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February 24, 2026
6 min read time

How to buy property in Costa Rica as a foreigner?

Ana Belén Mata
  • Immigration law
    • How to buy property in Costa Rica as a foreigner?

    Are you considering investing in real estate in Costa Rica as a foreigner?

    Costa Rica has established itself as one of the most attractive destinations in the region for foreign real estate investment, not only because of its democratic stability and quality of life, but also due to an exceptionally favorable legal framework that grants broad rights to international investors.

     

    Index

     

    Unlike other countries, Costa Rican legislation guarantees foreigners exactly the same rights as nationals to acquire and register real estate, without requiring prior residency, a special visa, or physical presence in the country at the time of purchase.

    Additionally, Costa Rica’s legal system allows the acquisition of real estate to be considered a valid investment for immigration purposes, provided the requirements set forth in the Law for the Attraction of Investors, Rentiers, and Pensioners are met. This opens the door to applying for Temporary Residency as an Investor.

    However, for a real estate investment to be truly successful — and potentially viable for immigration purposes — it is essential to understand its legal, tax, and immigration implications from a comprehensive perspective.

    In this guide, we analyze step by step how to buy property in Costa Rica as a foreigner, the legal requirements, territorial particularities, relevant financial considerations, and the most common mistakes to avoid.

     

    Can a foreigner buy property in Costa Rica?

    The answer is clear and unequivocal: yes.

    Costa Rica adopts a legally open and protective position toward foreign investment in real estate. Any foreign individual, regardless of nationality or immigration status, may hold title to registered property in the country.

    Article 19 of the Political Constitution of Costa Rica establishes that foreigners enjoy the same rights and obligations as nationals. In real estate matters, this principle of equality translates into:

    • Full right to private property
    • Constitutional protection against arbitrary expropriation
    • Access to the public registry system
    • Access to judicial remedies in case of dispute

    Likewise, the National Registry ensures publicity, traceability, and legal certainty for each registered property, allowing verification of its history, ownership, and encumbrances.

     

    Minimum requirements to purchase Real Estate in Costa Rica 

    From a strictly legal standpoint, the requirements for foreigners to acquire real estate in Costa Rica are minimal:

    • Valid passport as identification document
    • Legal capacity to contract
    • Public deed executed before an authorized notary public
    • Registration of the sale with the National Registry

    No residency, visa, or prior stay in the country is required to purchase property.

    A foreign investor may acquire property:

    • In their personal capacity, using only their passport
    • Through a Costa Rican corporation (S.A. or S.R.L.), an option frequently recommended for reasons such as:
      • Tax planning
      • Asset protection
      • Easier future transfer or sale

    The correct choice depends on the investor’s profile and medium- to long-term objectives.

     

    Property purchase and investor residency: How are they related?

    One of the most common mistakes is assuming that purchasing property automatically grants immigration status, which is not correct.

    However, buying real estate may constitute a valid investment to apply for Temporary Residency as an Investor, provided certain requirements are met.

     

    Temporary residency as an investor 

    Immigration law allows an application under this category when the foreigner:

    • Makes a minimum investment of USD $150,000
    • Demonstrates that the investment is real, verifiable, and lawful
    • Maintains the investment during the validity of the residency

    The investment may materialize, among other forms, in duly registered real estate, either personally or through a corporation, as long as the applicant proves their participation and economic benefit.

    Important:
    Residency is not automatic. The General Directorate of Migration and Immigration evaluates each case individually, including the origin of funds, the investment structure, and its continuity over time.

    For this reason, proper legal and immigration structuring from the outset is key to avoiding denials or future contingencies.

     

     

    Territorial exceptions and restrictions 

    Maritime Terrestrial Zone (MTZ) 

    The main limitation on foreign real estate ownership arises in the Maritime Terrestrial Zone (MTZ), which comprises the first 200 meters from the high-tide line:

    • Public zone (50 meters): inalienable and not subject to private ownership
    • Restricted zone (150 meters): subject to concession rights

    Within this area, foreigners without at least five years of residency cannot be concession holders, nor can corporations in which more than 50% of the capital is foreign-owned.

    Border Zones 

    There are also restrictions within a 50-kilometer strip along the borders with Nicaragua and Panama, where foreigners may not acquire land, forests, or energy sources.

    Legal steps to buy property in Costa Rica 

    • Offer and option to purchase agreement: The essential terms are established, and a deposit is delivered, usually 10%.
    • Legal due diligence: A thorough investigation of the property, including:
      • Ownership
      • Liens and encumbrances
      • Cadastral plan
      • Zoning and land use
      • Taxes and utilities
    • Use of escrow account: Highly recommended to protect funds, especially in international transactions.
    • Public deed before a notary: Legal formalization of the sale.
    • Registration: The transfer is perfected only upon registration with the National Registry.

    Relevant financial and tax considerations 

    Closing costs are estimated at approximately 3.7% to 4% of the property value, including taxes, stamps, and professional fees.

    Regarding annual taxes, buyers must consider the property tax, corresponding to 0.25% of the registered value, as well as the luxury home tax, if the property qualifies under this category.

    On the other hand, purchasing through a corporation may offer tax, asset protection, and estate planning advantages; however, it also entails additional maintenance costs that should be evaluated in advance.

     

    Common mistakes to avoid 

    • Comprar sin due diligence
    • Firmar sin asesoría legal especializada
    • Transferir fondos sin escrow
    • No verificar uso de suelo ni permisos municipales

     

    Conclusion 

    Investing in real estate in Costa Rica is a significant opportunity, but not all purchases are properly structured from a legal and immigration standpoint.

    Before signing, transferring funds, or planning to apply for investor residency, it is essential to analyze your case individually.

    Consult with our legal team and receive a professional evaluation of your real estate investment from a legal, tax, and immigration perspective.

    If you would like to learn more about Immigration Law, you can follow us on social media as Officium Legal. You may also subscribe to our Newsletter to receive articles and news firsthand