Can a foreigner buy? Yes, on equal footing
On titled land, foreigners have essentially the same property rights as Costa Ricans and can own in fee simple, with a National Registry that backs title. The only relevant restriction applies to the maritime-terrestrial zone, which does not affect inland properties like this one. The property can be titled in a personal name, through a company (S.A. or S.R.L.), or via a trust, depending on what suits succession, co-ownership, or planning needs.
The process, step by step
- Offer and purchase-sale option. An agreement is signed setting price, timelines, and conditions, usually with an initial deposit.
- Due diligence. The attorney verifies the registry study, the cadastral survey plan, land uses, water availability, possible easements, and that taxes are current. (For this property, the cadastral survey plan, registry study, and land-use certification are already in place, which speeds up this step.)
- Escrow. For a foreign buyer without a local account, the usual tool is an escrow agent authorized by SUGEF, which holds the funds and verifies their source (anti-money-laundering compliance).
- Closing and deed. In Costa Rica, the notary is always an attorney; they draft the transfer deed the parties sign at closing.
- Registration. The notary files and registers the deed with the National Registry. The Registry will not register the transfer if taxes are unpaid or if the seller's municipal tax is not current.
Closing costs (approximate)
Fees are the same for foreigners and nationals, and are calculated on the higher of the sale price or the registered fiscal value:
- Transfer tax: 1.5%.
- Registration stamps and fees: approximately 0.8%.
- Notary/legal fees: around 1.25% (per the official schedule) + 13% VAT.
- Estimated total: on the order of 3.5% to 4% of the price (can reach 5% with escrow and other items).
- Real estate commission: around 5% + VAT, usually paid by the seller.
By custom the buyer assumes the closing costs, though their allocation can be negotiated.
Taxes as an owner
- Property tax: 0.25% per year of the registered value, paid to the municipality.
- Luxury home ("solidarity") tax: applies only to homes whose construction value exceeds a threshold set by the Treasury (in 2025, around ₡148 million / ~US$275,000). It does not apply to undeveloped land.
- Capital gains (on a future sale): 15% on the gain, in force since 2019, with certain exceptions.
The notary and registry transparency
Costa Rica has a single public National Registry: a good attorney can verify a parcel's ownership history, liens, and limitations in minutes. That transparency, together with predictable taxes, is part of what makes the market attractive and safe for the foreign investor.
Practical recommendations
- Work with a licensed Costa Rican attorney and notary experienced in transactions with foreigners.
- Do full due diligence; don't rush the process. This is exactly what the data room is built to support.
- Always use escrow to handle funds.
- Define the ownership structure (personal name vs. company) with your advisor, considering your tax and immigration goals.
And residency?
A purchase of a certain amount can also open the door to residency: Law 9996 allows applicants to qualify for residency by investment with a minimum of US$150,000. See the Costa Rica page for details.
This guide is general information and does not replace advice from a Costa Rican attorney or tax advisor. Amounts and percentages may change; confirm them before any transaction.