Can Foreigners Buy Property in Costa Rica? What the Law Says

Yes — foreigners can own titled property in Costa Rica with the same rights as citizens. Here's how titles, taxes, and the buying process actually work.

Yes — foreigners can buy property in Costa Rica with the same ownership rights as Costa Rican citizens. You do not need residency, citizenship, or a local partner. Title is registered in your own name (or a corporation you own) in the National Registry, and the law protects foreign owners exactly as it protects locals. The one exception is beachfront concession land, which we explain below.

Titled property vs. concession land: the distinction that matters

Costa Rica has two very different kinds of coastal property. Titled (fee-simple) property is full ownership, registered in the National Registry — you can sell it, will it to heirs, or mortgage it, and a foreigner can hold 100% of it. Concession land sits in the Maritime Zone: the first 200 meters from the high-tide line. The first 50 meters is public and can never be owned by anyone. The next 150 meters is government concession land — a renewable lease, not a title, and foreigners are restricted to minority stakes in it.

This is why our rule at The Costa Rica VIP is simple: we only represent titled properties. Every listing we publish is clear-title, verified in the registry — never concession land. If a beachfront deal elsewhere looks too cheap, the concession status is usually the reason.

How the buying process works

Step 1 — Offer and reservation: once a price is agreed, a reservation deposit (typically held in escrow) takes the property off the market.
Step 2 — Due diligence: your attorney verifies the title in the National Registry, checks for liens, easements, and boundary issues, and confirms taxes are paid. This usually takes 2 to 4 weeks.
Step 3 — Transfer: a notary public (in Costa Rica, a specialized attorney) drafts the transfer deed, funds move through escrow, and the sale is recorded in the National Registry.

Foreign buyers commonly complete the entire process without being in the country, using a power of attorney.

What it costs to close

Property transfer tax: 1.5% of the registered value.
Notary and legal fees: typically 1% to 2%.
Escrow and registry stamps: roughly another 1%.

Budget around 3.5% to 4.5% of the purchase price in total closing costs. Annual property tax after that is 0.25% of the registered value — one of the lowest rates in the hemisphere.

Common mistakes foreign buyers make

Buying concession land believing it was titled — always verify in the registry, never on the seller's word.
Skipping a survey: registered boundaries and fence lines don't always match, especially on older rural properties.
Using the seller's attorney for both sides. Hire your own.
Underestimating the value of local, on-the-ground representation after the sale — property management, caretakers, and rental income all depend on it.

Do you pay a buyer's commission?

Not with us. The seller pays the commission on our listings — buyers pay no fee to The Costa Rica VIP. We walk every buyer through registry checks, escrow, and the tax steps with vetted local attorneys.

Ready to look at real options? Browse our for-sale listings — from a $155,000 furnished villa in Jacó to $1.7M luxury estates in Playa Hermosa — or write us at mail@thecostaricavip.com / WhatsApp +506 6263 1036. One dedicated agent handles your inquiry from first message to closing.

Featured property: 1 Bedroom Villa for Sale in Jaco Beach, Costa Rica