How to Buy Property in Costa Rica as a Foreigner

One of the most common questions we hear is: "Can foreigners actually buy property in Costa Rica?" The answer is yes — and the process is more straightforward than you might expect.

Costa Rica is one of the few countries where foreigners have the same property ownership rights as citizens. You don't need residency, citizenship, or a special permit to own land. This guide walks through everything you need to know.

Your Rights as a Foreign Buyer

Under Costa Rican law, foreigners can:

• Own property outright in their personal name
• Own property through a Costa Rican corporation (S.A. or SRL)
• Hold title with full legal protections
• Sell, rent, or develop their property freely

The one major exception is Maritime Zone property (more on that below).

The Buying Process Step by Step

1. Find Your Property

Work with licensed agents who know the local market. In Nosara, listings span from $100K building lots to $3M+ luxury estates. Browse current listings to see what's available.

2. Make an Offer

Offers are typically made through a letter of intent or purchase agreement. Unlike in North America, there's no standardized MLS or offer process — negotiation is direct between buyer and seller (or their attorneys).

3. Sign a Purchase Agreement

Once terms are agreed, both parties sign a formal purchase agreement (promesa de compraventa). This usually includes:

• Purchase price and payment terms
• Due diligence period (typically 30–60 days)
• Earnest deposit (usually 10% held in escrow)
• Closing date
• Contingencies

4. Due Diligence

This is the most critical phase. Your attorney should verify:

• Title search: Confirm clear title in the National Registry
• Survey (plano catastrado): Verify property boundaries match the registered survey
• Municipal permits: Check for any liens, encumbrances, or back taxes
• Zoning: Confirm intended use is permitted
• Corporation status: If buying from an S.A., verify it's in good standing
• Environmental compliance: Check for protected zones or restrictions
• Water letter: Confirm water availability (critical in Nosara)
• Building permits: If structures exist, verify they were properly permitted

5. Closing

Closing happens before a Costa Rican notary public (notario), who is a specialized attorney with the power to formalize property transfers. The notary:

• Drafts the transfer deed (escritura)
• Collects closing funds
• Registers the transfer with the National Registry
• Handles tax payments

Closing Costs Breakdown

Item	Approximate Cost
Transfer tax	1.5% of registered value
Registration fees	0.5% of registered value
Notary fees	1–1.5% of purchase price
Legal fees (buyer's attorney)	1–1.5% of purchase price
Stamps and misc.	~0.5%
Total closing costs	3.5–5.5%

Note: The "registered value" is often lower than the actual purchase price, which can reduce transfer taxes. However, declaring a lower value has tax implications on future capital gains.

Maritime Zone Rules

The Maritime Zone (Zona Marítimo Terrestre) applies to the first 200 meters from the high tide line along all Costa Rican coasts.

Key rules:

• The first 50 meters is public zone — no private ownership or construction
• The next 150 meters is restricted zone — can only be leased through a municipal concession
• Foreigners cannot hold concessions unless they've been resident in Costa Rica for at least 5 years
• Concessions through a Costa Rican corporation with foreign shareholders face additional restrictions

In Nosara, most developed properties are outside the Maritime Zone. However, some beachfront lots fall within it — always verify before purchasing.

Corporation vs. Personal Name

Many properties in Costa Rica are held in corporations (Sociedad Anónima). Benefits include:

• Easier transfer (sell shares instead of property)
• Asset protection
• Potential tax advantages

However, recent legislation has increased annual compliance costs for corporations. Many buyers now purchase in their personal name for simplicity.

Discuss with your attorney which structure makes sense for your situation.

Title Insurance

Title insurance is available through Stewart Title Latin America and First American Title. While not mandatory, it provides protection against:

• Unknown liens or encumbrances
• Boundary disputes
• Forgery or fraud in the chain of title

Cost is typically 0.5–0.75% of the purchase price as a one-time premium. We strongly recommend it for foreign buyers.

Common Pitfalls to Avoid

1. Skipping due diligence: Never buy based on a handshake. Always use an attorney.
2. Ignoring water availability: Some areas have water access issues. Get a water letter.
3. Not verifying permits: Unpermitted structures can be ordered demolished.
4. Maritime Zone surprises: Always confirm your property's relationship to the coast.
5. Using the seller's attorney: Always hire your own independent legal counsel.
6. Forgetting about road access: Verify legal access to your property (servidumbre).
7. Currency assumptions: Property values are in USD but the local currency is colones.

Financing

Traditional bank mortgages are difficult for foreigners to obtain in Costa Rica. Most foreign buyers:

• Pay cash
• Use a home equity loan from their home country
• Negotiate seller financing (common in Costa Rica, typically 50-70% LTV at 8-12% interest)

Tax Implications

• Property tax: 0.25% of registered value annually
• Luxury tax: Additional 0.25% on properties valued over ~$230,000
• Capital gains tax: 15% on profit from sale
• Rental income tax: 15% on net rental income (many deductions available)
• Corporate tax: If held in corporation, additional annual compliance ($200-400/year)

Always consult a tax professional in both Costa Rica and your home country.

Next Steps

If you're considering buying in Nosara, here's what we recommend:

1. Download our Buyer's Guide — a comprehensive PDF covering the complete process
2. Browse current listings — see what's available in your price range
3. Explore neighborhoods — each area of Nosara has a distinct character and price range

Have questions? Contact us directly — we're happy to connect you with trusted local attorneys and agents.