Buying property in Costa Rica: the process step by step
This guide walks a foreign buyer through the purchase process in Costa Rica, from the first offer to a registered title, and shows where a lawyer matters most.
Key points
- Foreigners can own property (Constitution, art. 19). Residency is not required to buy.
- Seven steps: budget, lawyer, offer and contract, due diligence, how to hold title, public deed, registration.
- Budget for costs on top of the price: transfer tax (commonly cited at 1.5% estimated), registry and stamps, notary and legal fees.
- Hire your own lawyer before you make an offer.
- Annual property tax is cited at 0.25% estimated; a separate solidarity tax applies above about ₡143 million of construction value for 2026.
Figures and rules labeled estimated come from secondary sources (law-firm and press summaries) and have not been confirmed against the current official text as of 2026-10-28. Confirm them with a licensed lawyer before you rely on them.
Before you start: decide what you are buying
Property in Costa Rica comes in different legal forms: a titled house or lot (finca), a unit in a condominium, a share in a company that owns land, or a concession on shoreline land. The legal form decides what you can do with the property and what checks you need. Write down your plan first: live in it, rent it, build on it or hold it as an investment.
Step 1: Set a budget that includes costs
The price is not the total. Add transfer taxes, notary and registry fees, legal fees, and, if you plan to build, permits and utility connections. Our closing cost calculator gives a rough range. Keep in mind that foreign buyers usually pay in cash or with financing from abroad, since local mortgages for non-residents can be limited. Some banks publish mortgage requirements for non-residents, but terms change, so ask the bank directly estimated.
Step 2: Hire your own lawyer before you make an offer
Your lawyer should work only for you. Ask for a written scope and quote. The earlier the lawyer is involved, the fewer surprises: they can review the listing documents before you sign anything. See what a real estate attorney does.
Step 3: Make an offer and sign a purchase option or contract
Most deals begin with a signed offer or purchase agreement and a deposit. This document sets the price, the deposit, deadlines for due diligence and what happens if the deal falls through. Do not sign a version you cannot read. Request an English explanation of every clause.
Step 4: Due diligence
This is the heart of the process. Your lawyer verifies:
- Ownership and liens at the National Registry (Registro Nacional).
- The plot and boundaries: the registered survey matches the real property.
- Zoning and permits: what you may build or rent; whether existing structures are legal.
- Access and water: legal right of way and a documented water source.
- Taxes and debts: municipal taxes, utilities and condominium fees are current.
- If the seller is a company: who may sign and whether the company is in good standing.
Step 5: Decide how to hold title
You can hold property personally or through a company. A company can simplify future sales and estate planning but adds registration and annual obligations. This is a tax and legal choice that depends on your country of residence, so ask your lawyer and your tax adviser. Typical yearly duties are a legal-entity tax and a beneficial-owner declaration, normally filed in April estimated.
Step 6: Closing and the public deed
The transfer is formalized by a notary in a public deed (escritura pública). The notary calculates the taxes and fees, collects them and files the deed for registration. Before the day of closing, review the final figures against your quote. Funds should move in a way your lawyer has explained in writing.
Step 7: Registration and what comes after
Once registered, the registry shows you as the owner. Ask your lawyer for the registry extract, keep the deed safe, and set up local utilities and tax payments. If you plan to apply for residency by investment, ask whether your purchase qualifies. The minimum is reported at US$150,000 under Law 9996, but whether it still applies after 14 July 2026 is unclear estimated; confirm in writing with Migration before you buy.
Costs on top of the price
| Item | What it is | Reported rate | Status |
|---|---|---|---|
| Transfer tax | Tax on the transfer, collected by the notary | 1.5% of the declared value | estimated |
| Registry rights and stamps | Registration of the deed and stamps | About 0.5% to 0.7% combined | estimated |
| Notary fee | Preparing the public deed | Fee schedule set by decree; about 1.0% to 1.5% plus VAT reported | estimated |
| Annual property tax | Municipal tax on the registered value | 0.25% a year | estimated |
| Solidarity tax (2026) | Homes above about ₡143 million of construction | 0.25% to 0.55%, by bracket | Treasury notice |
| Lawyer fee | Due diligence and contract review | Quoted by each firm | No figure |
Mistakes foreign buyers make
- Paying a large deposit before the title review.
- Using the seller's or developer's lawyer as their own.
- Assuming a road or a water pipe gives legal access or water rights.
- Buying shoreline land without understanding the concession regime.
- Believing verbal promises that are not in the contract.
Looking at a specific region? See our area guides: Atenas, Santa Teresa, Tamarindo and Dominical. Buying as an investment? Read the investor guide.
Frequently asked questions
Can foreigners buy property in Costa Rica?
Yes, in most cases foreigners can own property in their own name or through a company, with the same rights as citizens. Land close to the shoreline follows a special regime. Source: Costa Rican Constitution, art. 19.
Do I need residency to buy property?
No. Residency and ownership are separate. You can buy as a non-resident. Some residency categories do accept a property investment above a minimum amount. See residency lawyer.
How much are closing costs?
They vary by price and structure. Use the closing cost calculator for a rough estimate, then ask your lawyer for an exact written quote. The transfer tax is commonly cited at 1.5% of the declared value, with registry rights and stamps as small additional percentages and notary fees on top estimated.
Should I pay a deposit before the title search?
Avoid paying more than a small, refundable deposit before your lawyer has reviewed the registry and the contract states clearly when the deposit is returned.
What is the biggest risk for foreign buyers?
Buying without an independent title review, especially land with unclear access, water or shoreline status, and relying on the seller's or developer's own lawyer.
Is property tax high?
Annual property taxes are usually lower than in the United States or Canada, but there are municipal charges and, depending on the case, other levies. The municipal property tax is cited at 0.25% of the registered value estimated. For 2026 a separate solidarity tax applies to homes with construction above about ₡143 million, at 0.25% to 0.55% depending on value (Treasury notice); the brackets are updated every December.
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