Make an Offer
Once you have selected a listing, your real estate agent will prepare a Purchase and Sale Agreement (PSA) outlining the purchase price, conditions, and closing date. Both buyer and seller review and sign the agreement.
Safe, Secure Ownership for International Buyers
Purchasing real estate in Costa Rica is a straightforward and secure process, very similar to buying real estate in Canada, the United States, or Europe. Foreign buyers have the same ownership rights as Costa Rican citizens when purchasing fee simple real estate, which is the most common form of ownership in the country.
- Foreigners can legally own real estate in their own name
- Ownership is protected by the Costa Rican Constitution
- Titles are registered in the national Public Registry
Listing Ownership
Most listings in Costa Rica are owned as Fee Simple, meaning the buyer receives full legal ownership. This type of ownership is the same as in Canada or the United States, allowing the owner to sell, rent, or transfer freely. The only exception is certain beachfront concession land, which is explained further below. Any parcel located more than 200 meters from the high tide line is typically fee simple ownership.
The Buying Process
Escrow & Deposit
An independent escrow company is used to safely hold funds during the transaction.
• The standard deposit is 10% of the purchase price
• The deposit is typically due within 10 business days of the signed agreement
• Escrow companies hold all funds in trust until closing
Escrow fees are generally under $1,000 USD and are typically shared between the buyer and seller.
Due Diligence
Owning real estate in Costa Rica is similar to Canada, the U.S., and Europe. "Fee simple" ownership—the highest level—is fully protected by the Constitution. The main exception is "concession land," which covers most beachfront land within 200 meters of the high tide line. Beyond that zone, ownership is fully fee simple.
Closing
Owning real estate in Costa Rica is similar to Canada, the U.S., and Europe. "Fee simple" ownership—the highest level—is fully protected by the Constitution. The main exception is "concession land," which covers most beachfront land within 200 meters of the high tide line. Beyond that zone, ownership is fully fee simple.
Buying Personally or Through a Corporation
Buyers may purchase real estate under their personal name or through a Costa Rican Corporation. Many buyers choose a corporation for privacy or estate planning purposes. Your lawyer will help determine the best structure for your purchase.
Closing Costs
Closing costs in Costa Rica are typically around 4% of the purchase price. These costs generally include:
Legal Fees
Approximately 1.25%
Government Transfer Tax
1.5% to 1.6%
Documentary Stamps and Registry Fees
Approximately 1%
Escrow Fees
Usually shared between buyer and seller
Your legal team will provide a detailed breakdown during the transaction.
Annual property tax
Costa Rica is known for having very low annual property taxes. The rate is 0.25% of the registered cadastral value per year.
For example: A listing valued at $200,000 USD would have an annual property tax of approximately $500 USD.
Luxury Home Tax
Higher-value listings may be subject to an additional Luxury Home Tax. This tax applies to homes above a government-set threshold and ranges approximately from 0.25% to 0.55% of the registered value, depending on the assessed value of the home. Your lawyer will confirm whether a listing qualifies for this tax during the purchase process.
Furnishings
Unlike many countries, homes and condominiums in Costa Rica are often sold fully furnished and equipped. A detailed inventory list is typically included as part of the purchase agreement.
Beachfront concession land
Most beachfront land in Costa Rica is in the Maritime Zone, which extends 200 meters inland from the high tide line. The first 50 meters is public and cannot be owned. The next 150 meters may be granted as a government concession—a long-term lease rather than full ownership. Due to extra regulations, buyers should consult an experienced real estate agent and lawyer when considering concession land.
Frequently Asked Questions
Common questions from international buyers about investing in Costa Rica real estate.