Four Things Real Estate Investors Should Know When Investing in Costa Rica

In this article, as part of our ongoing Quatro Legal Real Estate series, we will be talking about four things real estate investors should know when investing in Costa Rica.

4 Things You Need to Know Before Purchasing Property in Costa Rica

Let’s dive into some common questions we receive about real estate in Costa Rica.

Can a Foreign National Legally Own Property in Costa Rica?

Yes, all foreign nationals have the right to invest and purchase real estate in Costa Rica, same as Costa Ricans do. Costa Rica does not have or impose restrictions for real estate investment. The only exception is when applying for maritime land zone concession, which requires a majority percentage to be owned by Costa Ricans.

Do You Need an Attorney to Purchase Real Estate in Costa Rica?

Yes, in Costa Rica, we do not have title companies that oversee the purchase process, check the legitimacy and marketability of the title, contingencies, and payment process. Therefore, you need to retain a reliable real estate firm or attorney as under Costa Rican law, all purchases of title property must be recorded in the Costa Rican public registry.

You will need a notary, which is basically an attorney to draft and register the final deed of sale. Choosing the professional or firm that will represent you is key as good firms and attorneys have expertise, information, and connections to make your investment easier and safer.

What Is the Most Important Part of Buying Real Estate in Costa Rica?

Very easy: Invest in thorough due diligence on the property. Worst thing that you can do is rush through the real estate purchase process. Due diligence on a property consists on a detailed examination of a title, liens, encumbrances, zoning, taxes, soil uses, and doing surveyor and home inspection work as well as checking seller’s legitimacy to sale.

Due diligence is the most important part to protect your investment.

Do You Need to Hire a Professional Real Estate Agent?

No, you don’t need to hire a real estate agent to buy property, but it is highly advisable. It will be one of the most important decisions that you will make since we do not have a centralized MLS system.

In Costa Rica, real estate agents are independent, dual representation is common, and work in a commission calculated over the purchase price. There is no licensing in Costa Rica for real estate agents, which means anyone can act as a real estate agent.

Therefore be careful, find a reputable professional who is registered with SUGEF, which is the financial regulator, and that has the expertise in the market you’re interested in, has listings, comparables, and will be able to organize tours and provide information, which will be key for a successful real estate investment.

Looking for legal counsel you can trust to make your purchasing property in Costa Rica easier and more rewarding? Get in touch today.

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.