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 the Government of Costa Rica welcomes investment from overseas buyers. There are no restrictions on foreign buyers acquiring real estate in Costa Rica except for beachfront concession property (the first 200 meters from the high tide mark). Property located in the “50-meter zone” (the first 50 meters) is considered public property. Property located in the “150-meter zone” (the next 150 meters of land) is typically owned by the relevant municipality. Property in the “150-meter zone” can be leased by concession for up to 20 years (with the option to renew thereafter) but requires a Costa Rican national to own more than 50%, except in Tamarindo and Potrero where almost all beachfront land after the first 50-meters is titled and available for purchase.

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

Buyers are responsible for paying a Transfer Tax of 1.5% of the purchase price, plus their own legal fees of 1-2%.

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 0.1% – 0.25% (on homes valued over $200,000) depending on property size and features.

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 90 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 $200,000 in a property or business in Costa Rica.

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.