How Americans Can Buy Property in Costa Rica (Complete Guide 2025)

One of the first questions I get from American clients is whether they can actually own property in Costa Rica. The answer is yes — and the process is more straightforward than most people expect.

Costa Rica has some of the most foreigner-friendly property ownership laws in Latin America. Americans, Canadians, and citizens of most countries have exactly the same ownership rights as Costa Rican nationals. There are no restrictions on foreign ownership of titled property. You do not need to be a resident. You do not need a local partner. You can own property here in your name, a corporation's name, or a trust.

Here is what you need to know before you start.

How Property Ownership Works in Costa Rica

Most property in Costa Rica is titled — meaning it has a registered title in the National Registry (Registro Nacional) that clearly defines who owns it, the property boundaries, and any liens or encumbrances. Buying titled property is the safest and most straightforward type of transaction.

There is also a category called concession property, which refers to land within 50 meters of the high tide line — the Maritime Zone. This land cannot be privately owned by anyone, Costa Rican or foreign. Land between 50 and 200 meters from the high tide line is concession land, which can be leased from the government under a concession agreement. Beachfront properties in Costa Rica are almost always concession properties, which requires additional due diligence.

Work with an attorney who understands the distinction and always verify the title status of any property before making an offer.

The Buying Process Step by Step

The process of buying property in Costa Rica is different from the United States. There are no escrow companies in the traditional sense, no standard purchase agreements, and no MLS system. Here is how it actually works.

You find a property you want to purchase and agree on a price with the seller. Your attorney drafts an Offer to Purchase, which is a preliminary agreement outlining the price, deposit amount, due diligence period, and closing timeline. You pay a deposit — typically 10% of the purchase price — into an attorney trust account. During the due diligence period, your attorney verifies the title, checks for liens, confirms property boundaries, and reviews any permits or concession agreements. If everything checks out, you proceed to closing. At closing, the deed is signed before a Costa Rican notary public and registered with the National Registry. The transaction is complete when the title transfers into your name.

The entire process from signed offer to closing typically takes 30 to 90 days depending on the complexity of the transaction.

Closing Costs

This is the part that surprises most American buyers because closing costs in Costa Rica are paid by the buyer, not split. Budget approximately 3.5% to 4% of the purchase price for closing costs. This includes transfer taxes of 1.5%, National Registry stamps, legal fees, and notary fees.

For a $500,000 property, expect roughly $17,500 to $20,000 in closing costs on top of the purchase price.

Do You Need to Be a Resident?

No. You can purchase, own, and sell property in Costa Rica without being a resident. Many buyers own property here for years before considering residency. If you rent your property on a short-term basis, there are tax implications you should discuss with a local accountant, but ownership itself requires no residency status.

What to Watch Out For

The biggest risks in Costa Rican real estate come from working without proper legal representation, skipping title verification, or misunderstanding concession property rules. Never transfer funds directly to a seller without an attorney holding them in trust. Never rely on verbal agreements. Never skip the due diligence period regardless of how clean a deal looks.

The market has matured significantly in recent years and most transactions go smoothly. But the protections that American buyers are used to — title insurance, standardized contracts, escrow companies — either work differently here or do not exist in the same form. A good attorney is not optional.

Finding the Right Property

The lack of a unified MLS system in Costa Rica means that many of the best properties are sold through agent networks and direct relationships rather than public listings. This is one of the reasons working with a local agent who is actively embedded in the market matters significantly more here than it might in the United States.

If you are thinking about buying property in Guanacaste, I am happy to walk you through the process from start to finish — no pressure, just clarity on what to expect and what to look for.