Frequently Asked Questions About Costa Rica Real Estate & Travel
1. Can foreigners buy real estate in Costa Rica?
Yes! Costa Rica has very foreigner-friendly property laws. Non-citizens have the same property ownership rights as locals, except for beachfront concession land, which has additional restrictions.
2. What are the best places to buy real estate in Costa Rica?
If you're looking for prime northern beach locations, consider:
- Playas del Coco – A vibrant beach town with great infrastructure, restaurants, nightlife, and a strong expat community.
- Playa Hermosa – A quieter, upscale beach area with stunning ocean views, luxury homes, and a relaxed atmosphere.
- Playa Panama – Known for its tranquility, calm waters, and proximity to the Papagayo luxury developments.
- Playa Ocotal – A scenic, peaceful area ideal for vacation homes and rental properties.
- Papagayo Peninsula – A high-end resort and residential area featuring luxury villas, golf courses, and world-class amenities.
3. How much does real estate cost in Costa Rica?
Prices vary by location, type, and proximity to the beach. In the northern beach areas, expect:
- Condos: $150,000 – $800,000+
- Single-family homes: $250,000 – $2 million+
- Luxury ocean-view properties: $1 million+
4. What are the property taxes in Costa Rica?
Costa Rica has low property taxes, generally 0.25% of the registered property value per year. There is also a luxury home tax for properties valued over approximately $250,000.
5. Are there homeowner association (HOA) fees?
Yes, if you buy within a gated community or condo development, expect HOA fees ranging from $100 to $800+ per month, depending on amenities and services.
6. How do I buy property in Costa Rica?
- Use a legally registered real estate agent to find the right property and make an offer.
- Hire a reputable real estate attorney to conduct due diligence.
- Sign a purchase agreement and place a deposit in escrow.
- The attorney registers the sale with the National Registry.
- The final payment is made, and ownership is transferred.
7. What are closing costs in Costa Rica?
Closing costs typically range from 3% to 5% of the purchase price, covering legal fees, transfer taxes, and registration fees.
8. Can I get a mortgage in Costa Rica as a foreigner?
Mortgages are difficult for foreigners to obtain from local banks. Most buyers use cash, financing from international lenders, or seller financing.
9. Is it safe to invest in Costa Rica real estate?
Yes, Costa Rica has a stable economy and strong property laws. To minimize risks, work with a licensed real estate agent and an experienced attorney.
10. What are the rental income opportunities?
Short-term rentals (Airbnb, VRBO) are highly profitable in Playas del Coco, Playa Hermosa, Playa Panama, Playa Ocotal, and Papagayo due to strong tourist demand. Expect rental yields of 5% to 10% annually.
Travel-Related FAQs
11. Can I enter Costa Rica with a one-way air ticket?
No, Costa Rica requires proof of onward travel (such as a return ticket or a ticket to another country) for most visitors.
12. Do I need a VISA to visit Costa Rica?
Most travelers from the U.S., Canada, the EU, and many other countries do not need a visa for stays of up to 90 days.
13. What are the country’s international airports?
- Juan Santamaría International Airport (SJO) – Located near San José.
- Daniel Oduber Quirós International Airport (LIR) – Located in Liberia, Guanacaste.
14. Is the water safe to drink?
Yes, tap water is generally safe to drink in almost all parts of Costa Rica. The water in Guanacaste is very safe.
15. What is the sales tax in Costa Rica?
Costa Rica has a 13% VAT (Value Added Tax) on most goods and services.
16. What is the local currency of Costa Rica?
The currency is the Costa Rican colón (CRC). However, U.S. dollars are widely accepted.
17. What if I don’t speak Spanish?
Many Costa Ricans, especially in tourist areas, speak English. However, learning basic Spanish phrases can be helpful.