How to Buy Property in Costa Rica as a Foreigner: A 2026 Expat Guide

Costa Rica has spent two decades quietly becoming one of the most attractive destinations in Latin America for foreign buyers. The country offers political stability, a strong rule of law, world class biodiversity, and a real estate market where foreigners enjoy nearly the same ownership rights as locals. If you are considering buying property in Costa Rica as a foreigner, this guide walks you through the process, the costs, and the questions every smart expat should ask before signing.

Foreigners Have the Same Property Rights as Costa Ricans

This is the first thing every expat needs to know. With one important exception (the Maritime Zone within 200 meters of the high tide line), foreign buyers can hold full fee simple title to land and buildings, just like Costa Rican citizens. You do not need to be a resident, you do not need a Costa Rican partner, and you do not need to live in the country to own real estate here.

That said, most experienced expats and their attorneys recommend holding property inside a Costa Rican corporation, known as a Sociedad Anónima or SRL. Doing so separates personal liability from the asset, makes future transfers simpler, and protects privacy.

The 7 Step Process for Buying Property in Costa Rica

A clean transaction in Costa Rica typically follows these steps:

1. Define your search criteria. Decide whether you want a luxury home in the Central Valley (Escazu, Santa Ana, Belen), an oceanfront condo in the Pacific, or a mountain estate.
2. Engage a licensed bilingual realtor. Costa Rica does not have an MLS in the U.S. sense, so the right broker is critical for accessing real inventory at fair prices.
3. Visit properties in person. Photos and drone footage are useful, but the topography, microclimate, and neighborhood feel only reveal themselves on the ground.
4. Make an offer and sign a Promise to Buy (Opcion de Compra Venta). A 10 percent earnest money deposit is standard and is held in escrow.
5. Order full due diligence. This includes a property title search at the National Registry, a check for liens or easements, municipal tax verification, and confirmation that property boundaries match the survey plan (plano catastrado).
6. Sign the deed at the Notary Public. In Costa Rica, only a licensed Notary attorney can transfer real estate. The buyer pays the notary fee, transfer tax, and registration stamps.
7. Register the new title. Once recorded at the National Registry, you are the legal owner.

A typical transaction closes in 30 to 60 days.

Closing Costs and Taxes Expats Should Budget For

Foreign buyers often underestimate closing costs. As a rule of thumb, plan for 3.5 to 4.5 percent of the purchase price on top of the property price. This covers:

• Property transfer tax (1.5 percent)
• Registration stamps (about 0.85 percent)
• Notary and legal fees (1 to 1.5 percent)
• Corporation setup, if applicable (around $700 to $1,200)

Annual property tax in Costa Rica is just 0.25 percent of the registered value, one of the lowest rates in the Americas. Luxury homes valued above roughly $250,000 USD pay an additional Luxury Home Tax on a sliding scale.

Financing: Why Most Expats Pay Cash

Local bank financing is technically available to foreigners, but the process is slow, interest rates run 7 to 9 percent in U.S. dollars, and underwriting requirements are demanding. Most expat buyers either pay cash, tap a U.S. home equity line, or negotiate owner financing directly with the seller. Owner financing is increasingly common for luxury properties in Escazu and Santa Ana, often at 50 to 60 percent loan to value with a 3 to 5 year balloon.

The Most Common Mistakes Expat Buyers Make

After years of guiding international clients, three mistakes appear over and over:

• Skipping the title search. A handful of properties in Costa Rica have overlapping claims or unresolved boundary disputes. A proper title search at the National Registry is non negotiable.
• Trusting a single attorney to represent both sides. Always retain your own independent counsel.
• Buying in the Maritime Zone without understanding concessions. The first 200 meters from the high tide line cannot be owned outright by foreigners. Concession properties are workable, but require expertise.

Ready to Start Your Search?

Buying property in Costa Rica as a foreigner is one of the smoothest real estate experiences in Latin America, provided you work with the right team. At Property in Costa Rica, we specialize in guiding expats through every step, from defining your search to recording the title.

‍