Most North American buyers start with one nervous question: am I even allowed to own this? Yes, and your rights go further than most people expect.
Buying real estate in Costa Rica as a foreigner puts you on nearly equal legal footing with a citizen, with a few protections that surprise U.S. and Canadian buyers and one major limit on the coast.
By the end of this guide, you'll know the eight rights you hold, where the line sits, and the exact steps to protect those rights before you sign anything.
Can Foreigners Own Property in Costa Rica?
Yes. Article 19 of Costa Rica's Constitution gives foreigners the same individual and social rights as citizens, with exceptions set by law. In practice, a foreign buyer can hold full registered title to titled property, in a personal name or a company, with no residency, visa, or local partner required.
That openness is rare in Latin America, and capital follows it. Costa Rica recorded $5.12 billion in foreign direct investment in 2025, its second straight year above $5 billion, according to PROCOMER and Central Bank data.
The Top 8 Foreign Ownership Rights in Costa Rica
1. The same ownership rights as a citizen
On titled land, you can buy, use, rent, and sell exactly as a Costa Rican can. Nationality does not change your tax rate or your title.
2. No residency, visa, or local partner required
You can buy on a tourist entry and hold title from abroad. Just know that owning a home is not the same as the right to live there full time. That takes a separate residency application.
3. Protection against uncompensated expropriation
Article 45 of the Constitution declares property inviolable. The state can only take it for a legally proven public interest, and only with compensation under the law. Costa Rica property rights for Americans also include investment protections under the CAFTA-DR trade agreement.
4. The right to hold title through a Costa Rican company
Many foreign buyers own through an S.R.L., a Costa Rican limited liability company. The company holds title, and you own the company.
- Pro: Can simplify a future sale, estate transfer, or shared ownership.
- Con: Adds an annual corporate tax and a yearly beneficial ownership (RTBF) filing, with penalties if missed.
5. The right to check the public registry yourself
Every titled property sits in the National Registry. Anyone can create an account and run free property searches on the Registro Nacional portal, including owner, liens, and survey plan. A clean search does not confirm zoning or maritime zone status, so your attorney still reviews it.
6. The right to rent your property out
Foreign owners can earn rental income, subject to zoning, community rules, and tax registration. Rental income is commonly taxed at 15% on 85% of gross rent, an effective rate of about 12.75%.
- Pro: Rental income can offset carrying costs while you're away.
- Con: Local tax filings are required, and community rules can restrict short-term rentals.
7. The right to sell and take your proceeds home
Costa Rica does not trap your sale money. Capital gains are taxed at 15%, and when a non-resident sells, the buyer withholds 2.5% of the price toward that tax, according to PwC.
- Pro: No trapped capital. Proceeds can come home.
- Con: Your home country may tax the gain too. Costa Rica is not on the IRS list of U.S. income tax treaty countries.
8. The right to leave it to your heirs
Foreign owners can pass property through a will. A Costa Rican will is usually the cleaner route, because a foreign will needs court recognition and probate can take more than a year.
The One Big Limit: The Maritime Zone
Costa Rica's Maritime Zone Law, Law 6043, covers the first 200 meters inland from the high tide line:
- 0 to 50 meters: public land. No private ownership.
- 50 to 200 meters: municipal concession, a renewable lease, not title.
- Beyond 200 meters: titled land, where all 8 rights above apply.
This is where foreign rights narrow. Foreigners with fewer than five years of legal residency are generally limited to a minority interest in a concession, commonly cited as 49%.
Picture a buyer who finds a "beachfront lot" 120 meters from the high tide line. It sits inside the concession zone, so as a non-resident she could hold only a minority stake. For the full breakdown, read our guide to titled vs. concession property in Costa Rica.
What These Rights Look Like on a Real Purchase
Consider an illustrative example. A couple from Denver buys a titled home outside the maritime zone for $900,000, registered at that value.
- At closing: the 1.5% transfer tax is $13,500.
- Every year: the 0.25% property tax runs about $2,250.
- Eight years later: they sell for $1.1 million as non-residents, and the buyer withholds $27,500.
- At tax time: on a $200,000 gain, the 15% tax is $30,000, so their accountant reconciles the difference.
They also signed a Costa Rican will at closing, so their kids won't face foreign-will recognition in a local court. Nothing about their nationality changed a single number. If you want to walk through your own scenario, you can book a call.
How to Protect Your Rights Before You Sign
- Hire your own attorney. Retain an independent Costa Rican real estate attorney, not one referred by the seller.
- Pull the registry report. Confirm the folio number, registered owner, liens, and cadastral survey. A digital property certificate costs ₡8,560 on the Registry portal.
- Measure the maritime zone. Get written confirmation of the parcel's distance from the high tide line.
- Choose your holding structure. Decide between personal title and an S.R.L. before the deed is drafted.
- Use escrow and sign a Costa Rican will. Fund through a registered escrow agent, then draft a local will once title records.
Expect the process to run longer than 60 days. Our 12-month buying timeline maps every stage.
Buying Real Estate in Costa Rica as a Foreigner: The Bottom Line
Buying real estate in Costa Rica as a foreigner gives you ownership rights that rival a citizen's, backed by the Constitution and a public registry. The work is verification, not permission. Know your rights, respect the maritime zone, and put your attorney to work early.
Ready to see how these rights apply to a home on the Guanacaste coast? Book a call.
Frequently Asked Questions
Do I need to be a resident to buy property in Costa Rica?
No. Foreigners can buy and hold titled property in Costa Rica without residency, a visa, or a local partner. Many buyers purchase on a standard tourist entry and manage the property from abroad. Residency matters mainly for concession land inside the maritime zone, where foreigners with fewer than five years of legal residency face ownership limits.
Can foreigners get a mortgage to buy property in Costa Rica?
It is possible but not common. Costa Rican banks generally require residency or extensive income documentation from foreign borrowers, so many foreign buyers pay cash. Others use home-country financing, such as a loan against U.S. property, or negotiate seller financing. Whatever the source, the property's title and registry status need to be verified before any funds move.
What taxes do foreign property owners pay in Costa Rica?
Foreign owners pay the same taxes as citizens. That includes a 1.5% transfer tax at purchase, an annual 0.25% municipal property tax, and a luxury home tax on higher-value construction. Rental income is commonly taxed at an effective rate near 12.75%. When you sell, capital gains are taxed at 15%, with 2.5% withheld for non-resident sellers.
What happens to my Costa Rica property if I die without a Costa Rican will?
Your heirs will likely face a Costa Rican probate process. A foreign will must go through court recognition, and documents need apostilles and Spanish translations. Without any will, property is generally divided between a legal spouse and children. Signing a Costa Rican will with a local notary usually makes the transfer faster and simpler.
Do co-owners have the same rights as sole owners in Costa Rica?
The same legal rules apply, but a co-owner's rights depend on the legal instrument. Your agreement should state what you own, whether titled property or an interest in a company, plus usage days, voting rights, reserve funding, and how you can resell. The underlying land classification, titled or concession, does not change because a property is shared.
