Can Foreigners Really Own Land in Costa Rica? Understanding the Real Estate Reality Behind the Tropical Dream

For decades, Costa Rica has captured the imagination of North Americans seeking something more-more nature, more freedom, more quality of life. The allure is undeniable: miles of untouched coastline, verdant jungles echoing with howler monkeys, a stable democracy, and a national ethos encapsulated in two iconic words: Pura Vida.

But beneath the postcard-perfect imagery and expat testimonials lies a critical question for anyone looking to invest: Can foreigners actually own land in Costa Rica?

The answer, in short, is yes-with a few important caveats. And understanding the nuances of this answer is essential for anyone thinking of planting roots, financial or otherwise, in this Central American paradise.

Equal Rights Under the Law: A Rare Latin American Policy

Unlike many Latin American countries that impose various ownership restrictions on foreign nationals, Costa Rica has long embraced foreign investment with open arms. There are no citizenship or residency requirements to buy property. Foreigners enjoy the same legal rights as Costa Rican citizens when it comes to purchasing titled land, which is codified under Costa Rica’s Civil Code and enforced through its centralized property registry system.

“In many ways, Costa Rica is the gold standard in the region when it comes to legal protection for foreign property ownership,” says Ana Gómez, a real estate attorney based in Guanacaste. “A foreigner can own 100% of a house, a condo, a piece of land, or even multiple properties—whether in their name or through a Costa Rican corporation.”

This legal parity has helped fuel a robust expat community across the country, particularly along the North Pacific coast, where towns like Playas del Coco, Tamarindo, and Playa Hermosa have become hotspots for investors and retirees from the U.S., Canada, and Europe.

Understanding “Titled Land”: Your Key to Ownership Security

The most important legal distinction for prospective buyers to understand is the difference between titled property and concession property, particularly in beach zones.

What Is Titled Property?

Titled land (or propiedad titulada) is property that is fully deeded and registered in the National Registry (Registro Nacional). Think of it like land ownership in the United States or Canada: the buyer receives a legal title, which can be verified publicly, bought, sold, transferred, and mortgaged. This is the most secure form of ownership.

Most inland property and a significant portion of land near towns and communities-like in Pacifico in Playas del Coco or Altos del Cacique-fall into this category.

“The National Registry is transparent and digitalized,” explains Gómez. “You can search any property and see its legal status, ownership, and encumbrances. It’s quite sophisticated.”

The Maritime Zone: Where Rules Get Tricky

The Maritime Zone Law (Ley sobre la Zona Marítimo-Terrestre) governs land within 200 meters of the high-tide mark. This stretch is divided into two sections:

• The first 50 meters are public and untouchable—no one can own or develop this area.

• The next 150 meters are considered “concession land”—akin to a long-term lease from the local municipality and subject to special rules.

  
  

While these beachfront properties can be legally developed and occupied, foreigners face restrictions:

• Only Costa Rican citizens or legal residents (of at least five years) can hold majority interest in a concession.

• Concessions typically last 20 years and must be renewed.

• Municipal approval and zoning regulations vary widely.

  
  

Buying a concession property as a non-resident requires careful legal structuring and often involves forming a Costa Rican corporation with a local partner.

This is why many savvy foreign buyers prioritize titled properties near the beach-for example, those just beyond the 200-meter line, which still offer ocean views and walkable access, but without legal complexity.

Common Pitfalls for Foreign Buyers

While Costa Rica is legally open to foreign ownership, that doesn’t mean the process is foolproof. Fraud, misrepresentation, and poor due diligence still happen-especially with off-market listings or word-of-mouth deals.

Avoid These Mistakes:

• Failing to use a real estate attorney: This is not a “nice-to-have,” it’s essential.

• Skipping the title search: Every property should be verified in the Registro Nacional.

• Not checking zoning or land use plans: What looks like a jungle paradise could be zoned for agriculture only.

• Purchasing without a recent topographical survey (plano catastrado): This confirms legal boundaries and size.

  
  

“There’s a misconception that because Costa Rica is laid back, the buying process is casual,” says Gómez. “It’s actually very structured-but you have to follow the structure.”

Why Many Foreigners Buy Through a Corporation

It’s legal and common for foreigners to own property in their own name, but many choose to form a Costa Rican S.A. (Sociedad Anónima) or S.R.L. (Sociedad de Responsabilidad Limitada) for ownership.

Advantages include:

• Asset protection

• Simplified inheritance transfer

• Ease of selling by transferring company shares

• Possible tax benefits if the property generates rental income

A good attorney can set up a corporation in 2–3 weeks and manage ongoing annual compliance.

What About Taxes?

Costa Rica has no capital gains tax for most private property sales (unless conducted as a business). Property taxes are remarkably low-just 0.25% of the registered value, often translating to just a few hundred dollars a year for most homes.

There is a Luxury Tax (Impuesto Solidario) on high-end properties with construction values exceeding certain thresholds (usually ~$250,000 USD and up), but it’s relatively modest and well-documented.

The Bottom Line

Yes, foreigners can legally and safely own land in Costa Rica. With proper legal guidance, due diligence, and clarity about titled vs. concession property, Costa Rica represents not just a lifestyle upgrade-but a very real, very viable investment opportunity.

And as the world continues to prioritize wellness, nature, remote work, and geographic diversification, Costa Rica’s foreign-friendly real estate market remains a standout in the global south.

Whether you're buying a vacation home, a retirement retreat, or a rental income property, the keys to ownership—and to Pura Vida—are within reach.

Want help finding the best condo deals in Playa del Coco?

Contact me directly for personalized listings, video walkthroughs, or a free consultation.

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