Costa Rica continues to attract international buyers looking for more than just a property: a place to live, enjoy retirement, or combine personal use with rental income. For North American investors, retirees, and digital nomads, purchasing real estate can be both a lifestyle decision and a long-term wealth strategy.
The market offers attractive opportunities, but location, price, and rental potential alone do not determine whether a property is a sound investment. Before buying, it is essential to understand exactly what you are acquiring, how the property can legally be used, and which obligations come with ownership.
This is why real estate due diligence in Costa Rica is the starting point for protecting your capital and making an informed investment decision.
Can foreigners buy property in Costa Rica?
Yes. Costa Rica offers an attractive environment for foreign real estate investment, supported by the legal certainty of its property system, the country’s stability, and its exceptional natural and tourism appeal. Foreign buyers can acquire registered real estate and find opportunities ranging from primary residences and vacation homes to income-producing properties.
The potential of each investment will depend on the type of property and what you intend to do with it.
Buying a home for personal use is different from purchasing a vacation rental, acquiring land for development, or investing in property located within the Maritime-Terrestrial Zone.
The legal structure of the transaction should reflect those differences.
Can a real estate investment help you obtain residency?
A real estate purchase may also become part of your immigration strategy.
Law No. 9996, Law for the Attraction of Investors, Rentiers and Pensioners, reduced the minimum qualifying investment to US$150,000 for individuals seeking residency under the investor category, subject to the requirements established by Costa Rican immigration law and authorities.
Real estate is among the investments that may be used to meet this requirement.
As a result, purchasing property can potentially serve two objectives: investing in Costa Rica while establishing a basis to apply for residency as an investor.
If you are considering both, it is advisable to coordinate your real estate and immigration strategy before structuring and registering the acquisition.
What should you verify before buying?
Real estate due diligence helps identify potential issues before you fully commit your capital.
A proper legal review begins with Costa Rica’s National Registry to confirm ownership and determine whether the property is subject to mortgages, liens, annotations, or other restrictions.
But due diligence should not stop at the Registry.
The cadastral survey should also be checked against the registered information, the property’s municipal status should be reviewed, and its suitability for your intended use should be confirmed.
Why is water availability so important?
This is particularly important when purchasing land with the intention of building.
A water availability letter, issued by the Costa Rican Institute of Aqueducts and Sewers (AyA) or the corresponding local ASADA, confirms the availability of potable water service for the property.
Without confirmed water availability, obtaining the necessary municipal construction permits may be impossible in practice.
Therefore, square footage, views, and location should not be the only considerations. If you plan to develop the property, water availability should be verified before you buy.
What should you review when buying in a condominium?
Condominiums are common in residential and tourism developments and can be particularly attractive to foreign buyers because of their amenities, security, and shared facilities.
However, purchasing a condominium unit also means becoming subject to the condominium’s rules.
Before closing, the Condominium and Administration Regulations should be reviewed carefully, including provisions regarding maintenance fees, common areas, pets, architectural modifications, and any restrictions that could affect your plans for the property.
It is also essential to obtain confirmation that all condominium fees are current. Outstanding obligations may directly affect a new owner.
This becomes even more important when the property is being purchased as an income-producing investment.
Can you buy a property in Costa Rica and rent it on Airbnb?
Yes. A property in Costa Rica can combine personal use with income from short-term rentals, creating additional possibilities for owners who want the property to generate revenue while they are not using it.
Platforms such as Airbnb have made this model particularly accessible in popular tourism destinations. However, the ability to list a property online should be distinguished from the legal ability to operate it as short-term tourist accommodation.
Costa Rica regulates non-traditional lodging under Law No. 9742 and its implementing regulations. Individuals and legal entities engaged in this activity should consider registration as lodging providers with the Costa Rican Tourism Institute (ICT), as well as applicable tax obligations, including registration with the Tax Administration, electronic invoicing, and the corresponding tax filings.
Foreign property owners who are not Costa Rican residents may also need to obtain a Special Tax Identification Number (NITE) to comply with their tax obligations.
If vacation rental income is part of your investment model, this should therefore be considered from the beginning. When purchasing a condominium, for example, reviewing its regulations will help determine whether any provisions could limit the intended use of the property.
Beginning in 2026, increased information exchange related to digital platforms further reinforces the importance of properly structuring the activity and maintaining tax compliance.
The practical takeaway is straightforward: do not evaluate a property solely on how much rental income it might generate. First determine whether you can legally use it as planned and understand the costs and obligations associated with that activity.
What are the risks of buying property near the beach?
Coastal properties require particular legal attention.
Costa Rica’s Maritime-Terrestrial Zone (Zona Marítimo Terrestre or ZMT) generally covers a 200-meter strip measured inland from the ordinary high-tide line. Within this area, two zones are subject to very different legal rules.
What happens within the first 50 meters?
The first 50 meters constitute the Public Zone.
This area is public domain and is inalienable and not subject to adverse possession. It cannot be treated as conventional private property or granted through an ordinary concession for private ownership.
For this reason, marketing terms such as “beachfront” or “oceanfront” should never replace a proper legal review of the property.
What about the following 150 meters?
The following 150 meters constitute the Restricted Zone, where concessions may be granted under Costa Rica’s Maritime-Terrestrial Zone Law.
Foreign investors must pay particular attention to one important restriction: when a corporation holds a concession, at least 50% of its share capital must be owned by Costa Rican nationals, in accordance with the applicable legal framework.
A coastal concession should therefore never be evaluated as though it were conventional registered private property.
Before investing, the existence and validity of the concession, its registration, applicable municipal conditions, and the relevant Coastal Regulatory Plan should all be carefully reviewed.
What are the main real estate closing costs?
Your investment budget should account for more than the advertised purchase price.
One of the principal closing expenses is Costa Rica’s Real Estate Transfer Tax, which is levied at 1.5% of the applicable taxable value.
Notary fees, legal stamps, and registration expenses must also be considered. As a general reference, the formal closing costs of a real estate transaction may represent approximately 3.5% to 4.5% of the transaction value, depending on the specific circumstances.
Understanding these costs beforehand allows you to estimate more accurately the capital required to complete your investment.
What should you know about Costa Rica’s luxury home tax?
Higher-value residential properties may be subject to the Solidarity Tax for the Strengthening of Housing Programs, commonly known as Costa Rica’s luxury home tax.
For the 2026 tax period, residential construction and permanent installations are exempt up to a value of ₡143,000,000. If the applicable value exceeds this threshold, the tax must be determined according to the valuation rules and progressive rates in force.
This is a recurring ownership cost that should be identified during due diligence, particularly when considering higher-value residential properties.
How can you turn a property into a secure investment?
A sound real estate investment is not defined solely by the purchase price or how much the property may appreciate over time.
What matters is also what you can do with it.
If you plan to live in Costa Rica, the investment may be coordinated with your immigration strategy. If you intend to build, water availability and development feasibility should be confirmed. If you purchase in a condominium, you should understand its rules and financial obligations. If you plan to generate income through Airbnb or another platform, the intended use should be verified and the activity structured for regulatory compliance. And if the property is near the coast, the ZMT regime requires particularly careful legal review.
Each of these factors can affect the true value of a real estate opportunity.
At ERP Lawyers & Associates, we assist foreign buyers throughout the investment process, from the initial property review and due diligence to the legal structuring and formal closing of the transaction, integrating immigration and regulatory considerations when appropriate.
Our goal is to help you invest with clear information and reliable legal guidance, supporting a safe, smooth, and hassle-free purchasing process.
Let us be your trusted legal partner in Costa Rica, protecting your investment from the initial review through closing.
📩 Contact us today for personalized legal advice before investing in Costa Rican real estate.
