Planning Note: This page is for general research purposes only. Real estate laws, zoning regulations, and tax structures change frequently. Always verify current details with a qualified Costa Rican real estate attorney before making any purchasing decisions or transferring funds.
“For the most up-to-date transaction fees, tax thresholds, and step-by-step legal workflows, read our comprehensive 2026 Guide to Buying Property in Costa Rica as a Foreigner.”
Buying property in Costa Rica as a foreigner is generally straightforward, but it requires understanding a legal system that may differ significantly from what you are used to in North America or Europe. While foreigners enjoy many of the same property rights as Costa Rican citizens, the risks usually arise not from nationality, but from a lack of proper due diligence regarding title, zoning, and coastal regulations. This guide outlines the legal basics, the distinction between titled and concession property, closing costs, and the essential steps for a secure transaction.
Can Foreigners Own Property in Costa Rica?
Yes. Foreigners can purchase and own standard titled property (fee-simple property) in Costa Rica with the same rights as citizens. You do not need to be a resident to buy most types of real estate, and purchases can often be completed while you are living abroad using powers of attorney and escrow services.
However, this broad right applies primarily to standard titled land — such as inland homes, condominiums, and farms. Significant restrictions apply to property located near the coast or international borders.
The Critical Distinction: Titled vs. Concession Property
The most common mistake foreign buyers make is assuming all property is owned in the same way. Before making an offer, you must verify whether the property is fee-simple or concession land.
Fee-Simple (Titled) Property
Fee-simple property involves full, private ownership. The title is recorded in the Costa Rican National Registry (Registro Nacional), providing a public record of ownership, liens, and encumbrances. This is the most secure form of ownership and is fully available to foreign buyers.
Concession Property and the Maritime Zone
Property located along the coast is governed by the Maritime Zone Law (Zona Marítimo Terrestre), which regulates the 200-meter strip of land measured inland from the high-tide line.
- The First 50 Meters: The first 50 meters from the high-tide line are strictly public land. No private ownership or exclusive development is permitted.
- The Next 150 Meters: The remaining 150 meters constitute the restricted or concession zone. You cannot hold fee-simple title here; instead, the government grants lease-like “concessions” for specific uses.
Important Restriction: Foreigners who have not resided in Costa Rica for at least five years generally cannot hold a Maritime Zone concession. Furthermore, foreign-domiciled companies and Costa Rican corporations with more than 50% foreign capital are also restricted from holding concessions. Maritime Zone rules are technical and fact-specific. Always verify the property’s status and concession eligibility with an independent Costa Rican real estate attorney before making an offer.
The Role of the Notary and Attorney
In Costa Rica, the roles of attorney and notary public are distinct but often performed by the same professional. A Notary Public (Notario Público) is an attorney who holds a special license from the state to authenticate documents, draft public deeds, and record transactions in the National Registry.
By law, a Notary Public is required to execute the property transfer deed. However, the notary acts as an impartial representative of the state, not as an advocate for either the buyer or the seller. Therefore, it is highly recommended that you hire your own independent, bilingual real estate attorney to conduct due diligence and protect your specific interests, rather than relying solely on the seller’s attorney or the transaction notary.
Essential Due Diligence Steps
A thorough due diligence period (typically 15 to 30 days) should be written into your purchase agreement. Your attorney should verify the following before any non-refundable funds are transferred:
- Title Search: Verify ownership and check for liens, mortgages, or annotations in the National Registry.
- Survey Verification: Ensure the registered survey plan (plano catastrado) matches the physical boundaries of the property. Hiring an independent topographer is strongly advised.
- Tax Clearance: Confirm that municipal property taxes and corporate taxes (if applicable) are paid up to date.
- Zoning and Permits: Verify municipal zoning regulations (uso de suelo) to ensure your intended use or construction plans are legally permissible.
- Utility Access: Confirm legal access to water (often via an ASADA or AyA) and electricity before purchasing.
Closing Costs and Taxes
Buyers should budget appropriately for closing costs, which are paid in addition to the purchase price. Buyer closing costs are commonly several percent of the purchase price and vary by transaction structure, notary/legal fees, registry costs, escrow, due diligence, and other services. Before signing, ask your attorney or notary for a written closing-cost estimate.
Common cost components include:
- Property Transfer Tax: 1.5% of the purchase price or registered fiscal value (whichever is higher).
- Documentary Stamps and Registry Fees: Variable; confirm with your notary.
- Notary/Legal Fees: Variable based on transaction complexity and services provided.
- Optional Services: Escrow, independent survey, translation, and due diligence services will add to the total.
Additionally, property owners must pay an annual municipal property tax. Confirm the current rate and assessed value with the relevant municipality.
Ownership Structures: Personal vs. Corporate
Foreigners can purchase property in their own name or through a Costa Rican corporation (such as an S.A. or S.R.L.).
Holding property in your personal name is simpler and involves less administrative upkeep. However, many foreign buyers choose to use a corporation to separate liability, facilitate shared ownership, or simplify future estate planning. If you use a corporation, be aware that corporations involve annual compliance costs, possible entity taxes, registered-agent fees, and accounting or filing obligations. Confirm current costs with your attorney or accountant before choosing this structure.
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