As a Foreigner, Can I Use My Property in Costa Rica to Obtain Refinancing or an Equity Loan Against It?

Many foreigners who already own property in Costa Rica eventually wonder whether they can use it to access local credit. The good news is yes — it is possible to obtain refinancing or an equity-based loan using an existing property as collateral, even if you live abroad. 

For years, refinancing was primarily available to Costa Rican residents and United States and Canadian Citizens where excluded of this possibility. Today, however, several banks, private lenders, and lending foreign institutions have opened programs that allow non-residents to leverage their real estate to obtain cash-out refinancing, mortgage or trust restructuring under Costa Rican law. 

Through Quatro Legal’s Financial Solutions Program, international clients from United States and Canada can access tailored refinancing solutions with faster approvals and flexible terms, secured directly by their property. Our team ensures full legal compliance and risk management, making this a strategic and efficient option for unlocking property value while maintaining financial flexibility abroad.

Understanding how the refinancing processes work can help foreign owners unlock liquidity for renovations, new investments, or personal financial planning — without needing to sell their property.

How It Works: Steps and Process

Unlike standard purchase financing, real estate refinancing applies to existing property owners who already hold title and wish to access part of their equity. The refinancing process is similar to a new loan, but focuses on releasing value rather than acquiring a new asset.

• Local Bank Financing: Involves a detailed review of the borrower’s financial capacity, ownership documentation, and compliance with SUGEF and Central Bank regulations. This option will be viable to U.S. and Canadian Citizens. 

• Cross-Border Mortgage Programs: Offered through United State lenders, these solutions use foreign credit profiles and income verification, while the Costa Rican property serves as collateral. This structure allows borrowers to maintain liquidity and credit lines in their home country.
• Private Lending: Focuses primarily on the value of the collateral rather than the borrower’s financial background. 

1. Determining Eligibility and Equity

The first step is evaluating how much equity (net property value) you have available.
Most banks and cross-border mortgage programs allow refinancing up to 60–75% of the appraised value for foreign borrowers, while private lenders may offer slightly lower loan-to-value ratios below 50% but provide much faster approval and greater flexibility.

In both cases, the property must be titled in the borrower’s name or held under a Costa Rican corporation in good standing.

2. Loan Application and Documentation

As a foreign borrower, you must provide documentation that demonstrates your ability to repay the loan, even if you reside abroad. Most financing programs, excluding private loans, request:

• Valid passport and identification documents
• Proof of income (two years of tax returns, W-2s, or business financials)
• Bank statements (3–6 months)
• Evidence of property ownership.
• Corporate documents if the property is owned by a company.

Some financing institutions may also ask for a credit report from your country of residence or bank references confirming your financial standing.

In contrast, private lenders in Costa Rica generally do not assess the borrower’s income or credit history. Instead, they base their decision solely on the value and condition of the property used as collateral.

3. Property Appraisal and Valuation

With financing institutions, a licensed appraiser must inspect the property and determine its fair market value.
The lender then uses this appraisal to calculate the maximum refinance amount under its loan-to-value policy.

For example, if your property is valued at $400,000 and the bank allows a 65% LTV, your refinancing limit would be approximately $260,000, minus any existing mortgage balance.

Private lenders may or may not require an appraisal and instead use market information, comparable or data to make a LTV decision. 

4. Loan Approval and Terms

Refinancing loans are generally denominated in U.S. dollars (USD) and the terms will depend of the refinancing option that fits the debtor’s criteria.

5. Mortgage Registration and Disbursement

The refinancing loan is formalized before a Costa Rican Notary Public through a mortgage or trust deed (per the creditor’s criteria), which is registered at the National Registry. Funds are then disbursed either to pay off existing obligations or released to the borrower’s designated account for new investments, renovations, or business use.

Benefits of Refinancing Property as a Foreigner

Refinancing in Costa Rica can be a strategic financial tool, offering flexibility and access to local capital without selling valuable assets. United States Citizens and Canadian Citizens may not be aware they may qualify for real estate refinancing options. Key benefits include:

• Liquidity: Unlock capital tied up in your property to fund construction, expansion, or investment projects.
• Competitive Rates: Access lower interest rates compared to international private lending or personal loans abroad.
• Tax Efficiency: Interest paid on mortgage loans may be deductible for corporate entities under Costa Rican tax law, depending on the structure.
• Portfolio Diversification: Maintain property ownership while financing the acquisition of new assets.
• Legal Protection: All refinancing agreements are executed under Costa Rican law, providing regulated, transparent security for both the lender and the borrower.

For buyers evaluating the most efficient way to finance a new acquisition, our guide, We Care Solutions Packages, compares bank loans, private lending, and equity-backed alternatives.

Refinancing property in Costa Rica for foreigners from the United States and Canada is now a realistic, well-regulated option. Whether you want to renovate, consolidate debts, or invest in new opportunities, leveraging your property’s value allows you to optimize liquidity without selling.

The key to success lies in proper legal structuring, transparent documentation, and choosing the right lender for your goals. With professional guidance, the process is efficient, secure, and fully compliant with Costa Rican law.

Whether you are financing a new purchase, developing land, or refinancing an existing home, our team at Quatro Legal provides tailored legal and banking solutions for each stage of the real estate journey in Costa Rica.

You can complete our Quatro Legal – Financial Solutions Intake Form, which helps our team collect the key details needed to evaluate your profile and connect you with the ideal financing program.

Our legal team specializes in assisting foreign investors through every stage of the process — from bank procedures and compliance to mortgage registration — ensuring your financing is handled efficiently and securely.

If are a United States or Canadian Citizen or resident and you’d like to learn more about refinancing your property or exploring financing solutions in Costa Rica, contact us at financialsolutions@quatro.legal.

Disclaimer: The information provided in this blog post is for general informational purposes only and is not intended to constitute legal advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change. For the most accurate and up-to-date information, please contact our office directly. Some images may be AI generated.