Your Guide to Property Investment in Costa Rica

Carlos Ibarra
Sep 30
4 min read

Hello everyone, and welcome to LANDS IN COSTA RICA and the newest best selections of properties for sale in Costa Rica. This is your exclusive chance to witness the wide selection of amazing PROPERTIES available for an incredible price. Whether you are looking for an Ocean View Property, Farm / agricultural land, beachfront villa, a hillside retreat, or an urban dwelling, we have all kinds of different sizes and styles of homes, all across Costa Rica. Our vast selection of properties are affordably priced and offer stunning views in some of Costa Rica’s most sought-after locations.

Our team of experts understand the ever-changing and diverse market in the country. We've been in the business for over 20 years, so we have seen it all. From intricate taxation laws, to complex real estate contracts, to specific terms & conditions that can enable you to avoid expensive mistakes. So don't wait any longer and take this opportunity to explore the best selection of properties we have.

Eye-level view of a beachfront villa with palm trees and ocean in the background — Beachfront villa with ocean view in Costa Rica

Starter Guide for Property Investing in Costa Rica

Investing in Costa Rican real estate is an exciting opportunity, but it requires careful planning and knowledge. Here’s a starter guide for property investing that will help you navigate this vibrant market:

Understand the Market: Costa Rica offers diverse property types, from tropical beachfronts to mountain retreats. Each region has its own appeal and price range.
Legal Framework: Foreigners have the same property rights as locals, but understanding local laws is crucial. Our team can help you with contracts and legal requirements.
Budget Wisely: Factor in not just the purchase price but also taxes, maintenance, and potential renovation costs.
Location Matters: Popular areas include Guanacaste, Central Pacific, and the Southern Zone. Each offers unique lifestyle and investment benefits.
Work with Experts: Partnering with experienced agents and legal advisors can save you time and money.

By following these steps, you can make informed decisions and maximize your investment potential.

Wide angle view of a lush green hillside with a modern house overlooking the valley — Hillside retreat with panoramic valley views in Costa Rica

Why Costa Rica is a Prime Destination for Property Investment

Costa Rica is more than just a tropical paradise - it’s a smart investment choice. Here’s why:

Stable Economy and Government: Costa Rica boasts political stability and a growing economy, making it a safe place to invest.
Growing Tourism Industry: With millions of visitors annually, rental properties and vacation homes have high demand.
Natural Beauty and Biodiversity: The country’s stunning beaches, rainforests, and mountains attract buyers looking for lifestyle and investment.
Favorable Tax Environment: No capital gains tax on property sales for foreigners and reasonable property taxes.
Infrastructure Improvements: Better roads, airports, and utilities enhance property values.

These factors combine to create a thriving real estate market with strong potential for appreciation and rental income.

Is there a way around putting 20% down on an investment property?

Many investors wonder if it’s possible to avoid the typical 20% down payment on investment properties in Costa Rica. While traditional financing often requires this, there are some alternatives:

Seller Financing: Some sellers offer financing options with lower down payments. This can be negotiated directly.
Partnerships: Teaming up with local investors or partners can reduce your upfront capital.
Private Lenders: Private financing companies may offer more flexible terms but usually at higher interest rates.
Bank Loans: Some Costa Rican banks provide mortgages to foreigners, but they often require proof of income and a solid credit history.
Lease-to-Own Agreements: These allow you to rent with the option to buy later, spreading out payments.

Each option has pros and cons, so it’s important to consult with experts who understand the local market and legalities to find the best fit for your situation.

Tips for Choosing the Right Property Type and Location

Selecting the right property type and location is key to a successful investment. Here are some tips:

Define Your Goals: Are you looking for rental income, vacation home, retirement, or resale profit?
Research Neighborhoods: Coastal areas like Tamarindo and Manuel Antonio are popular for rentals, while mountain towns offer tranquility.
Consider Accessibility: Proximity to airports, hospitals, and amenities affects property value.
Check Zoning and Land Use: Some areas have restrictions on building or land use. Learn about local regulations.
Evaluate Infrastructure: Reliable water, electricity, and internet are essential.
Visit Properties in Person: Photos can be deceiving. Seeing the property and surroundings firsthand is invaluable.

By carefully considering these factors, you can find a property that fits your investment strategy and lifestyle preferences.

Close-up view of a tropical farm with coffee plants and a small farmhouse — Agricultural farm with coffee plants in Costa Rica

Navigating Legal and Tax Considerations in Costa Rican Real Estate

Understanding the legal and tax landscape is crucial to avoid costly mistakes. Here’s what you need to know:

Property Ownership: Foreigners can own property outright, including beachfront and agricultural land.
Title Search and Due Diligence: Always conduct a thorough title search to confirm ownership and check for liens.
Purchase Process: Typically involves a purchase agreement, deposit, and final deed transfer at a notary public.
Taxes and Fees:

- Transfer tax is 1.5% of the property value.

- Annual property tax is around 0.25%.

- Capital gains tax is generally 15%, but exemptions apply in some cases.

Architectural Standards: Costa Rica has specific building codes and standards. Learn more about them in this property investment guide.
Hiring Professionals: Use a reputable attorney and real estate agent to guide you through contracts and negotiations.

Being informed about these aspects will protect your investment and ensure a smooth transaction.

Taking the Next Step in Your Costa Rica Property Journey

Now that you have a solid understanding of the market, financing options, property types, and legal considerations, it’s time to take action. Our team at LANDS IN COSTA RICA is ready to help you find the perfect property that matches your goals and budget.

Explore Our Listings: We offer a wide range of properties across Costa Rica, from oceanfront villas to agricultural lands.
Schedule a Consultation: Let’s discuss your needs and create a personalized investment plan.
Visit Properties: Arrange a trip to see your top choices in person.
Leverage Our Expertise: Benefit from over 20 years of experience navigating Costa Rica’s real estate market.