Can Foreigners Own Property in Costa Rica?

Your 2025 Legal Guide to Investing Safely and Successfully

Costa Rica continues to shine as a real estate haven for international buyers seeking not just paradise, but stability, security, and return on investment. As global demand for tropical second homes, remote work retreats, and eco-luxury investments intensifies, many prospective buyers ask a fundamental question:

Can foreigners legally own property in Costa Rica?

The answer is yes-and not only is it legal, but Costa Rica offers one of the most foreigner-friendly real estate environments in Latin America. In this guide, we’ll unpack the legal framework, the types of ownership available, and the structures savvy investors use to protect and grow their assets in Costa Rica.

🔍 Foreign Ownership: What the Law Says

Costa Rica’s constitution guarantees equal treatment for foreign and local property buyers. You do not need to be a citizen or legal resident to buy real estate. Foreigners enjoy the same rights and protections as Costa Ricans when it comes to acquiring, holding, and selling titled property.

✔️ 100% foreign ownership allowed✔️ No residency or citizenship required✔️ Properties can be owned individually or through a legal entity✔️ Full protection under Costa Rican property law

Whether you're seeking a beachfront condo, a mountain retreat, or a vacation rental investment, you can purchase property in your personal name or via a Costa Rican corporation—each with its own strategic benefits.

📘 Understanding the Property Types

1. Titled Land

This is the gold standard of ownership. Titled properties are registered in the National Registry (Registro Nacional) and include most homes, lots, and condos available in popular regions like Guanacaste, Central Valley, and Southern Zone.

Buyers receive a unique title number (folio real) which links directly to the public registry, where ownership, boundaries, liens, and mortgages are tracked transparently.

✅ Best for: Private residences, investment properties, vacation homes.

2. Concession Land

Within 200 meters of the high tide line lies the Maritime Zone, where land is considered public and owned by the government. The first 50 meters are public beach; the next 150 meters can be leased as concession land.

To lease concession land, a buyer typically must be:

• A Costa Rican citizen or company with majority local ownership, or

• A foreigner who has held permanent residency for at least 5 years

❌ Not recommended for most foreign buyers due to legal complexity and ownership limitations.

🏢 How Foreigners Hold Property: Ownership Structures

You have two main legal paths:

🧑‍💼 In Your Personal Name

Simple and direct. You appear on the title deed as the legal owner.

• ✅ Lower setup costs

• ✅ Ideal for primary residence or small-scale investment

• ❌ No liability separation for legal or financial issues

  
  

🏛️ Via a Costa Rican Corporation

You establish a local S.A. (Sociedad Anónima) or S.R.L. (Sociedad de Responsabilidad Limitada). These function similarly to LLCs and allow 100% foreign ownership of shares.

• ✅ Enhanced privacy

• ✅ Easier to transfer or sell

• ✅ Smart for vacation rentals or multi-owner properties

• ✅ Useful for estate planning and inheritance control

  
  

⚖️ Legal Steps for Buying Real Estate in Costa Rica

The property purchasing process is relatively straightforward but requires the right team. Here’s how to do it correctly:

1. Hire a Real Estate Attorney

Choose a bilingual lawyer licensed in Costa Rica who specializes in real estate law. Avoid using the seller’s attorney. Your lawyer will:

• Conduct a full title search

• Review or draft the Purchase-Sale Agreement (PSA)

• Ensure the property is lien-free and accurately registered

• Supervise closing, escrow, and registry filings

  
  

💡 Pro Tip: Work with an attorney who regularly handles foreign transactions and understands escrow law and tax structure.

2. Use an Escrow Account

To protect all parties, funds are held in a regulated escrow account until closing conditions are met. This ensures a secure, traceable transaction, particularly for international wire transfers.

3. Register the Property

Once the deed is signed at the notary office, your attorney registers the purchase with the National Registry.

💰 What Does It Cost to Buy Property in Costa Rica?

Beyond the property price, expect 3.5%–4% in closing costs:

Fee	Estimated Rate
Transfer Tax	1.5%
Legal Fees	1–1.5%
Notary + Registry Fees	1%
Due Diligence (Surveyor, Topographer, etc.)	$500–$1,000

📌 Note: If using a corporation, there are additional setup costs (usually ~$600–$1,200 one-time + annual maintenance).

🧾 Annual Taxes & Ongoing Costs

Costa Rica offers some of the lowest property tax rates in the Americas:

• Property Tax: 0.25% of registered property value

• Luxury Tax (if applicable): Applies to homes with construction value over ~$240,000. Extra 0.25–0.55% annually

  
  

💡 A $500,000 home will typically incur about $1,250/year in property tax — far less than in North America.

🔐 Is Buying Property in Costa Rica Safe for Foreigners?

Yes - if you follow legal procedures and conduct full due diligence.

Costa Rica’s political stability, legal system, and strong property rights make it one of the safest countries in Latin America for foreign real estate investment. However, due diligence is essential:

• Always verify the property’s title

• Use a secure escrow company

• Don’t sign offers or pay deposits without a lawyer review

• Avoid buying into unregistered or concession land unless legally advised

  
  

✅ Buyer Checklist for Foreigners

Before you purchase:

☑️ Work with a trusted real estate advisor☑️ Hire your own independent lawyer☑️ Choose between personal vs. corporate ownership☑️ Open a Costa Rican bank account (optional but helpful)☑️ Use escrow for all deposits and payments☑️ Understand all tax implications and fees

📍 Final Thoughts: Why Costa Rica Is Worth It

In 2025, Costa Rica remains one of the most accessible, secure, and rewarding countries for foreign property ownership. Whether you're investing in a beach villa in Papagayo, a mountain retreat in Atenas, or a modern condo in Escazú, the legal framework supports your investment - and protects it.

With low taxes, growing international demand, and a stable economy, Costa Rica is more than a lifestyle upgrade. It’s a smart global investment.

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sabina@palmrealetsatecr.com| WhatsApp Me +506 8713 8080 | Based in Guanacaste, CR