How to Buy Property in Costa Rica as a Foreigner: A Step-by-Step Guide

Buying property in Costa Rica as a foreigner is possible, but the best purchase starts with understanding why you are buying, what you need, and how the process works.

Here is a simple overview of the process.

1. Define Why You Want to Buy

Before looking at properties, determine whether you are buying for personal use or as an investment.

If you plan to live in Costa Rica, your lifestyle and daily needs should guide your choice of location.

For families with children, proximity to schools can be especially important. Some residential communities are located right next to international schools, such as Hacienda Espinal and Hacienda Los Reyes, making everyday life much more convenient.

It is also worth considering whether your purchase could support a future residency application. Costa Rica has an Investor Residency category for qualifying investments. If residency is one of your goals, it is important to consider this before purchasing and structure the investment accordingly.

If you are buying as an investment, your priorities may be different: rental demand, location, potential return, property management, maintenance costs and long-term appreciation.

The key is to determine your goals before choosing the property.

2. Choose the Right Location and Property

Costa Rica offers very different lifestyles and real estate markets.

You may be looking for a home near international schools, a secure gated community, a vacation property near the beach, a luxury home, or a property with strong rental potential.

Your purpose for buying should determine where you look.

3. Make an Offer

Once you find the right property, you can negotiate the price and terms with the seller.

When both parties agree, the terms should be documented in writing before money is transferred.

4. Conduct Legal Due Diligence

This is one of the most important steps.

Your attorney should verify the property’s registration with the Registro Nacional, including ownership, liens, mortgages, easements, annotations and other restrictions.

Depending on the property, due diligence may also include reviewing the cadastral plan, municipal taxes, zoning, building permits, condominium regulations, utilities and other relevant documents.

For coastal properties, additional legal review is essential because the Maritime-Terrestrial Zone is subject to special rules.

5. Sign the Purchase Agreement and Secure the Funds

Once the property passes due diligence, the parties can proceed according to the purchase agreement.

For international buyers, funds are commonly handled through an appropriate escrow structure, particularly when transferring significant amounts of money internationally.

Your attorney or escrow provider will also explain the documentation required to verify the source of funds.

6. Close the Purchase

The transfer of real estate is formalized through a Costa Rican notary public, who is also a licensed attorney.

The purchase deed is signed, the funds are released according to the agreement, and the transfer is submitted for registration.

7. Register the Property

After closing, the transfer is registered with the Registro Nacional.

Once the registration process is completed, the property will be recorded in the buyer’s name or in the name of the ownership structure chosen for the purchase.

How Long Does It Take?

A straightforward transaction can often be completed within several weeks, although the timeline depends on the property, the complexity of the due diligence, financing, documentation and other circumstances.

What Should Foreign Buyers Remember?

The most important thing is not to rush the purchase.

Before transferring significant funds or signing a binding agreement, make sure you understand:

• Who legally owns the property

• What exactly you are purchasing

• Whether there are liens or restrictions

• Whether the property can be used for your intended purpose

• The total costs of the transaction

• Whether you should purchase personally or through another ownership structure

Buying Property in Costa Rica With the Right Guidance

Buying real estate in Costa Rica can be a straightforward and rewarding experience when the process is handled correctly.

As both a Costa Rican real estate professional and an attorney, I believe that the best transactions combine good real estate advice with careful legal due diligence.

The goal is not simply to find a beautiful property.

The goal is to make sure it is the right property for you — and that you know exactly what you are buying.

This article provides general information and is not a substitute for individualized legal, tax or immigration advice.