By Flamingo Beach Realty
Buying property in Costa Rica for the first time is exciting, and for good reason. The laws here are genuinely favorable for foreign buyers, the market offers real value at multiple price points, and the lifestyle is exactly what most of our clients have been imagining. What makes the process different from buying in the United States or Canada is not the complexity, but the specific mechanics: the role of the notary, the importance of escrow, how title is structured, and the due diligence steps that protect your investment. We have walked hundreds of international buyers through this process since 2016, and the buyers who have the smoothest experiences are the ones who come in informed. This guide covers what you need to know before you sign anything.
Key Takeaways
- Foreigners have the same legal property rights as Costa Rican citizens for titled property, with no residency requirement
- The key legal distinction is between titled property and concession property: titled is full ownership, concession is a lease from the municipality and carries different risks
- Due diligence is a formal, contractually protected period of approximately 21 days during which your attorney verifies everything about the property
- A qualified Costa Rican attorney is not optional, it is the mechanism through which your purchase is legally protected
- Closing costs typically run 4 to 5% of the purchase price and are paid by the buyer; the seller pays commission
Your Rights as a Foreign Buyer
This is one of the most important facts for first-time international buyers to understand: as of 2026, foreigners can purchase titled property in Costa Rica with exactly the same legal rights as Costa Rican citizens. You can buy in your own name, sell freely, rent the property, mortgage it, and pass it to your heirs. No residency is required. You can purchase it on a tourist visa.
The one significant exception is the maritime zone, which covers the first 200 meters from the high tide line along the coast. The first 50 meters is always public land and cannot be purchased by anyone. The next 150 meters is governed by a concession system, and foreigners who have not resided in Costa Rica for at least five years face restrictions on obtaining concessions in that zone. This is why we always advise buyers to verify from the first conversation whether any property they are considering is titled or concession. The distinction is fundamental and directly affects what you own.
The one significant exception is the maritime zone, which covers the first 200 meters from the high tide line along the coast. The first 50 meters is always public land and cannot be purchased by anyone. The next 150 meters is governed by a concession system, and foreigners who have not resided in Costa Rica for at least five years face restrictions on obtaining concessions in that zone. This is why we always advise buyers to verify from the first conversation whether any property they are considering is titled or concession. The distinction is fundamental and directly affects what you own.
The Role of Your Attorney
In Costa Rica, the notary public is a licensed attorney who legally executes the transfer of property. Understanding this makes the process clearer. Your attorney serves two roles: conducting due diligence to protect your interests, and ultimately executing the legal documents that transfer ownership.
We strongly recommend that buyers engage their own independent attorney rather than sharing the seller's attorney. Costa Rica is a small, connected community, and using separate legal representation is standard professional practice here. We maintain relationships with experienced, bilingual attorneys across the Guanacaste region and are glad to make introductions.
We strongly recommend that buyers engage their own independent attorney rather than sharing the seller's attorney. Costa Rica is a small, connected community, and using separate legal representation is standard professional practice here. We maintain relationships with experienced, bilingual attorneys across the Guanacaste region and are glad to make introductions.
What your attorney will verify during due diligence:
- Full title search at the Registro Nacional to confirm the seller's ownership and the absence of liens, mortgages, or encumbrances
- Verification that property taxes are current
- Review of zoning and land use regulations applicable to the property
- Confirmation that any structures are permitted and legally built
- Maritime zone status for any coastal property
- Confirmation of utilities access and connection status
The Purchase Process Step by Step
The Guanacaste purchase process is straightforward when you understand the sequence. Here is how it typically flows.
From offer to closing:
- Offer and contract: Once you have identified the property you want to purchase, an Offer to Purchase or Option to Purchase is prepared. This document specifies price, deposit terms, and due diligence period. A deposit of typically 10% of the purchase price is placed into escrow at this stage
- Due diligence period: Approximately 21 calendar days during which your attorney conducts the full property investigation. Your deposit remains fully refundable during this entire period. If your attorney identifies non-resolvable legal or physical issues, you can exit the transaction and recover your deposit
- Closing: Typically 25 to 60 days after the signed contract. Closing takes place before a Notary Public, where the transfer deed is signed by buyer and seller. The deed is registered at the Registro Nacional, completing the legal transfer
- Closing costs: Plan for 4 to 5% of the purchase price in buyer-side closing costs, including transfer taxes, registry fees, and attorney fees. Sellers pay the real estate commission
Escrow: Non-Negotiable
All funds in a Costa Rica real estate transaction should be held by a licensed, SUGEF-regulated escrow agent. SUGEF is Costa Rica's financial regulatory body, and escrow agents must be licensed and regulated under its framework. This protects both buyer and seller and ensures funds are disbursed properly according to the escrow agreement.
Never wire funds directly to a seller or agent before escrow is confirmed and your attorney has verified the transaction. This is the point at which buyers who skip proper due diligence are most exposed to fraud. We work exclusively with established escrow providers and require this step in every transaction we manage.
Never wire funds directly to a seller or agent before escrow is confirmed and your attorney has verified the transaction. This is the point at which buyers who skip proper due diligence are most exposed to fraud. We work exclusively with established escrow providers and require this step in every transaction we manage.
Ownership Structure: Personal or Corporate
Many buyers in Costa Rica choose to purchase property through a Costa Rican corporation (Sociedad Anónima or S.A.) rather than in their personal name. This is not required, but it offers practical advantages: simplified estate planning through share transfers to heirs, potential tax efficiency for rental income, and liability protection for any incidents on the property.
Your attorney can advise you on the right structure for your specific situation, tax jurisdiction, and intended use of the property. Setup costs for a corporation typically run $750 to $1,500, with annual maintenance around $200 to $400.
Your attorney can advise you on the right structure for your specific situation, tax jurisdiction, and intended use of the property. Setup costs for a corporation typically run $750 to $1,500, with annual maintenance around $200 to $400.
FAQs: First-Time Buyers in Guanacaste
Can I get a mortgage as a foreign buyer?
Financing is available but more limited than in North America. Local Costa Rican banks have expanded mortgage offerings to foreign buyers in recent years, typically requiring a larger down payment than domestic buyers. Developer financing is available for pre-construction and new developments. Many of our clients fund purchases from equity in their home-country properties or through private financing. We can refer you to mortgage professionals familiar with international buyers in this market.
What is the luxury home tax and does it apply to my purchase?
Costa Rica's solidarity tax (often called the luxury home tax) applies to properties with a construction value assessed above approximately $228,600 USD. The rate is applied on a sliding scale based on the assessed value of the improvements (the structure, not the land). For most luxury purchases in Playa Flamingo and Guanacaste, this tax is a factor to understand and plan for. Your attorney will explain how it applies to any specific property.
What are the biggest mistakes first-time buyers in this market make?
The most common are: not engaging an independent attorney early enough in the process, confusing concession property with titled property on beachfront listings, and wiring funds before escrow is confirmed and due diligence is complete. Every one of these is preventable with the right professional guidance from the start.
Start Your Homebuyer Journey Right
The buyers who have the best experiences in this market are the ones who take the process seriously from day one. With the right attorney, a reputable escrow provider, and an agent who knows this region thoroughly, purchasing property in Guanacaste is a genuinely rewarding experience.
Reach out to us to learn more about our work in Playa Flamingo and Guanacaste and let's start a conversation.
Reach out to us to learn more about our work in Playa Flamingo and Guanacaste and let's start a conversation.
