Buying in Costa Rica: Frequently Asked Questions

Buying in Costa Rica is more transparent than most newcomers expect — a centralized public property registry, regulated escrow, and clear rules for foreign owners. Below are the questions our buyers ask most. Figures are current as of June 2026.

Owning Property as a Foreigner

Can foreigners legally own property in Costa Rica?

Yes. Foreign buyers have the same ownership rights as Costa Rican citizens and can hold titled (fee-simple) property outright — in their own name or through a Costa Rican corporation. The one major exception is the Maritime Zone along the coast (below). Everywhere else, ownership is full and permanent, recorded in the National Registry, with no residency or nationality requirement.

Do I need residency or citizenship to buy?

No. You can buy, own, and sell property in Costa Rica without residency — a purchase can be completed while you are here on a tourist entry. Many owners later pursue residency for longer stays or lifestyle reasons, and a property investment of US$150,000 or more can itself qualify you for the investor (inversionista) residency category.

Can foreigners own beachfront property, and what is the Maritime Zone?

It depends on whether the property is titled or concession. Under the Maritime Zone Law (Ley 6043), the first 200 meters from the high-tide line is regulated: the first 50 meters are public, and the next 150 meters are concession land administered by the municipality. Foreigners can fully own titled property outside the 200-meter zone, as well as pre-existing titled parcels within it. Concession property is a long-term lease rather than fee-simple title, and when held through a corporation, foreign ownership is generally capped at 49%. We always confirm which type a beachfront listing is before you make an offer.

How a Purchase Works

What does the buying process look like, step by step?

Most purchases close within 30–45 days: an accepted offer, a signed purchase agreement, funds placed in a regulated escrow account, a due-diligence period, then closing before a notary and registration in the National Registry. Costa Rica uses a Napoleonic legal system, so a single licensed notary (notario público) prepares and records the transfer deed. KRAIN coordinates each step alongside your attorney and escrow agent.

How does escrow work — is my money safe?

Yes. Purchase funds are held by an independent escrow agent registered with SUGEF, Costa Rica's financial regulator, and released only at closing. Under anti-money-laundering law (Ley 8204), both buyer and seller complete KYC, and the buyer documents the source of funds. Using a SUGEF-registered escrow agent — and never wiring directly to a seller — is the single most important safeguard in a Costa Rica transaction.

How is title verified, and what is due diligence?

Every purchase includes a title search through the National Registry (Registro Nacional), Costa Rica's public property registry, to confirm the seller's ownership and check for liens, mortgages, or boundary issues. Because property records are centralized and public, due diligence is more transparent than in many markets and typically takes two to four weeks. KRAIN and your attorney complete it before any funds are released.

Costs & Taxes

What are closing costs, and who pays them?

Budget roughly 4.5% of the purchase price. Closing costs include the 1.5% government transfer tax, notary and legal fees, and documentary stamps and registry fees. By custom the buyer covers transfer tax and legal/closing fees, while the seller pays any capital-gains tax and the brokerage commission — though this can be negotiated. Your attorney will confirm exact figures for your transaction.

What annual property taxes will I pay?

The annual property tax is 0.25% of the registered value, paid to the local municipality. Higher-value homes also pay the Solidarity Tax (Impuesto Solidario), commonly called the luxury-home tax. For 2026, the Solidarity Tax applies when the construction value alone exceeds ₡143 million (roughly US$280,000), on a progressive scale from 0.25% to 0.55%, declared and paid by January 15 each year. It applies whether you own personally or through a corporation; your contador can confirm whether a specific property is subject to it.

What capital-gains tax applies when I sell?

Costa Rica applies a 15% capital-gains tax on the profit from a sale, and the sale of your primary residence is exempt. Properties acquired before July 1, 2019 carry a one-time option to pay 2.25% of the total sale price instead of 15% on the gain. For non-resident sellers, the buyer must withhold 2.5% of the transfer value toward the tax. A contador should run your specific numbers before you sell.

Structure & Financing

Should I hold property in my own name or a corporation?

Both are common and fully legal. Many buyers hold property through a Costa Rican corporation (S.A. or S.R.L.) for privacy, estate planning, and ease of transfer; others simply buy in their own name. A corporation carries annual obligations — the legal-entity tax and a beneficial-owner filing — so the right choice depends on your goals. This is a decision to make with your attorney and contador, and we'll connect you with trusted professionals.

Can foreigners get a mortgage in Costa Rica?

Yes, though many purchases here are cash. Foreigners can finance through international lenders and select Costa Rican banks, typically with a 30%–50% down payment, on titled property registered in the National Registry. International lenders often close in 30–45 days; local banks can take three to six months given foreign-income verification. Developer and owner financing are also common on newer projects. We can point you to current options for the property you're considering.

After You Buy

Can I rent out my property when I'm not using it?

Yes. Short- and long-term rentals are common and legal across Guanacaste, and many owners offset ownership costs through vacation rentals. Through our sister company, KRAIN Property Management and Vacation Rentals, we care for roughly 120 homes — handling guests, maintenance, and owner reporting — so your property is looked after whether you visit twice a year or twelve times.

This page provides general information for prospective buyers and is current as of June 2026. It is not legal or tax advice. Costa Rican tax thresholds, residency rules, and regulations change; confirm specifics with KRAIN's attorney and contador before acting.