Buying Property in Costa Rica: Process, Costs, and Safety Checks

Buying property in Costa Rica can be straightforward, but the details matter. This guide explains the usual steps from making an offer to closing, so you know what to expect and when decisions are typically made.

Can Foreigners Buy Property in Costa Rica? What “Beachfront” Really Means

Yes. Foreigners can buy and own titled property in Costa Rica, and the ownership rights for that type of property are generally described as the same as for Costa Rican citizens. 

The main nuance starts when a listing is described as beachfront. Along much of the coast, the first 200 meters inland from the high-tide line are governed by specific rules. This coastal strip is commonly described as the Maritime Zone. 

Within that zone, the first 50 meters are typically described as a public area that cannot be privately owned. Behind it, the next 150 meters are commonly described as a restricted area that may be held through a concession, depending on local zoning and municipal administration.

Fee Simple vs Concession (Fast Definitions)

Fee simple (titled) property means you own the land outright and your ownership is recorded in the national public registry. This is the category most buyers expect when they hear “I own the property.” 

Concession property is different. In the Maritime Zone’s restricted area, the land is generally described as belonging to the state, and private parties can hold a right to use it under a concession granted through local authorities, rather than owning it outright. 

This is why two “beachfront” listings can look similar on a map but involve very different legal and practical realities. 

Source : ticotimes.net

The Buying Process in Costa Rica (From Offer to Closing)

Most purchases follow a clear sequence once you and the seller agree on a price. The goal is to turn that agreement into a registered transfer that is enforceable and properly recorded.

1. Choose your representatives early.
   Many buyers work with an agent for search and negotiations, and a real estate attorney for the legal side. 
2. Negotiate the main terms before money moves.
   This usually means confirming the price, what is included, the target closing date, and any conditions that must be met before closing. The terms should be written, not verbal. 
3. Sign a purchase sale agreement.
   After the offer is accepted, it is common for the attorney to prepare a purchase sale agreement that sets out the terms and conditions of the deal. 
4. Run the legal and practical checks during the agreed window.
   This is when the attorney verifies that the seller has authority to sell and that the property can be transferred as expected. A title search through the Public Registry is a core part of this stage. 
5. Close the sale in front of a Costa Rican notary public.
   In Costa Rica, the transfer of property is done through a transfer deed, called an escritura, executed before a Notary Public. The notary must be an attorney in Costa Rica. 
6. Register the transfer in the Public Registry.
   The notary who drafted the transfer deed is responsible for presenting it and ensuring it is registered in the Property Section of the Public Registry. 

Follow up until registration is confirmed.
Presentation secures priority in the registry system, but it does not automatically guarantee final registration. This is why buyers are advised to follow up until the transfer is fully registered.

Source :CostaRicaLaw.com

Offer, Deposit, and Escrow (What’s Normal)

An offer is normally put into a written form with the help of your agent or attorney. The goal is to capture the agreed terms clearly enough that the next contract can be drafted without ambiguity. 

In many transactions, a deposit is expected once the deal terms are agreed. Wise describes a typical deposit level of 10%, and notes that the purchase agreement becomes binding after the deposit is placed in escrow. 

Escrow is used to reduce risk for both sides. It creates a controlled place for funds during the period between signing and closing. The key point is not the word “escrow” itself. The key point is that the deposit handling is documented, traceable, and tied to written conditions. 

Before sending any funds, make sure the following items are in writing:

• The exact amount and currency of the deposit
• The escrow holder and account details
• The conditions for release of the deposit
• The circumstances where the deposit is returned or kept
• The date or event that triggers closing

These details are what keep expectations aligned when the buyer and seller are not in the same country.

Typical Timeline and What Can Delay It

Wise describes closing as typically happening 30 to 60 days after signing the purchase agreement.
Costa Rica Law explains that, assuming no defects, the Public Registry should register the deed within 30 to 60 days after presentation.

Delays usually come from issues that must be resolved before the notary can safely register the transfer. Title problems, missing municipal confirmations, or defects in the deed can slow registration. Costa Rica Law notes that the Public Registry will not record a transfer deed unless transfer taxes and documentary stamps have been paid, and that municipal certification regarding property tax and assessments is part of what the Registry requires.

Due Diligence Checklist (Non-Negotiables Before You Commit)

Due diligence is the phase where you verify that the property can be sold as described. It is also where you reduce the risk of paying money to the wrong person or buying a property with hidden legal limits. Wise recommends having your lawyer carry out full due diligence checks before you proceed.

Title and Ownership Checks

Start with the official record. Costa Rica’s National Registry provides property and encumbrance consultations through its digital services.

Ask for the property’s Folio Real or property number. Then confirm these points in the registry information:

• Owner identity. The seller’s name or corporate entity must match the registry record. 
• Type of right being sold. Make sure it is full ownership of a titled property, not a different right presented as “ownership.”
• Mortgages, liens, or annotations. The registry consultation includes recorded encumbrances that can affect transfer or value.
• Easements and limitations. Some restrictions are registered and must be understood before you sign. 

Match the registry record with the survey plan used for the property. The survey plan is a required document for transfers, because it clarifies boundaries and is recorded in the public system. 

If anything conflicts, stop and resolve it before you move forward. A mismatch on boundaries or rights is not a minor detail.

Zoning, Permits, Access, and Utilities

A clean title is not enough. You also need to confirm that the property can be used the way you intend.

Focus on practical items that often get overstated in listings:

• Zoning and land-use limits. Your lawyer should confirm there are no zoning restrictions that block building or renovating plans. Wise calls out zoning checks as part of due diligence. 
• Coastal status when the property is near the ocean. If the listing is “beachfront” or near the high-tide line, confirm whether it is titled land or tied to concession rules. This changes what you are buying and what approvals may apply. 
• Access rights. Confirm the property has legal access, not just a road that people use informally. Easements and access rights can appear in the public record.
• Municipal status for taxes and assessments. Costa Rica Law notes that municipal certification related to property tax and assessments is part of what the Public Registry requires for registration.
• Utilities you rely on. Verify water, power, and internet with evidence, not promises. Ask for bills, provider confirmations, or written statements tied to the specific property.

Keep your checks tied to documents. Avoid relying on screenshots without context or messages that cannot be verified.

Red Flags That Should Make You Pause

Some problems are visible early, especially in remote transactions.

Treat these situations as a signal to slow down:

• Pressure to skip steps. Wise warns against being bullied by aggressive sales tactics or being pushed to cut corners to save time. 
• Requests to send money outside a documented escrow process. Deposits should be traceable and tied to written conditions. Wise recommends using escrow to protect your funds until the sale completes. 
• Refusal to share the Folio Real, survey plan, or seller documentation. If you cannot verify the property in the National Registry, you cannot validate the basics. 
• Vague “beachfront” claims with no clarity on ownership type. Coastal rules create real differences between titled ownership and other rights. 

Due diligence is not about mistrust. It is about aligning the listing, the documents, and the transaction process before you commit.

Costs to Budget (Closing Costs and Ongoing Expenses)

The purchase price is only one part of the budget. You also need to plan for one time transaction costs at closing and recurring costs after you take ownership.

Closing costs in Costa Rica usually include government charges and professional fees. A common item is the property transfer tax. It is typically described as 1.5% of the taxable basis, calculated on the higher of the declared price or the registered fiscal value. 

Registration related costs are separate from the transfer tax. They include registry fees and documentary stamps that must be paid for the deed to be processed and recorded.

Professional costs often include notary and legal work. In Costa Rica, the property transfer is executed through a deed before a Notary Public, who is also an attorney. 

Ongoing costs are usually simpler, but they are easy to underestimate if you buy remotely. The baseline recurring tax is the municipal property tax. Multiple references describe it as a flat 0.25% applied to the property’s cadastral value used by municipalities. 

Beyond taxes, the ongoing budget depends on the property and location. Maintenance in coastal climates can be more frequent, and you may also have insurance, utilities, and property management costs if you are not on site.

One-Time vs Ongoing Costs (What to Expect)

One-time costs at purchase often include:

• Property transfer tax, typically described as 1.5% of the taxable basis. 
• Registry fees and documentary stamps tied to registration of the deed.
• Notary and legal fees connected to drafting, execution, and filing of the transfer deed. 
• Escrow fees if an escrow service is used, depending on the provider and setup.

Ongoing costs after purchase often include:

• Municipal property tax, commonly described as 0.25% of cadastral value. 
• Utilities and service subscriptions tied to how the home is used.
• Maintenance and repairs, which can vary widely by construction quality and exposure to salt and humidity.
• Optional costs like property management, depending on whether you live locally or abroad.

Financing Reality for Foreign Buyers (Short Overview)

Many foreign buyers in Costa Rica purchase with cash or with funding arranged outside the local banking system. Local mortgages exist, but approval can be harder for non-residents and the process can feel slow compared to the US or Europe. 

If you apply through a Costa Rican bank, expect conservative terms. Wise notes that foreign buyers often need a large down payment, commonly described in the 30% to 50% range, plus strong documentation and credit history. Some banks like BAC actively market home financing for foreigners, which shows that non-resident applications are possible, but eligibility still depends on the bank’s internal criteria and your file quality.

Because of that friction, buyers often rely on alternatives such as:

• Cash purchase, sometimes paired with a longer due diligence window. 
• International lenders familiar with cross-border borrowers, which can be simpler to access but may come with different rates and conditions. 

Seller financing, when the owner is willing to structure payments under a formal contract.

Quick FAQ: Buying a House in Costa Rica

Next Step: How Surf Y Host Helps You Search and Contact Owners Directly

Use Surf Y Host to narrow your search before you start serious conversations. Start with the location pages to compare areas and see what “near the beach” means in real life, not only on a map. Then filter listings by stay length or purchase type, so you are looking at options that fit your plan.

When a listing matches your needs, use the platform to reach the host or owner directly. You can ask specific questions about availability, terms, utilities, and the status of the property. This is also where you can move faster on viewings, paperwork, or timing, because you are talking to the decision maker.

Visit our real estate opportunities here.