Costa Rica Real Estate: A Guide to Renting or Buying

Costa Rica Real Estate: Costa Rica is one of the most popular destinations in Central America for expatriates and investors, thanks to its stable economy, stunning natural beauty, and high quality of life. Whether you’re considering renting a home or purchasing property, understanding the process as a foreigner is crucial. This guide provides a detailed overview to help you navigate the Costa Rican real estate market.

Costa Rica Real Estate: Renting Property

Finding a Rental Property

1. Online Platforms: Websites like Encuentra24, Airbnb, and Facebook Marketplace offer a wide selection of rentals.
2. Local Real Estate Agents: Experienced agents can provide valuable insights and help find properties that match your needs.
3. Networking: Word-of-mouth recommendations from local communities or expat groups are often reliable.

Costa Rica Real Estate: Rental Agreements

1. Lease Duration: Typical leases are for 6-12 months, but short-term rentals are widely available in tourist areas.
2. Security Deposit: Usually equivalent to one month’s rent.
3. Utilities: Clarify whether utilities such as water, electricity, and internet are included in the rent.
4. Documentation: Ensure you have a written lease agreement that outlines:
   • Monthly rent and payment schedule
   • Lease term and renewal terms
   • Responsibility for repairs and maintenance

Costs

Rental prices vary depending on location:

• San José and Central Valley: $500-$1,500 USD per month for apartments or homes.
• Coastal Areas: $800-$2,500 USD per month for homes or villas.
• Rural Areas: $300-$700 USD per month for basic accommodations.

Costa Rica Real Estate: Buying Property

Can Foreigners Own Property?

Yes, Costa Rica’s laws allow foreigners to own property with the same rights as citizens. However, there are a few exceptions:

1. Maritime Zone: Foreigners cannot own land within 200 meters of the high-tide line unless it is titled land.
2. Concession Properties: These properties require special approval, and foreigners must have residency to hold majority ownership.

Costa Rica Real Estate: Steps to Buying Property

1. Define Your Budget and Goals
   
   • Determine whether you’re buying for personal use, rental income, or investment.
   • Research prices in your preferred area.
2. Hire Professionals
   
   • A reputable real estate agent with local market knowledge.
   • An experienced attorney to handle due diligence and legal aspects.
3. Conduct Due Diligence
   
   • Verify property ownership and title through the National Registry (Registro Nacional).
   • Check for liens, encumbrances, or zoning restrictions.
4. Make an Offer
   
   • Negotiate the purchase price with the seller.
   • Sign a purchase agreement that outlines terms and conditions.
5. Transfer Ownership
   
   • Your attorney will draft the transfer deed (Escritura) and register it with the National Registry.
   • Pay associated taxes and fees.

Costs of Buying Property

In addition to the purchase price, buyers should budget for:

• Transfer Tax: 1.5% of the property value
• Registration Fee: Around 0.5% of the property value
• Notary and Legal Fees: 1%-1.25% of the property value
• Real Estate Agent Fees: Typically paid by the seller, but confirm beforehand

Key Considerations

Residency and Ownership

• Property ownership does not automatically grant residency. However, investing at least $150,000 USD in real estate can qualify you for the Investor Visa.

Financing Options

• Local banks offer mortgage loans to foreigners, but they often require significant documentation and higher interest rates (6%-9%).
• Many buyers prefer to finance through cash or international lenders.

Property Taxes

• Annual property taxes are low, typically 0.25% of the property’s registered value.

Homeowners Association (HOA) Fees

• If you’re buying in a gated community or condominium, budget for monthly HOA fees.

Costa Rica Real Estate: Frequently Asked Questions

Can foreigners buy property in Costa Rica?

Yes, foreigners have the same property ownership rights as Costa Rican citizens, with few exceptions like maritime zone restrictions.

What are typical real estate prices in Costa Rica?

Prices vary by location. Coastal properties and luxury homes can range from $250,000 to several million USD, while homes in rural areas may start at $50,000.

What is the average interest rate for mortgages in Costa Rica?

Interest rates for mortgages typically range from 6% to 9% annually, depending on the lender and borrower’s financial profile.

Are there property restrictions for foreigners?

Foreigners cannot own land in the maritime zone unless it is titled. Concession properties have additional requirements for foreign ownership.

Can I start the property buying process from abroad?

Yes, you can search for properties online and work with local agents or attorneys remotely. However, visiting the property and conducting due diligence in person is highly recommended.

Does owning property qualify me for residency?

Investing $150,000 USD or more in real estate can make you eligible for the Investor Visa, which offers temporary residency.

Conclusion

Costa Rica’s welcoming property laws, natural beauty, and stable economy make it an excellent destination for renting or investing in real estate. Whether you’re seeking a beachfront villa, a mountain retreat, or a city apartment, understanding the legal and practical aspects of property transactions will help ensure a smooth and rewarding experience. With the right preparation and professional guidance, you can find the perfect property and enjoy everything Costa Rica has to offer.

For the renting or purchase of any property, we recommend you work with a trained real estate professional. Although it is possible to complete a rental or lease agreement on your own, any oversight is risky and could end up costing you thousands of dollars. The world is also full of scams, regardless of how reputable which website you use to find your first place to stay in a new country. 

Get access to our directory to connect with real estate professionals who have been recommended by expats just like you and verified by our team. You will also gain access to our network of verified visa/residency facilitators, lawyers and other professionals recommended by expats and verified by us. We make no commission on any work done by the professionals in our network, and none of the individuals or businesses listed have to pay to be recommended by us. Our recommendations are strictly merit based. Many facilitators, however, will provide you with 10-20% discount for purchasing access to our directory. 

You will additionally be given access to book a meeting with our network of expats just like you, living all over the world, who can share their experience of moving to your desired country, step-by-step. It’s like having a trusted friend in each city of the world to help answer your biggest questions. Some of these individuals may charge an hourly rate for their advice, however, we make no commission from this. This is an excellent way to speak to people who share your common background to help you decide which country or city you should move to. 

Use Our Directory To Find An Expert

Use our database to find visa facilitators, real estate agents, and recommended professionals. You will also have the ability to book a time to meet with our expats on the ground. These are individuals just like you who have gone through the immigration process and have been living in your desired country or city.

During these sessions, you can discuss every small detail related to the moving process. It’s like having a trusted friend everywhere you go. Whether you want to plan a short trip, need help finding an apartment, or you want some advice on moving to a particular city, they can help. This is a great way to meet someone with a similar background to help you achieve any of your goals.