Costa Rica (CR)
Costa Rica is Central America's most stable democracy — a small, lush republic that abolished its army in 1948 and instead invested in education, healthcare, and the environment.
Buying Property in Costa Rica
The full buying process, transaction costs, mortgage, and legal requirements.
Costa Rica allows foreigners to own titled property with the same rights as citizens — no government approval, residency, or special permit is required for standard freehold (titled) property inscribed in the Registro Nacional de la Propiedad Inmueble. This makes it one of the most foreigner-friendly property markets in Latin America. However, a critical exception applies: the Maritime Zone Law (Ley de la Zona Marítimo Terrestre, ZMT) prohibits private freehold ownership of the first 200 metres from the high-tide mark on all Costa Rican coastline — concessions are granted by municipalities instead, and non-citizens (foreigners who are not permanent residents for at least 5 years) cannot hold more than 49% of a ZMT concession directly. ZMT properties require specialist legal advice. The typical buying process for standard titled property runs 1–3 months from signed offer to Registro Nacional registration. Costa Rica uses the CRC (colón) but USD pricing is widespread in the expat and tourist property market.
Rent vs. Buy
Renting first for 6–12 months after arriving in Costa Rica is strongly recommended — areas vary enormously in lifestyle, climate, commute, and price. Buying makes most sense for 5+ year commitments with sufficient capital. Positive factors for buying: well-located properties in Escazú, Santa Ana (San José metro), and the Guanacaste Gold Coast (Tamarindo, Flamingo, Nosara) have appreciated 3–6% annually in USD terms over recent years; rental yields in tourist beach areas can reach 6–10% gross for well-managed short-term rentals; the Pensionado/Rentista residency programme allows legal residency and mortgage access. Negative factors: tropical climate causes rapid structural deterioration (high ongoing maintenance costs); selling can take 6–24 months in slower markets; non-residents without DIMEX cannot access local bank mortgages; ZMT coastal property carries significant legal complexity.
Buying Process — Step by Step
Engage an independent Costa Rican lawyer (abogado/notario)
Before any offer or paymentIn Costa Rica, all licensed lawyers are also notaries (notarios públicos) — the professions are fused by law. Engage a lawyer who is independent of the seller and their agent before any other step. Your lawyer will: conduct title due diligence, draft all contracts, manage transfer tax payment, execute the escritura de compraventa (deed), and file with the Registro Nacional. Foreign law firms and non-Costa-Rican attorneys cannot perform these functions. For ZMT (coastal zone) properties, ensure your lawyer has specific ZMT expertise.
Title due diligence at the Registro Nacional
3–7 business daysYour lawyer conducts a full estudio registral (title study) at the Registro Nacional — online at registronacional.go.cr — confirming: current registered owner (propietario), any mortgages (hipotecas), liens (gravámenes), easements (servidumbres), annotations (anotaciones), and legal restrictions. Also check the Catastro Nacional (also within the Registro Nacional) for the plano catastral — the official cadastral map confirming exact plot boundaries. Boundary discrepancies between the plano and the physical property are common and must be resolved before purchase. For ZMT coastal properties: require a separate legal opinion on the concession status, municipality approval, and ZMT boundary determination.
Signed purchase option or preliminary agreement
1–7 daysOnce due diligence is satisfactory, proceed to a formal offer. This is typically structured as a contrato de opción de compra (purchase option) or carta de intención (letter of intent). Earnest money (arras) is typically 10% of the purchase price, held by the buyer's attorney or a neutral escrow. The arras is forfeited if the buyer withdraws without cause; if the seller withdraws, they must return double the arras under Costa Rican civil law. Have your lawyer review all terms before signing.
Independent property inspection
3–10 business daysCommission an independent structural engineer or certified inspector to assess any buildings on the property. Costa Rica's tropical climate causes rapid deterioration — inspect specifically: roof condition, foundation integrity, termite and wood-borer damage, moisture and mould (especially in valley/jungle areas), electrical system compliance, septic tank (tanque séptico) and drainage, and water supply source (municipal ASADA or private well). Not legally required but strongly recommended, particularly for properties over 10 years old.
Pay transfer taxes and stamp duties before closing
1–3 business days before closingThe Impuesto de Traspaso (1.5% of the higher of declared transfer value or registered fiscal value) must be paid at a bank before the escritura is signed — payment receipts must be presented at closing. Registro Nacional inscription stamps (Timbre Fiscal del Poder Judicial + Timbre del Registro Nacional): approximately 0.5–0.8% of the transfer value, purchased at any bank. Note: the declared transfer value cannot be less than the registered fiscal value (valor fiscal) — undervaluing to reduce tax is illegal and carries penalties.
Closing — notarial deed (escritura de compraventa)
1–3 hours on closing dayBuyer and seller (or their authorised representatives via poder) appear before the buyer's Costa Rican notary/lawyer. The escritura de compraventa (deed of sale) is signed. Balance of purchase price is paid by bank transfer (transferencia bancaria) or certified bank cheque (cheque de gerencia) — cash payments above CRC 500,000 are restricted by anti-money-laundering law. Notary fee (minimum 1.25% of transfer value, regulated by the Arancel de Derechos Notariales) is paid at or after closing. Keys are handed over at or after signing.
Registro Nacional registration (inscripción)
5–15 business days after closingYour notary/lawyer submits the signed escritura and all supporting documents (tax payment receipts, stamps, identification copies) to the Registro Nacional for inscription. Upon submission, a protective annotation (anotación) is entered, preventing any other third-party encumbrance during processing. Once inscription is complete (5–15 business days), the buyer's name appears as the registered owner and the new finca number (or updated finca) is confirmed. Verify the updated title at registronacional.go.cr after registration.
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Transfer tax (Impuesto de Traspaso) | 1.5% of the higher of declared transfer value or registered fiscal value — paid to Hacienda before closing | This is the single largest transaction cost for the buyer. On a USD 300,000 property, this is approximately USD 4,500. The fiscal value is typically below market value in many areas. |
| Notary fees (Aranceles Notariales) | Minimum 1.25% of transfer value — regulated by the Arancel de Derechos Notariales | Buyer typically pays notary fees in Costa Rica (unless otherwise negotiated). The 1.25% is a legal minimum; some lawyers charge more for complex transactions or ZMT properties. |
| Registro Nacional stamps (Timbre Fiscal + Timbre de Registro Nacional) | Approximately 0.5–0.8% of transfer value | Purchased at any bank branch before the notary submits the escritura. These are government documentary stamps required for registration. |
| Legal fees (due diligence, inspection, ZMT opinion) | USD 500–3,000+ depending on complexity — in addition to notary fee | Title search, contract drafting, ZMT coastal zone legal opinion (if applicable), and closing representation are often quoted as a flat package fee. For ZMT/complex properties: budget USD 2,000–5,000+ for specialist advice. |
| Real estate agent commission | 5–7% of purchase price — paid by the seller; buyer's agent split included | Costa Rica has no mandatory agent licensing, though CCCBR (Cámara Costarricense de Corredores de Bienes Raíces) membership is a positive indicator. Confirm commission structure in writing. |
| Annual property tax (Impuesto sobre Bienes Inmuebles) | 0.25% of registered fiscal value per year — paid quarterly to the Municipalidad | Fiscal values are typically well below market value in desirable areas. Declare the correct property value with your municipality — the law requires accurate self-reporting. This tax funds municipal services. |
| Impuesto Solidario (Luxury Home Tax) | Applies to residential construction with fiscal value above ₡143 million (2026 threshold). Progressive rates 0.25%–0.55% on the value above the threshold. Due January 15 annually. | The 2026 threshold is ₡143 million (approximately USD 270,000–280,000 at current rates). Rate bands: 0.25% up to ₡359M; 0.30% on ₡359M–₡720M; rising to 0.55% above ₡2.162 billion. Applies even if property is held via a Costa Rican corporation. |
| Total transaction cost estimate | Buyer typically 3–4.5% of purchase price (transfer tax 1.5% + notary 1.25% + stamps 0.5–0.8% + legal fees) | On a USD 300,000 property: approximately USD 9,000–13,500 in total buyer-side transaction costs. Significantly lower than many European markets but still a meaningful sunk cost for short-term ownership. |
The Notary — Mandatory for All Purchases
In Costa Rica, all licensed lawyers are simultaneously notaries públicos — the professions are fused by law (Código Notarial). Any property transfer, mortgage, company formation, or legal document requiring official authentication must be executed before a licensed Costa Rican notary. Foreign notarised documents are generally not recognised without apostille plus certified Spanish translation. The buyer's notary/lawyer is responsible for: conducting title due diligence, drafting the escritura de compraventa, paying transfer taxes (Impuesto de Traspaso) before closing, filing the escritura with the Registro Nacional, and ensuring title transfers cleanly. The notary minimum fee of 1.25% of transfer value is regulated by the Arancel de Derechos Notariales — lawyers may charge more for complex or coastal transactions.
Mortgage
Mortgages (hipotecas) in Costa Rica are available to legal residents holding a DIMEX card from local banks and cooperatives. Non-residents generally cannot access local bank mortgages and must use cash, developer financing, or seller financing. Mortgage terms: 15–25 years. Interest rates in 2026: 7–10% in CRC (colones); 6–9% in USD for USD-denominated loans. State banks (BCR, BNCR) tend to be more cautious with non-residents; private banks (BAC San José, Banco Promerica, Banco Lafise, Banco BCT) are more active in the expat lending market. Approval process for qualifying residents: 4–8 weeks including property appraisal. Financing is typically 60–70% LTV.
20–30% of appraised property value (70–80% LTV). Some banks allow up to 80% LTV for strong resident profiles on owner-occupied primary residences. Non-residents and self-employed applicants typically need 30–40% down payment.
Non-residents without DIMEX generally cannot obtain Costa Rican bank mortgages. Practical options for non-resident buyers: (1) cash purchase — most common among foreign buyers; (2) developer financing for new-build projects (often 20–30% down at signing, balance at delivery); (3) seller financing (hipoteca del vendedor) negotiated directly with the seller; (4) home equity line of credit from a bank in your home country (USD/EUR) to fund the Costa Rican purchase in cash. Pensionados and Rentistas who have received their DIMEX and meet income requirements can apply for resident-level mortgage products. All property purchases (whether by cash or mortgage) require a Costa Rican notary/lawyer regardless of residency status.
Land Registry
The Registro Nacional de la Propiedad Inmueble is Costa Rica's publicly accessible property registry (registronacional.go.cr). All titled real estate is registered here — searchable by finca number, owner name, or cadastral plan number. Free basic online searches are available; certified extracts (certificaciones) require an account and a small fee. The Catastro Nacional (also within the Registro Nacional) holds the official plano catastral (cadastral maps) showing exact plot boundaries — essential for verifying that the physical property corresponds to the registered title. Discrepancies between the catastro map and the physical boundaries are common — have your lawyer verify and reconcile any differences before purchase.
Taxes
Transfer tax (Impuesto de Traspaso): 1.5% of declared value, paid to Hacienda before closing. Annual property tax (Impuesto sobre Bienes Inmuebles): 0.25% of registered fiscal value, paid quarterly to the Municipalidad. Impuesto Solidario (Luxury Home Tax): progressive 0.25%–0.55% on residential construction value above ₡143 million (2026 threshold — adjusted annually by the Ministry of Finance); declaration due January 15 each year; applies even if property is held via a corporation. Capital gains tax: 15% on net gain from property sold; introduced by Ley 9635 effective January 1, 2019. Properties owned before that date may use a transitional cost-basis rule. Rental income: non-resident landlords pay 15% withholding tax on gross rent from Costa Rican property; resident landlords declare rental income on the annual D-101 return. IVA (13% VAT) applies to new construction sold by a developer-company but not to resale of existing residential property.
New Build vs. Existing Property
New construction (construcción nueva): generally higher construction quality with modern building codes; SETENA environmental permits required for developments; builder warranty applicable; IVA (13%) applies to the sale from a developer-company. Off-plan purchases from reputable developers carry completion risk — verify developer track record and use a reputable escrow agent. Existing property (usado): typically lower price per m², established neighbourhood character, but careful inspection is essential given tropical climate deterioration. Condominium (condominio): governed by the Ley Reguladora de la Propiedad en Condominio; monthly HOA (cuota de mantenimiento) is a mandatory ongoing cost; HOA arrears are a legal lien on the property that transfers to the buyer — always verify all HOA payments are current via a formal peace-and-quiet letter (paz y salvo de cuotas) before closing.
Selling Property
To sell titled property: obtain a current Registro Nacional title search confirming clear title and no pending annotations; clear any outstanding property tax at the Municipalidad (obtain a paz y salvo municipal); clear any Hacienda arrears (paz y salvo Hacienda); engage a notary/lawyer to prepare the escritura de compraventa; calculate and pay capital gains tax (15% of net gain, if applicable) to Hacienda. The selling process and timeline mirror the buying process. Agent commission: 5–7% of sale price, typically paid by the seller. Realistic selling timeline: 3–18 months depending on price, property type, and location — beach markets can move quickly; inland residential markets can be slow.
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