Quick answer: Yes — buying property in Costa Rica as a foreigner is fully legal, and you get the same ownership rights as a Costa Rican citizen. You do not need residency or a local partner, most land is fee-simple titled, closing costs run roughly 4–5.5% of the purchase price, and a real-estate purchase of $150,000 or more can qualify you for investor residency.
Can Foreigners Really Own Property in Costa Rica?
Costa Rica is one of the most foreigner-friendly property markets in Latin America. US and Canadian buyers can hold titled property in fee simple — outright ownership registered in the National Registry — in their own name or through a Costa Rican corporation (an S.A. or S.R.L., a common structure for estate planning and liability reasons). You don't need to live in Costa Rica, hold residency, or even be in the country to close; many buyers complete the purchase remotely through a power of attorney.
The one major exception is the Maritime Zone along the coastline, which works differently — more on that below.
How Does Buying Property in Costa Rica as a Foreigner Work?
The process will feel familiar if you've bought property in the US or Canada, with a notary public playing a central legal role:
- Offer and purchase agreement — negotiated and signed, usually with an escrow deposit.
- Due diligence — your attorney runs a title search in the National Registry, checking for liens, encumbrances, boundary issues, and the registered survey (plano catastrado).
- Closing before a notary — the transfer deed is signed and funds are released from escrow.
- Registration — the notary records the new deed in the National Registry, making your ownership public record.
Work with an independent attorney who represents you — not just the seller's counsel — and always verify that the person selling is the registered owner.
What Are the Real Costs: Taxes and Closing Fees?
Costa Rica's carrying costs are low by North American standards:
- Transfer tax: 1.5% of the registered property value.
- Total closing costs: typically 4–5.5% of the purchase price, including legal and notary fees, registration, and stamps.
- Annual property tax: just 0.25% of the registered value.
- Luxury home tax: homes valued above roughly $214,000 pay an additional sliding-scale tax capped around 0.55%.
Compare that 0.25% annual property tax with the 1–2%+ common in many US states, and the long-term math of owning in Costa Rica gets very attractive.
What About Beachfront Property and the Maritime Zone?
The Maritime Terrestrial Zone (ZMT) covers the first 200 meters inland from the high-tide line. The first 50 meters are public land no one can own. The next 150 meters are typically concession land — a long-term lease granted by the municipality rather than titled ownership — and foreigners generally cannot hold majority control of a concession until they've been residents for five years.
Only a small fraction of Costa Rica's coastline is fully titled, which makes true fee-simple beachfront both rare and more expensive. If you're shopping near the ocean, the single most important question is: is this titled or concession? Your attorney should confirm it in the Registry before you commit.
Can Buying Property Get You Residency? The $150,000 Golden Visa
Yes — and this is where a property purchase can do double duty. Invest $150,000 or more in Costa Rican real estate and you qualify for investor (inversionista) residency, often called the Costa Rica Golden Visa. Key points:
- The investment can be a home you actually live in or a rental property.
- Residency is granted for two years and is renewable, with a path to permanent residency after about three years.
- Residents join the Caja, Costa Rica's public healthcare system, contributing roughly 7–11% of declared income.
- Law 9996 incentives for new investor residents — including duty-free import benefits — are scheduled to end around July 14, 2026, so buyers targeting those perks need to act quickly.
If the investor route isn't your fit, the pensionado program requires $1,000/month in lifetime pension income, and the rentista program requires $2,500/month in stable income for two years.
Frequently Asked Questions
Do I need to be a resident to buy property in Costa Rica?
No. Foreigners can buy titled property with a passport alone, and ownership doesn't require you to spend any minimum time in the country.
Can I buy through a corporation?
Yes. Holding property in a Costa Rican S.A. or S.R.L. is common and can simplify estate planning and shared ownership.
Can Americans or Canadians get a mortgage in Costa Rica?
Local financing for non-residents is limited and often expensive, so most foreign buyers purchase in cash, use home-equity financing from their home country, or negotiate seller financing.
Does owning property make me a Costa Rican tax resident?
No. Property ownership alone doesn't create tax residency, though rental income earned in Costa Rica is taxable there. Get advice for your specific situation.
Does any property purchase qualify me for residency?
The investment must be $150,000 or more in registered value to qualify for investor residency. Purchases below that threshold don't qualify on their own.
Ready to find a property that doubles as your residency ticket? Book a free consultation with our team and we'll walk you through current listings that qualify for the $150,000 investor residency — and connect you with vetted legal counsel for a safe closing.
This article is for general information only and is not legal or tax advice.