Can Foreigners Buy Property in Costa Rica?
Dreaming of Owning Property in Paradise? Here’s What You Need to Know
In this guide, we’ll break down everything you need to know about buying property in Costa Rica, from legal considerations to the best locations—so you can make your tropical real estate dreams a reality. ¡Vamos!
What International Buyers Need to Know before they buy.
Costa Rica’s breathtaking landscapes and welcoming culture have made it a magnet for international property buyers. If you’re considering real estate in Cabuya, Santa Teresa, Montezuma, or anywhere on the Nicoya Peninsula, understanding the rules for foreign ownership and the benefits of the Inversionista (Investor) Residency Program is essential.
Equal Rights for Foreign Buyers
Foreigners enjoy the same property ownership rights as Costa Rican citizens. You can purchase titled property outright in your own name or through a corporation, with no requirement for residency or citizenship. This makes purchasing property in Cabuya, Santa Teresa, Montezuma, or elsewhere on the Nicoya Peninsula straightforward and secure.
Titled vs. Concession Land
Titled Land:
Most inland and some select coastal properties are titled, meaning you own the land outright. This is the most secure form of ownership and is highly sought after by both locals and foreigners.
Concession Land:
Properties within the Maritime Zone (the first 200 meters from the high tide line) are concession land. Here, the first 50 meters are public, and the next 150 meters can be leased (not owned) for up to 20 years, renewable. Foreigners can only own up to 49% of a concession property unless they have resided in Costa Rica for at least five years. These properties are subject to additional regulations and taxes, so due diligence is crucial.
The Inversionista (Investor) Residency Program
Costa Rica offers a clear path to residency for foreign investors through the Inversionista program. If you invest at least $150,000 USD in real estate, shares, or a Costa Rican business, you can apply for temporary residency. Here’s how it works:
Minimum Investment: $150,000 USD in real estate, a business, or other approved assets.
Residency Benefits: Temporary residency for two years, renewable as long as you maintain the investment. After three years, you can apply for permanent residency.
Family Inclusion: Your spouse and dependent children can be included in your residency application.
Path to Citizenship: After seven years of legal residency, you may apply for citizenship.
Additional Perks: Residency holders can import household goods and a vehicle duty-free, and enjoy access to Costa Rica’s healthcare system.
Note: Inversionista residents cannot work as employees in Costa Rica but can earn income from their investments or work remotely for foreign companies.
Final Tips
Work with a reputable local real estate agent and attorney to ensure a smooth, legal transaction.
Understand the difference between titled and concession land, especially for beachfront properties.
Consider the Inversionista program if you plan to invest $150,000 or more, as it offers significant residency and lifestyle benefits.
Costa Rica’s property laws, combined with the natural beauty of Cabuya, Santa Teresa, Montezuma, and the Nicoya Peninsula, make it an ideal destination for your next real estate investment.