The Agency Costa Rica
Buying Property in Costa Rica
A practical, direct guide to the purchase process, costs, taxes, property rights, and what you need to know before making a decision.
In this guide
Why Buy in Costa Rica?
Costa Rica offers an uncommon combination: political and economic stability in a region that does not always have it, world-class infrastructure in areas like the Central Valley, and a quality of life that attracts retirees, young families, and international professionals alike. The luxury real estate market has matured considerably over the past 15 years, with sustained demand from North American and European buyers seeking a second home, retirement, or investment.
Property Rights for Foreigners
Costa Rica constitutionally guarantees the same property rights to foreigners as to citizens. There is no ownership restriction by nationality for titled properties. The exception is the Maritime Zone (ZMT), where foreigners without legal residency cannot hold concessions directly. Most high-value beachfront properties are either titled outside the ZMT or structured through corporations.
The Purchase Process Step by Step
1. Identify the property and make an offer. 2. Sign a purchase option agreement with a 10% deposit. 3. Conduct due diligence: title review, cadastral survey, permits, debts. 4. Negotiate and sign the public deed before a notary. 5. Register the property at the National Registry. The full process takes 30 to 90 days.
Closing Costs
Closing costs in Costa Rica are approximately 3.5% to 4% of the purchase price. The main components are: transfer tax (1.5%), fiscal stamp (0.5%), notary fees (1%–1.5%), and registry fees (0.5%). It is common for buyer and seller to negotiate the distribution of these costs. Additionally, if a corporation is formed for the purchase, there are additional incorporation costs.
Property Taxes
The annual property tax is 0.25% of the registered fiscal value. Luxury properties with a construction value above ₡133 million are subject to the Solidarity Tax, ranging from 0.25% to 0.55% annually. Rental properties generate taxable income at 15% on net income. Costa Rica has no capital gains tax for individuals on occasional sales, though habitual sales may be taxed.
The Maritime Zone
The ZMT is the 200-meter strip from the high-tide line along all of Costa Rica's coastlines. The first 50 meters are inalienable public domain. The remaining 150 meters are granted as concessions by local municipalities. Concessions are renewable and transferable, but they are not equivalent to full ownership. Foreigners without legal residency of at least 5 years cannot hold concessions directly. The alternative is a corporation with a majority of Costa Rican shareholders. Many high-value beachfront properties are titled outside the ZMT, which simplifies the purchase.
Residency and Investment
Costa Rica offers several residency categories relevant to property buyers. Investor residency requires a minimum investment of USD 150,000 in an active business or USD 200,000 in real estate. Rentier residency requires minimum passive income of USD 2,500 per month. Pensioner residency requires pension income of at least USD 1,000 per month. Residency is not required to buy property, but it is required to hold Maritime Zone concessions.
Frequently Asked Questions
Can foreigners buy property in Costa Rica?
Yes. Foreigners have the same property rights as Costa Rican citizens. No residency is required to purchase titled property.
What are the closing costs when buying property in Costa Rica?
Closing costs in Costa Rica are approximately 3.5% to 4% of the purchase price. They include transfer tax (1.5%), fiscal stamp (0.5%), notary fees (1%–1.5%), and registry fees (0.5%). Buyer and seller can negotiate who covers each cost.
What is the Maritime Zone (Zona Marítimo Terrestre) in Costa Rica?
The Maritime Zone (ZMT) is a 200-meter strip from the high-tide line along Costa Rica's coastlines. The first 50 meters are public domain and cannot be privately owned. The remaining 150 meters are granted as concessions by local municipalities. Foreigners can hold ZMT concessions only if they have legal residency in Costa Rica for at least 5 years, or through a corporation with a majority of Costa Rican shareholders.
How much is the annual property tax in Costa Rica?
The annual property tax in Costa Rica is 0.25% of the registered fiscal value of the property. Luxury properties may also be subject to the Solidarity Tax (Impuesto Solidario), which applies to properties with a construction value above ₡133 million and ranges from 0.25% to 0.55% annually.
What is a sociedad anónima and why is it used to buy property?
A sociedad anónima (S.A.) is a Costa Rican corporation. Many foreign buyers purchase property through an S.A. for privacy, ease of transfer (shares are sold instead of the property), and estate planning. It also allows foreigners to hold Maritime Zone concessions if the S.A. has a majority of Costa Rican shareholders.
How long does the purchase process take in Costa Rica?
The typical process takes 30 to 90 days from signing the purchase option agreement to closing. The timeline varies based on title complexity, financing, and notary efficiency. Maritime Zone properties can take longer due to municipal review.
Can I get bank financing as a foreigner in Costa Rica?
Yes, though it is more complex than in markets like the United States. Costa Rican banks offer mortgages to foreigners with legal residency, typically at higher interest rates than in the US (between 7% and 10% in USD). Many international buyers opt for seller financing, home equity loans from their home country, or all-cash purchases.
What does due diligence involve when buying property in Costa Rica?
Due diligence includes: title verification at the National Registry, review of liens and annotations, cadastral survey and boundary check, building permit verification, municipal debt and tax review, and for coastal properties, Maritime Zone concession status review. It is strongly recommended to hire an attorney independent from the seller's attorney.
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Speak With an Advisor at The Agency Costa Rica
Our team works with international buyers at every stage of the process. From property search to closing, we guide you with transparency and expertise.
