Topic: How to Buy Land in Costa Rica Without Regret
Want to buy a slice of paradise? Here’s what you need to know first.
There’s something wildly seductive about owning land in Costa Rica. Maybe it’s the thought of waking up to toucans in the trees or building your dream home just steps from the Pacific. But before you start imagining hammocks and hibiscus, let’s get something straight—buying land here isn’t the same as buying back home. The laws are generous to foreigners, but the process comes with its own quirks, rules, and “read-the-fine-print” moments. This guide lays it all out so you can step confidently into your Costa Rican land adventure—no regrets, no hidden surprises, just smart steps and real answers.
Can foreigners buy land in Costa Rica?
Yes, foreigners have the same property ownership rights as locals in most cases.
Costa Rica stands out in Latin America for its property-friendly laws that allow foreigners full ownership of land. Whether you’re eyeing beachfront plots, jungle hideaways, or farmland in the Central Valley, you can hold the title directly in your name or through a corporation.
What should I look for before buying land?
Location, title clarity, and infrastructure are critical when buying land in Costa Rica.
You might fall in love with a lush green property, but make sure it ticks the boxes below before signing anything:
• Titled vs. Untitled Land
Titled land has a proper deed recorded in the national registry. Untitled or concession land, especially in maritime zones, comes with restrictions and risk—so tread carefully.
• Access to Utilities
Does it have water, electricity, internet? If not, what’s the process and timeline for connecting?
• Topography and Soil
Mountain land might offer amazing views, but steep slopes could mean expensive foundations or limitations on construction.
• Zoning Regulations
Each municipality sets its own rules. You need to know if your dream plot is zoned for residential, commercial, or protected use.
• Environmental Restrictions
In areas rich in biodiversity, certain trees and rivers are protected. You might not be allowed to build near them or cut anything down.
How do I safely transfer ownership?
You need a trusted notary public to legally register the sale.
Costa Rica doesn’t use solicitors the way other countries do. Instead, a notary public—who is also a licensed attorney—handles the legal work, conducts due diligence, and records the transfer in the national registry.
• Title Search
This confirms the seller owns the land and checks for liens or pending legal issues.
• Escrow Services
International buyers should always use a reputable escrow company to hold funds until the sale is complete.
• Transfer Deed (Escritura Pública)
This document is signed by both parties and notarised—it’s your legal proof of ownership.
Should I buy through a corporation?
Buying through a Costa Rican corporation offers tax and legal benefits.
Many foreign buyers set up a Costa Rican Sociedad Anónima (S.A.) or Limitada (LTDA) to purchase land. This structure makes it easier to manage estate planning, share ownership with a partner, and reduce certain tax liabilities. However, there are annual obligations such as tax declarations and fees.
What hidden costs should I expect?
There are closing costs, annual taxes, and potential infrastructure expenses.
Beyond the sticker price, land buyers should factor in:
• Closing Costs
Expect about 3% to 4% of the purchase price. This includes legal fees, registration, and transfer tax.
• Property Tax
Low compared to other countries—around 0.25% annually, based on the declared value.
• Luxury Tax (if applicable)
Applies to homes (not raw land) valued over a certain threshold, recalculated every three years.
• Future Development Costs
Raw land may require a well, septic tank, access road, or power lines—all of which can significantly raise your total investment.
Can I build right away?
You must first obtain permits and comply with zoning and environmental laws.
Even if you own the land, building requires going through the municipality, the Ministry of Health, and SETENA (Costa Rica’s environmental authority). Be prepared for a paperwork process, but a good architect or project manager can guide you through it.
Is buying land in Costa Rica a good investment?
Yes, especially in areas seeing high tourism and expat growth.
Costa Rica’s land values have steadily risen over the past decade, particularly in places like Guanacaste, Santa Teresa, Dominical, and La Fortuna. As infrastructure improves and global interest grows, well-located land becomes increasingly valuable—especially if it has ocean views or eco-tourism potential.
FAQ
Do I need to be a resident to buy land in Costa Rica?
No. Foreigners can purchase and own land with full rights regardless of residency status.
Is it safe to buy land remotely?
Yes, but only if you use a trusted attorney and a licensed escrow service. Always get documents reviewed and signed through legal channels.
Can I finance land as a foreigner?
Costa Rican banks rarely offer land loans to foreigners without residency, but some private lenders and developers do offer financing options.
What’s a concession property?
Land within 200 metres of the high-tide line is part of the Maritime Zone. Foreigners can only hold a concession if they are legal residents and the property is registered under a Costa Rican company with at least 51% local ownership.
