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11. Real estate and land: Costa Rica

Real estate and land in Costa Rica: equal ownership rights for foreigners, the Registro Nacional and cadastre, the 1.5% transfer tax and closing costs, municipal property tax and the solidarity tax on luxury homes, beachfront concessions in the maritime terrestrial zone, condominiums, leases and short term rentals, taxes on rents and gains, VAT, zoning and building permits, forest and water protection strips, state, border and indigenous land, and expropriation, each tied to the official text in SCIJ. For Argentine investors, Costa Rica has no income tax treaty with Argentina; see The Argentine Thread guide for the Argentine side.

Investor view. Open foreign ownership of titled land, a national online registry and low recurring property taxes make Costa Rica one of the easier markets in the region to own real estate, rewarding buyers who respect the coastal, forest and zoning limits.

• Buying and owning property in Costa Rica: equal rights for foreigners, notary deeds and the Registro NacionalForeigners may own titled land and buildings in Costa Rica on the same terms as nationals; the Constitution grants them equal civil rights and there is no general foreign buyer permit. A sale binds th
• Title registration and due diligence in Costa Rica: Registro Inmobiliario, cadastral plans and priorityCosta Rica runs a single national Registro Nacional with an Inmobiliario section that combines the property registry and the Catastro Nacional. Documents rank in strict order of presentation, a person
• Transfer tax and closing costs in Costa Rica: 1.5% transfer tax, 0.5% registry fee and notary scaleEvery transfer of real estate pays a 1.5% transfer tax on the real value, never less than the highest registered value, split equally between seller and buyer. The Registro Nacional adds a 0.5% fee on
• Property tax in Costa Rica: 0.25% municipal impuesto sobre bienes inmueblesMunicipalities levy an annual property tax of 0.25% on the value of land and permanent buildings registered at 1 January. An individual's only property is exempt up to 45 salarios base (₡20,799,000 in
• Solidarity tax on luxury homes in Costa Rica: 0.25% to 0.55% when construction exceeds ₡143 millionA national tax applies each 1 January to residential property, whether used as a main home, occasionally or for recreation, when the value of the construction exceeds ₡143,000,000 for 2026. Once over
• Beachfront land in Costa Rica: the maritime terrestrial zone and municipal concessionsThe 200 metres inland from the ordinary high tide line on both coasts belong to the State: the first 50 m are a public zone where no one can hold rights, and the next 150 m are a restricted zone where
• Condominiums in Costa Rica: Ley 7933 regime, common areas, dues and assembliesApartments, lots, offices and resort units are usually held as fincas filiales under Ley 7933, created by public deed with a condominium regulation and registered in the Registro Inmobiliario. Owners
• Residential and commercial leases in Costa Rica: three year minimum, rent increases and evictionLey 7527 governs every lease of urban and suburban real estate for housing or business; its tenant protections are public order and cannot be waived. All leases last at least three years and roll over
• Short term rentals in Costa Rica: Ley 9742 registration with ICT and HaciendaRenting homes, apartments or rooms to tourists for more than 24 hours and less than a year is hospedaje no tradicional under Ley 9742, in force since 1 June 2020. Hosts must register with the ICT and
• Rental income tax in Costa Rica: 15% on rents with a flat 15% deductionIndividuals and entities without a business activity pay tax on rental income as capital income: 15% on gross rent after a flat 15% deduction, an effective 12.75%. Landlords with at least one employee
• Selling property in Costa Rica: 15% capital gains tax, 2.25% option and 2.5% withholding on non residentsGains on real estate sold by individuals and entities outside a business activity are taxed at 15% of the gain, with acquisition cost indexed for inflation. For property acquired before 1 July 2019, t
• VAT on real estate in Costa Rica: property sales, rents and constructionTransfers of real estate already taxed by the 1.5% transfer tax are outside VAT, so sales of land and buildings carry no 13% VAT. Housing rents are exempt only up to 1.5 salarios base a month (₡693,30
• Zoning, subdivision and building permits in Costa RicaMunicipalities plan and control land use through planes reguladores; using land for a use incompatible with zoning is prohibited and businesses need a land use certificate before getting a licence. Su
• Forests, rivers and water rights on Costa Rican land: protection strips and concessionsForested land cannot change use: you may not clear forest for farming or building except for limited permitted purposes. The Forestry Law sets no cut protection areas of 100 m around permanent springs
• Border strip and inalienable state land in Costa RicaBesides the coast, the Ley de Tierras y Colonización reserves several kinds of land to the State unless already privately titled: a 2,000 m strip along the Nicaraguan and Panamanian borders, river and
• Indigenous territories in Costa Rica: land that non indigenous buyers cannot acquireIndigenous reserves declared by decree are inalienable, imprescriptible and exclusive to the communities that live there. Non indigenous persons cannot buy, rent or otherwise acquire land in them, and
• Expropriation in Costa Rica: public interest declaration, administrative appraisal and court set fair priceThe Constitution allows expropriation only for legally proven public interest with prior compensation. The process starts with a published declaration of public interest, followed by an administrative

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