Can foreigners own property in Costa Rica?

Ownership is not the same as residency

Purchasing a property and obtaining authorisation to reside in the country long term are two separate processes. The Registro Nacional registers property rights; the immigration authority adjudicates residency. Consequently, paying the purchase price neither extends a tourist stay on its own nor guarantees approval of investor residency.

The baseline principle is equal treatment of foreigners under Article 19 of the Costa Rican Constitution, subject to exceptions established by the constitution and statutory law. For a standard titled apartment or house, incorporating a Costa Rican company is not automatically required. The choice between individual and corporate ownership should be assessed based on the number of owners, rental purpose, inheritance planning, and tax circumstances.

How to identify what you are actually buying

The primary document is not a brochure, but a current registry excerpt for the specific property. In it, a lawyer looks for the owner, identification of the finca or folio real, liens, encumbrances, easements, and pending filings. A registered survey plan supplements boundaries and area; however, it does not replace a site inspection or planning permission.

For an apartment in a condominium, it must be clear whether an independent finca filial unit exists, or whether the developer is merely offering an off-plan future unit. Establish also the legal status of the parking space, storage unit, and common elements. A marketing description stating 'with parking' is no substitute for the precise legal identification of the asset being acquired.

Beachfront property demands a different question

The law governing the zona marítimo terrestre distinguishes between the public zone and the restricted coastal zone. A concession represents a time-limited right to use the land, not the equivalent of titled freehold ownership. Specific conditions apply to foreign applicants and corporate entities.

However, not every property near the sea can automatically be classified as a concession. The law contains exceptions, and cases of legitimately titled land do exist. What matters is the specific location, legal title history, and documentation, rather than the name of the locality or photographs of the view.

Due diligence must integrate legal, technical, and operational aspects

A clean title does not guarantee that the plot can be utilised for your commercial venture. A house may have legally secure ownership, yet an extension may lack planning consent. An apartment may be duly registered, while condominium regulations restrict short-term holiday letting.

• Lawyer: owner and legal capacity, title, encumbrances, contract, and disbursement terms.
• Surveyor and structural engineer: boundaries, structural condition, actual surface area, and any discrepancies with registered plans.
• Municipality and utility providers: uso de suelo, permits, water availability, and utility connections for the intended purpose.
• Property manager and accountant: permitted leasing arrangements, operating budget, tax regime, and reporting.

How to structure the contract and funds

Before placing a deposit, define in writing the due diligence period, the documentation to be furnished by the seller, and the conditions under which the buyer may withdraw with a full refund. The escrow payment framework must reflect these conditions. The mere term escrow does not guarantee that the deposit is refundable or that the buyer can halt its disbursement.

When executing documents remotely, verify the exact scope of the power of attorney. Authority to sign the conveyance does not necessarily include agreeing to amendments to the purchase price, waiving due diligence contingencies, or dealing with funds. A sound operational plan also encompasses proof of source of funds and banking compliance checks on the recipient.

An example of an investor decision

A foreign buyer is considering an apartment for personal use and holiday letting. The selected apartment has an independent title, but the property manager provided only a yield projection and incomplete condominium regulations. The prudent next step is not an immediate reservation: first, obtain the full rules, the common-charge budget, and written letting covenants. A property that is legally sound to acquire may nevertheless fail to support the intended investment use.

Questions before placing a reservation

• Are we acquiring an independently registered property, a future unit, a corporate shareholding, or a concession?
• Which due diligence findings permit withdrawal, and how is the deposit refunded?
• Is the intended letting or construction actually permitted?
• Who is our independent legal counsel, and who is inspecting the physical and technical condition?