Can Non-resident Foreigners’ Own Property In Costa Rica?

Can non-resident foreigners own property in Costa Rica? The answer is an absolute yes! This blog will explore the legalities around foreign real estate investment.

Costa Rica welcomes foreign investment with open arms. You don’t need residency or citizenship to purchase property. This makes Costa Rica an attractive option for investors, retirees, and anyone seeking a vacation home in a stunning natural setting.

Below I will take you through the most relevant aspects of buying property as a non-resident foreigner:

1. Choose a Property: Fall in love with a piece of land and make it yours. Go where your heart feels warm, and stay there. What could be easier, right? Connect with a real estate agent to ensure a smooth and confident process. Read our blog on whether “to realtor or not to realtor” here.
2. Choose an attorney with real estate experience and good reputation: In Costa Rica, there’s no title insurance. Conducting due diligence before purchasing property is a key element to make sure you are making a safe investment. Hiring a reputable real estate attorney to review the title and ensure that the property is in good standing is a non-negotiable for us when purchasing a property in Costa Rica. Read our entry on why hiring a real estate lawyer is crucial.
3. Ownership Structures: Non-residents have several options for owning property in Costa Rica. They can buy property under their own name, set up a corporation, or establish a trust. Learn the pros and cons of purchasing through a corporation here.
4. Property Taxes: As a property owner in Costa Rica, you’ll be responsible for paying property taxes at the same rate as Costa Rican. These taxes are relatively low compared to many other countries, making Costa Rica an attractive destination for real estate investment. Read our blog “Understanding Property Taxes in Costa Rica” here. The one exception that comes to mind is there is a 2.5% withholding tax for capital gains on property sales recorded in non-resident names. This applies to physical persons and legal entities. We will address this in a separate blog.
5. Beach front properties: The only legal limitation for non-residents is for properties within the Maritime Zone Land (ZMT). Properties located within 150 meters of the high tide line fall under ZMT regime. These properties are not fee simple tile and can only be owned by a concession granted by the Municipality. Here, non-residents can only own up to 49% of the concession. There are legal structures that can be used in these scenarios in which we can provide assistance with. Read our article on this subject here.
6. Buying from abroad: Our clients always ask us, do I have to be in the country to purchase property in Costa Rica? The answer is no! You can buy from abroad. Make sure to connect with your attorney confidently on how to set it up.
7. Residency benefits: While you don’t need to be a resident to own property in Costa Rica, investing in Costa Rica in real estate can be a pathway to residency. Obtaining residency can offer additional benefits, such as tax advantages, unlimited stay in the country, and access to services like healthcare and education. Residency is not a prerequisite for property ownership.

Whether you’re seeking a tropical escape or a lucrative investment, Costa Rica’s open arms and stunning beauty are waiting. With careful planning and expert guidance, you can soon be calling your own piece of paradise home.

For more information, please fill out the courtesy e-meeting form at the bottom. We will be glad to assist you!

Pura vida!
Lourdes Salas Vega
Lsv@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.