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.
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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.
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:
Likewise, the National Registry ensures publicity, traceability, and legal certainty for each registered property, allowing verification of its history, ownership, and encumbrances.
From a strictly legal standpoint, the requirements for foreigners to acquire real estate in Costa Rica are minimal:
No residency, visa, or prior stay in the country is required to purchase property.
A foreign investor may acquire property:
The correct choice depends on the investor’s profile and medium- to long-term objectives.
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.
Immigration law allows an application under this category when the foreigner:
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.
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:
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.
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.
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.
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.
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