Can I Find Financing in Costa Rica for Real Estate Development? Understanding Bank Financing and Private Lending
by Quatro Legal Real Estate | Nov 12, 2025 | Article, Financial Solutions

Costa Rica has become one of the most attractive destinations for real estate investment in Latin America. Its political stability, legal security, and thriving tourism market have driven growing interest among both local and international investors and real estate developers. However, one of the most common questions that real estate developers have, is if they can find financing in Costa Rica for real estate projects?

The answer is yes — and there are two main ways to do so, depending on the developers and development project investment profile, the type and standing of the real estate project, and the level of flexibility needed. Through Quatro Legal’s Financial Solutions Program foreigners can now choose between two financing options. 

Real estate development financing refers to the funding structures and credit lines used to acquire land, build, or complete construction projects. It provides the capital developers need to move from planning to execution while maintaining liquidity throughout the project cycle. 

From traditional bank loans to private financing, Costa Rica offers a options that can be structured safely under local law.

Below, we explain the most common financing alternatives, along with key legal and financial aspects to consider, if you are a real estate developer looking to find financing in Costa Rica. 

The process to secure real estate development financing generally includes: a) confirming project feasibility, b) selecting a financial model, c) formalizing collateral and contracts, and d) registering the loan through a mortgage or trust with the National Registry for the lender to secure the collateral.

1. Traditional Bank Financing

Costa Rica’s main banks offers credit lines for real estate development projects. These are known as Costa Rica mortgage and trust financing products and are available to both individuals and corporations.

Requirements usually include:

• Verifiable credit history (local or international): Banks typically request financial statements, bank statements, tax returns, references and project’s business model. 
• Collateral: The property or an equivalent asset must serve as loan security. It must be a property in good standing meaning no lien, defects, or encumbrances can be found in it. 
• Appraisal by a certified professional: An appraisal is required to determine and demonstrate the value of the land, its characteristics and its suitability to serve as collateral. 
• Construction permits and required insurance: Projects with environmental and constructions permits duly approved with  insurance coverage have much more chances to be financed that those on early green stages.  

Loan terms for real estate development financing usually range from 1 to 5 years for construction projects, and up to 30 years for residential mortgages. Interest rates may be fixed or variable, in colones or U.S. dollars, depending on the borrower’s financial profile and project stability.

The main benefit of bank financing as a financing option for a real estate developer is institutional security and lower interest rates. The process can be slow for foreign investors without a local credit history.

2. Private Financing in Costa Rica

When bank loans are not the best fit, many real estate developers turn to private financing. In this model, a private investor provides credit directly to the buyer or developer based on a development financing agreement structured around the needs of the project and loan conditions set forth by the private lender. 

Advantages include:

• Faster approval and fewer bureaucratic requirements.
• Flexible terms for interest rates, repayment periods, and conditions.
• Legal security through public deeds before a Costa Rican Notary Public, backed by a mortgage or trust guarantee (fideicomiso de garantía).

These contracts must be registered at the National Registry, following the Civil Code and Mortgage Law, ensuring both parties’ rights are protected.

For a long time, trust guarantees have maintained popularity. In this case the real estate developer requesting the financing will temporarily transfers the title or titles of its real estate project to a fiduciary / trust company (bank or notary), who keeps it until the loan is paid in full — a transparent and secure structure for both lender and borrower.

3. Risks and Legal Considerations

Regardless of the real estate development financing method, there are several legal and tax factors to keep in mind when investing in Costa Rica:

1. Verify property title and registry status at the Registro Nacional to ensure it’s free from liens, boundary conflicts, or ownership restrictions.
2. Formalize all agreements through public deeds before a Notary Public to guarantee legal validity and enforceability.
3. Seek specialized legal advice to identify which financing model best (bank or private) suits your project’s structure and timeline.
4. Evaluate tax obligations, as interest payments and capital gains may be subject to income tax under the Tax Directorate’s regulations.
5. Comply with Central Bank and financial laws to avoid issues with international transfers or reporting requirements.

Costa Rica’s legal system provides a transparent and investor-friendly framework for real estate developers looking to find financing in Costa Rica, as long as all steps are properly structured and registered. 

Yes — it is absolutely possible to find financing in Costa Rica for real estate development. The Costa Rica’s real estate development financing market offers a diverse range of offers through bank and private, making it an increasingly attractive destination for real estate investment. The key is to approach real estate financing strategically, combining financial planning with solid legal guidance. A lawyer specializing in Costa Rican real estate law can help ensure the financing structure is both compliant and secure, protecting your investment every step of the way. Costa Rica remains one of Latin America’s most promising markets for real estate, where legal stability and investment flexibility come together to create real opportunities for developers and buyers alike. 

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, trust structuring, and compliance to mortgage registration — ensuring your financing is handled efficiently and securely.

If you want to explore financing options for your development project 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.