Can Foreigners Own Property in Costa Rica?
Costa Rica generally allows foreign nationals to own real estate with the same rights as citizens, which is one reason the country has become a popular destination for second homes and investment property. Ownership is typically held either directly by an individual or through a locally formed corporation, and buyers choose between these structures based on liability, privacy, and estate-planning preferences.
There is an important distinction for beachfront land governed by the Maritime Zone rules, where concession arrangements rather than full titled ownership may apply within certain distances from the high tide line. Titled property outside that zone is the more common structure for residential purchases in areas like Santa Teresa and Mal País, but buyers should always verify how a specific parcel is classified before assuming standard title rules apply.
Because property regimes and restrictions can be nuanced and occasionally change, prospective buyers should not rely solely on general summaries like this one. Working with a Costa Rican real estate attorney early in the process is the most reliable way to confirm what type of ownership applies to a given property.
Due Diligence and Title Research
Before making an offer, buyers typically request a title search through the National Registry to confirm the seller's legal right to sell, check for liens or mortgages, and verify the property's registered boundaries. An attorney can also confirm whether the property has any outstanding municipal taxes, easements, or encroachments that might affect its use.
It is common practice to hire a licensed surveyor to confirm that the physical boundaries on the ground match the registered survey plan (plano catastrado). Discrepancies between what is shown on a map and what exists on-site are not unheard of, particularly on rural or hillside lots, so this step is worth taking seriously rather than skipping to save time.
Buyers relocating from other countries sometimes underestimate how differently property records and closing customs work compared to their home country. Allowing extra time for due diligence, and asking questions until each step is clear, tends to reduce the chance of surprises later.
The Closing Process
Once due diligence is complete and terms are agreed, the transfer is generally formalized through a transfer deed prepared by a notary public, who in Costa Rica is also an attorney. Funds are commonly held in escrow with a reputable escrow agent until conditions of the sale are satisfied, which helps protect both buyer and seller during the transaction.
Closing costs, transfer taxes, and registration fees are typically split or negotiated between buyer and seller, and the specific allocation should be spelled out clearly in the purchase agreement. Because these figures can change and vary by transaction, buyers should ask their attorney for a current, itemized estimate rather than relying on rules of thumb.
After the deed is signed and recorded, it can take some time for the updated ownership record to appear in the National Registry. Buyers are usually advised to keep copies of all signed documents and follow up with their attorney to confirm the registration has been completed correctly.
Building the Right Team
A successful purchase generally involves a small team: an independent real estate attorney, a licensed surveyor, and often an accountant familiar with Costa Rican tax obligations for property owners. Some buyers also engage a bilingual real estate agent who can help coordinate communication among these parties.
It is worth choosing professionals who are independent from the seller's side of the transaction, so that due diligence is conducted with the buyer's interests as the priority. Asking for references and confirming credentials before engaging any professional is a reasonable and common practice.
Final Thoughts
Buying property abroad involves more moving parts than a typical domestic purchase, but many foreign buyers complete transactions in Costa Rica successfully by taking the process step by step and relying on qualified local professionals.
This guide is general information only and is not legal, tax, or financial advice. Laws, rates, and thresholds in Costa Rica change over time, so confirm current requirements with a licensed Costa Rican attorney, accountant, or other qualified professional before making any decisions.