Everything a serious buyer needs to know before purchasing property in Costa Rica.
Legal framework, process steps, costs, due diligence, and what to watch out for — covered plainly and without hype.
Understanding the Costa Rica property market
Costa Rica has one of the most buyer-friendly foreign real estate markets in Latin America. Foreigners hold the same ownership rights as citizens on titled property, prices are quoted in US dollars, and the public title registry is transparent and searchable. That said, the market also has meaningful quirks that catch buyers who do not do their homework.
There is no MLS (Multiple Listing Service) in Costa Rica. Properties are listed by individual agents and agencies with no centralized database, no standardized disclosure requirements, and no binding code of ethics for agents. Prices are sometimes inflated significantly above what the market will actually support. Due diligence by a qualified independent attorney is essential on every transaction.
What makes Costa Rica different
- Foreigners own titled property outright — no restrictions
- No residency required to buy privately titled property
- Public title registry (Registro Nacional) — searchable by folio real number
- Transactions typically in USD
- Property taxes are very low (0.25% annually)
- No unregulated agent licensing — buyer vigilance required
- No MLS — properties listed across multiple platforms
- Coastal concessions have different rights and foreign-participation restrictions; verify whether the property has private title or a concession
How to buy property in Costa Rica
Define what you are looking for
Decide on region, property type, budget, and intended use (primary residence, vacation rental, investment, retirement). These four criteria should narrow your search before you spend time viewing properties. Costa Rica is geographically diverse — the Central Valley (cool, urban), North Pacific (dry, sunny), Central Pacific (lush, accessible), and South Pacific (remote, dramatic) each have different climate, infrastructure, and market dynamics.
Research the market honestly
Properties are listed at asking price — not at market value. Research recent comparable sales in your target area. Talk to multiple agents. Be skeptical of anything described as a “deal” — if the price looks too low for the area, ask why. Common reasons include legal problems with title, disputes with neighbors, access issues, or unpermitted construction.
Engage a Costa Rican attorney before anything else
Retain your own independent attorney (abogado) before making any offer or signing any document. The attorney should be someone you found independently — not a referral from the seller or selling agent. The attorney will conduct the title search, check for liens, verify the legal status of the property, and advise you on any issues before you commit money.
Visit the property in person
Photos cannot capture access road conditions, noise (from neighbors, roads, or commercial operations), drainage issues, slope instability, or the quality of neighboring land. Visit the property at different times of day if possible. Walk the full perimeter. Check the access road yourself — some Costa Rican listings with beautiful photos have access roads that are impassable in a standard vehicle during the rainy season.
Make an offer via promissory agreement
Offers are formalized through an Opción de Compraventa (Option to Purchase / Promissory Agreement). This document specifies: sale price, deposit amount and escrow holder, due diligence period (typically 30–45 days), contingencies, and closing date. A deposit of 5–10% is typical. Deposits should be held by a neutral escrow — not handed directly to the seller or seller’s agent.
Complete due diligence thoroughly
During the agreed due diligence period, your attorney should verify: registered title (folio real), lien and annotation history, cadastral survey match to physical boundaries, property tax payment status, building permits for any construction, water service rights (ASADA or AyA), zoning designation, environmental restrictions, HOA status and financials if applicable, and easements or rights-of-way affecting the property.
Closing and title registration
Closing is conducted by a notary-attorney (notario público) in Costa Rica. The transfer deed (escritura de compraventa) is signed before the notary, who then registers the transfer at the Registro Nacional. Title officially passes when registration is complete — typically 2–4 weeks after signing. Total time from accepted offer to registered title: 60–90 days for a clean transaction.
What your attorney should verify before closing
Title and legal status
- Folio real number confirmed active
- Title history (at least 10 years back)
- No liens (gravámenes) or mortgages
- No annotations (anotaciones) or judicial holds
- Correct owner name matches seller
- SA documents if held in corporation
Physical property
- Cadastral survey (plano) on file with CATASTRO
- Physical boundaries match registered survey
- Legal access road confirmed (not crossing private land)
- No encroachments on neighboring land
- Structures match permitted plans
- Building permits on file for construction
Services and obligations
- Property taxes current with municipality
- Water service rights documented (ASADA or AyA)
- Electricity service in order (ICE or CNFL)
- HOA fees current (if condominium)
- No zoning violations or open municipal complaints
- Environmental restrictions checked (SETENA, SINAC)
Full cost of buying — what to budget beyond the sale price
Closing costs (buyer, roughly 3–4% of price)
- Transfer tax: 1.5% of sale price or fiscal value
- Notary fees: ~1.25% of transaction value
- Attorney due diligence: $500–$1,500 USD
- Property survey update: $300–$700 USD
- Escrow fee: $200–$500 USD
- Registro Nacional stamps: included in notary fee
Ongoing annual costs to plan for
- Property tax: 0.25% of fiscal value annually
- SA annual tax: ~$250–$1,000 USD (if held in corporation)
- HOA fees: $200–$600+/month (if condominium)
- Property manager: 10–15% of rental income if renting
- CCSS (social security): Required if you employ domestic workers
- Maintenance: Budget 1–2% of value annually for upkeep
Browse current Costa Rica listings.
View properties with real photos and honest pricing — or contact GAP to discuss what you are looking for.
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