How to Buy Property in Costa Rica

Buying a home in Costa Rica can be remarkably straightforward when you know the process. You want clarity on where to look, how the transaction works, and which pitfalls to avoid. In this guide, you will learn how to choose between the Pacific coast and the Central Valley, what to expect from due diligence to deed, and how to protect your investment. Let’s dive in.

Choose your location wisely

Central Valley snapshot

The Central Valley includes Greater San José, Escazú, Santa Ana, and Heredia. You find luxury homes in gated communities, access to international schools and medical services, and short drives to Juan Santamaría International Airport. Year-round services and professional support are strong, with easy access to contractors and specialized providers.

Pacific coast snapshot

Costa Rica’s Pacific coast spans Guanacaste, the Nicoya Peninsula, Papagayo, Tamarindo, Nosara, Manuel Antonio, and the Southern Pacific/Osa. You come for beachfront and resort-style living, privacy, and panoramic views. Service levels vary by subregion, from full resort infrastructure in parts of Guanacaste to more remote areas farther south.

Lifestyle tradeoffs to weigh

• Access and travel time to airports and services
• Climate and maintenance requirements, especially with coastal salt air
• Staffing, contractors, healthcare, and schools nearby
• Rental and resale profiles, from seasonal vacation demand on the coast to longer-term tenants in the Central Valley

How the purchase works

Step 1: Search and site visits

Engage a licensed real estate broker who knows your target area and has experience with international buyers. Plan on-the-ground visits to confirm access, neighborhood ambiance, and any location-specific considerations. If you are evaluating beachfront or near-coastal property, check how roads and access behave during rainy season or at high tide.

Step 2: Offer and deposit

You will typically make a written offer or sign a reservation agreement. Sellers often request a deposit to hold the property while you complete due diligence. The structure usually starts with a smaller reservation deposit followed by an earnest-money deposit, with terms defined in writing and negotiated case by case.

Step 3: Due diligence period

Expect 30 to 90 days depending on property type and complexity. Your counsel and consultants will run title searches, cadastral and survey checks, municipal permit and tax reviews, environmental and coastal-zone verifications, and physical inspections. For built homes, plan technical inspections for structure, electrical, plumbing, septic or sewer, water, and any required occupancy certificates.

Step 4: Sales contract and escrow

Parties sign the sales contract, known as a Compraventa, which sets price, payment schedule, representations, contingencies, and a closing date under Costa Rican law. Funds are commonly held in escrow with your attorney, a Costa Rican bank trust, or an international title and escrow provider. Confirm the escrow agent’s reputation and regulatory standing, and ensure release conditions are clearly defined.

Step 5: Deed signing with a notary

Final transfer occurs when you execute the public deed, or escritura pública, before a Costa Rican notary-public attorney. You deliver the purchase price or remaining balance at deed execution per the contract. The notary ensures formalities and coordinates the filing for registration.

Step 6: Registry and title

The deed is presented for inscription at the National Registry, or Registro Nacional. Registration makes your title enforceable against third parties. It can take weeks to months depending on registry workload and any encumbrances that must be cleared.

Step 7: After-closing checklist

• Transfer utilities and telecom accounts
• Update the municipal tax registry and confirm transfer tax payments where applicable
• Complete any homeowner association or condominium registrations and collect access credentials

Legal basics for foreigners

Who can own

Foreigners can own property in Costa Rica in the same way as citizens. You can take title personally, through a Costa Rican corporation such as a Sociedad Anónima or S.R.L., or via a bank trust known as a fideicomiso. Work with local counsel to select a structure that fits your privacy, estate, and tax planning goals.

Title and the public registry

Costa Rica maintains a public registry system. A full title search at the Registro Nacional is essential to identify the current owner, liens, easements, prior encumbrances, and the property’s folio real and cadastral identifiers. Title insurance is available from international providers and is often purchased to protect against hidden defects discovered after closing.

Coastal and environmental restrictions

Beachfront and sensitive ecological areas fall under national environmental law. Maritime-terrestrial zones and buffers may be part of the public domain and cannot be privately owned. Always confirm coastal setbacks, concession or administrative regimes, and any protected-area designations with the relevant environmental authorities and municipal planning offices before you proceed.

Ownership structures

• Personal title: Simple and common for individual buyers.
• Costa Rican corporation: Useful for multi-investor holdings, privacy, or business-related ownership. Requires a registered local agent and ongoing filings.
• Fideicomiso: A bank trust structure often used for properties in regulated zones or to meet specific developer or financing needs.

Due diligence checklist

Title and registry

• Full title search at the Registro Nacional
• Verify folio real and cadastral data against a current survey
• Confirm mortgages or liens and the plan for clearing them at closing

Physical and technical inspections

• Structure, roof, electrical, plumbing, HVAC, and septic or sewer systems
• Water source and rights, quality testing, and capacity
• Soil testing for building sites and steep lots

Permits and municipal compliance

• Building permits and occupancy certificates for constructed homes
• Municipal tax status and any arrears
• Land-use zoning and permitted uses

Environmental and coastal checks

• Coastal setbacks and maritime-terrestrial zone implications
• Protected-area designations and any remediation obligations

Access and services

• Legal and physical access, including easements and maintenance obligations
• Availability and transferability of electricity, potable water, telecoms, and waste services

Community and association matters

• Condominium or HOA bylaws, budgets, minutes, and pending assessments

Financial and tax checks

• Property tax history and government arrears, if any
• Estimated transfer taxes, registration and notary fees, escrow fees, and legal fees

Seller verification and encumbrance removal

• Seller identity and authority to sell, including corporate signatories or powers of attorney
• Escrow arrangements to clear mortgages or encumbrances at closing

Additional protections

• Consider title insurance and confirm coverage scope in writing
• Retain a buyer’s attorney independent of the seller to avoid conflicts
• Obtain certified translations and work with bilingual counsel as needed

Financing and costs

Financing options

Local bank financing for foreigners exists but is limited and often requires higher down payments and different underwriting than you might expect at home. Many international buyers use cash or financing from home-country lenders. If you finance, your mortgage must be registered at the National Registry to create a lien.

Typical closing costs

Expect a combination of transfer and stamp taxes, registration fees, notary fees, escrow fees, and legal fees for buyer’s counsel. Title insurance is optional but common. Exact percentages change and should be verified with a Costa Rican attorney or accountant for your transaction.

Ongoing taxes and rentals

Property taxes are generally modest by international standards and paid annually to the municipality. If you intend to rent, plan for income tax and possible value-added tax on short-term lodging. Municipal rules may apply for rental operations, so include compliance in your planning.

Central Valley vs. Pacific coast: key decisions

Access and infrastructure

If regular travel is central to your lifestyle, the Central Valley’s proximity to SJO and year-round services may be decisive. On the coast, parts of Guanacaste near the LIR airport offer strong infrastructure, while more remote areas can require additional planning for staffing and contractors.

Climate and maintenance

Coastal salt air can increase maintenance needs for exteriors, metals, and mechanical systems. The Central Valley’s milder climate often reduces humidity-related upkeep. Budget accordingly for materials, maintenance contracts, and replacement cycles.

Rental and resale profiles

Coastal luxury properties often target vacation rentals with seasonal demand, which can support income when managed correctly. Central Valley homes tend to appeal to long-term renters and full-time residents. Match your property’s profile to your income and usage goals.

Where seasoned advisors add value

• Title and registry analysis to identify hidden liens or claims
• Coastal and environmental compliance to avoid setbacks and protected-area issues
• Contract drafting and negotiation, including deposit protections and remedies
• Ownership structure guidance for privacy, estate, and lending goals
• Escrow mechanics, safe currency transfers, and closing coordination
• Contractor vetting, permit oversight, and post-closing supervision
• Tax planning for transfer costs, rental operations, and eventual exit
• Local introductions for property management, maintenance, and staffing

Next steps

If you are comparing the Pacific coast and the Central Valley, start with a trip plan and a due diligence roadmap. Engage bilingual local counsel early, define your ownership structure, and set clear escrow terms. Consider title insurance for added protection. When you are ready for curated introductions to trusted on-the-ground professionals and select property opportunities, connect with Peter Kempf International for discreet, advisory-first guidance.

FAQs

Can foreigners buy property in Costa Rica?

• Yes. You can hold title in your personal name, through a Costa Rican corporation, or via a bank trust. Choose the structure with help from local counsel.

Are beachfront homes fully private in Costa Rica?

• Not always. Maritime-terrestrial zones and certain buffers are public domain and subject to restrictions. Verify setbacks, concessions, and protected designations before you commit.

How long does closing typically take in Costa Rica?

• For clean-title cash purchases, plan on 30 to 90 days from contract to closing. Financing or complex title issues can extend the timeline.

Do I need a Costa Rican corporation to buy a home?

• Not necessarily. Many buyers take personal title. Corporations are common for privacy or multi-investor needs but add administration. Confirm with your attorney.

Is title insurance available and worthwhile?

• Yes. International title insurers operate in Costa Rica. Buyers often purchase coverage to protect against hidden defects discovered after closing.

What inspections matter most near the coast?

• Structural and systems inspections plus water source, drainage, and salt-air exposure checks. Confirm coastal setbacks and any environmental obligations.

Can I get a mortgage as a foreign buyer?

• Local financing exists but is limited and may require higher down payments. Many buyers use cash or home-country lenders. Mortgages must be registered.

How are rentals and taxes handled for my second home?

• Rental income is taxable. Short-term rentals may trigger VAT and municipal rules. Engage a tax advisor to register and comply correctly.