USING AN ESCROW COMPANY FOR REAL ESTATE TRANSACTIONS WITH CRYPTOCURRENCY IN COSTA RICA

The Costa Rican real estate market continues to attract international buyers who want flexibility not only in location but also in payment methods. One of the most common questions we receive at Quatro Legal is: Can I buy property in Costa Rica with cryptocurrency through an escrow company?

The short answer is yes. But the key to doing it safely and in compliance with regulations lies in choosing the right escrow. Here’s how it works depending on the option selected by the client.

What Is an Escrow?

In simple terms, an escrow is a trust-based commercial agreement where a neutral third party (the escrow agent) holds funds during a property purchase until all agreed conditions are met.

∙ The buyer deposits funds with the escrow company.
∙ The escrow holds those funds securely.
∙ Once legal verification is complete and both parties fulfill their obligations, the escrow releases the money to the seller and the property is transferred to the buyer.

This ensures a safe, transparent, and auditable transaction.

How Does It Work in Practice?

1. Initial Agreement: Buyer and seller agree on the property, the purchase price in cryptocurrency, and deadlines.
2. Crypto Deposit into Escrow Wallet: Buyer transfers the cryptocurrency to the escrow’s secure wallet.
3. Legal Verification: The escrow, working with your attorneys, confirms that the property is free of liens and that all documents are valid.
4. Closing: Once everything checks out, the escrow releases the crypto to the seller, and the property is transferred to the buyer.

Can I Use Any Escrow Company When Paying with Crypto?

The answer is no. The escrow company to be appointed will depend on how and where the seller wants to receive the funds.

1. Seller Receiving Cryptocurrency

When both the buyer and the seller are comfortable using crypto wallets, this structure is the simplest. The transaction works like any standard real estate deal in Costa Rica.

• On the day of closing, at the signing of the purchase deed, the buyer transfers the crypto directly to the seller’s wallet.
• If an initial deposit is required before closing, it should:
  • Be made in fiat currency (to avoid crypto volatility).
  • Be held in an escrow account outside Costa Rica, so the buyer is not asked for extensive source-of-funds documentation (bank statements, reference letters, etc.).

Since funds do not enter Costa Rica, this step avoids unnecessary friction.

2. Seller Receiving Fiat in a U.S. or Canadian Bank Account (Crypto Exchanged Abroad)

In cases where the seller wants fiat deposited into a foreign bank account, but the buyer’s source of funds is cryptocurrency, we recommend using escrow accounts outside Costa Rica.

This avoids the stricter requirements Costa Rican banks impose for source-of-funds justification. The money never passes through a Costa Rican account, so there is no regulatory issue locally.
If the buyer needs assistance with the exchange, Quatro Legal works with specialized escrow companies that:

• Handle the crypto-to-fiat exchange.
• Safely hold the funds.
• Release them when contractual conditions are met.

These companies typically charge 4%–5% of the transaction amount, covering the exchange and escrow process.

3. Seller Receiving Fiat in a Costa Rican Bank Account (Funds from Crypto Exchange)

This is the most sensitive structure. Costa Rican escrow companies with local bank accounts are legally required to request bank statements to justify the source of funds.

• If the buyer’s bank records show deposits from a crypto exchange, both the escrow and the bank will immediately flag crypto as the origin.
• Costa Rican banks are strict, and not all transactions will be accepted.

In these cases, we strongly recommend:

• Scheduling a meeting with Quatro Legal’s real estate team and the escrow company to evaluate feasibility.
• Reviewing what percentage of funds will be brought into Costa Rica.
• Confirming whether the buyer can provide sufficient supporting documentation not directly tied to crypto.

If documentation is insufficient, escrow and banks may reject the transaction. This is why early coordination is critical.

Why the Structure Matters

Buying property in Costa Rica with cryptocurrency is absolutely possible, but the structure determines how smooth the process will be.

• Direct crypto payments work best when both parties accept wallets.
• Crypto-to-fiat abroad avoids local banking restrictions.
• Local fiat from crypto requires strict documentation and early legal coordination.

Why Legal Guidance Matters

While escrow and blockchain add security, you also need to ensure your transaction complies with Costa Rican regulations. Working with an attorney experienced in crypto and real estate escrow transactions ensures that:

• Contracts are properly drafted.
• Regulatory requirements are respected.
• Your investment is legally protected.

Final Thoughts

Escrow services make real estate transactions with cryptocurrency in Costa Rica not only possible but also safe, efficient, and transparent. By combining blockchain’s transparency with the legal protection of escrow, both buyers and sellers gain peace of mind.

If you found this information useful or need additional guidance, please contact María Fernanda Baudrit Portela at mbp@quatro.legal for expert legal advice.

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.