Travel Costa Rica and thinking about buying real estate? You are not alone. Every year, thousands of foreigners fall in love with Costa Rica’s natural beauty, warm climate, friendly people, and relaxed lifestyle—and many begin to dream of owning a home, a vacation property, or land in paradise.
The good news is this: foreigners are legally allowed to own property in Costa Rica, with almost the same rights as Costa Rican citizens. The bad news is that many buyers get into trouble—not because Costa Rica is unsafe or dishonest—but because they assume the buying process works the same way it does in the United States, Canada, or Europe.
It does not.
This article lays out a common sense approach to buying real estate in Costa Rica—practical, cautious, and based on understanding how things really work on the ground.
Foreigners Can Own Property—But Do It the Right Way
Yes, foreigners can legally own property in Costa Rica. In most cases, property is purchased in the name of a Costa Rican corporation rather than an individual. Your Costa Rican attorney will normally set up this corporation for you before the purchase process begins.
Buying through a corporation offers several advantages:
- Easier transfer of ownership later
- Privacy (your personal name does not appear on public records)
- Simplified inheritance planning
- Potential tax and liability benefits
These advantages are significant, and your attorney should explain them clearly before you proceed. Do not skip this step.
The National Registry: One Central Source of Truth
One of the strengths of Costa Rica’s property system is that all land records are kept in one central location: the Registro Nacional (National Registry), located in San José.
Every legitimate property transaction must be registered there. This means:
- Ownership records
- Liens
- Mortgages
- Court attachments
- Legal encumbrances
Before you even think seriously about making an offer, your attorney must:
- Verify that the seller is the true legal owner
- Confirm that the property is free of liens and encumbrances
- Ensure boundaries match what is being sold
If something is not registered at the Public Registry, it is not legally enforceable—but if it is registered, you must deal with it.
Never rely on verbal assurances. The Registry is what counts.
Real Estate Agents: Buyer Beware
Here is one of the biggest differences between Costa Rica and North America:
👉 Real estate agents in Costa Rica are not required by law to be licensed.
There is no mandatory training, no standardized certification, and no Multiple Listing Service (MLS) like in the United States or Canada.
Anyone can call themselves a real estate agent.
Some agents are excellent, honest, and experienced. Others are not. Many are simply middlemen with little legal knowledge.
Common sense rule:
Check out any agent very carefully before trusting them.
- Ask how long they have been working in real estate
- Ask for references
- Verify previous transactions
- Be cautious if they pressure you to act quickly
Remember: the agent does not protect your legal interests—your attorney does.
Speculation and Pricing: Take Your Time
Speculation in Costa Rican real estate is rampant. Prices can vary wildly for similar properties, sometimes with no logical explanation.
Foreign buyers are often quoted inflated prices, especially in tourist areas. This is why common sense is essential.
Before buying:
- Compare multiple properties
- Ask other foreigners what they paid in the same area
- Spend time living or renting in the area first
- Do not rush because you are “afraid to miss out”
Costa Rica is not running out of land tomorrow.
Always Use Your Own Attorney
This point cannot be emphasized enough:
👉 Your attorney must be different from the seller’s attorney.
Never allow the same attorney to represent both sides. That is a conflict of interest, even if it is common practice locally.
Your attorney should:
- Be fluent in English
- Explain everything clearly
- Provide written fee estimates upfront
- Answer questions patiently
Legal fees in Costa Rica are often higher than what North Americans expect, so ask about costs early to avoid surprises.
Written Contracts Only—Never Verbal
In Costa Rica, verbal agreements mean nothing when it comes to real estate.
Every offer must be:
- In writing
- Prepared or reviewed by your attorney
- Clear about timelines, deposits, penalties, and conditions
Do not sign anything you do not fully understand. If something feels rushed or unclear, stop.
Negotiation Is Expected
Do not pay the first price asked.
Negotiation is part of Costa Rican culture, especially in real estate. Sellers often expect buyers to counteroffer.
Common sense tips:
- Do not act overly enthusiastic
- Do not reveal your budget
- Be prepared to walk away
- Take your time
A calm buyer usually gets a better deal.
Utilities: Check Before You Buy
One of the most overlooked—and costly—mistakes is failing to confirm utilities.
Electricity
Make sure:
- Electrical lines already exist
- You can legally connect to the grid
Getting new electric poles, transformers, or service in remote areas can take years—or never happen at all.
Water
Potable water is even more critical. Confirm:
- Legal water availability
- Valid water rights or access
- Existing connections
Without legal water, land may be worthless for building, no matter how beautiful it is.
Why Corporations Matter
Buying property through a corporation is standard practice in Costa Rica.
Benefits include:
- Simplified resale
- Avoiding transfer taxes later
- Protecting personal assets
- Easier estate planning
Your attorney should form the corporation before you begin searching seriously for property, not after.
Avoid Remote Property Unless You Live There
A very important common sense rule:
Do not buy property in remote areas and leave it unattended.
Squatting is a real issue in Costa Rica. Squatters (precaristas) have legal rights, and removing them can take years through the court system.
If you buy rural land:
- Someone must live on it
- Or it must be actively maintained
- Or you must have a caretaker under a written contract
An empty property is an invitation.
Squatters Have Rights—Understand This Early
This surprises many foreign buyers:
Squatters have rights in Costa Rica.
This does not mean they automatically own your land—but it does mean eviction is slow, legal, and expensive.
Your attorney must explain:
- How squatter laws work
- How to prevent occupation
- What legal protections you need
Prevention is always easier than legal action.
Final Thoughts: Common Sense Wins
Buying real estate in Costa Rica can be a wonderful experience—or a nightmare—depending on how you approach it.
Use common sense:
- Do not rush
- Do not assume
- Do not trust blindly
- Do not skip legal advice
Do:
- Hire a qualified attorney
- Verify everything at the National Registry
- Negotiate calmly
- Confirm utilities
- Protect your property from day one
Costa Rica is a beautiful country with a stable democracy, strong property laws, and welcoming people. When you understand how things work and proceed carefully, buying real estate here can be both safe and rewarding.
Travel Costa Rica—but buy smart.
And remember: common sense is your most valuable asset.