Costa Rica has emerged as one of the hottest real estate markets in Latin America in 2025. This tropical paradise – known for its “Pura Vida” lifestyle – is attracting investors, retirees, and digital nomads from around the world. With a stable democracy (no army since 1949) and a growing economy, Costa Rica offers a rare combination of political stability, natural beauty, and investment potential. In this guide, we’ll explore why so many are choosing Costa Rica, how to buy property as a foreigner, key legal and tax considerations, the best investment opportunities in 2025, the impact of new infrastructure like Starlink internet, and steps to get started on your Costa Rican real estate journey.
Why Investors & Expats Are Choosing Costa Rica
Economic Stability and Incentives: Costa Rica enjoys a stable economy with steady growth and a government that encourages foreign investment. Unlike some neighboring countries, foreigners in Costa Rica have the same property ownership rights as locals, making it a secure place to invest. The government has also introduced new incentives for investors – for example, a 2021 law (Law 9996) that offers benefits like easier residency processes and tax breaks for those investing a significant amount in the country. Inflation remains moderate, and the country’s long-standing democracy (it’s often called the “Switzerland of Central America”) gives investors confidence that their assets will be safe for the long term.
Cost of Living and Lifestyle Appeal: The lifestyle in Costa Rica is a huge draw for expats and investors alike. The cost of living is reasonable – while not the rock-bottom prices of some countries, it’s still much more affordable than living in the U.S. or Europe for many people. In return, you get an excellent quality of life: warm weather year-round, stunning beaches, lush rainforests, and a culture that emphasizes happiness and relaxation. “Pura Vida,” the national mantra, isn’t just a saying – it’s a way of life. Expats enjoy fresh, healthy food, a slower pace, and a friendly local community. Many areas popular with foreigners (like parts of Guanacaste and the Central Valley) have large expat communities, bilingual services, international schools, and all the comforts you need, making the transition to life in Costa Rica easier.
Safety, Infrastructure, and Healthcare: Costa Rica is considered one of the safest countries in Latin America. Violent crime is low, and the country has invested heavily in education and healthcare instead of a military. Modern infrastructure improvements mean you’ll find good roads connecting major towns, two international airports (San José and Liberia) with flights around the world, and reliable utilities in most regions. Healthcare is another big plus – Costa Rica has excellent medical facilities and a universal healthcare system. In fact, its healthcare is so renowned that medical tourism is a growing sector. As an expat or investor, you can access high-quality private hospitals for a fraction of what you might pay elsewhere, or join the public healthcare (CCSS) if you become a resident. These factors combined – safety, infrastructure, and healthcare – give foreign buyers peace of mind that they’re not just buying a home in paradise, but also somewhere they can live comfortably year-round.
How to Buy Property in Costa Rica
Foreign Ownership – Yes, You Can! One of the most encouraging aspects of the Costa Rican real estate market is that foreigners can buy property outright with virtually no restrictions. You do not need to be a resident or have any special status – even tourists can legally own real estate. Title ownership is fee simple and secure, and it’s recorded in a centralized National Registry. The only notable restriction applies to maritime zone properties (land within 200 meters of the high tide line on the beach): the first 50 meters from high tide is public land, and the next 150 meters is usually concession land leased from the government. Foreigners cannot directly own concession property unless they have at least five years of residency or set up a special corporation – but this does not affect the majority of real estate in the country, since most properties (homes, condos, farms, etc.) outside that maritime zone are fully available for foreign purchase. In short, Costa Rica welcomes international buyers, and outside of a few coastal lease areas, you have the same ownership rights as a local citizen.
Steps to Purchasing Property: Buying property in Costa Rica is a straightforward process, but it’s important to follow the proper steps and due diligence. Here’s a quick overview of how a typical purchase works:
- Find a Property: Start by researching regions and browsing listings to find the right property. Many buyers begin online – for example, the Brevitas marketplace features over 1,700 active listings in Costa Rica, ranging from condos and homes to hotels and development land. It’s wise to engage a reputable local real estate agent who knows the market and can help you locate properties that match your criteria.
- Make an Offer and Due Diligence: Once you’ve identified a property, you’ll typically make a written offer or letter of intent. Negotiations may go back and forth on price and terms. When an agreement is reached, a formal purchase-sale agreement (Contrato de Compraventa) is drafted. At this stage, you will place a deposit (often 10% of the purchase price) into an escrow account. Ensure you hire a qualified real estate attorney to perform due diligence during the contingency period – this includes verifying the title in the National Property Registry, checking for any liens or encumbrances, reviewing surveys and boundaries, and making sure permits or corporation documents are in order.
- Closing the Deal: Closings in Costa Rica are usually conducted by a local notary public (who is also an attorney) since they are authorized to transfer property titles. At closing, the balance of the purchase price is paid (often through a secure escrow service or bank transfer), and the notary will register the property transfer deed (escritura) in the National Registry. The deed can be put in your name or in the name of a corporation (if you choose to buy via a company). The buyer and seller (or their legal representatives) sign the transfer deed, and any remaining closing costs and taxes are paid. After closing, the property is officially yours, and you’ll receive confirmation once the Registry records are updated.
Working with Real Estate Agents and Brokers: Because Costa Rica doesn’t have a single centralized MLS system, it’s beneficial to work with experienced real estate agents who are well-connected in the local market. A good agent will help you navigate available listings (many of which may not be easily found on your own), schedule viewings, and negotiate on your behalf. It’s common for buyers to not pay any commission – the seller typically pays around 5% commission which is split if there are two agents involved. Make sure to choose an agent who is knowledgeable about working with foreign buyers and who speaks your language comfortably. International real estate platforms like Brevitas can also be a great resource, as they aggregate listings and connect you with brokers in Costa Rica who are actively marketing properties. Always vet your agent’s credentials or ask for client references – a trustworthy local broker and a competent attorney are the dream team to ensure a smooth transaction from start to finish.
Legal and Tax Considerations
Property Taxes and Ongoing Costs: Costa Rica’s property tax rates are refreshingly low. The annual property tax is just 0.25% of the registered value of the property – a fraction of what many owners pay in North America or Europe. This low holding cost makes it affordable to maintain a vacation home or investment property long-term. If you generate rental income from your property, be aware that rental income is taxable in Costa Rica. However, the tax is reasonable: generally around 15% of the rental income after allowable deductions (in practice, the government often allows a standard deduction of 15% for expenses, effectively taxing 85% of the gross rent). Additionally, if you ever resell the property at a profit, note that Costa Rica introduced a capital gains tax of 15% on real estate sales in recent years. There are some exceptions – for example, if the property was your primary residence or owned before the law change, different rules might apply – so it’s wise to get local tax advice when planning a sale. Overall, the tax environment is friendly for investors, and many costs (like property management fees, maintenance, etc.) can be written off against rental income for tax purposes.
Buying as an Individual vs. Through a Corporation: Foreign buyers in Costa Rica can hold property in their personal name, but there’s also the option to purchase via a corporation (typically a Costa Rican Sociedad Anónima (S.A.) or S.R.L., which are similar to LLCs). There are pros and cons to each approach. Buying as an individual is straightforward and has no additional upkeep – you simply hold the title in your name. On the other hand, buying through a corporation can offer benefits like easier transfer of ownership (you can sell the corporation’s shares to a new owner in the future, potentially simplifying the sale process), privacy, and liability protection. In fact, many Costa Ricans and expats set up a holding company for their property. Do note that a corporation will have modest annual obligations, such as an annual corporate tax (which is a few hundred dollars) and perhaps the need for a local agent to receive official notices. If you plan to own multiple properties or run a business (like a rental enterprise), a corporate structure might be beneficial. It’s best to consult a local attorney about the right structure for your situation. They can also help set up the corporation and ensure it’s properly registered if you go that route.
Transfer Taxes, Fees, and Residency Benefits: When purchasing property in Costa Rica, budget for closing costs in addition to the purchase price. There is a property transfer tax of 1.5% of the sale price, plus legal stamps and registration fees (around 0.8-1% combined). Typically, by tradition the buyer covers these costs, but it can be negotiated. Attorney fees for the closing will usually be around 1-2% of the price (often split between buyer and seller if using one attorney as notary for both). These costs are important to factor in (roughly 3-4% of the purchase price altogether). On a positive note, the Costa Rican government actively encourages foreign investment through its immigration incentives. If you invest at least $150,000 in Costa Rica (for instance, buying real estate of that value), you may qualify for an investor’s residency visa. Under the newly updated residency laws, investor residents get perks like the ability to import household goods and even a vehicle duty-free, and enjoy a grace period where certain foreign-sourced incomes aren’t taxed in Costa Rica. Even if you don’t plan to become a full resident, remember that Costa Rica only taxes local income – your foreign income or pension is not subject to local tax, which is a huge benefit for retirees and remote workers living there. All told, the legal framework is very favorable: you can own property freely, the taxes are low and manageable, and there are tangible incentives if you decide to make Costa Rica your home base.
Investment Opportunities: What’s Hot in 2025?
Costa Rica’s real estate landscape in 2025 offers a diverse range of opportunities, whether you’re looking for a personal paradise or the next big investment. Here are some of the best areas and trends to watch:
- Beachfront Bliss (Guanacaste and Pacific Coast): The northwest province of Guanacaste is booming. Areas like Tamarindo, Flamingo, Conchal, and Nosara on the Gold Coast are in high demand for their golden beaches and surf towns. New luxury developments and resorts are springing up, and infrastructure like the upgraded Liberia International Airport has made access easier than ever. Further down the Pacific coast, places such as Jacó and Manuel Antonio remain perennial favorites – Jacó for its nightlife and upcoming condo projects, Manuel Antonio for its exclusive villas with jungle and ocean views. Even emerging southern Pacific spots like Uvita and Ojochal (in the Costa Ballena region) are heating up, as improved roads make these once remote areas more reachable. Buying beachfront or ocean-view property in these regions can be a strong investment, with values rising thanks to tourism and limited supply of prime land.
- San José and Central Valley: Not all investors want the beach – the Central Valley, including the capital San José and surrounding towns (Escazú, Santa Ana, Atenas, Grecia, etc.), offers a cooler climate, city amenities, and steady demand. San José’s metro area is the country’s business and cultural hub, so there’s a market for condos and homes for young professionals and families. Upscale suburbs like Escazú and Santa Ana have modern shopping centers, international schools, and gated communities that attract both affluent Ticos and expats. These areas are great for those who prefer city conveniences or plan to work locally. The rental market for city apartments remains solid, and with continued foreign investment in tech and service companies in San José, demand for quality housing is expected to grow.
- Up-and-Coming Regions: For the adventurous investor looking for the “next” hot spot, keep an eye on regions like the Caribbean coast and the far south. Puerto Viejo on the Caribbean side offers a unique laid-back vibe, Afro-Caribbean culture, and beautiful turquoise waters – it’s more offbeat, but tourism there is on the rise and eco-conscious developments are appearing. In the far south, the Osa Peninsula and areas near Golfito are attracting eco-tourism projects (Corcovado National Park in Osa is a major draw for nature lovers). There’s also talk of new marina developments and improvements in the southern zone that could boost property values. These developing areas can offer large tracts of land or oceanfront property at a fraction of the cost of Guanacaste – ideal for eco-lodges, retreat centers, or those looking to land-bank for the future.
Vacation Rentals & Airbnb Opportunities: One of the most popular investment strategies in Costa Rica is purchasing a property to use as a vacation rental. With Costa Rica’s record-breaking tourism numbers (the country continues to rank as a top travel destination in 2025), owning an Airbnb or VRBO rental can generate substantial income. Tourists flock to beach towns like Tamarindo, Manuel Antonio, and Santa Teresa, as well as the Arenal volcano area and Monteverde cloud forest. If you own a condo or house in a desirable tourist area, you can rent it out weekly to vacationers at attractive rates. Many investors find that they can enjoy their property part of the year and rent it out for the rest, with rental income covering expenses and then some. The demand for short-term rentals is strong, but keep in mind you will need a good property manager or management company if you’re not local – someone to handle guest check-ins, cleaning, and maintenance. Also, ensure you comply with any local regulations, such as registering for tourism tax if required. Overall, the short-term rental market in 2025 is robust, driven by a global trend of travelers seeking private, spacious accommodations over hotels. A well-located vacation rental in Costa Rica can provide an excellent return on investment while allowing you to personally enjoy paradise whenever you like.
Commercial Real Estate – Hotels, Eco-Lodges, and Development Land: Beyond residential properties, Costa Rica offers enticing commercial real estate opportunities. Small boutique hotels and bed-and-breakfasts are a big business here – it’s not uncommon for a foreign couple to move down and purchase a lodge or hotel to run as a retirement business. Hospitality properties, from charming surf hostels to luxury eco-resorts, are on the market. For example, you might find a 32-room boutique hotel near Playa Carrillo in Guanacaste or a jungle eco-lodge in the Osa Peninsula up for sale in 2025. These can be turnkey operations capitalizing on the thriving tourism sector. Additionally, development land is highly sought after by those looking to build the next project. Large ocean-view parcels or multi-acre tracts in growth corridors (think areas around the new Marina Flamingo or expanding suburbs of San José) are being snapped up for residential communities, new hotels, or mixed-use projects. Investing in raw land can be speculative but rewarding – just be sure to conduct due diligence on zoning, water availability, and environmental restrictions. Lastly, Costa Rica’s focus on sustainability means there’s growing interest in green building and off-grid communities, so developers with an eco-friendly vision will find a receptive market. Whether your interest is in a beachfront hotel, a commercial center, or land banking, the country’s strong tourism and population growth make commercial investments very promising in 2025.
The Role of Connectivity & Digital Infrastructure
In recent years, Costa Rica has significantly upgraded its digital infrastructure – a game changer for both residents and investors. In 2023, Starlink satellite internet was approved to operate in Costa Rica, bringing high-speed internet to even the most remote corners of the country. By 2025, many rural and beach properties that previously struggled with slow connections can now enjoy broadband speeds via satellite. This improved connectivity has amplified the country’s appeal to remote workers and digital nomads. Remote professionals can comfortably work from a beachside villa or a mountain retreat without worrying about internet outages. In addition to Starlink, Costa Rica’s telecom companies have expanded fiber-optic networks around San José and other major towns, and 4G cellular coverage (with 5G on the horizon) is widely available. This means that whether you’re in a condo in Escazú or a cottage on the Nicoya Peninsula, you can stay connected to the rest of the world.
Digital Nomads and Remote Work: The global shift toward remote work has particularly benefited Costa Rica’s real estate market. The government launched a Digital Nomad Visa program that allows foreigners who earn at least $3,000 per month ($4,000 if bringing a family) to live in Costa Rica for up to one year, with the option to extend for a second year. This program, combined with the country’s natural allure, has drawn thousands of digital nomads and tech workers to Costa Rica’s towns and beaches. Many of these digital nomads initially come on a temporary basis but end up falling in love with the lifestyle – and some decide to purchase property as a result. Even those who don’t buy are fueling a strong demand for long-term rentals, which benefits investors. Towns like Santa Teresa, Nosara, and Puerto Viejo have become remote-work hubs, with co-working spaces and cafes filled with foreigners on their laptops. The presence of a reliable internet connection and modern amenities makes it feasible to run a business or telecommute from paradise. For the real estate sector, this means previously “sleepy” areas are now vibrant rental markets, and properties with dedicated home office spaces or good connectivity are in high demand. In summary, improved digital infrastructure and pro-remote-work policies have expanded the pool of potential property buyers and renters in Costa Rica, injecting the market with fresh energy and global interest.
How to Get Started with Real Estate in Costa Rica
If you’re ready to dive into the Costa Rican real estate market, here are some practical steps to set you on the right path:
- Define Your Goals and Budget: First, be clear on why you’re buying. Is it an investment for rental income, a retirement home, a vacation getaway, or a bit of all? Your goals will influence the location and type of property that’s best for you. At the same time, determine your budget early. Remember to account for about 3-5% in closing costs (legal fees, transfer taxes, etc.) on top of the purchase price. If you need financing, research your options: local mortgages for foreigners are limited but possible through certain banks or private lenders, usually requiring a significant down payment. Many foreign buyers pay cash or use financing from their home country (such as a home equity loan) since interest rates in Costa Rica can be higher.
- Research Locations and Visit: Costa Rica has very diverse regions, so it’s important to research and, if possible, visit in person. Spend time in the areas you’re considering – weekdays and weekends – to get a feel for the community, climate, and conveniences. An area like Tamarindo will have a very different vibe (and real estate market) than somewhere like Lake Arenal or San Ramón in the highlands. Consider factors like proximity to the beach, healthcare facilities, schools (if moving with family), and the expat community size. If a visit isn’t immediately feasible, do virtual tours of properties and talk to locals or expats via online forums or social media groups to gather insights.
- Engage Professionals Early: Start conversations with real estate professionals early in the process. A knowledgeable local realtor can answer your initial questions about market trends and pricing. They can also set you up with property alerts for new listings in your area of interest. Likewise, consult with a real estate attorney even before you’re in buying mode – they can explain the process, estimated costs, and any legal quirks. Having trusted professionals on your team from the get-go will make you a much more informed buyer. They can also recommend things like reputable home inspectors, property managers, or other service providers you might need.
- Begin the Property Search: Utilize online resources to your advantage. Websites like Brevitas allow you to filter properties by region, price, and type, giving you a broad overview of what’s available in Costa Rica. You can save listings you like and even reach out for more info on specific properties. This will help you gauge what your target budget can get you and identify standout deals. As you find interesting listings, your agent can provide more detailed info or arrange viewings (virtual or in-person).
- Plan Your Purchase Trip (If Applicable): Many investors plan a dedicated “real estate trip” to Costa Rica. During this visit, you can tour multiple properties, meet with your agent and attorney, and get to know the neighborhoods. It’s often helpful to see the properties in person to understand things like road access, surrounding area, and the exact view – things that photos sometimes can’t convey. Take this time to also talk to other expats or residents; their experiences can offer valuable perspective on owning property in Costa Rica.
- Due Diligence and Making an Offer: Once you’ve found the property that feels right, be prepared to move into the offer and due diligence stage (as outlined in the earlier section on buying steps). Have your attorney ready to vet the property’s legal status. If you’re not in Costa Rica at the time, you can still make an offer remotely – electronic signatures and transfers to escrow are commonly used. It’s a good idea to have a Costa Rican bank account if you plan on frequent transactions, but not mandatory for purchasing. Many foreign buyers transfer funds from abroad into a regulated escrow account for the closing.
Remember, patience and diligence are key. Compared to some countries, the buying process in Costa Rica is relatively straightforward, but it may still be different from what you’re used to at home. Take your time to understand each step, and don’t hesitate to ask questions from your realtor or lawyer. With the right preparation, your purchase can be a smooth and exciting experience – and the end result is owning a slice of paradise.
Conclusion: Why Costa Rica Remains a Top Choice in 2025
As we navigate 2025, Costa Rica stands out as a beacon for real estate investors and lifestyle seekers. The country’s unique blend of stability, natural beauty, and favorable investment conditions is hard to beat. Whether it’s the allure of strong rental returns from booming tourism, the comfort of a secure and low-tax investment environment, or the simple dream of watching Pacific sunsets from your own porch, Costa Rica delivers. Importantly, the nation continues to adapt and improve – from welcoming digital nomads with open arms to upgrading infrastructure and incentivizing foreign investment, Costa Rica is actively shaping itself into an ideal destination for expatriates and investors.
In summary, buying real estate in Costa Rica in 2025 is not just about acquiring property – it’s about embracing a vibrant way of life and a solid investment rolled into one. With the right guidance and due diligence, your Costa Rican real estate venture can be incredibly rewarding. As the saying goes, “Pura Vida” isn’t just a phrase – it’s an invitation. If you’ve been considering a move or an investment in paradise, now is a great time to take the leap. Explore the opportunities, connect with experienced brokers, and you might soon find yourself living the pure life in the land of pura vida!
