Buying property in Costa Rica 2023 has become increasingly popular among international investors and retirees seeking tropical real estate opportunities.
The process involves specific legal requirements, financial considerations, and due diligence steps that foreign buyers must navigate carefully. We at Osa Property Management have guided countless clients through successful property purchases across Costa Rica’s diverse regions.
Legal Requirements for Buying Property in Costa Rica
Costa Rica grants foreigners the same property ownership rights as locals. Americans and other foreign nationals can purchase most properties without restrictions. The process requires specific documentation including a valid passport, bank verification letter that confirms funds availability, and proof of income source. Wagner Loria from Keller Williams Tamarindo confirms that foreign buyers face no ownership limitations except in Maritime Zone areas within 150 meters of high tide lines, where foreigners can only own up to 49% through special concessions.
Required Documentation Process
Foreign buyers must provide bank statements, income verification, and complete due diligence reports that include structural surveys and flood risk assessments. The attorney will verify property boundaries, check for liens or encumbrances, and handle the mandatory public notary requirements for deed recording. A 10% deposit goes into escrow upon the buyer’s signature on the purchase agreement.
Attorney Selection and Legal Fees
Qualified bilingual attorneys handle title searches, contract negotiations, and guide buyers through the National Registry recording process. These legal professionals protect against costly title disputes and navigate complex property laws. Legal fees typically range from 0.5% to 1% of purchase price, but this investment provides essential protection for foreign buyers who may not understand local regulations.
Transaction Timeline and Costs
The purchase process spans 1-3 months from initial offer to possession. Closing costs total approximately 4-5% of sale price and include the 1.5% property transfer tax and 0.18% documentary stamps. Properties over $214,000 face additional luxury tax up to 0.55% annually (making proper legal guidance essential for tax planning). These financial obligations require careful budgeting beyond the property’s purchase price.
Understanding these legal requirements sets the foundation for your Costa Rican property purchase, but financial planning and market analysis play equally important roles in your investment decision.
What Does Costa Rica Property Actually Cost
Costa Rica’s property market shows significant price variations across regions, with Guanacaste province registering the highest average prices nationwide in July 2025, with apartments at $2,990 per square meter. Wagner Loria confirms starter homes in Tamarindo range from $350,000 to $500,000, while luxury properties reach $1-2 million. Anna Velez notes Playas del Coco offers more affordable options that start at $200,000, with luxury ocean-view properties up to $1.6 million. These numbers reflect post-pandemic price increases that foreign buyer demand drove.
Finance Options for Foreign Buyers
Costa Rican banks rarely finance foreign buyers, which forces most international purchasers to pay cash. Charles Wollertz emphasizes that investments over $150,000 can lead to residency status (which provides tax benefits and expedited immigration processing). We recommend you secure finance in your home country through home equity loans or cash-out refinance before you purchase. The 10% escrow deposit requirement means you need substantial liquid funds available immediately upon contract signature.
Hidden Costs Beyond Purchase Price
Annual property taxes remain low at 0.25% of assessed value, but luxury homes over $233,900 face solidarity tax up to 0.55% yearly. Rental property owners pay 15% tax on 85% of rental income with monthly file requirements. Corporation formation costs approximately $120 annually even for inactive companies, while garbage collection fees vary by municipality. Property reassessments occur every five years, and failure to comply with shareholder declarations can result in penalties from $2,000 to $79,000.
Budget an additional 15-20% above purchase price for these costs and initial setup expenses.
Market Trends and Price Factors
The Costa Rican real estate market has proven more stable than U.S. markets, with less susceptibility to economic bubbles. Tourism industry growth continues to drive rental income potential, particularly in beach communities like Tamarindo and Playas del Coco. New luxury developments include brands like Waldorf Astoria and One & Only, which boost local property values and create premium market segments.
Once you understand these financial realities, the next step involves thorough property research and location analysis to identify the best investment opportunities.
How Do You Find and Verify the Right Property
Location research starts with understanding microclimates and infrastructure differences across Costa Rica’s regions. Tamarindo offers starter homes from $350,000 with strong rental potential, while Playas del Coco provides more affordable options that start at $200,000 and sits only 25 minutes from Liberia International Airport. La Fortuna features cooler temperatures and volcano proximity with homes between $200,000-$800,000, which makes it ideal for those who avoid coastal heat. Wagner Loria emphasizes that properties within walking distance to beaches, shops, and restaurants command premium prices but offer better resale values. Visit properties during both dry and rainy seasons to assess flood risks and structural integrity under different weather conditions.
Property Inspection and Structural Assessment
Professional structural surveys identify foundation issues, electrical problems, and water damage that tropical climates can cause. SUGEF registered agents provide oversight from Costa Rica’s financial authority and help avoid overcharging during negotiations. Anna Velez recommends multiple property viewings across different weather conditions to spot potential drainage problems or structural weaknesses. Flood risk assessment becomes essential for properties near water sources (as heavy rains can cause significant damage). The inspection process should include checks for proper ventilation systems, as humidity control prevents mold growth in tropical environments.
Title Verification and Legal Standing
Title searches through the National Registry reveal liens, encumbrances, or ownership disputes that could derail your purchase. Only 5% of Costa Rica’s beaches have titled land up to the 50-meter line (which makes beachfront verification critical). Jaco Beach and Los Suenos represent rare examples of titled beachfront properties, while most coastal areas involve Maritime Zone restrictions.
Your attorney must verify property boundaries match official records and check for any pending legal issues. Companies that hold property require annual shareholder declarations, and failure to file these can result in penalties up to $79,000, which makes legal standing verification essential before purchase.
Market Research and Pricing Analysis
Compare property prices across similar neighborhoods to identify fair market value and avoid overpaying. In San José, apartment prices averaged USD 2,701 per square meter, reflecting a 20.03% annual increase. Properties in expat-popular areas like Tamarindo or Santa Ana offer better resale opportunities but command higher initial prices. The competitive market requires thorough price analysis and negotiation preparation (expect some back and forth during the purchase process).
Final Thoughts
Buying property in Costa Rica 2023 demands careful attention to legal requirements, financial preparation, and thorough property research. Foreign buyers must hire qualified bilingual attorneys, prepare substantial cash payments since local banks rarely finance international purchases, and budget 4-5% in closing costs plus annual tax obligations. The complete process takes 1-3 months from initial offer to final possession, with property transfer taxes at 1.5% and luxury taxes that affect homes over $214,000.
Location selection proves vital as property prices vary dramatically between regions. Tamarindo starter homes begin at $350,000 while Playas del Coco offers entry-level options from $200,000. Professional structural surveys and title verification through the National Registry protect buyers against costly disputes and hidden property issues.
We at Osa Property Management have helped clients complete successful property purchases across Costa Rica’s diverse regions. Our team handles property research, legal coordination, and post-purchase management services. Professional guidance throughout the purchase process prevents expensive mistakes and provides confidence for foreign investors who navigate Costa Rica’s unique property market.