Frequently Asked Questions

Real estate purchasing questions

Can a foreigner own real estate and land in Costa Rica?
Yes, foreigners in Costa Rica have practically the same rights to own real estate and land as local citizens. To complete a transaction, you do not need to hold a residency permit (VNJ) or even be physically present in the country.
Key Ownership Rules (Current for 2026):
  • Titled Property (Fee Simple): This is the most common and secure form of ownership. You own the property 100% in your own name or in the name of your company (corporation). Such property can be freely sold, rented out, mortgaged, or passed on to heirs.
  • Maritime Zone (Concession Land): This is the only major exception. Land within the first 200 meters of the high-tide line belongs to the state. Foreigners cannot own more than a 49% share in such a concession unless they have been residents of the country for more than 5 years.
  • Registration: All transactions must be processed through a local notary and registered in the National Registry (Registro Nacional).
  • Corporate Ownership: Many foreigners prefer to register property under a legal entity (Sociedad Anónima), which simplifies taxation and inheritance matters.
Important Nuance: Property ownership itself does not automatically grant the right to reside in the country longer than a tourist visa allows (typically 90–180 days). However, an investment of $150,000 or more allows you to apply for residency under the “Investor” category.
In Costa Rica, you can own property either in your personal name or through a Costa Rican corporation (typically a Sociedad Anónima or Limitada).
 
Feature
Personal Ownership
Corporate Ownership (S.A. / LLC)
Privacy
Your name is directly listed in the National Registry.
The company name is listed in the National Registry.
Asset Protection
Assets are tied to you personally.
Provides a legal shield between you and the property.
Ease of Transfer
Requires a new Transfer Deed for every sale.
Can be transferred by selling the company shares.
Estate Planning
Subject to a lengthy local probate process.
Simplified through the distribution of shares.
Annual Costs
Only standard property taxes.
Approx. $500–$800 (Corp. tax + legal fees).
  
Key Advantages of Corporate Ownership:
  1. Liability Protection: Owning through a corporation separates your personal liability from the property, which is essential if you plan to use it as a rental or business.
  2. Simplified Inheritance: You can define how shares are distributed in the company’s bylaws, allowing your heirs to avoid a complex and costly probate process in Costa Rican courts.
  3. Operational Efficiency: It is often easier to manage utility contracts (water, electricity, internet) and local bank accounts under a corporate entity, especially for remote owners.
  4. Flexibility for Partners: If you are buying with a partner, a corporation allows you to clearly define ownership percentages (e.g., 60/40) through the issuance of shares.
Important Note: To maintain a corporation, you must pay an annual Corporation Tax and file a yearly “Transparency and Beneficial Ownership” declaration (RTBF) to the Central Bank.
In Costa Rica, property ownership is evidenced by a Registration Certificate (Informe Registral) from the National Registry (Registro Nacional).
  • Informe Registral (Title Report): The definitive digital record showing the owner’s name, property size, and any liens or encumbrances.
  • Escritura Pública (Public Deed): The legal contract signed before a notary that serves as the basis for updating the National Registry.
  • Plano Catastrado (Registered Survey Map): The official map that defines the physical boundaries and location of the land.
Important Note: The most reliable way to verify ownership is to perform a Title Search in the National Registry database using the property’s Número de Finca (ID number).
Key Ownership and Purchase Taxes (Current for 2026):
1. Municipal Property Tax (Impuesto sobre Bienes Inmuebles):
  • Rate: 0.25% per year.
  • Basis: Calculated based on the property value registered with the local municipality.
  • Frequency: Paid quarterly, though many municipalities offer a 5% discount if the full annual amount is paid in January.
  • Assessment: Owners are required to update the appraised value of the property every 5 years.
2. Luxury Tax / Solidarity Tax (Impuesto Solidario):
  • Applies to: Residential properties where the construction value exceeds a specific threshold (in 2026, this is approximately $234,000 – $275,000 and above).
  • Rate: Progressive, ranging from 0.25% to 0.55%.
  • Deadline: Declaration and payment must be completed annually by January 15th.
3. Property Transfer Tax (Transfer Tax):
  • Rate: 1.5% of the transaction price or the cadastral value (whichever is higher).
  • Additional Costs: Notary fees and registration stamps typically add another 1% – 1.5% to the total closing costs.
Special Conditions:
  • Primary Residence: If this is your only property and its value is below the threshold (approx. $41,600 in 2025/2026), you may be exempt from the primary property tax.
  • Agricultural Land: Certain large parcels (like your 7 acres in Heredia) may qualify for a minimum rate if they are appropriately registered.
Key Insight for Your Investment:
Thanks to the low 0.25% rate, the cost of owning a $1,000,000 property is only $2,500 per year (excluding the luxury tax).
Yes, foreigners can obtain mortgages in Costa Rica, although the process is more rigorous than in North America or Europe.
1. Local Bank Loans:
  • Down Payment: Typically 30% to 50% for non-residents.
  • Interest Rates: Range from 7% to 12% in USD.
  • Requirements: Extensive documentation, including apostilled and translated tax returns and credit reports.
2. Owner Financing:
  • This is the most common alternative. Sellers often offer short-term financing (3–5 years) with a 50% down payment and less red tape.
3. International Lenders:
  • Specialized firms offer US-style mortgages for expats with down payments as low as 25% for those who qualify.
In the context of acquiring real estate in Costa Rica (ranging from condos in Jacó to estates in Heredia), a real estate broker is your key strategic partner, not just a middleman.
In simple terms:
A broker is a licensed professional (individual or company) authorized to conduct real estate transactions, acting as the vital link between buyer and seller.
How does a broker differ from a regular agent (realtor)?
  • Level of Responsibility: In many countries (including the U.S. and Costa Rica), “broker” represents a higher professional tier. A broker can work independently or open their own agency where regular agents are employed.
  • Legal Framework: The broker is responsible for the integrity of the deal, verifying land titles, and ensuring the accuracy of purchase agreements (LOI).
What a broker does for you in Costa Rica:
  • Market Filtering: Instead of scrolling through hundreds of listings, you provide your criteria (e.g., “a modern home in Villa Real under $3M”), and the broker finds properties that often aren’t even publicly listed (Off-market deals).
  • Negotiation: This is their most critical role. As seen with the Escazú property example—where a $115,000 discount was secured—it is the broker who helps “nudge” the seller toward your target price.
  • Due Diligence: The broker coordinates with lawyers to ensure, for instance, that an estate is debt-free and that its boundaries are accurately recorded in the national registry.
  • Process Management: They manage the transaction from the first viewing to the moment the keys are handed over and the utility bills (water and electricity) are transferred.
In the Luxury Segment ($1M+):
The broker becomes your investment consultant. They will advise on which property (such as an Elite Estate for $1.59M) would be easier to lease as a clinic, and which is better suited as a private residence for capital preservation.

Immigration matters

Most Current Ways to Obtain Residency in Costa Rica:
  • Inversionista (Investor): Real estate investment starting from $150,000.
  • Rentista (Rentier): For those with a guaranteed monthly income (e.g., $2,500 per month for at least 2 years).
  • Pensionado (Retiree): For retirees with a lifetime pension of at least $1,000 per month.
  • Digital Nomad (Digital Nomad Visa): A special visa for remote workers (does not lead to permanent residency, but offers significant tax exemptions)
This category is ideal for those purchasing real estate in Costa Rica.
Key Requirements:
  • Minimum Investment: $150,000 USD. This can be in real estate (e.g., a condo in Jacó or an estate in Heredia), land, shares in a company, or even high-value personal assets like vehicles or boats.
  • Proof of Investment: You must provide a certification from the National Registry showing the registered value of the property and that it is free of liens (or that the equity exceeds the $150k threshold).
  • Validity: The residency is granted for 2 years and is renewable as long as you maintain the investment.
  • Physical Presence: You must stay in Costa Rica for at least one day per year to keep your status active.
  • Path to Permanent Residency: After 3 years as a temporary resident (Inversionista), you can apply for Permanent Residency, which does not require maintaining the investment.
Main Benefits:
  • Family Inclusion: You can include your spouse and children under 25 (or older children with disabilities) in the same application.
  • Import Tax Exemptions: Under the new law, you can import two vehicles and your household goods (furniture, appliances) tax-free.
  • Income Rights: You are allowed to own a business and earn income from your investment (e.g., rental income).
Giving birth in Costa Rica provides significant migration and social advantages for the child, the parents, and close relatives.
1. For the Child
  • Automatic Citizenship: Any child born in Costa Rica automatically becomes a citizen by “right of the soil” (Jus soli), regardless of the parents’ status or nationality.
  • Strong Passport: A Costa Rican passport allows visa-free access to approximately 150 countries, including the Schengen Area and the UK.
  • Dual Citizenship: Costa Rica recognizes dual citizenship, allowing the child to retain their parents’ nationality.
  • Free Healthcare: The public healthcare system (CCSS) covers the medical needs of children born in the country for free until they reach one year of age. Vaccinations are also mandatory and free for all children.
2. For Parents and Relatives
  • Direct Path to Permanent Residency: Having a citizen child grants parents, their minor children, and even grandparents the right to apply for Permanent Residency (PR) immediately after obtaining the child’s birth certificate.
  • Right to Work: Unlike temporary residency (e.g., for investors or rentiers), PR status based on a family tie to a citizen grants the right to work legally in Costa Rica.
  • Fast-track Naturalization: Parents can apply for Costa Rican citizenship through naturalization after 5 years of legal residence (instead of the standard 7 years).
  • Medical Care: The CCSS system provides free prenatal care and delivery even for women who are not yet residents of the country.
3. Important Nuances
  • Exit Permit: All minor Costa Rican citizens require a special exit permit (Permiso de Salida) from the immigration office to cross the border.
  • Processing Times: The process for parents to obtain PR typically takes between 12 to 16 months.
  • Status Link: The parents’ residency status is directly linked to the child; if something happens to the child before the process is complete, the right to this specific type of residency may be lost.

We provide comprehensive support for real estate acquisition and residency permits in Costa Rica. Our services include travel assistance, property selection, organizing viewing tours, price negotiation, title registration, and full guidance throughout the residency application process.