Costa Rica investment real estate: the legal checklist

Buying property as an investment adds questions about structure, taxes, rentals and exit. This checklist covers what to ask a lawyer before you put money into Costa Rican real estate.

By Napoleón Contreras · Last updated October 28, 2026 · Independent information, not legal advice

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.

Start with the numbers, then the law

An investment case is built from price, costs, expected rent and the cost of getting in and out. Ask for real data, such as past occupancy, utilities, management fees and maintenance, and never rely on a brochure's projected yield alone. Then check that the legal form of the property supports your plan.

Pick the legal form deliberately

• Titled property in your name: simplest, but your personal assets and heirs are directly linked to it.
• Through a company: may help with liability, co-investors and resale, but adds registration and reporting. Companies pay a yearly legal-entity tax and file a beneficial-owner declaration, normally in April estimated.
• Condominium unit: check the condominium regulations, fees and rental rules.
• Shoreline concession: a different regime; see our real estate lawyer page. Rules on who may hold and transfer are strict. Reports say a foreigner needs five years of residence to hold a concession and that companies with more than 50% foreign capital are excluded estimated.

Ownership structures compared

Rental income and tax

Rent turns a purchase into a business activity for tax and registration purposes. Short-term rentals add their own rules. Ask a tax professional about income reporting in Costa Rica and in your home country, and whether a tax treaty applies. Be wary of anyone who says "no taxes" without showing the legal basis.

Due diligence specific to investors

1. Confirm a clean title and legal access, as for any purchase.
2. Confirm that the current use (rental, tourism, construction) is legal for that zoning.
3. Confirm who manages the property and how funds flow to you.
4. For pre-construction purchases, check the developer's track record, the land title, permits, and how your deposits are protected.
5. Plan your exit: who is the likely buyer, and what documents will they ask for?

Residency by investment

Some investors want residency alongside the purchase. The minimum amount, what qualifies and how it must be documented are set by law and change. Ask your lawyer to confirm the rule before you buy, because the form of the purchase can decide whether it qualifies. See the residency lawyer guide.

Costs to budget beyond the price

• Transfer taxes, notary and registry fees at purchase. The transfer tax is commonly cited at 1.5% of the declared value, plus registry rights, stamps and the notary fee estimated.
• Legal fees for due diligence, plus company set-up if you hold through a company.
• Annual property tax, municipal charges and, for condominiums, monthly association fees.
• Insurance, repairs and the cost of a local manager.
• Currency exchange costs when you move money in and out.

Put these in a spreadsheet with a conservative rent estimate. If the numbers only work with the optimistic case, the deal is weaker than the brochure says.

Red flags

• Guaranteed returns or "no risk" claims.
• Pressure to wire a large deposit this week.
• A seller or developer who insists you use their lawyer.
• Verbal promises about access, water or permits that are not in the contract.

Planning a purchase in a specific market? Read our guides to Tamarindo, Santa Teresa, Dominical and Atenas, then join the waitlist.