Can Foreigners Buy Property in Costa Rica? What to Know Before You Buy

Titled property vs. concession

• The first 50 meters from the high-tide line is public zone and cannot be occupied or built on.
• The next 150 meters is a restricted zone, where municipalities grant concessions (a state lease with a term and renewal risk) rather than title.
• Foreigners generally need at least five years of legal residency to hold a majority interest in a concession.
• Listings often blur title and concession, so confirm which one you are buying.

Typical closing costs

For a straightforward residential purchase, expect roughly 3.5% to 5% of the price: a 1.5% transfer tax, about 0.5% to 0.8% in documentary stamps and registry fees, and notary fees of roughly 1% to 2% plus VAT on the fee. Escrow through a registered agent is typically about 0.25% or a flat fee near US$1,000.

Annual and ongoing taxes

• Municipal property tax: 0.25% of registered fiscal value per year.
• A “solidarity” tax applies to higher-value homes.
• Rental income: 15% of 85% of gross receipts, or the general regime with documented deductions.
• Capital gains: 15% of the gain over adjusted acquisition cost, with a one-time alternative for property bought before July 1, 2019.

A due-diligence checklist

1. Hire a lawyer who represents only you.
2. Pull the property’s registry record and review liens, easements and litigation.
3. Compare the survey plan with the physical boundaries using a licensed surveyor.
4. Obtain municipal tax certificates; unpaid taxes transfer with the property.
5. Get the water availability letter before sending funds.
6. Confirm title versus concession.
7. Use a registered escrow agent.
8. Decide on the ownership structure after you decide on residency.

Does buying property give you residency?

It can. Costa Rica’s investor residency has been tied to a qualifying investment of US$150,000 under a 2021 law. Reported tax incentives under that law expired on July 14, 2026, and sources disagree on whether the investor threshold stayed at US$150,000 or returned to US$200,000. At least one Costa Rican attorney recommends a written inquiry to the immigration authority before committing funds. Investor residency generally also requires the property to be in your personal name, not a company’s. See our Costa Rica investor residency overview and our post on buying property and residency.