Ultimate Checklist Before Buying in Costa Rica: The 25 Checks That Avoid Trouble

Published on July 20, 2026 and written by Cyril Jarnias

Buying property in Costa Rica is a dream: jungle, beaches, the good life, and light real estate taxes. But behind the postcard lies a loosely regulated market, with its gray areas, legal pitfalls, and hidden costs. Without a solid checklist, the risk of buying the wrong property, in the wrong location, with the wrong legal status is very real.

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1. Clarify Your Goal and Budget Before Even Looking

Before talking about cadastre or maritime zones, you need to honestly answer two questions: why are you buying and how much can you really invest, including all ancillary costs.

The same property is not analyzed the same way if you are looking for a primary residence, a vacation home rented out a few weeks a year, a pure rental investment, or a tourism development project. Zoning (land use), environmental constraints, rental demand, and even the choice of region will differ.

– the length of procedures,

– additional costs (closing, annual taxes, renovations),

– the difficulty of accessing local credit.

Local studies show that closing costs (taxes, stamps, notary, escrow…) generally run around 4.5% to 6.5% of the purchase price. Not including them from the start completely skews the budget.

Defining an overall budget including a 10% buffer (closing, furniture, initial work, contingencies) will keep you from having to sell at a loss or forgo essential renovations.

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2. Choose the Right Professionals: Lawyer, Notary, Technical Experts

Costa Rica is nothing like France, Canada, or the United States when it comes to real estate. The country has no official regulatory body for real estate agents: no mandatory license, no professional order, no automatic penalties for misconduct—only civil recourse in court. Relying on “the nice agent who speaks French” as your sole safeguard is a major mistake.

In Costa Rica, the backbone of legal security is the attorney-notary, not the agent.

2.1. The Real Estate Attorney: Non-Negotiable

Your first instinct should be to hire a bilingual Costa Rican attorney specialized in real estate law, who will typically also be a public notary (notario público). This person will:

The costliest errors among foreigners come from refusing to hire an independent attorney or confusing a mere “formalist” notary with a true legal advisor. In Costa Rica, the notary must be a lawyer, but above all, they must work for you, not the seller.

2.2. Essential Technicians: Surveyor, Engineer, Possibly Environmental Consultant

Due diligence doesn’t stop with paperwork. A licensed surveyor must verify in the field that the physical boundaries match the registered plano catastrado. An engineer will assess slope stability, erosion risks, landslides, or seasonal flooding.

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3. Verify the Title at the Registro Nacional: Folio Real, History, and Liens

Any serious purchase begins at the Registro Nacional (Registro Público), the country’s sole land registry, fully computerized and accessible online. Each titled parcel is identified by a unique number: the folio real.

Your attorney must: ensure your rights are protected, inform you of the laws and regulations applicable to your situation, prepare the necessary legal documents, represent your interests in court, and advise you throughout the process.

Costa Rica follows the rule of “first registered, first served”: an unregistered right cannot generally be enforced against a good-faith buyer. However, this protection only fully works if your attorney has meticulously checked the file at the Registro.

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4. Understand the Critical Difference Between Titled Property and Maritime Concession

Some of the worst stories for foreign property owners involve the coast. The distinction between titled property (fee simple) and land under concession in the Zona Marítimo-Terrestre (ZMT) is the single most important point to grasp if you’re considering an ocean view or beach access.

4.1. The ZMT: 200 Meters Under Special Regime

Costa Rica’s entire coastline is governed by Law 6043 (1977) on the Zona Marítimo-Terrestre:

– the first 50 meters from the high-tide line are the Zona Pública, inalienable, 100% public, no title or fencing allowed;

– the next 150 meters form the Zona Restringida, owned by the state, administered by municipalities, usable only through a concession (emphyteutic lease, 5 to 20 years, renewable).

– annual fee, generally around 2.5% of the value,

– strict compliance with the Plan Regulador (municipal zoning plan),

– renewal formalities,

– risk of non-renewal or revised terms.

4.2. Restrictions for Foreigners in the ZMT

Another pitfall: in the concession zone, a foreigner who has not been a resident for at least five years cannot hold more than 49% of a concession at any given time. To control more than 50%, they must:

– be a Costa Rican citizen,

– be a legal resident for at least five years,

– or structure the concession through a Costa Rican corporation where at least 51% of the shares are held by Costa Ricans or long-term residents.

Failing to understand these rules exposes you to shaky arrangements, sometimes orchestrated by unscrupulous intermediaries, where the foreign buyer thinks they are buying a “beachfront property” but actually hold only a minority stake in a poorly structured concession.

Foreign Buyer

4.3. The Trap of Listings: Beach Photos and Misleading Drones

Listings often highlight: product benefits, special promotions, customer satisfaction, exceptional quality, innovation, and user testimonials.

– photos of beaches,

– high drone shots,

– “selling” proximity to the ocean.

This proves nothing about whether the land is titled, or even if it is truly that close to the beach. Some sellers try to make it seem like the parcel is almost “feet in the water” when it is much farther, or it is a pure concession presented as a title.

Your attorney must verify, via the Registro and the Concessions Registry section, whether the property is:

– outside the ZMT (standard titled), or

– within the ZMT, with a registered concession and precise conditions.

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5. Ensure the Property Has a Valid Plano Catastrado and Clear Boundaries

A title without a plano catastrado (registered cadastral plan) or with an outdated plano is an immediate red flag. Many disputes in Costa Rica arise from:

– old hand-drawn plans without precise GPS coordinates,

– lack of boundary marking,

– overlaps with public roads, rivers, or neighboring properties.

The rigorous approach includes: data analysis, hypothesis formulation, experimentation, and interpretation of results.

– 1. Obtain the plano catastrado from the Registro (or Catastro Nacional). 2. Verify that:

– the plano number matches the folio real,

– the area and boundaries are consistent,

– no annotations indicate a dispute or pending correction. 3. Compare the information with the actual land, with a surveyor’s help.

Prudent buyers go further:

– they use Google Earth and government systems (SIRI, SNIT) to overlay boundaries on satellite imagery,

– they check image history to detect recent construction or earth-moving,

– they have every boundary physically checked by a surveyor using GPS.

If boundaries cannot be confirmed with certainty, the recommendation is simple: don’t sign.

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6. Confirm Land Use (Uso de Suelo) and Municipal Zoning

Buying a beautiful wooded lot thinking you’ll build several rental villas, only to discover that the municipality allows only light agricultural use is a classic mistake.

Before committing, your attorney must obtain a land use certificate (Uso de Suelo) from the local municipality. This document specifies:

You should never close a transaction without a clear Uso de Suelo. This certificate also conditions obtaining a building permit and any environmental viability from SETENA.

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7. Validate Legal Access to the Property: Roads, Easements, Derecho de Vía

Practical access is not always legal access. The concept of derecho de vía (right of way) and access easements are often overlooked.

Checks to require:

During the visit, you must actually drive the road shown on the plano, check:

– that it exists,

– that it isn’t blocked by a neighbor,

– that there is no open conflict over its use.

Without clear legal access, the property’s value drops drastically, and obtaining permits may become impossible.

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8. Verify Water, Electricity, Internet, and Other Services

A beautiful piece of land without legal water or electricity can quickly become a financial black hole. Many buyers rely on verbal promises like “water is coming soon” or “electricity is 200 meters away,” without costing or securing anything.

Authorities require proof of water before granting a building permit. You must obtain from AyA or the local ASADA a valid Carta de Agua (letter of potable water availability).

– the possibility of connection,

– the distance to the connection point,

– potential costs if the distance exceeds 100 meters.

Same for the internet: many listings tout “fiber optic available,” which turns out to be only a project or a point several kilometers away.

A realistic checklist includes:

– an official Carta de Agua,

– a letter or email confirming electrical capacity and conditions,

– verification of garbage collection and other municipal services.

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9. Factor in Environmental Constraints: SETENA, MINAE, SINAC, and Setbacks

Costa Rica is famous for its environmental policy, and that’s not just a slogan. Any project likely to have a significant impact (subdivision, hotel, large villa, massive earthmoving) must go through SETENA, the technical arm of MINAE.

9.1. Environmental Permit: D1, Sometimes D2, and Studies

Depending on the size and nature of the project, SETENA may require:

– a D1 form for larger projects,

– an Environmental Management Plan (PGA) for moderate impacts,

– a full Environmental Impact Study (EsIA) for high-impact projects, conducted by an approved consultant.

9.2. Protected Areas, Forests, and Water: Role of SINAC

If the land is located:

– near a national park, reserve, or biological corridor,

– or involves cutting down trees,

you must deal with SINAC, MINAE’s operational arm for protected areas. Cutting trees, even on private land, often requires a permit.

9.3. Mandatory Setbacks from Water

Costa Rican law imposes protection zones around waterways, springs, and public water intakes. For reference:

These distances can render a significant portion of a riverside or spring-side property unbuildable. The surveyor and engineer must include them in their analysis.

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10. Physically Inspect the Property: Structure, Climate, Dry vs. Rainy Season

An on-site visit is not just recommended; it is essential. Buying solely from photos or a virtual tour dramatically increases the risk of unpleasant surprises.

Costa Rica has a harsh climate for buildings: humidity, salt in coastal areas, torrential rains, termites. Ignoring a serious structural inspection can lead to thousands of dollars in repairs within the first few years.

– slope stability,

– natural drainage,

– risks of seasonal flooding.

Complement with an interior inspection (roof, foundations, moisture, electrical and plumbing systems) for any existing building.

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11. Really Understand the Costs: Taxes, Closing Costs, Annual Charges

Focusing only on the listed price while ignoring ancillary costs is a common mistake. While Costa Rica offers very low property taxes, it still applies significant transfer taxes and registration fees.

11.1. Closing Costs on Purchase

In practice, the buyer’s total bill includes:

– 1.5% property transfer tax (Impuesto de Traspaso),

– approximately 0.5% to 0.85% for stamps and registration fees (National Registry, agrarian stamps, fiscal stamps, archives, bar association…),

– 1% to 1.5% for notary/attorney fees (subject to 13% VAT),

– escrow fees (~0.25% of the price, often shared, minimum around USD 650–900),

– possible due diligence fee when the attorney bills this phase separately.

11.2. Annual Taxes and Charges

Once you own, you will remain subject to:

– a municipal property tax of 0.25% of the declared value (one of the lowest in Latin America),

– a possible luxury tax (Impuesto de Lujo / Impuesto Solidario) for buildings exceeding a certain value threshold,

– condo fees if the property is in a condominium,

– maintenance costs (garden, pool, security).

Property tax is administered by the municipality, paid quarterly, semi-annually, or annually. Every five years, the owner must update the declared value.

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12. Secure the Transfer: Escrow, Public Deed, and Registration

A property transfer in Costa Rica follows a specific pattern:

1. Preliminary contract (Opción de Compra or Compromiso de Compraventa), often accompanied by a 10% deposit. 2. Due diligence period (approximately 30 days, sometimes longer). 3. Use of an escrow account supervised by SUGEF (e.g., Stewart/Secure Title, local banks). 4. Signing of the escritura de traspaso before a notary. 5. Payment of taxes, stamps, and filing the deed at the Registro Nacional. 6. Update of the folio real in the new buyer’s name.

– signing the contract with conditions precedent (clear title, taxes up to date, permits validated, financing obtained),

– wire transfer of the purchase price to escrow, never directly to the seller,

– registration of the deed at the Registro,

– release of funds by escrow only after confirmation of registration.

This sequence greatly reduces the risk of pressure to pay before full verification, a practice seen in several scams (deposit demanded hastily, before title study).

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13. Analyze the Ownership Vehicle: Individual or Corporation (S.R.L., S.A.)

In Costa Rica, you can buy:

– in your own name, even as a simple tourist,

– through a local corporation (S.R.L. or S.A.).

A corporation can facilitate certain structures (selling shares rather than the property, asset protection, management with multiple partners), but it also adds:

If you buy a property held by a corporation and you purchase the shares rather than the asset, you also inherit the corporation’s debts, disputes, tax arrears. Hence the importance of corporate due diligence (statutes, minutes books, tax filings, CCSS, RTBF).

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14. Understand Financing Options for Foreigners

Financing in Costa Rica exists, but it is often more expensive, slower, and more demanding than in buyers’ home countries.

14.1. Local Banks and Rates

Some banks (BAC, LAFISE, BCT, Scotiabank, BCR, Banco Promerica…) offer loans to non-residents, with:

– down payments of 30% to 50% of the price,

– interest rates generally between 8.5% and 11.5% for foreigners,

– terms up to 20–30 years depending on the bank,

– heavy documentation (income, credit, translated documents, sometimes a local co-signer).

For many buyers, these options remain secondary due to insufficient local credit history.

14.2. International Lenders, Private Equity, Seller Financing

The landscape has diversified:

Many buyers also use:

– HELOCs or refinances on their primary residence back home,

– loans against financial portfolios (Lombard type).

The key idea: if you need financing, plan for it before signing a purchase agreement, knowing that cash or readily available funds remain a clear advantage in a market where good deals go fast.

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15. Protect Yourself Against Fraud and Scams Targeting Foreigners

Sources indicate that scams are frequent enough that it’s reasonable to assume you will be targeted at least once during your search.

Among common schemes:

The defense relies on a few simple principles:

– no trust in verbal agreements; everything must be in writing,

– no direct transfers to the seller, always via supervised escrow,

– a full due diligence conducted by your attorney, no shortcuts,

– independent verification of photos, distances, access via physical visits and online tools (Google Earth, SNIT, SIRI).

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16. Think About the Aftermath: Resale, Taxes, Investor Residency

Finally, a successful purchase isn’t measured only at the time of acquisition, but also by the ability to: meet long-term needs.

Costa Rican law provides for an investor residency status for people investing at least USD 150,000 in real estate or productive assets. This does not grant citizenship, but facilitates settlement, long-term stays, and certain tax aspects.

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17. The 25 Points to Check Before Saying “Yes”

Rather than a dry list, it’s useful to see these 25 points as a chronological roadmap.

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Conclusion

Buying in Costa Rica is entirely possible as a simple tourist, without residency status, and the law formally protects foreigner rights. The country has a centralized, public land registry, a system of unique titles (folio real), and relatively lenient property taxes.

A rigorous checklist, carried out with the support of an experienced attorney-notary, a surveyor, and, if necessary, technical experts, can turn a tropical dream into a solid investment rather than a legal headache. By checking off these 25 points one by one before buying in Costa Rica, you stack the odds in your favor to enjoy your property long-term, rather than learning Costa Rican law in court.

Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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