Buying Property in Costa Rica: What You Need to Know

Costa Rica isn’t just for backpackers and eco-tourists anymore. It’s become one of the most popular places in Central America for property buyers. The mix of warm climate, low property taxes, and stable government makes it a real option for people looking to invest, retire, or simply start over.

But buying property in a foreign country comes with surprises. Some good. Some frustrating. Here’s what to expect if you’re eyeing Costa Rica real estate in 2025.

Why Costa Rica Keeps Getting Attention

It’s stable and safe

Costa Rica has no army. That’s not a metaphor. They scrapped it in 1948 and haven’t looked back. The country invests in education, health care, and infrastructure instead.

It also ranks as one of the safest countries in Latin America. In the 2024 Global Peace Index, Costa Rica placed 39th out of 163. That’s higher than the US and many European countries.

It’s why so many people feel comfortable buying a home there, even from abroad.

The natural beauty helps

Costa Rica has rainforests, volcanoes, and two coastlines. You can surf in the Pacific in the morning and soak in a Caribbean beach by sunset. That range draws tourists year-round, which also makes rental properties a smart play in the right area.

What the Buying Process Looks Like

Foreigners can own property

Yes, you can own property outright as a foreigner. There’s no need for a local partner or special visa. Title is 100% yours. That’s not true in many other countries in the region.

You don’t even need to live in Costa Rica to own a home. You can buy land, a condo, or even a full resort property if you’ve got the budget.

There is one exception. Maritime Zone land (within 200 meters of the high tide line) is regulated and harder for non-residents to buy without a local company or long-term lease.

Use a lawyer. Always.

Property scams happen. Not often, but enough to be cautious. Use a Costa Rican lawyer who speaks your language and knows the system. They’ll verify the title through the National Registry and make sure there’s no debt or squatters.

Legal fees usually run around 1% to 1.5% of the purchase price.

Also, make sure you do a full due diligence process. Don’t skip it just because the view is nice.

Best Places to Buy Right Now

Tamarindo

Known for surf, nightlife, and tourists. Great for vacation rentals and walkable beaches. Expect to pay more here, especially for anything close to the water.

Atenas

A small mountain town with spring weather all year. Popular with expats. Good infrastructure and slower pace. You can still find nice homes under $300,000.

Uvita

A quieter beach town near the famous Whale Tail beach. Grows a little every year. Great for eco-retreats or remote working. Infrastructure is getting better but can still be patchy.

Escazú

If you want something more urban, Escazú is a suburb of San José with shopping malls, private schools, and modern homes. Think upscale without feeling flashy.

Common Mistakes to Avoid

Don’t skip on-site visits

Photos lie. A hillside house might have a killer view, but no road access when it rains. Or it might be next to a noisy bar. Always visit before closing a deal.

Try to see the property in both dry and rainy seasons if possible.

Don’t expect instant profits

Some buyers think they’ll flip a beach house in six months. But Costa Rica isn’t that kind of market. Appreciation is steady, not explosive.

If you’re renting it out, know that laws favour tenants. And if you get a bad guest or a string of bad reviews, your income can take a hit. In some cases, a Google review removal service might come in handy to protect your online rep.

Don’t assume everything works like home

Bureaucracy in Costa Rica moves slowly. Getting permits, utilities, or property registered can take weeks, sometimes months. Be patient and have backup plans.

Taxes and Costs to Expect

Property tax is low

One of the big perks. Property tax is just 0.25% of the property value per year. That means a $200,000 home costs about $500 per year in taxes.

You’ll also pay a transfer tax when you buy—around 2.5% of the purchase price.

If you’re building, budget extra. Materials can be expensive, and import duties can surprise you.

Should You Buy Through a Corporation?

There are pros and cons

Some buyers set up a Costa Rican corporation to hold their property. It makes it easier to transfer ownership later and can reduce some risks.

But there are annual reporting requirements, legal fees, and accounting rules. If you’re not familiar with offshore structures, talk to an expert before you go that route.

For most single-family homes, direct ownership is simpler.

Tips for First-Time Buyers

1. Start with a rental

Before buying, try renting in the area you’re considering. Stay for a month or two. Talk to locals. Test the lifestyle. Some areas get packed with tourists. Others get cut off during storms. Know what you’re signing up for.

2. Work with an experienced agent

Look for agents who have sold to international buyers before. They’ll know what documents you need, how to negotiate, and what red flags to watch for.

Ask how long they’ve lived in the area and how many foreign clients they’ve helped.

3. Think long term

Costa Rica is about lifestyle, not quick returns. If you’re looking for a forever home, a place to retire, or a rental you can use part-time, it makes sense.

Just don’t expect to flip your way to riches or build without hurdles. It takes patience and planning.

Final Thoughts

Costa Rica can be an amazing place to own property. You get beaches, mountains, friendly locals, and a laid-back way of life. But like any major purchase, it takes homework.

Brad Hinkelman, CEO of Casacol and a longtime real estate investor in Latin America, sees strong parallels between Costa Rica and other regional markets. “What buyers really need to understand is that lifestyle is the asset,” he said. “You’re not just buying square metres. You’re buying sunsets, neighbours, and the pace of life. That’s what holds long-term value.”

Visit often. Ask smart questions. Work with professionals. And remember, buying a home abroad isn’t just about the house. It’s about the lifestyle that comes with it.

If that sounds like what you want, Costa Rica is ready when you are.