Costa Rica Buying Property in Costa Rica

Buying Process, Fees & Taxes

Can foreigners buy property in Costa Rica?

Yes foreigners can buy property in Costa Rica and have the same property ownership rights as Costa Rican citizens for titled property. However, foreigners cannot own 100% of property in the Maritime Zone (the first 200 meters from the high tide mark), where special concession rules apply. Only 5% of Costa Rica’s beachfront property is titled, making titled oceanfront property rare and often more expensive.

Buying process

Buying property in Costa Rica is a relatively simple process, which typically involves the following steps:

1. Begin your property search.
2. Find your perfect property and make an offer.
3. Once you have made an offer on a property via a Letter of Intent, and that offer has been accepted, a Sale and Purchase Agreement will be drafted.
4. Following a period of due diligence, closing takes place before a Notary Public.
5. Pay all required taxes and fees.

Fees & taxes

Transfer Tax

Transfer Tax amounts to 1.5% of the purchase price or the property’s tax value, whichever is higher. The Transfer Tax is usually paid by the buyer, but the parties can agree to different arrangements.

Property Tax

There is also an annual Property Tax of 0.25% of the property value due on a quarterly or annual basis, as well as an annual Luxury Tax of 0.25% – 0.55% (on homes valued over approximately US $285,000 or ₡145,000,000 colones) depending on property size and features.

Legal Fees

Additionally, buyers should budget for legal fees of 1-2% of the purchase price.

Residency & Citizenship

How long can a foreign citizen stay in Costa Rica?

Citizens of countries including the USA, Canada, UK, the EU and most countries in the Caribbean and South America are permitted to remain in Costa Rica for up to 180 days without a visa under a tourist waiver.

How do you become a resident of Costa Rica?

Costa Rica offers several residency programs, all of which provide a pathway to temporary residency in Costa Rica and require renewal every 2 years:

• ‘Pensionado’ Visa – requires a minimum monthly income of US $1,000 per couple from Social Security or a government guaranteed pension.
• ‘Rentista’ Visa – requires a minimum income of US $2,500 per month for a minimum of 2 years from investments guaranteed by a banking institution or a $60,000 deposit in a bank in Costa Rica.
• ‘Inversionista’ Visa – requires a minimum investment of US $150,000 in real estate or a business in Costa Rica.
• ‘Digital Nomad’ Visa – requires a minimum monthly income of US $3,000 and enables remote workers to legally stay and work in Costa Rica for up to one year, with the option to renew for another year.

After 3 years as a lawful temporary resident, you can apply for permanent residency in Costa Rica.

Find out more: Retire in Costa Rica

How do you become a citizen of Costa Rica?

Financially self-sufficient individuals who have lawfully resided in Costa Rica for 5 years (in the case of citizens of other Central American countries, Spain or Latin America) or 7 years (in the case of all other nationalities) are permitted to apply for citizenship by naturalization. After legally residing in Costa Rica for the defined period, and demonstrating mastery of Spanish, qualifying foreign nationals are eligible for citizenship.