Bank Loans Are Now Available in Costa Rica for U.S. and Canadian Citizens: How to Get a Bank Loan?

For many years, foreign buyers purchasing property in Costa Rica had limited access to local bank financing. Most transactions were completed in cash or through private lending arrangements due to the banking system’s strict requirements for non-residents.

In recent years, Costa Rican banks have expanded their mortgage programs to serve foreign buyers, including U.S. and Canadian citizens. This evolution reflects the country’s growing commitment to attracting U.S. and Canadian investment. These institutions now offer structured, dollar-denominated real estate loans backed by local property as collateral that allow foreigners to finance homes, condominiums, or construction projects locally under clear and regulated lending rules.

This change is highly significant. It means international investors from the U.S. and Canada and expats can now access competitive local interest rates, diversify their capital, and acquire Costa Rican property under a transparent, regulated long-term structure. It also reflects a maturing of the Costa Rican banking sector and the growing confidence in foreign investment under the country’s strict anti-money-laundering and financial compliance framework (SUGEF).

How It Works: Steps and Process

Obtaining a bank loan as a foreigner in Costa Rica involves a defined process that balances compliance, property security, and financial capacity. While requirements may vary slightly by bank, the general structure is consistent across banks.

1. Pre-Qualification and Income Verification

The first step is a pre-qualification interview where the bank assesses the borrower’s nationality, residency status, and purpose of the loan (purchase, construction, or refinance).
Foreign clients must provide:

• Two years of income tax returns (U.S. Form 1040 or Canadian T1)
• Recent W-2 or pay slips, or corporate financials if self-employed
• Bank statements (usually three to six months)
• Copy of passport and residency card (if applicable)

All documents in English are accepted, though banks may request certified translations into Spanish for the formal file.

2. Loan Amount and Collateral

Costa Rican banks typically lend from 60% to 80% of the appraised value (Loan-to-Value ratio) for foreign borrowers. The collateral must be a registered property in Costa Rica, with a clean title verified by the National Registry.

3. Loan Terms and Currency

Foreign clients can access credit either in U.S. dollars (USD) or in Costa Rican colones (CRC), depending on their income source and risk tolerance. Local banks offer terms from 15-30 yearsyears, interest rates between approximately 8% and 10% annually, and loan-to-value ratios (LTV) of up to 60% to 80% of the appraised property value. These figures vary depending on the borrower’s income verification, property location, but the demonstrate how Costa Rica’s credit system has become competitive and transpartent for foreign investors from the U.S. and Canada to obtaing bank financing in Costa Rica. 

• USD loans are common for foreigners since income and property pricing are usually in dollars.
• Colones loans are available for those earning locally or seeking protection against currency fluctuations.

4. Due Diligence and Compliance Review

Costa Rica enforces strict SUGEF and Central Bank regulations to prevent money laundering. Banks must verify the origin of funds, corporate ownership structure, and beneficial shareholders to grant bank financing in Costa Rica. 

The bank’s legal department conducts due diligence on:

• Property ownership history and encumbrances
• Corporate documents (if applicable)
• Proof of funds from abroad

This step is often supported by your attorney to expedite document gathering and ensure full compliance.

5. Property Appraisal and Approval

The property is appraised by an appraisal approved by the bank. The appraisal defines the lending value and ensures the property complies with zoning and construction regulations for bank financing to be approved. 

After the appraisal, the loan is presented to the credit committee for approval. Once approved, the bank issues a formal offer letter detailing interest rate, term, and disbursement conditions under which the bank financing will be granted. 

6. Closing and Mortgage Registration

The loan is formalized before a Costa Rican Notary Public through a Mortgage Deed (“Escritura de Hipoteca“) or Trust (“Contrato de Fideicomiso“), which is recorded at the National Registry (“Registro Nacional“).
Disbursement is made directly to the seller, construction company, or to an escrow account, depending on the transaction structure.

Benefits of Obtaining a Costa Rican Bank Loan

1. Access to Competitive Local Rates

Interest rates from banks are often lower than private or offshore lending entites, with better consumer protections and fixed-term options.

2. Strengthens Investment Legitimacy

Bank financing through a regulated Costa Rican bank enhances transaction transparency and establishes a formal credit history in the country — helpful for future purchases or refinancing.

3. Preserves Liquidity

By financing part of the purchase, investors can retain capital for improvements, property management, or additional investments.

4. Protection Under Costa Rican Law

Loans are governed by local legislation, providing clear borrower rights, structured repayment plans, and access to regulated dispute mechanisms.

5. Multibank Options and Personalization

Each bank has developed specific programs for international clients, including: 

• Personalized programs for high-net-worth individuals and foreigners with U.S./Canadian income. 
• Fixed-rate dollar loans with up to 20-year terms and streamlined documentation requirements.
• “Expat Mortgage Program” that allow easier income verification for U.S. and Canadian citizens.
• Additional customized financing options designed to accomodate the needs of foreign buyers and investors. 

To make the process smoother, Quatro Legal offers its Bank Loan Brokerage Package, a comprehensive service designed to help foreign buyers and investors obtain real estate-backed bank financing in Costa Rica with confidence. Through this package, our legal and financial team:

• Pre-screens your financial and legal profile.
• Prepares and reviews all documentation before it reaches the bank.
• Communicates directly with loan officers and coordinates appraisals, insurance, and closing procedures.
• Ensures the property and loan structure comply fully with Costa Rican law and registry requirements.

This end-to-end bank financing support minimizes delays, reduces stress, and helps position you as a strong, well-prepared borrower in the eyes of local banks — making financing in Costa Rica simple, secure, and efficient.

The opening of bank loan programs for U.S. and Canadian citizens in Costa Rica marks a turning point in the country’s real estate financing landscape. It makes the Costa Rican market more accessible, transparent, and attractive for serious investors and second-home buyers.

However, understanding the legal framework, documentation requirements, and banking expectations remains crucial to ensure a smooth approval and proper registration of the mortgage or trust.

If you are exploring the option of financing your Costa Rican property through the local financing bank system, our legal team can guide you through every stage — from bank selection and compliance review to loan closing and property registration. 

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 you want to explore financing options 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.