10 Questions Everyone Asks Before Buying Property in Costa Rica (Answered)

After more than 25 years helping international buyers and investors find property in Costa Rica, we hear the same questions again and again. They are good questions, and knowing the answers early makes the whole process calmer and more enjoyable.

Here are the 10 questions buyers ask us most, with plain answers. This is general information, not legal advice, so please confirm the details with a Costa Rican attorney before you sign anything.

1. Can foreigners buy property in Costa Rica?

Yes. Foreigners have the same property rights as Costa Rican citizens. You can buy titled land and homes in your own name or through a Costa Rican company, and you do not need to live here or hold residency to do it.

The one important exception is land inside the maritime zone, which we explain in question 3.

2. How do I know the title is clean?

Every property is recorded in the National Registry (Registro Nacional). Before you buy, your attorney should check the registered owner, the property plan (plano catastrado), and whether there are liens, mortgages, easements, or legal notes attached to the property.

A clean title and a plan that matches the land on the ground are the foundation of a safe purchase. This step is not optional.

3. What is the maritime zone, and does it affect my purchase?

Land within 200 meters of the high tide line is part of the maritime zone. The first 50 meters are public. The remaining 150 meters are generally held under a municipal concession rather than full title.

Foreigners need to have lived legally in Costa Rica for at least five years to hold a concession. Many beautiful beach area homes sit outside this strip and have full title, which is why checking this early matters.

4. Do I need a lawyer, and how does the process work?

Yes. A Costa Rican notary public, who is also an attorney, must formalize the transfer. We recommend your own independent attorney as well.

The usual path is an offer, a purchase agreement with a deposit, a due diligence period while your attorney reviews the property, and then closing at the notary. Many purchases close in roughly one to two months, depending on the property.

5. What are the closing costs?

As a general guide, buyers should plan for roughly 4% to 6% of the purchase price. This includes the transfer tax (1.5%), stamps and registry fees, and notary and legal fees.

The agent commission is normally paid by the seller. Exact costs depend on the price and the transaction, so ask your attorney for a written estimate.

6. What are the annual property taxes?

Property tax in Costa Rica is low compared with many countries, about 0.25% of the registered value of the property each year. Higher value homes can also be subject to an additional luxury home tax, and owning through a company carries a small annual fee.

Your attorney can calculate the exact figures for the property you are considering.

7. Can I get financing?

Most international buyers pay cash. Some Costa Rican banks lend to foreigners, but expect a larger down payment and different terms than you may be used to at home. In some cases sellers offer financing directly, which can be a useful option.

If financing matters to you, tell us early and we will point you toward properties and sellers that fit.

8. Can buying property help me get residency?

It can. An investment of at least US$150,000 in real estate can qualify you for investor residency. Immigration rules change, so speak with an immigration attorney to confirm the current requirements before you plan around it.

9. What should I check about water, electricity, and access?

This is where many surprises happen, especially on land. Confirm that the property has a reliable water source (a community ASADA connection, a well, or a water availability letter), electricity at or near the property, and legal access by a road you can use year round.

If you plan to build, check what the land is zoned for and what permits you will need before you buy, not after.

10. Can I rent my property to earn income?

Yes. Vacation rentals and long term rentals are popular, especially in established beach and tourist areas. Rental income is taxed, and some communities have rules about short term rentals, so check these before you count on a specific return.

We also coordinate rentals, so ask us about the rental potential of any property you are considering.

Ready to start your search?

Buying in Costa Rica is very doable when you have the right information and the right team. Properties in Costa Rica has been helping buyers and investors since 1999, and we are happy to answer your questions, show you properties, and connect you with trusted professionals.

Contact us at info@propertiesincostarica.com, call toll free from the USA and Canada at +1 888 607 6772, call Costa Rica at +506 4034 8563, or message us on WhatsApp at +506 8822 5061.

This article is for general information only and is not legal, tax, or financial advice. Laws, taxes, and fees change, so please confirm current requirements with a licensed Costa Rican attorney.