Guide to Buying Costa Rica Real Estate

Costa Rica has long been a top choice for expats and property investors due to  its peaceful environment, lush landscapes, and a strong focus on sustainability. The country has no military, instead investing in education, healthcare, and environmental preservation. English is commonly spoken in many areas, and the friendly culture makes it easy for newcomers to settle in.

Foreigners have the same rights as locals when buying real estate. There are some restrictions, like not being able to own land within two kilometers of a national border and special rules around beachfront properties, but overall, the process is straightforward with the help of a local attorney.

Real estate options range from beach homes to mountain retreats. Areas like the Gold Coast in the north, the Southern Zone, Lake Arenal, and the Central Valley all offer something different. Whether you’re looking for luxury ocean-view condos or a quiet village lifestyle, there’s a good chance you’ll find it here.

Property values vary depending on the region, and while Costa Rica is no longer the budget destination it once was, there are still opportunities for value. With increasing demand and limited supply in certain areas, some regions have seen significant appreciation.

Why Invest in Real Estate In Costa Rica

Costa Rica offers a combination of stability, lifestyle, and legal protections that few other countries in the region can match. For foreign buyers, it’s one of the most accessible and appealing real estate markets in Latin America.

One of the country’s biggest draws is its political and economic stability. Costa Rica has a long history of democracy, no standing military, and a commitment to peaceful governance. This stable environment supports long-term investment and gives buyers confidence in the legal and financial systems.

The use of the U.S. dollar in many real estate transactions makes it easy for North American buyers to navigate pricing and banking. And with well-established property laws that allow foreigners to own real estate outright, Costa Rica offers transparency and security in every deal.

Tourism plays a big role in the real estate market. The country welcomed over 2.6 million international visitors in 2024, a 10% increase on 2023. This fuels demand for vacation rentals, especially in popular regions like Tamarindo, Manuel Antonio, and the Central Pacific Coast. Investors can generate income through short-term rentals while also holding an appreciating asset.

Costa Rica is also a global leader in sustainability and eco-tourism. Protected land and tight building restrictions in many areas help preserve the natural environment and limit overdevelopment, keeping demand strong and supply limited.

Healthcare, infrastructure, and connectivity are better than in many nearby countries. From modern hospitals and high-speed internet to direct flights from major U.S. cities, Costa Rica makes it easy to live or visit comfortably. Many buyers choose to spend part of the year in Costa Rica and rent out their property when they’re away.

With a welcoming culture, natural beauty, and favorable real estate laws, Costa Rica continues to attract buyers from around the world looking for more than just a place to live—it’s a country where lifestyle and investment go hand in hand.

Where to Buy Property in Costa Rica

Costa Rica offers a wide variety of real estate options depending on what you’re looking for—beachfront access, cooler mountain air, rental income, or long-term retirement living. The country is divided into distinct regions, each offering a different experience and price point.

The Gold Coast

The Gold Coast, located in the northwest province of Guanacaste, is the most developed beach region in Costa Rica and over the years has become an expat hub. 

The region lures new residents with its beautiful coast, world-class surfing, dramatic ocean views, and endless opportunities for dining on local and international cuisine (including fine dining), sport fishing, swimming, golfing, yachting, horseback riding, or just sunning yourself on the beach. Not to mention, you can also enjoy top-notch medical care, shopping, community activities and celebrations, and all the modern conveniences you might need. 

Guanacaste boasts incredible beaches and a laidback Costa Rican lifestyle. 

Towns like Tamarindo, Flamingo, and Playas del Coco are popular for their beaches, amenities, and access to the international airport in Liberia. This region has a strong rental market, particularly for vacation properties. It’s also where many expats choose to settle due to the combination of ocean views and modern infrastructure.

The Southern Zone

The Southern Zone, including Dominical, Uvita, and Ojochal, is more remote and less developed than the Guanacaste region. 

It appeals to buyers seeking privacy, nature, and long-term appreciation. The scenery is dramatic, with jungle-covered mountains dropping into the Pacific, and real estate here often offers larger lots and stunning views. 

The Southern Zone is less developed than other beach locations in Costa Rica but has still been drawing expats to the region. 

Infrastructure is improving, but this area still retains a more rustic, off-grid vibe compared to the north. For example, a coastal road that opened in 2010 makes it easy to access and connects the Southern Zone with new highways leading out from the capital, San José. New bridges replaced old, single-car bridges and helped cut drive times from San José to roughly three hours.

Much of the Southern Zone is protected land: forested national parks, marine reserve, wildlife refuges, so it will always be a boutique, low-key region. So, don’t expect mass-market resorts or condo towers on the beach here; but there are still plenty of opportunities for buyers and investors. 

Lake Arenal

Lake Arenal in the northern highlands, provides a cooler climate and a more rural lifestyle. The area attracts buyers who want to be surrounded by nature and live in a tight-knit community. Property prices are more affordable, and there’s less emphasis on short-term rentals, making it ideal for those looking for a permanent home or peaceful retreat.

Dominated by the 33-square-mile Lake Arenal and located about three hours northwest of San José, the Arenal region has been drawing eco-minded travelers in search of opportunities in wildlife watching, jungle hiking, water sports, and other activities for decades.

A cooler climate and a tight-knit community has made Arenal one of Costa Rica’s most appealing expat locations in recent years. 

In recent years it’s become much more than a tourist destination, attracting an increasing number of expats interested in making permanent homes here. 

It must be noted that, while development in this area has increased, it is far from overdeveloped or overrun. The character of the area remains rural and quiet; the pace of life slows. And all the factors that make Arenal so popular with visitors and long-term residents alike remain in place. 

Central Valley

The Central Valley, which includes San José, Escazú, Santa Ana, and Grecia, remains one of the most practical places for full-time living. Expats have been flocking here for decades and it’s not hard to see why. 

Pretty towns like Grecia in the Central Valley offer small-town living while also being close to the country’s capital. 

The spring-like climate, central location and ready-made expat community; combined with modern hospitals, shopping centers, international schools, and convenient transport links make it an ideal choice for expats and investors buying real estate in Costa Rica. 

It’s a favorite among retirees who want easy access to services but don’t need to be near the beach.

Central Pacific

The Central Pacific coast is just an hour or so away from Costa Rica’s capital, which gives you the best of both worlds: a laid back beach lifestyle, with big city conveniences, medical care, and the international airport close by.

This region features lush rainforests full of wildlife like the scarlet macaw and capuchin monkeys and bustling fun beach towns like Jaco and Manuel Antonio. Jaco is the largest and most developed of the bunch, with everything you need in town. It’s set on a large bay, with condo and hotel towers lining the beach.

The area around Manual Antonio is known for its stunning natural beauty and abundant wildlife. 

The Real Estate Buying
Process in Costa Rica

Costa Rica is home to countless expats who have bought property and has been welcoming foreign homebuyers and real estate investors for decades.

The process of buying real estate in Costa Rica is fairly transparent, especially when compared to other countries in Central America. Foreigners can legally own property outright and have the same rights as locals, but there are a few exceptions and laws that you should be aware of before buying real estate here. 

First, there are special rules for certain types of land which we’ll cover in more detail below. Concession properties (typically beachfront real estate within 200 meters of the high tide line) fall under the Maritime Zone Law and are not owned outright. These are leased from the government, and extra caution is needed when buying this type of property. Foreigners can hold up to 49% of a concession, while a Costa Rican citizen must hold the controlling share.

Costa Rican law requires that all documents relating to an interest and/or title to property be registered in the property section of the National Registry. Most properties have a title registration number known as the folio real, and the records database can be searched with this number or by name index.

Foreigners can buy property in Costa Rica but there are a number of restrictions you need be aware of. 

A National Registry report provides detailed information on the property, including the title holder’s name, boundary lines, tax appraisal, liens, mortgages, recorded easements, and other recorded instruments that would affect the title.

Since Costa Rica follows the doctrine of “first in time, first in right,” recorded instruments presented to the National Registry are prioritized according to the date and time they are recorded. 

Basically, the rightful owner is whoever has the oldest title to a property. In some cases, a review of the National Registry record will not be enough to uncover all encumbrances. 

Even if the seller has a title for the property, there could be someone out there with an older claim. 

This is why using a reputable local attorney is strongly recommended. An attorney for the buyer can conduct an independent title search and investigation rather than rely on the seller’s attorney.

Can Foreigners Buy Property In Costa Rica

In Costa Rica, foreigners are given the same real estate ownership rights as Costa Ricans. There are some other real estate laws unique to Costa Rica which you should be aware of before buying real estate.

First, only Costa Ricans can purchase land within two kilometers of a national border. Foreigners cannot buy in these zones. This really isn’t hard to comply with—the vast majority of expats do not settle this close to the border. However, there is another restriction that you should definitely have on your radar.

No one can own property within 50 meters (164 feet) of the ocean (to allow public access to beaches), and the next 150 meters (492 feet) is classed as a Restricted Zone. 

There are exceptions to this—some parts of Jaco (on the central Pacific) and Golfito (in the Southern Zone), for example, have titled waterfront and beachfront land, but these are the exception rather than the rule.

Maritime Zone laws govern these 200 meters of beachfront. Nothing can be built in the 50 meters (164 feet) closest to the water and development is only allowed on the next 150 meters (492 feet) through a government “concession.” This is like a lease…although buyer beware, it is not a secure form of leasehold that you may be used to back home…and there are restrictions on foreigners with these concession leases (it becomes easier if the foreigner has been resident in Costa Rica for more than five years). 

You are normally only allowed to build tourist ventures (B&Bs, bars, for example) or temporary structures on concession land, not permanent residences. This means that anyone shopping for property should be doubly cautious about buying oceanfront real estate. Before entering a transaction, insist that your attorney verify that the title is good. Check with a trusted attorney in Costa Rica for details and for help with due diligence on coastal properties.

Property Taxes & Fees in Costa Rica

Buying property in Costa Rica involves several costs beyond the purchase price, but they are generally lower than what buyers might expect in other international markets. Understanding these fees upfront can help you budget accurately and avoid surprises.

Closing Costs in Costa Rica

In Costa Rica, closing costs are traditionally paid by the buyer, while the seller pays the real estate commissions. 

Closing costs in Costa Rica tend to be higher than in the United States or Canada. However, annual property taxes are much lower, ranging from 0.25% up to 0.55% according to the value of the property.

Closing costs involve the following: 

• Transfer taxes (paid to the government).
• Notary fees, documentary stamps, and legal fees.
• VAT/IVA costs.

Real Estate Transfer Taxes in Costa Rica

The government collects a property transfer tax (Impuesto de Traspaso), equal to 1.5% of the registered value of the property. The National Registry will not record a transfer deed unless the transfer taxes and documentary stamps have been paid.

Notary Fees For Real Estate Purchases In Costa Rica

The notary who drafts the contract for sale, carries out the real estate closing, and records the property title transfer is entitled by law to a fee based on a percentage of the value of the transaction.

The rates work on a sliding scale and are as follows:

• Up to 10,000,000 colones is a 2% fee.
• 10,000,001 to 15,000,000 is an additional 1.5% fee.
• 15,000,001 to 30,000,000 is an additional 1.25% fee.
• 30,000,001 and above is an additional 1.00% fee.

VAT (Value Added Tax) On Costa Rica Real Estate Purchases

A 13% VAT is added to all legal fees when buying real estate in Costa Rica. VAT is known in Costa Rica as IVA, and is added to all services in Costa Rica, not only real estate. The VAT/IVA is paid directly to the government.

How are Property Taxes Calculated in Costa Rica?

The cost of all property taxes is calculated as a percentage of the property’s value. 

The value of the tax is 0.25% of the purchase price of your property, or the value assigned by the National Registry.

As an owner, you are responsible for having your home’s value assessed every five years. Failure to do this could result in a penalty.

For properties that are valued at 145 million colones or more, (about $285,600) at the current exchange rate), a luxury property tax must be paid. The tax rate is on a sliding scale, ranging from 0.25% to 0.55%. This tax is in addition to the annual property tax of 0.25% and equates to roughly $250 to $500 per $100,000 of your declared property value.

Can Foreigners Get
Mortgages In Costa Rica

As with many other countries around the world, it is difficult for foreigners to obtain loans in Costa Rica, including mortgages to purchase real estate. Simply put, you don’t have a credit history in the country, and banks are very strict. Foreign residents with a temporary or permanent residence visa have better luck, but it’s still not an easy process and the terms are often unattractive.

Fortunately, there are alternative forms of financing. With new developments, some top developers will offer financing to buyers.

Costa Rica Real Estate
Our Thoughts:

Buying real estate in Costa Rica offers more than just a tropical escape—it’s a chance to invest in a stable, welcoming country with long-term potential. With full ownership rights for foreigners, a clear legal process, and growing demand from both tourists and expats, the market continues to deliver value for buyers.

Whether you’re interested in rental income, retirement, or part-time living, Costa Rica has a region to match your goals. From the beaches of the Gold Coast to the mountain towns of the Central Valley, the country offers a wide variety of property types, prices, and lifestyles.

Working with a qualified attorney, understanding the local market, and budgeting for closing costs will help you make a smart, secure purchase. With its strong infrastructure, low property taxes, and focus on sustainability, Costa Rica remains one of the most attractive real estate markets in the region.