How to Buy Real Estate in Costa Rica as a Foreigner in 2025

The Global Appeal of Costa Rican Real Estate

Costa Rica’s real estate market has long attracted an international audience - retirees seeking tranquility, digital nomads escaping northern winters, and investors chasing stable returns in an emerging market. As global property prices rise and political volatility drives wealth toward stable havens, Costa Rica’s mix of safety, natural beauty, and investment transparency stands out.

In 2025, that appeal has only intensified. With steady economic growth, a robust legal framework for foreign ownership, and direct international flight access through Liberia and San José, the country has evolved from a niche retirement spot into a mature international real estate market. But for foreigners looking to buy, understanding the process - and avoiding common pitfalls - remains essential.

Foreign Ownership: What the Law Allows

Unlike many Latin American countries, Costa Rica grants foreigners the same property rights as citizens. Whether you’re a resident, a retiree, or simply visiting on a tourist visa, you can legally purchase titled property in your own name or through a Costa Rican corporation (commonly called an S.A. or SRL).

There’s only one exception: the “Maritime Zone.” This area covers the first 200 meters of land measured from the high-tide line along the coast. The first 50 meters are public land, protected and untouchable. The next 150 meters are government-leased concession land, and while foreigners can lease this property under specific conditions, they cannot hold the majority interest unless they’ve been legal residents for at least five years.

For most buyers, titled property — especially in regions like Guanacaste, the Central Valley, or the Southern Zone — offers the most secure and straightforward ownership path.

The Buying Process, Step by Step

Purchasing property in Costa Rica follows a standardized legal process overseen by a notary public, who also functions as a lawyer. Here’s what each stage typically looks like:

1. Offer and Purchase Agreement: Once you’ve identified a property, your agent will help draft a formal offer. Upon acceptance, both parties sign an “Option to Purchase” agreement, usually accompanied by a 5–10% earnest deposit held in escrow.

2. Due Diligence Period: Your attorney conducts a full title investigation through the National Registry (Registro Nacional). This verifies legal ownership, boundaries, liens, easements, and property tax compliance. If the property is held in a corporation, your lawyer also reviews corporate documentation to ensure proper transfer of shares.

3. Closing and Transfer: The final step occurs at a public notary’s office. The buyer typically pays closing costs, including notary fees and transfer taxes (about 2.5% of the registered value). The deed is then recorded in the National Registry, finalizing your ownership.

4. Registration and Possession: Within several weeks, the title will appear in your name (or your corporation’s) in the National Registry — a transparent, digitized database accessible to anyone.

   
   

Financing: How Foreign Buyers Fund Their Purchases

Foreigners typically purchase property in Costa Rica using one of three methods:

1. Cash Transactions:The vast majority of real estate deals are cash-based, often facilitated through international wire transfers to a local escrow account. This is the simplest and fastest route.

   
   

2. Seller Financing:Some developers or private sellers offer direct financing, usually with 30–50% down and repayment terms of 3–5 years. Interest rates range from 6–10%, depending on the property and buyer profile.

   
   

3. International or Local Lending:A handful of local banks - such as BAC Credomatic and Scotiabank - offer limited mortgage products for foreigners, typically requiring proof of income and collateral. However, the process can be bureaucratic, and most expats find seller financing or cash purchases more practical.

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Titled vs. Concession Property: Understanding the Difference

For coastal properties, it’s crucial to distinguish between titled and concession land.

• Titled land gives you full ownership rights, including the ability to sell, rent, or transfer at will.

• Concession land, on the other hand, is leased from the government for a fixed term (typically 20 years), and its use is regulated by local zoning and environmental laws.

  
  

While concession properties can sometimes offer lower entry prices or beachfront access, they come with added legal complexity and risk. Most foreign investors prefer titled land for peace of mind and long-term security.

Working with Professionals: Your Core Team

A successful transaction depends on choosing the right local experts:

• Real Estate Agent: Work with a licensed agent affiliated with recognized organizations like CRGAR (Costa Rica Global Association of Realtors) or CCCBR. Local knowledge of zoning, comparables, and negotiation is invaluable.

• Attorney/Notary: Your attorney should be independent from the seller and conduct due diligence through the National Registry. A good lawyer is your best defense against title fraud or boundary disputes.

• Escrow Company: Always use a regulated escrow provider for deposits and closing payments. Avoid sending funds directly to individual sellers.

• Surveyor and Property Inspector: For rural or coastal areas, an updated survey (plano catastrado) ensures property boundaries align with official maps. A professional inspection can uncover structural or maintenance issues before you close.

  
  

Hidden Costs and Ongoing Expenses

Owning property in Costa Rica carries relatively low holding costs compared to North America or Europe, but it’s wise to plan ahead:

• Annual Property Taxes: Typically 0.25% of the registered value.

• Luxury Home Tax: Applies to homes valued above approximately $400,000.

• Homeowners Association (HOA) Fees: Common in gated communities, ranging from $100 to $600 monthly.

• Maintenance and Insurance: Budget for tropical climate upkeep - roofing, pest control, and landscaping.

  
  

Residency and Investment Incentives

While you don’t need residency to own property, purchasing real estate can help you obtain it. Under Costa Rica’s “Investor Residency” program, foreigners investing at least $150,000 USD in real estate or a local business qualify for a renewable two-year residency permit. This allows you to live in the country full-time, open bank accounts, and access the national health care system.

2025 Market Outlook and Investor Confidence

As of 2025, Costa Rica’s real estate market remains remarkably resilient. The Guanacaste region - particularly Playa del Coco, Playa Hermosa, and Tamarindo - continues to attract North American and European investors seeking lifestyle and yield. Infrastructure upgrades, including the expansion of Liberia Airport and new international schools, have added further momentum.

While property values have appreciated, Costa Rica remains competitively priced compared to other tropical markets such as Hawaii, Panama, or Mexico’s Riviera Maya. Experts predict moderate but steady appreciation over the next five years, supported by tourism growth and limited coastal inventory.

Final Thoughts: Paradise, With Due Diligence

Buying property in Costa Rica as a foreigner is not only possible - it’s relatively straightforward with proper guidance. The key is working with reputable professionals, understanding the legal framework, and respecting local regulations.

For many investors, the rewards are not merely financial. Ownership here represents a tangible connection to a country known for its stability, biodiversity, and Pura Vida lifestyle. Whether your goal is a beachfront home, rental property, or retirement escape, Costa Rica offers a rare blend of freedom, security, and natural beauty that continues to draw the world’s attention in 2025.

Want help finding the best property deals? 

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

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