Can Non-Resident foreigners own Property in Costa Rica?
In Costa Rica, property rights are recognized for both citizens and foreigners, regardless of residency or not, under the same conditions as Costa Rican citizens.
You do not need to be a permanent or temporary resident to legally purchase and own real estate, land, vacation homes, or apartments, either in your own name or through a Costa Rican company.
Costa Rica, known for its biodiversity, idyllic beaches, and exceptional quality of life, has become a paradise for foreigners looking to invest in real estate.
One of the most attractive aspects of this Central American country is its friendly policy toward non-resident foreigners looking to purchase property.
Below are some key points that non-resident foreigners should consider when purchasing property in Costa Rica:
Costa Rica: A Paradise for Foreign Investors
Costa Rica stands out for its biodiversity, stunning beaches, and quality of life. These characteristics make it a favorite destination for foreigners looking to invest in real estate. Its flexible policy allows non-residents to purchase property without restrictions.
Property Rights for Foreigners
Foreigners do not need residency or citizenship to purchase property in Costa Rica. They can own it outright, making it easy to invest in real estate as a vacation retreat or long-term investment.
How can Foreigners Buy?
- Legal differences: buying through a local company offers additional protection (especially if you have multiple properties or plan to rent them out).
- Some law firms also recommend the LLC structure for family real estate — for succession clarity and tax management.
Many investors choose to buy through a locally registered limited liability company (S.R.L.):
- Makes it easier to manage multiple properties;
- Provides legal and tax protection;
- Allows clear co-ownership between family members;
- Ideal if you plan to rent out properties or make multiple investments.
Any foreigner can buy a property and register it in their own name, without being a resident or having a residence permit.
- Single-family homes
- Apartments in condominiums
- Urban or agricultural land
- Commercial buildings
What Kind of Properties Can Foreigners Buy?
If you have a registered activity in Costa Rica (consultant, therapist, programmer, lawyer, etc.) and you invoice locally, the tax is applied to the annual net income (after deducting accepted expenses).
– Define your needs: From beachfront condos to mountain homes, Costa Rica offers a wide range of options. It is essential to establish your preferences and budget before starting your search.
– Legal advice: Hiring an experienced real estate attorney is crucial to ensuring safe transactions.
– Ownership options: Foreigners can purchase property personally, through a local corporation, or through a trust, depending on their legal and tax needs.
✔️ You don’t need a special visa to buy.
✔️ You can rent out the property (e.g. on Airbnb)
❗ You don’t automatically get residency because you own property.
❗ Banks don’t easily provide mortgages to non-resident foreigners.
What are the Steps to Buy Legally?
- Cadastral and legal verification
- Search for a property title Fee Simple (no undocumented land).
- Property registry verification (registro nacional).
- Cadastral code, plano and plat map number.
- No mortgages, litigation or inheritance problems.
- Lawyer and notary public
- The contract is sign in a notarial deed (Escritura Pública).
- Recommended: lawyer independent of the real estate agent.
- Registration in the National Registry
- Optional: escrow account for secure payment
– Taxes: Owners must pay annual property taxes. It is advisable to consult a tax advisor to understand these obligations.
- The first 50 meters from the shoreline are public property, inaccessible to anyone.
- The next 150 meters can be leased, but:
- the lease is made by the municipality;
- A maximum of 49% of the rights of a concession company can be held by foreigners who have not resided in Costa Rica for at least 5 years;
- No direct sales can be made, only assignments or concessions with official approval.
In short: you can have a villa on the oceanfront, but you have to understand that it is not the same as owning the land directly.
What Taxes and Costs does the Purchase involve?
| Fee/cost type | Approximate value |
|---|---|
| Transfer fee | 1.5% – 3.5% of the declared value |
| Notary and lawyer fees | 1% – 1,5% |
| Annual property tax | ~0.25% of the tax value |
| Home insurance (optional) | Varies by area |
The tax is progressive and varies between 0.25% and 0.55%, applied only to the value of the construction, not the land.
| Construction value (approx.) | Luxury tax rate |
|---|---|
| ₡148.000.000 – ₡371.000.000 | 0.25% |
| ₡371.000.001 – ₡742.000.000 | 0.30% |
| ₡742.000.001 – ₡1.113.000.000 | 0.35% |
| … | up to 0.55% |
This is an additional annual tax, applicable to residential properties that:
- have a construction value (not land!) of more than 148,000,000 colones (approximately $290,000 in 2025, after annual indexation);
- are intended for permanent or temporary residence (including vacation homes);
- they have “luxury” amenities (pool, jacuzzi, top finishes, etc.), but more recently the emphasis is on value, not amenities.
Buying from Abroad
It is very possible to purchase property without being physically present in Costa Rica. However, it is recommended to visit the property in person and have reliable legal representation to protect your interests.
Obtaining legal residency in Costa Rica offers advantages such as the ability to open local bank accounts, discounts on utility services, and easier access to the Costa Rican financial system.
- Relatively political and economic stability.
- Transparent legal system (compared to other Central American countries).
- Prices still affordable outside of the ultra-touristy areas.
- Friendly tax regime for foreign income (as you already covered in the previous article).
- Work with an independent lawyer, NOT just the seller’s agent.
- Look for fee simple title (plena propiedad), not unregistered land.
- Beware of “concessions” and disputed land.
Final Considerations
It is legal, clearly regulated and relatively simple — provided you follow the right steps, work with a good lawyer and understand the areas where the law imposes restrictions (especially the coastline and concession areas).
With the right advice and compliance with local regulations, investing can be a profitable and rewarding experience.
If you have questions or want to learn more about the acquisition process, explore our guides or contact us for personalized assistance.
Behind OpenZone are two people: a Costa Rican native with deep roots in the local history, and an expat who has been settled here for over two decades. Together, we combine native knowledge of the system with firsthand experience of the very process you’re going through right now.
