Costa Rica Real Estate 2025: Foreign Ownership, Market Trends & Best Cities to Invest
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8/5/2025
✅ Can Foreigners Buy Property in Costa Rica?
Yes — foreigners have the same rights as citizens to buy and own property, including land, homes, and commercial real estate.
🏠 Costa Rica’s welcoming laws allow foreigners to own freehold property without restrictions.
⚖️ Foreign Ownership Laws
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No restrictions on foreigners owning land or buildings
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Property rights protected by a transparent legal system
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Strong emphasis on environmental regulations, especially in coastal and forested areas
🏙️ Top Cities & Regions to Invest
🔹 1. San José
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Capital city with robust rental demand
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Growing commercial and residential developments
🔹 2. Guanacaste (Tamarindo, Playa Flamingo)
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Popular beach destinations with luxury resorts
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Strong short-term rental market fueled by tourism
🔹 3. Central Valley (Atenas, Grecia)
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Mild climate and expat-friendly towns
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Affordable properties and growing communities
🔹 4. Manuel Antonio
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Coastal town known for national parks and tourism
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High-end condos and villas popular among investors
🔹 5. Nosara
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Surfing hotspot with eco-conscious developments
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Increasing demand for boutique hotels and vacation homes
💰 Property Prices in 2025
| Location | Avg. Price (USD/sqm) | Notes |
|---|---|---|
| San José | $1,200–$2,500 | Urban condos and houses |
| Guanacaste | $1,500–$3,000 | Beachfront villas and condos |
| Central Valley | $800–$1,500 | Affordable homes and land |
| Manuel Antonio | $1,800–$3,500 | Luxury condos and resorts |
| Nosara | $1,200–$2,500 | Eco-lodges and vacation homes |
📈 Rental Yields & ROI
| Location | Long-Term Yield | Short-Term Rental ROI |
|---|---|---|
| San José | 5–7% | 7–9% |
| Guanacaste | 6–9% | 9–12% |
| Central Valley | 5–6% | 6–8% |
| Manuel Antonio | 6–8% | 8–11% |
| Nosara | 6–9% | 9–13% |
🛠️ Buying Process for Foreigners
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Identify property and negotiate price
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Conduct due diligence and title search
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Sign purchase agreement and pay deposit (usually 5-10%)
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Complete purchase with lawyer and notary assistance
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Register deed with the Public Registry
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Typical closing timeline: 30–60 days
🧾 Taxes & Fees
| Tax/Cost | Rate/Details |
|---|---|
| Transfer Tax | 1.5% of the property value |
| Property Tax | 0.25% annually after exemption threshold |
| Capital Gains Tax | 15% on gains for properties held less than 2 years; exempt after 2 years |
| Notary & Registration | ~1–2% of transaction value |
| Rental Income Tax | Progressive rates up to 15% |
🛂 Residency & Visas
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Property ownership does not grant residency automatically
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Costa Rica offers several residency options including pensionado and rentista visas
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Investment in real estate can support residency applications under certain programs
🏘️ Who Should Invest in Costa Rica?
✅ Ideal for:
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Retirees and expats seeking a stable, nature-rich environment
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Vacation home buyers looking for tourism hotspots
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Investors focused on rental income and eco-friendly developments
❌ Not ideal for:
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Buyers seeking large-scale urban commercial investments
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Those expecting residency simply through property purchase
🔮 2025 Market Trends
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Increasing eco-tourism drives demand for sustainable developments
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Growing expat communities boosting Central Valley and coastal markets
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Infrastructure improvements enhancing accessibility to remote areas
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Emphasis on preservation and regulated development
🧭 Final Thoughts
Costa Rica’s real estate market offers security, transparency, and natural beauty. It remains a favorite for lifestyle buyers and investors focused on rental income with a green ethos.
Working with local legal experts ensures smooth transactions and compliance with environmental laws.
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