One of the very first questions I get from almost every buyer I speak with — whether they're calling from
Texas, Toronto, or anywhere else — is some version of: “Wait, can I even legally own property here?”
It's a fair question, and I'm glad people ask it early. The short answer is yes — foreigners generally enjoy
the same property ownership rights as Costa Rican citizens for titled land. But “yes” is really just the first
sentence of a longer, more nuanced conversation, and after 22+ years of guiding buyers through this market,
I've learned that the details matter far more than the headline.
This post isn't meant to be the final word on any of this — real estate law and tax treatment are things that
shift, and every property and every buyer's situation is a little different. Think of this as an orientation:
enough to help you ask the right questions, to the right professionals, at the right time. I'll point you toward
some of those professionals along the way.
The Foundation: Titled Land vs. the Maritime Zone
Most of the properties I show buyers are what's called fee simple titled land — registered with Costa Rica's
National Registry (Registro Nacional), just like a deed would be recorded back home. On titled land,
foreign buyers can generally hold property in their own name with essentially the same rights as a Costa
Rican national.
There's an important exception worth knowing about: the Maritime Terrestrial Zone (Zona Marítimo
Terrestre, or ZMT) — generally the 200 meters measured from the mean high tide line along the coast.
Property here is typically held under a concession rather than a title, and there are specific rules and
restrictions around foreign ownership percentages within concession-holding entities, along with
restrictions in the first 50 meters. If a property you're considering touches the ZMT in any way, this is a
conversation to have with your attorney before you get emotionally attached to it — the ownership structure
and restrictions can look quite different from titled property just a short distance away.
Due Diligence: What a Thorough Review Should Cover
This is really the heart of a safe purchase in Costa Rica, and it's where a good local attorney earns their fee
many times over. Due diligence here tends to be more layered than what North American buyers are
typically used to, simply because the systems (registry, municipal, environmental, utilities) don't all talk to
each other the way they might elsewhere. Depending on the property, a thorough review may touch on:
Survey / Topographical Study. A registered survey (plano catastrado) confirms the property's actual
boundaries, measurements, and access match what's on record — and can flag things like encroachments or
discrepancies between the recorded plan and the physical lot. On larger or more irregular parcels, this may
also involve a more detailed topographical study.
Title Review. Your attorney will pull the full history of the property at the National Registry — confirming
clean chain of title, and checking for any liens, mortgages, easements, annotations, or legal actions attached
to the property.
Legal Road Access. It's worth confirming whether the property has legally registered access to a public
road, versus relying on an informal path or a neighbor's goodwill. This can matter a great deal down the
line, especially for financing or resale.
Legal Water Access. Depending on the area, this might mean confirming availability through the local
ASADA (community water association) or AyA (the national water utility), or — for properties relying on a
well — confirming the appropriate permits through the relevant authorities. Water availability is one of
those things that's easy to assume and important to actually verify.
Power and Public Services. Similarly, confirming feasibility and access for electricity (through ICE or the
local provider) and other services relevant to the property.
Environmental Considerations. Depending on location — proximity to rivers, wetlands, forest cover, or
protected areas — there may be environmental setbacks or requirements that affect what can be built or how
the land can be used. This is very site-specific, so it's worth flagging early rather than discovering it mid-
project.
Municipal Details & Zoning. Some municipalities have a formal zoning plan (plan regulador) in place;
others have more limited or general guidelines. Either way, it's worth understanding what the applicable
municipality allows — or doesn't restrict — for the property you're considering.
Land Use Certificate (Uso de Suelo). This is a certificate from the municipality confirming what the
property's designated use actually is — residential, commercial, mixed, etc. It's a small document that can
save a lot of future headaches.
Easements. Any registered rights of way or usage rights that run with the property — for a neighbor's
access, a utility line, or similar — should be identified and understood upfront.
Concession Rights. As mentioned above, if any portion of the property falls within the Maritime Zone,
understanding the concession terms (and who's eligible to hold them) is essential.
Commercial vs. Residential Use. This ties back to zoning and the Uso de Suelo, but it's worth calling out
on its own: what a property is zoned for and what you intend to use it for should be confirmed as a match
before closing, not after.
Vacation Rental Restrictions. If short-term rental income is part of your plan, it's worth checking whether
the property is subject to condo/HOA regulations, municipal requirements, or other rules that could limit or
govern vacation rental use. Some communities are quite open to it; others have more specific requirements.
This is very property-specific, so don't assume.
I want to be upfront: this list covers the general categories, but which of these apply — and how deeply
each needs to be investigated — genuinely depends on the property. A titled lot in an established residential
subdivision has a very different due diligence profile than raw land near a river with ocean-zone proximity.
Your attorney will help scope this appropriately once they know the specific property.
Holding Title: Personal Name vs. a Costa Rican Corporation
This comes up in almost every conversation I have with buyers, and I'll be honest with you — there isn't
one universally “right” answer. It depends on your goals, your home country's tax situation, and your
personal comfort with complexity.
Generally speaking, buyers consider holding property through a Costa Rican corporation for reasons that
may include liability protection, privacy, and easier transferability down the road (since selling the shares of
a corporation that owns the property can be structured differently than transferring title directly, which may
affect transfer taxes). Others prefer to hold property in their personal name for simplicity, particularly for a
straightforward personal-use home.
If the property is intended as a rental investment and you're a U.S. or Canadian taxpayer, this is a place
where I'd genuinely encourage you not to guess. The way a Costa Rican corporation is treated by the IRS or
the CRA — including reporting requirements, potential foreign corporation filings, and how rental income
flows through to your home-country return — can vary quite a bit based on your specific structure and
situation. Getting this wrong isn't usually catastrophic, but it can be an expensive and stressful thing to
unwind later.
My honest recommendation: talk to your CPA or tax advisor at home before you decide how to hold title,
and pair that with guidance from your Costa Rican attorney on the local mechanics. The two conversations
inform each other, and getting the sequencing right (home-country tax advice + local legal advice, together)
tends to save people a lot of trouble.
Are There Annual Fees or Taxes Just for Maintaining a Costa Rican Corporation?
Yes — if you hold your property through a Costa Rican corporation, there's generally an annual corporate
tax that comes with it, commonly referred to as the Impuesto a las Personas Jurídicas. This is separate from
any property tax on the real estate itself; it's a tax on the corporation simply existing, whether or not it's
actively doing business.
The specific amount tends to be tiered — generally based on factors like whether the corporation is
registered as “active” or “inactive” with the tax authorities, and in some cases the entity's size or registered
capital — and these figures and thresholds can be adjusted from year to year. Because of that, I'd rather not
quote a specific number here that could be outdated by the time you're reading this; your attorney or
accountant in Costa Rica will be able to confirm the current amount and due dates for your specific entity.
What I will say generally: this is a real, recurring cost of holding property in a corporation rather than in
your personal name, and it's worth factoring into your overall holding costs alongside things like property
tax and any HOA fees. It's also worth understanding what happens if this tax goes unpaid for an extended
period — in some cases, non-payment can eventually create complications for the corporation, including its
standing to transact. This is exactly the kind of detail your Costa Rican attorney or accountant should walk
you through when you set up (or take over) a corporation, so it doesn't become an unpleasant surprise a few
years down the road.
What Are Property Taxes in Costa Rica?
This is generally one of the more pleasant surprises for buyers coming from the U.S. or Canada — property
taxes here tend to run considerably lower than what many buyers are used to back home. Property tax in
Costa Rica is generally assessed at the municipal level, based on the registered value of the property, and
it's often described as a modest annual percentage of that value.
I'm intentionally not going to anchor you to a specific percentage in this post, because property values,
municipal assessments, and how they're applied can vary, and I'd rather you get a confirmed, current figure
from your attorney or accountant than rely on a number that may not reflect your specific property or
municipality.
There's also a separate, higher-end tax worth being aware of — sometimes referred to as the “luxury home
tax” or solidarity tax — which applies to homes whose construction value exceeds a certain threshold set by
the tax authorities. That threshold is generally adjusted from year to year, so again, this is very much a
“confirm the current figure” situation rather than something I'd want to guess at here.
The general takeaway: property taxes are a genuine part of your annual ownership costs, but they tend to be
a smaller line item here than buyers often expect. Your attorney or accountant can walk you through the
current municipal rate for the specific property you're considering, along with whether the luxury home tax
would apply.
Standard Closing Timeframes
Every deal has its own rhythm, but as a general guide, closings in this market tend to fall into three rough
buckets:
● Quick close: around 45 days
● Moderate close: around 60 days
● Longer close: around 90 days
Where a given transaction lands usually comes down to things like financing, the complexity of due
diligence findings, corporate structuring, and how quickly documents move between parties (including
internationally, if you're signing from abroad). Your attorney will be able to give you a much more specific
estimate once they know the details of your purchase.
Do Buyers Use Escrow Services in Costa Rica?
Yes — escrow is a standard and well-established part of the process for foreign buyers here, and I'd
consider it a normal, expected part of a secure transaction rather than an optional extra. A licensed escrow
company holds funds and disburses them according to the terms of the purchase agreement, which adds a
real layer of protection for both buyer and seller.
One of the escrow providers I most frequently recommend to my clients is Geldstuck (geldstuck.com) —
I've found them to be professional, responsive, and well-versed in handling international buyers, which
matters when you're moving funds across borders and time zones.Are Home Inspections Done Here?
Yes, for existing (resale) properties, a professional inspection is something I'd encourage every buyer to
consider — the same way you would with any home purchase. An independent inspector or engineer can
assess structural condition, systems (electrical, plumbing, septic/water treatment), and flag issues that aren't
always obvious on a walkthrough, particularly in a tropical climate where humidity, termites, and drainage
can affect a property differently than in drier or colder climates.
Does Title Insurance Exist in Costa Rica?
This is a great question, and the honest answer is: title insurance in the way it exists in the U.S. or Canada
isn't a standard part of the Costa Rican system, though international title insurance products do exist and
some buyers choose to explore them, particularly on higher-value purchases.
What actually “guarantees” your title here is the strength of the National Registry system itself combined
with the thoroughness of your attorney's title investigation before closing. Costa Rica's public registry is
generally considered reliable and well-organized, and a proper title search — checking the full chain of
ownership, liens, and any recorded issues — is what stands in for the protection a title insurance policy
would otherwise provide. This is really the crux of why due diligence isn't a box-checking exercise here; it's
doing a lot of the same protective work that a title policy would do elsewhere.
Who Should You Talk To?
I say this often, and I mean it every time: I'm your real estate resource, but I'm not your attorney or your
accountant — and on a purchase like this, you want both in your corner, giving you advice specific to your
situation.
On the legal side, a few firms I've worked with and would comfortably point clients toward include:
● Sfera Legal — Lic. José Arce & Lic. Roberto Castillo (sferaglobal.io)
● IBL Consultores — Lic. Andrés González (ibllawgroup.com)
● Facio & Cañas — Lic. Sergio Solera (fayca.com)
● Invicta Legal — Lic. Alberto Sánchez & Lic. Mariana Loranca (invicta.legal)
Any of these firms can walk you through the specifics of your situation with current, accurate legal
guidance — laws and interpretations can shift, and they'll always have the most up-to-date read on what
applies to your purchase.
And on the tax side — especially if a rental investment or corporate structure is on the table — please loop
in your CPA at home before you finalize how you'll hold title. It's a short conversation that can save you a
complicated one later.
Can My Trust or Corporation Back Home Own the Entity That Holds My Property?
This one comes up more often than you'd think, especially from buyers who already have an estate plan, a
family trust, or a holding company set up in the U.S. or Canada. The general answer is: yes, this is generally
possible — a foreign trust or a foreign corporation can typically hold the shares of the Costa Rican
corporation that in turn holds title to the property.
But I'd gently push back on treating this as a simple layering exercise. Once your home-country trust or
corporation becomes the shareholder of a Costa Rican entity, you're generally adding a real layer of cross-
border complexity on top of the local one — additional reporting obligations at home (the kind of thing
your CPA would flag around foreign corporation or foreign trust filings), and additional requirements on
the Costa Rican side, including registration in the country's beneficial ownership registry (Registro de
Transparencia y Beneficiarios Finales), which requires disclosing who ultimately stands behind the entity.
None of this is meant to discourage the structure — for the right buyer and the right goals, it can make a lot
of sense. It's simply meant to say: this is not a decision to make casually or after the fact. If you're
considering having an existing trust or corporation from home hold your Costa Rican entity, loop in your
CPA or estate planning attorney at home and your Costa Rican attorney together, early, before the purchase
agreement is signed — not after the entity is already formed.
Let's Talk About Your Specific Situation
Every property is a little different, and every buyer's goals are a little different too. If you're exploring a
purchase in Nosara or the wider Guanacaste area and want to talk through what due diligence might look
like for a specific property — or just want an introduction to one of the attorneys above — reach out. I'm
happy to help you get oriented and get you connected with the right people.
This post is intended as general educational information based on my experience working with buyers in this market, and shouldn't
be relied on as legal or tax advice. Costa Rican real estate law and foreign reporting requirements can be detailed and situation-
specific — always confirm current guidance with a licensed Costa Rican attorney and your own CPA or tax advisor before making
decisions about your purchase.
