Costa Rica consistently ranks as one of the most desirable destinations in the world for real estate investment. Its political stability, natural beauty, affordable cost of living, and welcoming culture attract thousands of foreign buyers every year. But purchasing property here has unique particularities that every international buyer must understand before signing anything.
The short answer: as a foreigner, you can buy and own property in Costa Rica with the same rights as a Costa Rican, either in your own name or through a company. What changes is the coast, where the Maritime Terrestrial Zone is not sold but granted as a concession, and the homework before you buy: the National Registry, the cadastral plan, zoning, unpaid taxes, and an independent appraisal before you make an offer.
Can Foreigners Own Property in Costa Rica?
Yes, and this is one of the most important things to know. Foreigners enjoy the same property ownership rights as Costa Rican citizens. You do not need to be a resident, hold a cédula (national ID), or have any type of visa to purchase and own real estate in your name. The Costa Rican Constitution guarantees property rights regardless of nationality: Article 19 states that foreigners have the same individual rights and duties as Costa Ricans, subject to the exceptions set by the Constitution and the law.
The critical exception is the Maritime Terrestrial Zone (Zona Marítimo Terrestre, or ZMT): the first 200 meters inland from the ordinary high-tide line are state property. Within this strip, foreigners who have not been legal residents for at least five years cannot hold concessions directly. Many buyers discover too late that the beachfront property they were offered is not private land but a government concession with significant legal restrictions.
Ways to Buy: In Your Name, Through a Company, or With a Loan
Decide the structure with your attorney before you sign a purchase option:
- In your own name. The deed is signed before a Costa Rican notary public and then recorded at the National Registry.
- Through a company. A Costa Rican company has its own yearly obligations, such as the beneficial ownership filing with the Central Bank (Law 9416). And buying the shares of a company that owns a property does not avoid transfer tax: the law also taxes indirect transfers, meaning a transfer of control over the company that holds the property.
- With a bank loan. The lender assigns the appraiser for the loan. An independent appraisal you commission helps you decide and negotiate; it does not replace the bank’s.
- From abroad. If you can’t sign in Costa Rica, your attorney will tell you how to grant a valid power of attorney.
Why an Independent Appraisal Is Essential
One of the most expensive mistakes foreign buyers make is trusting the price set by the seller or real estate agent without independent verification. In popular tourist areas like Guanacaste and the Central Pacific coast, prices are routinely inflated for international buyers, sometimes well above actual market value.
An independent appraisal performed by a CFIA-licensed appraiser provides you with:
- The actual market value based on comparable sales and property condition analysis
- Identification of registry, legal, or physical issues that affect value
- A technical foundation for price negotiations with solid evidence
- Protection against overpaying in markets where pricing is opaque
An appraisal is not a cost; it is an investment that can save you tens of thousands of dollars.
What to Check at the National Registry
Before you commit any money, ask your attorney for these documents (or order them on the Registry’s online portal):
- Literal certification of the property (certificación literal): owner, property details, liens, and annotations. Check it again on closing day.
- History of registry movements: very recent or back-to-back transfers deserve a question.
- Cadastral plan (plano catastrado): location, area, and recorded boundaries, to compare on the ground.
- Property held “en derechos”: if the land has several co-owners in shares, you would be buying a share, not a defined lot, and that changes its value.
After you buy, the Registry’s registry alert service (alerta registral), a paid service you sign up for online, emails you when a document is filed on your property, a real help if you live abroad.
The Maritime Terrestrial Zone: A Concession Is Not Ownership
Law 6043 declares the ZMT inalienable: it cannot be sold. It covers 200 meters measured from the ordinary high-tide line, split into a public zone (the first 50 meters, for public use) and a restricted zone (the remaining 150 meters), where the municipality may grant concessions of 5 to 20 years in exchange for a fee (canon).
Beyond the rule for individual foreigners, Article 47 bars concessions to companies domiciled abroad, to entities formed in Costa Rica by foreigners, and to entities more than 50% foreign-owned. The same article bars a concession-holding company, or its partners, from transferring shares or quotas to foreigners, and declares such transfers void. A concession also cannot be transferred or encumbered without authorization from the municipality and the relevant government institute (Article 45).
The law does not apply to coastal cities or to properties lawfully recorded in the name of private owners. That is why the first question on the coast is always whether you are buying a titled property or a concession.
Transfer Taxes and Closing Costs
Your notary calculates the final amounts; confirm the tax treatment with an accountant:
- Transfer tax: 1.5% (Law 6999), which the law assigns in equal parts to the seller and the buyer, who are jointly liable for it. It is calculated on the real transaction value, which must match the usual market value and can never be lower than the highest value recorded for the property for property tax purposes. Registration fees and stamps are added.
- The value in the deed is a sworn statement (Article 9 of Law 6999), and the tax authority can audit it and assess the tax that applies. Understating the price is not a safe practice.
- Property tax: 0.25% per year of the registered value, collected by the municipality (Law 7509). The new owner is jointly liable for taxes the previous owner left unpaid, so ask for a certificate showing the property is current. The deed value updates the tax base (the buyer must report the purchase price to the municipality), and owners must declare their property’s value at least every five years.
- Solidarity tax (Law 8683): applies to homes whose construction value exceeds a threshold the government updates every year. Check it if you are buying a luxury home.
Common Pitfalls When Buying Property in Costa Rica
Overpaying in Tourist Areas
Markets in Tamarindo, Manuel Antonio, Jacó, Nosara, and other areas popular with foreigners often have artificially elevated prices. Without a professional appraisal, you have no way of knowing whether the asking price is justified by actual market data.
Not Checking the National Property Registry
Every property in Costa Rica must be registered at the Registro Nacional (National Property Registry). Before buying, you must verify that the property is properly registered, the seller is the legitimate owner, there are no outstanding mortgages, liens, annotations, or encumbrances, and the cadastral plan (plano catastrado) matches the physical reality of the lot.
Ignoring Maritime Terrestrial Zone Issues
Many coastal properties marketed as “beachfront” are located within the ZMT. If you are a foreigner who has not lived in Costa Rica for at least five years, you cannot directly hold a concession. Some buyers create Costa Rican corporations (sociedades anónimas) with local partners as intermediaries, but these structures carry significant legal risks and do not guarantee long-term security: the law also bars concessions to companies more than 50% foreign-owned and to entities formed in Costa Rica by foreigners.
Boundary Disputes
In rural and coastal areas, it is common for the actual boundaries of a property to differ from what the cadastral plan indicates. A licensed appraiser verifies this information during the physical inspection and will flag any discrepancies in the report.
Skipping the Zoning and Protected Areas Check
A lot may not allow what you plan to build. Ask the municipality for a land use certificate (certificado de uso de suelo) and check for springs, rivers, or streams nearby: the Forest Law (Law 7575, Article 33) sets protection areas around them. See our guide to zoning and land use in Costa Rica.
Essential Due Diligence Steps
- Hire a Costa Rican attorney specializing in real estate to review the complete registry status of the property
- Request an independent appraisal from a CFIA-licensed appraiser, not one recommended by the seller
- Verify ownership at the Registro Nacional (National Property Registry)
- Confirm the property is outside the ZMT if you want full ownership in a coastal area
- Review the cadastral plan (plano catastrado) and compare it with the physical reality on the ground
- Investigate current taxes and municipal obligations on the property
- Check environmental regulations that may limit the use or development of the land
- Understand closing costs, which typically include transfer tax (1.5%), legal fees, stamps, and registration fees
- Move funds through a secure channel, such as an escrow account your attorney has vetted, never into an intermediary’s personal account
For a fuller checklist, see our guide to real estate due diligence in Costa Rica, and for beachfront purchases, our guide to coastal property appraisals.
How an Independent Appraisal Helps at Each Stage
- Before you offer: you know whether the asking price holds up against comparable sales, not just listings.
- While negotiating: you have a digitally signed technical report to back a counteroffer.
- During the inspection: the appraiser compares the plan with the land and documents the condition of the buildings, even if you are not in the country.
Learn more about our real estate appraisals. Legal and tax questions are for your attorney, notary, and accountant.
Why Hire a Local Licensed Appraiser
A CFIA-licensed appraiser understands local regulations, market values by zone, and the legal particularities of each property type. Appraising a condominium in San José is entirely different from appraising a farm in Guanacaste or a coastal lot in Puntarenas. International appraisal standards do not account for Costa Rica-specific factors like the ZMT, concession structures, or local environmental restrictions.
At Díaz Peritajes, we serve English-speaking and Spanish-speaking clients across all seven provinces of Costa Rica from our offices in Pérez Zeledón and Curridabat. We are a firm with several appraisers, founded by Ing. José Alberto Díaz Vidaurre, a CFIA member since 1982 (license ICO-3075). With over 20 years of appraisal experience, we provide a clear, detailed technical report that gives you the information you need to make a confident and informed purchase decision. We understand the concerns of foreign buyers and deliver reports that are straightforward, thorough, and signed by a CFIA-licensed appraiser.
FAQ
Can I buy beachfront property? Yes, if it is a titled property outside the ZMT or within the law’s exceptions. Inside the 200-meter strip, what is usually available is a municipal concession.
Does an independent appraisal replace the bank’s? No. If you finance the purchase, the bank assigns its own appraiser. An independent appraisal is for you, to decide and negotiate before you commit.
How much does an appraisal cost? From approx. ₡150,000 (USD 300); the final amount is set in the quote, based on the property type and location.
Buying property in Costa Rica? Message us on WhatsApp at +506 7272-7270 with the location and type of property, and we’ll send you a quote in less than 24 hours.