% of your rental income. That equates to 12.75% in monthly taxes on any income you earn through rentals.
Whether you’re buying a condo, villa, or guesthouse, turning a property in Costa Rica into a rental can be a rewarding venture—but it’s not passive income. Make sure your business model is aligned with your goals and lifestyle before diving in.
Buying Land in Costa Rica
In addition to homes and condos, many buyers are also buying land in Costa Rica with plans to build later. This can be a great option if you’re looking to design your dream home from scratch or invest in a long-term development opportunity. Just like any property purchase, though, buying land comes with its own set of considerations.
Before moving forward, confirm that the land is titled and not concession land. Properties within the maritime zone—the first 200 meters from the high tide line—come with strict regulations and limited foreign ownership. Your real estate attorney should do a thorough title search and verify details with the public registry.
Land Registration and Legal Considerations
As with homes, land can be purchased in your own name or through a Costa Rican corporation. If you buy in your name and decide to transfer the title to a corporation later, you’ll need to pay transfer taxes again—currently 1.5% of the property’s value—plus applicable notary fees. This is an important factor to weigh if you’re considering turning the land into an investment property down the road.
Get a Property Survey
Before finalizing any land purchase, it’s crucial to get a professional survey. A licensed surveyor will map out the property boundary lines to avoid future disputes. The survey must then be registered with the national registry to make it legally binding.
Questions to Ask the Seller
When buying a land in Costa Rica, it’s your responsibility as the buyer to do the legwork. Ask these essential questions before making an offer:
- Is the property titled and properly registered?
- Does it have access to water, electricity, and sewage?
- Is there reliable internet or cell service? (Starlink may be available even in remote areas.)
- Are you legally allowed to build on it? Check zoning regulations and environmental protections.
A good real estate agent can help guide you through these questions, but you’ll still want to verify everything independently with your attorney and surveyor.
Building in Costa Rica: An Exciting Venture
For many buyers, purchasing land is just the beginning. Building a house in Costa Rica can be a rewarding way to create your ideal home or vacation rental—tailored to your needs and the environment. But be prepared: the entire process can take time, and it’s important to work with the right professionals.
Houses in Costa Rica are typically built to accommodate the tropical climate, with features like natural ventilation, wide overhangs, and open-air layouts. If you’re building in a more remote area, access to water, electricity, and internet should be confirmed before you begin. Starlink satellite internet can be a viable solution where fiber optic isn’t available.
It’s highly recommended to hire a bilingual architect or project manager who’s familiar with local legal requirements, permitting, and environmental regulations. Depending on your location, you may need approval from the Ministry of Health, local municipalities, or even SINAC (National System of Conservation Areas) if you’re near a protected area.
Construction costs vary widely depending on materials, finishes, and site access. As a general rule, you can expect to pay between USD $800 to $1,200 per square metre (approx. $75–$110 per square foot), though luxury builds can go much higher.
If you’re not living in Costa Rica full-time, consider hiring a trusted project supervisor to monitor progress and manage contractors. Frequent communication, clear contracts, and accountability are key to a smooth construction experience.
READ NEXT: The REAL Cost of Living in Costa Rica
Final Thoughts on Buying Property in Costa Rica
Buying property in Costa Rica can be an exciting and life-changing experience—whether you’re looking for a vacation home, a full-time residence, or an investment property. With its welcoming culture, stable economy, and natural beauty, it’s easy to see why so many foreign investors are drawn to this country.
While the property purchase process may feel unfamiliar at first, it’s entirely manageable with the right support. A qualified real estate attorney, an honest real estate agent, and a clear understanding of your goals will go a long way in making the buying process smoother and more secure.
Whether you’re buying a condo, building your dream home, or looking to buy real estate in Costa Rica for long-term income, take your time, ask questions, and do your due diligence. The opportunities here are real—but so are the responsibilities.
We hope this guide has helped you better understand how to buy a property in Costa Rica with confidence.
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