Due Diligence for Buying Property in Costa Rica: A Practical Checklist for UK Buyers
Costa Rica’s mix of stable democracy, beautiful coastlines, and strong tourism makes it a popular choice for overseas buyers. But purchasing property abroad can feel different from buying at home—especially when you’re comparing listings from afar, relying on translations, and trying to understand local processes. This guide walks through a clear, step-by-step due diligence checklist tailored for UK buyers considering Costa Rica, so you can reduce risk, protect your budget, and move forward with confidence.
1) Start with location reality checks (not just photos)
Listings can look perfect online, but the real value of a home in Costa Rica often comes down to practical factors:
- Access roads: Are they paved or gravel? Are they passable in the rainy season?
- Distance to essentials: Hospitals, supermarkets, schools, and reliable services can vary dramatically by region.
- Noise and neighbours: Beach towns can be lively; rural areas can be quiet but isolated.
- Microclimates: Two properties 10 minutes apart can have very different humidity, heat, and rainfall.
If you can, visit in both dry and rainy seasons—or at least ask for recent videos that show the road and surroundings after heavy rain.
2) Understand what “ownership” means for the specific property
Not all land in Costa Rica is owned in the same way. Before you fall in love with a deal, confirm the property type:
- Titled property: Generally, the most straightforward form of ownership.
- Concession or maritime zone: Some coastal areas have special rules and restrictions.
- Condos/HOAs: You’ll want to review bylaws, monthly fees, and any rental limitations.
The goal isn’t to avoid certain categories—it’s to know exactly what you’re buying and what you can (and can’t) do with it.
3) Confirm the property’s legal status early
A solid purchase starts with the basics:
- Is the seller the legal owner?
- Are there liens, mortgages, or annotations?
- Do boundaries match what’s being marketed?
In many cases, buyers hire a local attorney to perform due diligence checks, verify registration details, and ensure the transaction is structured correctly. If you’re buying remotely, this step becomes even more important.
4) Verify utilities and infrastructure (don’t assume)
Utilities can be surprisingly complex, depending on the area:
- Water: Is it municipal, an ASADA (local water association), a well, or delivered? Is the supply consistent year-round?
- Electricity: What’s the provider? Is the connection legal and sized for modern needs (air con, pool pump, appliances)?
- Internet: “Available” might mean very different speeds. Confirm real-world performance and installation timelines.
- Septic: If it’s not sewer-connected, ask about system condition and maintenance.
A quick call or written confirmation from providers can prevent expensive surprises after closing.
5) Cross-check address details and identity signals before you commit
Addresses can be informal in some regions, and the way locals describe a location may not match what a foreign buyer expects. That’s why it’s smart to sanity-check the address details you’ve been given—especially if you’re dealing with a private seller, an agent you haven’t met in person, or a landlord offering a “too good to be true” rental while you house-hunt.
One simple step is using a reverse address look up to see who is connected to the address and spot mismatches early. Think of it as a quick fraud-prevention check: if the name you’re being told doesn’t line up with the address details, that’s a prompt to slow down, ask more questions, and verify everything through the proper legal channels.
6) Get a professional survey when it matters
If you’re buying a condo in a well-known development, surveys may be less critical. But for standalone homes, lots, or rural properties, a survey can be invaluable. It can help confirm:
- Property boundaries and access
- Easements (like shared driveways or right-of-way)
- Encroachments (fences or structures crossing boundaries)
- Buildable areas and restrictions
Surveys are also useful if you plan to build, add structures, or apply for permits.
7) Ask about permits, renovations, and compliance
Many buyers overlook this step and regret it later. If the seller has renovated, extended, or built additional structures, confirm:
- Whether permits were obtained (where required)
- Whether construction aligns with approved plans
- Whether there are open municipal issues or unpaid fees
For rental properties, also ask about any short-term rental regulations, HOA rules, and any licensing requirements in that area.
8) Budget beyond the purchase price
Costa Rica can offer excellent value, but “sticker price” is not your total cost. Plan for:
- Legal fees and closing costs
- Property transfer taxes and stamp duties
- Insurance (especially in humid or coastal zones)
- Ongoing maintenance (gardens, pools, roofs, pest control)
- HOA fees (if applicable)
If you’re buying for holiday use, include management costs for when you’re not in the country.
9) Think about resale and rental demand
Even if you’re buying a personal getaway, it’s wise to consider future flexibility:
- Is the area growing or declining in popularity?
- Are there year-round draw factors (not just peak season)?
- Are you near reliable attractions, beaches, or amenities?
- How competitive are similar listings nearby?
Properties that are easy to access and simple to maintain tend to perform better for rentals and resale, particularly for overseas owners.
10) Use a “two-step commitment” mindset
To avoid emotional decisions, break your process into two distinct stages:
- Exploration phase: view listings, shortlist areas, run rough budgets, ask questions.
- Verification phase: only after you’ve chosen one property do you spend money on legal checks, surveys, and deeper inspections.
This helps you stay objective and prevents spending heavily on multiple properties you’re unsure about.
Conclusion
Buying property in Costa Rica can be an exciting move—whether you’re planning a lifestyle change, a holiday home, or a rental investment. The key is treating the process like a structured project: verify the legal basics, confirm utilities and access, understand the ownership category, and validate any details that could cause delays later. With a clear due diligence checklist and the right professional support, you can reduce risk and focus on what matters most: finding a property that genuinely fits your goals in Costa Rica.