5 Mistakes Foreign Investors Make in Costa Rica Real Estate — and How to Avoid Them

Thinking of investing in Costa Rica real estate? You’re not alone. With its stunning beaches, steady tourism, and pro-foreign ownership laws, Costa Rica is one of the most attractive markets for international buyers. But even paradise has its pitfalls — and I’ve seen more than a few investors learn lessons the hard way.

Here are 5 common mistakes foreign investors make when buying property in Costa Rica — and how to avoid them.

☠️ 1. Skipping Legal Due Diligence

The mistake: Falling in love with a property and rushing into a deal without checking titles, zoning, concessions, or liens.

Why it matters: Not all properties are titled the same way. Some may be on concession land, others could have unresolved legal disputes — or worse, no title at all.

How to avoid it:

• Work with a trusted real estate attorney (yes, you need one!).

• Always request a full due diligence report.

• Confirm whether the land is titled, a concession, or part of a corporation.

  
  

💸 2. Underestimating Closing Costs & Taxes

The mistake: Budgeting only for the listing price and being blindsided by transaction costs.

Why it matters: Closing costs in Costa Rica typically run around 3.5% to 4% of the purchase price, which includes property transfer taxes, legal fees, stamp,s and notary.

How to avoid it:

• Ask your Realtor for a full cost breakdown upfront.

• Factor in annual expenses like maintenance, HOA fees, and property taxes.

📉 3. Overestimating Rental Income

The mistake: Basing ROI projections on best-case Airbnb scenarios or high-season pricing alone. 

Why it matters: While rental income can be strong, you’ll also have vacancies, low season dips, and operational costs like management, cleaning, and repairs.

How to avoid it:

• Use conservative numbers based on actual rental history or market averages.

• Factor in at least a 20–30% buffer for unexpected costs.

• Work with a local property manager who knows the real rental landscape.

  
  

🤝 4. Not Using a Certified Realtor

The mistake: Buying from someone who isn’t legally allowed to sell property or isn't part of an official association.

Why it matters: Costa Rica doesn’t require a license to be a real estate agent, so anyone can claim to be one. This leads to misinformation, unethical practices, and la ack of accountability.

How to avoid it:

• Work with a Realtor who’s a legal resident and a member of a recognized association like CRGAR.

• Ask if they’re certified to use the OMNI MLS, which promotes transparency and cooperation.

  
  

Not Understanding Residency and Ownership Rules

The mistake: Assuming property ownership automatically grants you residency or allows you to work in Costa Rica.

Why it matters: Owning property doesn’t mean you can legally live or work in Costa Rica long-term.

How to avoid it:

• Speak to a residency expert or attorney before you buy.

• Learn about your options — such as investor residency, rentista residency, or digital nomad status — to see what fits your situation best.

✅ Final Thoughts: Do It Right the First Time

Costa Rica is a beautiful place to live, invest, and earn income — if you go in prepared. The smartest investors surround themselves with local professionals, ask lots of questions, and take the time to understand the process.

Need help making a smart investment here in Costa Rica?

Let’s talk. I’m happy to share comps, real rental projections, and connect you with trusted attorneys and lenders — both local and U.S.-based — so you can invest with confidence.

📩 Contact Me or explore the latest investment opportunities here.