Can Foreigners Buy Property in Costa Rica?
Yes. Foreigners can buy and own property in Costa Rica with the same rights as citizens, with one critical exception. Land within the maritime zone (the first 200 meters from the high-tide line) operates under a concession system with different rules, restrictions, and risks. Understanding this distinction before you start shopping is the most important thing you can do to protect your investment.
The Two Types of Property Ownership
This is the concept that trips up more buyers than anything else. Costa Rica has two fundamentally different forms of property:
Fee Simple (Titled Property)
This is what you're used to. You buy it. You own it. Your name goes on the title at the National Registry. You can sell it, mortgage it, or pass it to your heirs.
Key facts:
- Foreigners have full ownership rights, identical to citizens
- Title is registered at the Registro Nacional
- Can be held personally or through a corporation (Sociedad Anonima or SRL)
- Standard protections against encumbrances, liens, and claims
Most property in the Central Valley and inland areas is fee simple. If you're buying in Escazu, Atenas, Grecia, or San Ramon, you're almost certainly looking at titled property. For help deciding which region fits your family, see our region-by-region guide.
Concession Land (Maritime Zone)
This is where things get complicated. Under the Ley sobre la Zona Maritimo Terrestre (Law 6043), the first 200 meters from the high-tide line is divided into two zones:
| Zone | Distance from High Tide | What It Means |
|---|---|---|
| Public zone | 0–50 meters | Cannot be owned or built on. Public access required. |
| Restricted zone | 50–200 meters | Can be leased via concession from the municipality. Cannot be owned. |
What a concession means in practice:
- You don't own the land. You hold a lease from the local municipality.
- Concessions are typically granted for 5–20 years, renewable.
- The municipality can, in theory, decline to renew.
- Foreigners must have been residents of Costa Rica for at least five years to hold a concession directly.
- Transfer requires municipal approval.
- Construction must comply with the municipality's coastal development plan (plan regulador).
Why this matters: Some of the most desirable beachfront properties in Costa Rica sit on concession land. That oceanfront villa in Tamarindo, Manuel Antonio, or Dominical? There's a meaningful chance it's a concession, not a title. The property may be stunning, but the legal foundation underneath it is fundamentally different.
The Buying Process
Step 1: Hire an Independent Attorney
Not the seller's attorney. Not the developer's attorney. Your own independent Costa Rican real estate attorney who represents only your interests.
Your attorney should:
- Conduct a full title search at the National Registry
- Verify there are no liens, encumbrances, or annotations
- Confirm the property boundaries match the survey (plano catastrado)
- Check for squatter claims (this is a real risk in rural areas)
- Verify zoning and permitted use
- If concession land, review the concession terms and municipality status
Step 2: Due Diligence
Beyond the legal review:
- Survey verification: Ensure the plano catastrado is current and matches physical boundaries
- Municipal verification: Confirm property taxes are current, no municipal liens
- Environmental compliance: Check for protected zones, water easements, or forestry restrictions
- Corporate structure review: If buying shares of a corporation that holds the property, audit the corporation's Registro de Transparencia (shareholder disclosure) and tax history
- Squatter assessment: In rural areas, have your attorney verify no one has established possession rights
Step 3: The Transaction
| Cost | Typical Amount |
|---|---|
| Transfer tax | 1.5% of the declared value |
| Registration fees | ~0.5% |
| Legal fees | 1–1.25% (typically split buyer/seller) |
| Stamps and administrative | ~0.5% |
| Total closing costs | 3.5–4.5% of purchase price |
How property is often held: Historically, many properties were held in a Sociedad Anonima (S.A.), a corporation. This made transfers easier (you buy the shares, not the property, avoiding transfer tax). However, recent reforms including the Registro de Transparencia y Beneficiarios Finales now require disclosure of beneficial owners, making corporate structures more transparent and administratively complex. If you hold property in a corporation, your cross-border estate plan needs to account for how those shares transfer.
The 2025–2026 Market Reality
The Costa Rican real estate market has shifted from the pandemic-era seller's market to a more balanced environment. Based on available market data as of late 2025. Costa Rica lacks a centralized MLS, so the figures below reflect aggregated listing data and should be treated as approximate:
| Region | Median Listing Price | Median Sold Price | Inventory Trend |
|---|---|---|---|
| Guanacaste (coast) | ~$1.3M | ~$707K (16% below ask) | Rising (+21.5%) |
| Central Pacific | ~$1.1M | N/A | Rising (+8.9%) |
| Central Valley | ~$618K | N/A | Declining (-5.0%) |
| Condominiums | N/A | ~$410K (4.2% below ask) | Rising (+4.4%) |
What this means for buyers: Negotiating power is increasing, especially in Guanacaste where the gap between listing and sold prices is significant. Inventory is rising in most regions, meaning more options and less pressure.
What this means for caution: The luxury coastal market is where the most money changes hands, and where the most due diligence issues arise. Higher price points demand more careful legal review, not less.
The Rules I Give Every Client
1. Rent first. Minimum six months, ideally through one full rainy season. What looks perfect on a scout trip may feel different after daily reality. Renting gives you flexibility to try neighborhoods before committing.
2. Never skip the title search. Even if the seller seems trustworthy. Even if a friend recommended them. Title issues are common enough that this is non-negotiable.
3. Understand what you're buying. Fee simple or concession? Titled or corporate shares? Each has different implications for your ownership rights, tax obligations, and ability to sell.
4. Budget for total cost, not just purchase price. Closing costs of 3.5–4.5%, plus ongoing property tax of approximately 0.25% per year, plus the hidden costs that add up faster than you expect. If the property is above approximately $235,000 in construction value, expect the luxury home tax (progressive 0.25–0.55% additional).
5. Don't fall in love before the due diligence is done. The emotional pull of a beachfront property is real. So are squatter claims, concession complications, and environmental restrictions. Let your attorney finish before you commit.
Property Taxes and Ongoing Costs
Once you own, ongoing costs include:
| Cost | Amount |
|---|---|
| Annual property tax | ~0.25% of registered value |
| Luxury home tax | Progressive 0.25–0.55% on construction value above ~$235,000 |
| Capital gains tax on sale | 15% of the gain. For properties acquired before July 2019, sellers have the option of paying either 15% on the capital gain or a flat 2.25% on the total sale price. |
| Corporate maintenance (if S.A.) | Annual filing fees, Registro de Transparencia compliance |
| HOA fees (if applicable) | Varies widely |
FAQ
Can a US citizen buy property in Costa Rica?
Yes. US citizens have the same property ownership rights as Costa Rican citizens for titled (fee simple) property. The one exception is concession land in the maritime zone, where foreigners must have been Costa Rican residents for at least five years to hold a concession directly. Many buyers use titled property or corporate structures to work within these rules.
How much are closing costs when buying property in Costa Rica?
Total closing costs typically run 3.5–4.5% of the purchase price. This includes 1.5% transfer tax, approximately 0.5% in registration fees, 1–1.25% in legal fees (often split between buyer and seller), and about 0.5% in stamps and administrative costs.
Should I buy property through a corporation in Costa Rica?
It depends on your situation. Corporate ownership (Sociedad Anonima) historically made property transfers easier and offered some privacy. However, recent reforms require full disclosure of beneficial owners through the Registro de Transparencia. Discuss the trade-offs with your attorney. There are legitimate reasons for both personal and corporate ownership.
What is the biggest risk when buying property in Costa Rica?
Buying concession land without understanding the implications. Many desirable beachfront properties sit on leased government land, not titled property. The concession can expire, transfers require municipal approval, and foreigners face residency requirements. Always verify whether property is fee simple or concession before making an offer.
Is now a good time to buy property in Costa Rica?
The 2025–2026 market favors buyers more than any time since the pandemic. Inventory is rising in most regions, and the gap between listing and sold prices, especially in Guanacaste, indicates meaningful negotiating room. But market timing matters less than finding the right property with clean title and doing proper due diligence.
Brennan Vitali is a CFP® and cross-border financial planner whose family splits time between the US and Costa Rica. Real estate decisions are a critical part of every relocation strategy. Take the Readiness Quiz or book a discovery call.