Costa Rica is one of the few countries in Latin America where foreigners can buy and own titled property with exactly the same rights as citizens. You do not need residency, a local partner or special permits to buy a home in Hacienda Pinilla, Reserva Conchal or Playa Flamingo. What you do need is a clear understanding of how the process works — and a good local team. This guide walks you through each step, based on how transactions actually happen on Guanacaste’s Gold Coast.
1. Understand what you are buying: titled land vs. concession
Most residential properties in gated communities like Hacienda Pinilla, Reserva Conchal or Coralis are titled (fee simple) and registered in the National Registry (Registro Nacional). Foreigners can own them 100%, in their personal name or through a Costa Rican company.
Beachfront land is different. Under the Maritime Zone Law, the first 200 meters from the high-tide line belong to the State: the first 50 meters are public and cannot be built on, and the next 150 meters can only be held through a municipal concession — a long-term lease, not ownership. Foreign buyers face restrictions on holding concessions (as a general rule, at least five years of legal residency are required to hold a majority interest). That is why titled beachfront property is rare and valuable, and why your attorney should confirm the type of title before you make an offer.
2. Work with a local broker and an independent attorney
Costa Rica does not have an MLS like the U.S., so the same property may be marketed by several agents at different prices. A local broker who knows each community helps you compare real options, understand HOA rules, rental potential and resale values, and negotiate with confidence.
Equally important is your own attorney, independent from the seller. In Costa Rica, property transfers are formalized by a notary public — who is always a lawyer — and your attorney will lead the due diligence, draft or review the purchase agreement and coordinate the closing.
3. Make an offer and sign a purchase agreement
Once you find the right property, the usual steps are:
- Letter of offer: price, conditions, deposit and timeline.
- Purchase and sale agreement (Opción de Compra-Venta): sets the closing date, due-diligence period and what happens to the deposit if either side does not complete.
- Deposit in escrow: typically around 10% of the price, held by an escrow company registered with SUGEF (Costa Rica’s financial regulator) — never sent directly to the seller.
4. Due diligence
During the due-diligence period (commonly 30 to 60 days), your attorney should review at least:
- Title, ownership and any liens, mortgages or annotations in the National Registry.
- The registered survey map (plano catastrado) and that boundaries match reality.
- Construction permits, municipal taxes and utilities (water and electricity availability).
- HOA bylaws, fees and rules — including whether short-term rentals are allowed.
- Zoning and, for land, environmental restrictions.
For new construction or pre-sales, also review the developer’s track record, the construction schedule and how your payments are protected.
5. Closing costs
Buyers in Costa Rica should generally budget about 3.5% to 5% of the purchase price for closing costs. The main items are:
- Transfer tax: 1.5% of the registered value or sale price, whichever is higher.
- Registration fees and stamps: roughly 0.5% to 0.8%.
- Notary fees: generally 1% to 2% of the price, plus VAT on the fee.
- Escrow fees, if applicable.
How costs are split between buyer and seller is customary but negotiable. Your attorney will give you the exact figure for each property.
6. Paying for the property: financing and source of funds
Bank financing for non-residents is limited, so most international buyers pay in cash, use financing from their home country, or negotiate owner financing — some sellers offer it, such as Casa Bohemia in Reserva Conchal with up to 50%. Because of anti-money-laundering rules, banks, escrow agents and notaries will ask you to document the source of your funds, so have bank statements and supporting documents ready.
7. Personal name or a Costa Rican company?
Many buyers hold property through a Costa Rican corporation (S.A. or S.R.L.) for privacy, liability separation or easier resale. A company has annual costs: corporate tax, accounting and a yearly beneficial ownership declaration. If you plan to apply for investor residency, current practice requires the qualifying property to be in your personal name. Discuss the best structure with your attorney and tax advisor before closing.
8. Taxes after you buy
- Property tax: 0.25% per year of the registered value, paid to the municipality.
- Luxury home tax (Impuesto Solidario): applies to homes whose construction value exceeds a threshold that is updated every year (about ₡143 million for 2026, roughly US$300,000+). Rates range from 0.25% to 0.55%.
- Rental income: if you rent the home, income tax and VAT on short-term rentals may apply. A local property manager and accountant can handle this.
9. Can buying property give me residency?
Yes. Costa Rica offers investor residency for foreigners who invest in real estate. The minimum investment was temporarily reduced from US$200,000 to US$150,000 by Law 9996, and whether that reduced amount still applies after July 2026 should be confirmed with an immigration attorney at the time you apply. Owning property does not by itself grant residency — you must file the application.
10. Plan for after closing
If you will not live in Costa Rica full-time, line up a property manager, insurance, and — if you plan to rent — a vacation rental company before closing. In communities like Hacienda Pinilla, Reserva Conchal and Playa Flamingo, many owners rent their homes as luxury vacation rentals when they are not using them, which can help cover operating costs.
Frequently asked questions
Can foreigners own property in Costa Rica?
Yes. Foreigners can buy and own titled property in Costa Rica with the same rights as Costa Rican citizens, either in their personal name or through a Costa Rican company. No residency, local partner or special permit is required.
Can foreigners buy beachfront property in Costa Rica?
The first 200 meters from the high-tide line belong to the State: the first 50 meters are public and the next 150 meters can only be held through a municipal concession, which is a long-term lease rather than ownership. Foreigners face restrictions on holding concessions (as a general rule, at least five years of legal residency for a majority interest). Most homes in gated communities such as Hacienda Pinilla and Reserva Conchal are titled property that foreigners can own 100%.
How much are closing costs when buying property in Costa Rica?
Buyers should generally budget about 3.5% to 5% of the purchase price: a 1.5% transfer tax, roughly 0.5% to 0.8% in registration fees and stamps, notary fees of about 1% to 2% plus VAT, and escrow fees if applicable. The split between buyer and seller is customary but negotiable.
How is my deposit protected?
The deposit, typically around 10% of the price, should be held by an escrow company registered with SUGEF, Costa Rica’s financial regulator, and never sent directly to the seller.
Should I buy in my personal name or through a Costa Rican company?
Many buyers use a Costa Rican corporation (S.A. or S.R.L.) for privacy, liability separation or easier resale, but a company has annual costs. If you plan to apply for investor residency, current practice requires the property to be in your personal name. Decide the structure with your attorney and tax advisor before closing.
Does buying property in Costa Rica give me residency?
Real estate can qualify you for investor residency, but owning property does not grant residency by itself: you must file an application. The minimum investment was temporarily reduced from US$200,000 to US$150,000 by Law 9996; confirm the amount that applies with an immigration attorney when you apply.
What taxes do I pay after buying?
An annual property tax of 0.25% of the registered value; the luxury home tax (0.25% to 0.55%) if the construction value exceeds the yearly threshold (about ₡143 million in 2026); and, if you rent the home, income tax and VAT on short-term rentals.
Ready to start?
Leo Araya has more than 15 years of experience in real estate sales and vacation rentals in Guanacaste and works with trusted attorneys, escrow agents and property managers. Explore our luxury listings or contact Leo for a private consultation in English or Spanish.
This article is general information as of October 2026 and is not legal, tax or immigration advice. Laws and figures change; always confirm the details of your purchase with a Costa Rican attorney.
