Quick answer: A foreigner can buy property registered in Costa Rica's National Registry on the same terms as a Costa Rican, without being a resident. Before signing, it is advisable to run a title search, check zoning and water availability, and confirm whether the land lies in the Maritime Terrestrial Zone, where land is not bought outright but held under a concession.
Every year Guanacaste attracts many people, Costa Ricans and foreigners alike, looking for a house, a lot or a property near the beach. Buying real estate in Costa Rica is an orderly process, but it has particular features that are worth understanding from the start, especially on the coast. This guide summarizes the most common stages and the points that most often raise questions.
Can a foreigner buy property in Costa Rica?
Yes. Article 19 of the Political Constitution (Constitución Política) grants foreigners the same individual and social rights as Costa Ricans, subject to the exceptions established by the Constitution and the law. In practice, a foreign national can acquire titled property (registered with a real property folio, or folio real, in the National Registry (Registro Nacional)) on the same terms as a Costa Rican, without needing to be a resident. A valid passport is enough for identification.
The most important exception applies on the coast, as explained below.
What is the Maritime Terrestrial Zone and why does it matter at the beach?
The Maritime Terrestrial Zone Law (Ley sobre la Zona Marítimo Terrestre, Law No. 6043) governs the 200-meter strip along the coastline, measured from the ordinary high-tide line. That strip is divided into two parts:
- Public zone (first 50 meters): reserved for public use; it cannot be privately owned or granted in concession, except as provided by law.
- Restricted zone (the next 150 meters): it is not private property either, but it can be granted as a concession by the relevant municipality, for a set term and in accordance with the coastal zoning plan (plan regulador costero) in force.
This means that within that strip you do not "buy" land; you acquire concession rights, which are subject to requirements, fees (cánones) and approvals from the municipality and the Costa Rican Tourism Institute (Instituto Costarricense de Turismo, ICT). In addition, the law sets limits on foreigners, or companies with majority foreign ownership, holding concessions (Article 47 of Law 6043). Before negotiating for any property near the sea, it is advisable to confirm whether it lies inside or outside the Maritime Terrestrial Zone and, if inside, the status of the concession.
Usual stages of the purchase
1. Title search. The National Registry is checked to confirm who the registered owner is and whether the property has mortgages, liens, annotations, easements, restrictions or pending lawsuits. This search can be done online through the National Registry portal. The cadastral survey map (plano catastrado) is also reviewed and compared with the actual land: area, boundaries and access.
2. Municipal and utilities review. It is advisable to request a land use certificate (certificado de uso de suelo) from the municipality (for example Santa Cruz, Carrillo, Nicoya, Liberia or La Cruz, depending on the location), confirm that the property tax (Law No. 7509) and municipal services are paid up to date, and verify water availability with the national water utility (AyA) or the local community water association (ASADA). In some areas of Guanacaste, this last point is decisive for being able to build.
3. Environmental and physical review. It is worth confirming whether the property borders protected areas, rivers, springs or wetlands, since this may limit its use. A site visit helps detect occupants, unregistered buildings or discrepancies with the survey map.
4. Preliminary contract (optional). Many purchases begin with a purchase option or a promise to buy and sell agreement that sets the price, deadlines, conditions and what happens if either party fails to perform.
5. Public deed before a notary. The sale is formalized in a public deed (escritura pública) executed before a notary public. In Costa Rica, a notary is a lawyer authorized to certify legal acts. The notary verifies the identity and legal capacity of the parties, drafts the document, reads and explains it to the signing parties, and then files it with the National Registry for recording. The property is in the buyer's name once the Registry records the document.
6. Recording and follow-up. If the Registry points out any defect, it is corrected and the deed is filed again. Until the deed is recorded, the purchase does not have full effect against third parties.
Taxes and closing costs
- Real estate transfer tax: 1.5% under Article 8 of Law No. 6999, calculated on the value of the transaction (in practice, the higher of the declared price and the tax-assessed value).
- Stamp duties and registration fees: paid when the deed is recorded. Their amounts are set by law and updated, so it is advisable to request an up-to-date breakdown before signing.
- Notary fees: governed by the official fee schedule for lawyers and notaries (arancel de honorarios de abogacía y notariado).
- Other taxes: depending on the case, the Solidarity Tax for the Strengthening of Housing Programs (Impuesto Solidario para el Fortalecimiento de Programas de Vivienda, Law No. 8683) may apply to high-value homes; its threshold is updated every year.
Considerations for foreign buyers
- If you cannot be present, you can grant a special power of attorney in your home country. For it to be effective in Costa Rica, it must normally be apostilled (Costa Rica is a party to the Hague Apostille Convention) and, if it is in another language, officially translated.
- Language: the deed is executed in Spanish. If one of the parties does not have a good command of the language, the Notarial Code (Código Notarial, Law No. 7764) provides for the participation of an interpreter or translator.
- Source of funds: under anti-money laundering rules (Law No. 8204 and related regulations), it is common to be asked for documentation on the origin of the money and for payments to be made through the financial system.
- Buying through a company: this is a common option, but it involves annual obligations, such as the tax on legal entities and the filing with the Registry of Transparency and Beneficial Owners (Registro de Transparencia y Beneficiarios Finales). It is worth assessing in light of each situation.
In summary
A safe purchase starts with complete information: who the owner is, what restrictions the property has, what the municipality allows and whether or not it lies in the Maritime Terrestrial Zone. With that information, the deed and its recording are the final part of a process that can be planned calmly.
Frequently asked questions
Does a foreigner need to be a resident to buy property in Costa Rica?
No. A foreign national can acquire property registered in the National Registry on the same terms as a Costa Rican, using a valid passport for identification. The main exception is the Maritime Terrestrial Zone, where the law limits foreigners' ability to hold concessions.
Can you buy beachfront property in Guanacaste?
Within the 200-meter strip measured from the ordinary high-tide line, you do not buy the land. The first 50 meters are a public zone, and the next 150 meters can only be granted as a concession by the municipality, in line with the coastal zoning plan. Outside that strip, property can be bought and registered normally.
What taxes and costs are paid when buying property in Costa Rica?
The real estate transfer tax is 1.5%. On top of that come stamp duties and registration fees, notary fees under the official fee schedule and, for high-value homes, the Solidarity Tax may apply. It is advisable to request an up-to-date breakdown before signing.
Can I buy property in Costa Rica without traveling there?
Yes. You can grant a special power of attorney in your home country so that another person signs on your behalf. For it to be effective in Costa Rica, it must normally be apostilled and, if it is in another language, officially translated.
Official sources
- National Registry, registry searches: www.rnpdigital.com
- Law No. 6999 on the Real Estate Transfer Tax: costarica.eregulations.org
- Law No. 6043 on the Maritime Terrestrial Zone: www.snitcr.go.cr
- Costa Rican Legal Information System (Sistema Costarricense de Información Jurídica, current legislation): www.pgrweb.go.cr
Disclaimer: This article is for general information only and is not legal advice. Every case requires its own analysis. Laws and fees change; check the current rules before making decisions. If you would like us to review your case, email [email protected], message us on WhatsApp or call +506 6290-5407. Bilingual service in Spanish and English.