The Complete Property Buying Process in Costa Rica Explained (2025 Guide)

Dreaming of tropical beaches, lush rainforests, and a laid-back lifestyle? You’re not alone. Over the past three years, foreign investment in Costa Rica real estate has increased by more than 30 percent, according to the Costa Rican Chamber of Real Estate Brokers. This growth reflects a rising global interest in Costa Rica’s combination of natural beauty, political stability, and investor-friendly property laws.

However, buying property in a foreign country comes with challenges. The legal system, cultural norms, and even language can all differ significantly from what you may be used to. That is why this guide exists: to provide clarity and help you navigate the Costa Rica property buying process step by step.

Whether you are looking for a beachfront home, a mountain hideaway, or a condo in a vibrant town, this article will give you the knowledge to make informed and confident decisions throughout your real estate journey in Costa Rica.

Why Buy Property in Costa Rica?

Costa Rica’s popularity among international property buyers stems from its exceptional lifestyle offerings, political stability, and economic opportunities. The country provides a tropical lifestyle with warm weather throughout the year, rich biodiversity, and scenic environments ranging from beaches to volcanoes. This natural beauty is paired with a welcoming culture and strong community networks, particularly among expatriates.

In terms of investment, Costa Rica is considered one of the safest places to buy property in Latin America. The government upholds strong legal protections for private property, including for foreign buyers. This legal structure ensures that investors have the same ownership rights as Costa Rican citizens, which is a major advantage compared to other countries where foreign ownership is limited.

Costa Rica also benefits from a solid healthcare system, with access to both public and private services. Infrastructure in major regions continues to improve, including upgraded highways, international airports, and the expansion of fiber-optic internet in coastal and rural areas. These advancements enhance the quality of life for both residents and visitors.

Additionally, many investors are drawn to Costa Rica for its rental income potential. Popular areas like Samara, Nosara, and Tamarindo attract both long-term residents and tourists, generating strong demand for short-term vacation rentals and long-term leases.

Can Foreigners Buy Property in Costa Rica?

Yes, foreigners can legally purchase and own property in Costa Rica with full rights. The country offers equal property ownership rights to non-citizens under what is known as "fee simple" title. This type of ownership grants the buyer complete control over the property, including the right to sell, lease, develop, or pass it on to heirs.

While foreigners enjoy the same property rights as citizens, there are specific rules to be aware of in maritime zones. Properties located within 200 meters of the high-tide line are regulated under maritime law. The first 50 meters are public land and cannot be owned, while the next 150 meters are part of the restricted zone. Foreigners can only lease or own these restricted properties through a concession, and must do so via a Costa Rican corporation, such as a Sociedad Anónima (S.A.) or a Sociedad de Responsabilidad Limitada (S.R.L.), with at least 51 percent Costa Rican ownership in most cases.

Establishing a corporation to hold property is a common strategy for both foreigners and locals. It provides benefits such as easier management, limited liability, and improved options for estate planning.

Types of Properties Available in Costa Rica

Costa Rica offers a wide variety of property types that cater to different lifestyles and investment goals. Beachfront properties and ocean-view homes are highly sought after, especially in tourist hubs like Samara. These homes not only provide a picturesque setting but also have strong potential for generating rental income.

Mountain and jungle estates appeal to buyers seeking tranquility, cooler climates, and a connection with nature. These properties are ideal for those looking to escape urban environments or develop eco-friendly retreats and sustainable living projects.

In urban and suburban areas, particularly in and around San José, you will find modern condos, gated communities, and single-family homes. These locations offer proximity to amenities like shopping centers, hospitals, and schools, making them suitable for families and working professionals.

Costa Rica also has an abundance of undeveloped land and farmland. These properties can be used for agricultural purposes, conservation, or long-term development. Investors interested in green living or commercial ventures often explore these options for their flexibility and affordability.

Step-by-Step Costa Rica Property Buying Process

The process of purchasing real estate in Costa Rica involves several important steps. The first is hiring a reputable real estate agent. It is essential to work with a licensed professional who understands the local market and can represent your best interests. Coldwell Banker Samara, for instance, has extensive experience in the region and can guide you through each stage with transparency and reliability.

Once you have identified a property, your next step is to engage a qualified real estate attorney. In Costa Rica, legal representation is critical to ensure that contracts are valid, property rights are clear, and transactions are executed according to national law. Your attorney will perform a title search, verify zoning regulations, and ensure that there are no liens or encumbrances on the property.

If everything checks out, you will make an offer and sign an Option to Purchase (OTP) agreement. This contract reserves the property while due diligence is completed. Typically, a deposit of 5 to 10 percent of the purchase price is placed in escrow at this stage.

During the due diligence period, your attorney will continue verifying the legal and physical status of the property. This may involve checking the property registry, land use regulations, building permits, and utilities access.

When everything is confirmed, the final step is the closing. The Notary Public, who in Costa Rica is a licensed attorney with special certification, will draft and register the property transfer deed. This document is signed by both parties and submitted to the National Registry to officially record the transaction.

Legal and Financial Considerations

Understanding Costa Rica’s legal and financial framework is essential for a successful property purchase. Real estate laws are transparent and well-defined, but every transaction must be executed through a licensed Notary Public. The Notary is responsible for drafting the transfer deed and registering it with the National Registry.

Buyers should also account for closing costs, which generally range between 3.5 to 4 percent of the property value. These costs include legal fees, transfer taxes, and registration fees. Your real estate attorney should provide a detailed breakdown of expected expenses before closing.

While mortgage options exist, they are limited for foreign buyers. Most property purchases are made in cash or through private financing agreements. Costa Rican banks may offer financing under certain conditions, but the process requires extensive documentation, including proof of income and legal residency.

Property taxes in Costa Rica are relatively low. Owners pay an annual tax equal to 0.25 percent of the registered property value. Additionally, a one-time transfer tax of 1.5 percent is due at the time of purchase. Recent tax reforms have also introduced a capital gains tax of 15 percent, applicable on profits made from selling property, with some exceptions based on residency and primary home status.

Common Pitfalls and How to Avoid Them

While Costa Rica is a safe place to invest, there are common mistakes that buyers should avoid. One of the most frequent is neglecting proper due diligence. This includes verifying that the title is clean, ensuring the property is properly zoned, and confirming that any structures are permitted and legally built.

Maritime zone regulations are another area where buyers can make costly errors. Purchasing beachfront property without understanding concession laws can lead to legal complications. It is crucial to work with professionals familiar with coastal property laws.

Language differences can also create confusion. All official documents must be in Spanish, so working with bilingual attorneys and agents is essential to avoid misunderstandings. Buyers should never rely on verbal agreements or informal “handshake” deals, which are not legally binding.

Another risk involves squatters’ rights, especially on undeveloped or remote land. Always confirm physical boundaries and conduct a site visit to ensure the property is free from occupation or disputes.

Tips for a Smooth Property Purchase

For a smooth and successful property purchase, it is advisable to work with professionals who are fluent in both English and Spanish. This reduces the risk of miscommunication and ensures you understand every aspect of the transaction.

Whenever possible, visit properties in person. Photos and virtual tours are helpful, but they cannot replace the experience of walking the land, assessing its surroundings, and getting a feel for the neighborhood.

Keep informed about local market trends, including buyer demand and future development plans. Understanding these factors will help you make sound investment decisions.

Building relationships with locals and expatriates can provide valuable insights and recommendations. Many foreign buyers have walked the same path and can offer practical advice.

Finally, practice patience. Bureaucratic processes may take longer than expected, but with the right support and preparation, your transaction can be completed successfully.

Why Choose Coldwell Banker Samara?

Coldwell Banker Samara is one of the most trusted names in Costa Rica real estate. Their deep understanding of the Nicoya Peninsula market allows them to guide buyers through the process with confidence and clarity. Their team of local and international professionals combines global reach with intimate knowledge of regional trends and legal requirements.

With a proven record of success, Coldwell Banker Samara has helped hundreds of clients—from retirees to investors—find and purchase their ideal property. Their approach is personalized and client-focused, ensuring that every buyer receives the attention and guidance they deserve.

For sellers, the agency offers tailored marketing strategies, including professional photography, video tours, and targeted digital campaigns. Listings receive exposure on international platforms, increasing visibility and attracting qualified buyers.

Customer service is a core value at Coldwell Banker Samara. Their agents provide full support throughout the process, from the initial property search to post-sale follow-up. Their use of modern tools such as virtual tours and digital signatures also simplifies remote transactions for international buyers.

You can browse listings and learn more at www.coldwellbankersamara.com.

Frequently Asked Questions (FAQs)

Can foreigners own land in Costa Rica?
Yes, foreigners can own land in Costa Rica with the same rights as citizens. This includes full ownership under a fee simple title, which allows you to use, sell, rent, or bequeath the property as you wish. There are some restrictions in maritime zones, but inland and titled coastal properties are available for foreign ownership.

Is it safe to buy property in Costa Rica?
Buying property in Costa Rica is generally safe, provided you work with licensed professionals. This includes a reputable real estate agent and a qualified attorney who will conduct due diligence, verify the title, and guide you through legal procedures. It is also essential to use a secure escrow service to hold funds until closing.

Do I need to live in Costa Rica to own property?
No, residency is not required to own property in Costa Rica. Many foreign investors purchase vacation homes or rental properties without living in the country full-time. However, if you plan to live in Costa Rica long term, owning property can support your residency application and ease the relocation process.

How long does the property buying process take?
The process typically takes 30 to 60 days, depending on the complexity of the transaction and how quickly due diligence is completed. Working with responsive professionals and having your financial documents prepared can help streamline the timeline.

Can I get a mortgage in Costa Rica as a foreigner?
While some banks offer mortgages to foreigners, the process can be challenging without legal residency and documented income. Most buyers either pay in cash or arrange financing directly with the seller. If you pursue a mortgage, be prepared to provide financial statements, credit reports, and legal documentation.

Conclusion

Buying property in Costa Rica can be a rewarding and life-changing decision. With the right preparation and professional support, it is entirely possible to navigate the process with confidence. From understanding your legal rights to choosing the right location and property type, each step plays a role in ensuring a successful outcome.

If you are ready to explore your options, Coldwell Banker Samara offers a trusted, knowledgeable team with a commitment to client satisfaction. Visit www.coldwellbankersamara.com to view current listings, schedule a consultation, and take the next step toward your property goals in Costa Rica.