Buying property in Costa Rica is more straightforward than most newcomers expect, but it works differently than it does back home, and a few of those differences can cost you if you don’t know them going in. Foreigners can own property here outright, with nearly the same rights as citizens. There is no central listing service, real estate agents are not licensed, and the legal and tax steps have their own rules. This guide walks through the whole process — who can buy, how to find and vet a property, how the transaction works, and what it all costs.
Can foreigners own property in Costa Rica?
Yes. Any foreigner, resident or not, has the same property rights as a Costa Rican citizen — the main thing you give up is the right to vote. You do not need a local partner, and you can hold property in your own name or through a company.
There are two exceptions. The first is beachfront. The first 50 meters inland from the high-tide line are public and cannot be owned by anyone. The next 150 meters are the Maritime Zone (ZMT), which is not titled land but a concession — essentially a long-term lease granted by the local municipality — and a non-citizen can hold no more than 49 percent of a concession. Very little beachfront in Costa Rica is fully titled, so most “beachfront” purchases are really concession rights, which carry their own rules and demand extra legal review.
The second exception is farmland that the government’s rural development agency, INDER (formerly IDA), donated to small farmers. Foreigners cannot own it, and even the original farmer cannot sell it until 15 years after receiving it.
Most other property in the country is titled — owned outright, free and clear — and that is what the rest of this guide covers. A small amount of land is held only in “possession” rather than by title, where someone who has lived on and used the land openly for 10 years can apply to register it. Possession property is cheaper but riskier, and buying it safely is its own subject
Before you buy — title, zoning and due diligence
Every titled property, concession and INDER parcel is recorded in the National Registry (Registro Nacional), the government database that is now almost entirely online. Your attorney can pull a certification confirming who owns a property and whether it carries any debts, mortgages or legal claims. This title search is the single most important step in a safe purchase — never take a seller’s word on ownership.
Beyond ownership, several things should be checked before you commit. Always get a copy of the registered survey, or plano catastrado (a plot map), which shows the exact boundaries and any restrictions. Because Costa Rica protects so much of its land, you will often find setbacks from rivers and forests, which are noted in the Registry; river setbacks can be confirmed with the urban planning institute, INVU. Many areas also have a zoning plan that determines whether land is residential, agricultural or commercial and what you are allowed to build — confirm the zoning with the local municipality before buying, especially if you plan to build.
Title insurance exists in Costa Rica but is rarely used by locals. It is optional; if you want the extra protection, your attorney can point you to providers.
Finding a property and choosing an agent
Costa Rica has no central MLS — no single website that shows everything for sale. Listings are scattered across individual agency sites, a few aggregators, and private agent networks, and many properties sell before they ever appear online. The practical approach is to find one good agent who specializes in the area you want and let them search for you, rather than contacting a dozen offices that will each only show you their own listings.
Choosing that agent carefully matters more here than in many countries, because real estate agents are not required to be licensed — technically anyone can call themselves one. Since 2019, agents who handle transaction money must register with the financial regulator, SUGEF, so confirming an agent’s SUGEF registration is a sensible first screen. Look too for membership in a professional association such as the CCCBR or CRGAR.
The seller normally pays the agent’s commission, typically around 5 percent in the Central Valley and up to 7 percent elsewhere. As a buyer you usually pay nothing toward it unless you specifically hire a buyer’s agent.
Making the offer and closing
Never make a verbal offer. Have your agent put the offer in writing and present it to the seller. Once both sides agree, your real estate attorney draws up a formal purchase-sale agreement, and on signing it you customarily wire 10 percent of the price into escrow. The agreement is not binding until that deposit lands in escrow.
The escrow account must be registered with SUGEF, or held by a recognized title company. This is non-negotiable: never wire money to a seller’s personal account. A SUGEF-registered escrow agent holds your funds under anti-money-laundering rules and releases them only once the title legally transfers to you.
Wire the full purchase price and legal fees into escrow well before closing day, because Costa Rican banks may hold incoming funds for several days under money-laundering checks. Your attorney will send you a “know your customer” form to complete in advance, so ask for it early. If you cannot be in the country for the closing, you can leave a special power of attorney authorizing a trusted person — often your attorney’s assistant — to complete the purchase in the exact name you specify, and nothing more.
Closing itself must be handled by an attorney who is also a notary. In Costa Rica, only a notary can record a property transfer in the National Registry through the official deed. From signed agreement to registered title, the process usually takes about 30 to 60 days.
What it costs — closing fees and ongoing taxes
Budget roughly 4 percent of the purchase price for closing costs. That covers the property transfer tax (1.5 percent), National Registry fees and documentary stamps (a little under 1 percent), and notary and legal fees, which are on a sliding scale and often negotiable. Buyer and seller can split the costs by agreement, but planning for about 4 percent on your side is safe.
After you own the property, the ongoing taxes are modest but real:
Annual property tax is 0.25 percent of the registered value, paid to the municipality. Owners are required to re-declare their property value every five years; if you don’t, the municipality will reassess it for you. When you buy, make sure the seller provides a municipal certification showing property taxes are fully paid — old receipts alone are not enough.
High-value homes also owe an annual luxury home tax, the “impuesto solidario,” in place since 2009 and adjusted on a sliding scale most years. Whether your property owes it depends on its value, so confirm with your attorney.
If you buy in a condominium or gated community, you will owe homeowners-association (HOA) fees. At closing, the seller should provide a letter from the HOA confirming fees are current.
Taking title — your own name or a corporation
You can register a purchase in your own name. If you want to share ownership — with a spouse, family member or partner — without letting the other party sell without your consent, the title can be split into equal “rights,” or derechos, with as many co-owners as you like.
Many foreign buyers instead take title through a Costa Rican company, either a Sociedad Anónima (S.A.) or a Sociedad de Responsabilidad Limitada (S.R.L.), the latter similar to an LLC. A company can simplify estate planning and add a layer of liability protection. You can also buy through a U.S. retirement account such as an IRA or 401(k), though not every Costa Rican attorney is set up to handle this, so ask first.
One important update for anyone using a company: Costa Rica’s corporation tax. An earlier version was struck down in 2015, but a new corporation tax took effect under Law 9428 in 2017 and is fully in force today. Every registered company — even an inactive one that exists only to hold a house or a lot — owes this tax annually, due by the end of January.
For an inactive company it runs about ₡69,330 a year (roughly $135). On top of that, inactive companies must now file an annual beneficial-owner declaration and an informational return. Miss these for three years running and the company can be dissolved. If you hold property in a company, have an accountant or attorney keep these filings current — for absentee owners, the deadlines are easy to forget.
After you own it — utilities and keeping your property safe
Once your deed is registered, your attorney can give you an “estudio de registro” proving ownership. With that and a residency ID, you can switch the electricity, water and phone accounts into your name — though you generally need to be a resident to do so. If you are not a resident, holding the property in a company and having your attorney’s runner manage the utility transfers is the common workaround; many buyers simply leave the utilities in the prior owner’s name.
Finally, squatting. It is not common, but Costa Rica’s possession laws mean an abandoned, untended property with years of unpaid taxes is an invitation for trouble. Keep your taxes current and your property maintained or looked after, and it is a non-issue.
Follow these steps — verify the title, use a SUGEF-registered escrow account, hire your own bilingual real estate attorney, and choose one agent who knows the area — and buying property in Costa Rica is a safe, navigable process. The lack of an MLS and the unlicensed agents feel strange at first, but with the right professionals around you, owning a home here is well within reach.
