Legal Checklist for Foreigners Buying Property in Costa Rica

Buying property in Costa Rica is safe, transparent, and straightforward — as long as you follow the proper legal process. Foreigners have the same ownership rights as Costa Rican citizens, which is one reason so many international buyers feel confident investing here. However, the legal system is different from North America, and understanding the key steps helps protect your investment.

This checklist is designed to guide you through the most important legal points, so you can purchase with clarity, confidence, and peace of mind.

1. Hire a Trusted, Independent Real Estate Attorney

This is your most important step.

Your attorney will:

• verify the property’s title

• review all documents

• oversee due diligence

• check for liens or encumbrances

• ensure the corporation (if applicable) is clean

• coordinate with escrow

• prepare closing documents

In Costa Rica, the attorney is also the notary — meaning they legally register the transfer at the National Registry. Choose someone experienced, responsive, and independent from the seller.

2. Verify the Property’s Title at the National Registry

Every titled property in Costa Rica has:

• a Folio Real number

• a registered owner

• boundaries and land size

• liens, annotations, or mortgages

• easements (water, access, electrical, etc.)

Your attorney will pull this report directly from the National Registry and confirm:

• the seller is the rightful owner

• the property has no legal issues

• the boundaries match the registered plan

• the property is transferable

If anything looks unclear, stop here until it’s resolved.

3. Confirm the Plano Catastrado (Survey Map)

The Plano Catastrado is the official, registered survey of the land.

It must be:

• registered

• current

• matching the land you’re buying

• free of conflicts with neighboring properties

For homes built on multiple lots or older properties, make sure the plano matches the true configuration. If it needs to be corrected or redrawn, that must be done before closing.

4. Water Source Verification — One of the Most Important Steps

No property in Costa Rica can be legally built, expanded, or renovated without a legal water source.

Valid sources include:

• AYA (public water)

• ASADA (local water association)

• a legally registered well

• a concession

Your attorney must confirm:

• the water letter is valid

• the connection capacity is sufficient

• the source is legally registered

• there are no restrictions

This step protects you from buying a property that cannot develop or expand legally.

5. Confirm Zoning & Land Use (Uso de Suelo)

Different municipalities have specific regulations. Your attorney or architect will check zoning to confirm:

• how the land can be used

• maximum building coverage

• height restrictions

• density limits

• set-back requirements

• conservation restrictions

This is essential if you plan to build, renovate, or expand.

6. Environmental Restrictions (If Applicable)

Some properties require environmental approvals, especially if they involve:

• beachfront zones

• protected areas

• water boundaries

• forested land

• hillside construction

Your attorney will check for:

• SETENA requirements

• maritime zone restrictions

• mangrove protections

• river or creek setbacks

This ensures your project complies with Costa Rica’s environmental laws — which are strict for good reason.

7. Form a Costa Rican Corporation (Optional but Recommended)

Most foreign buyers hold property through a Costa Rican LLC (Sociedad Anónima or Sociedad Limitada).

Advantages include:

• liability protection

• easier estate planning

• cleaner transaction processes

• simplified management if you own multiple properties

• easier rental operation and tax filing

Your attorney can form the corporation and register it properly, including:

• shareholders

• legal representatives

• company books

• tax ID

Corporations must follow annual filing requirements, and your attorney or accountant can assist with that.

8. Escrow & AML (Anti-Money Laundering) Requirements

All funds for a real estate purchase must go through a licensed escrow company in Costa Rica.

Escrow will require:

• passport

• bank statements

• source-of-funds documents

• an explanation of your purchase origin

• corporate documents (if using a company)

This is standard and protects both buyer and seller.Escrow does not release your funds until the closing is verified by the attorney.

9. Home & Property Inspections

While not legally required, inspections are strongly recommended. In Costa Rica, inspections can include:

• general home inspection

• electrical inspection

• plumbing inspection

• structural inspection

• pool inspection

• septic system evaluation

• roof and foundation review

This protects you from unexpected repairs and gives leverage for negotiations if issues arise.

10. Review HOA Rules, Financials & Regulations (If Applicable)

If the property is within a condominium or gated community, confirm:

• HOA bylaws

• monthly fees

• pet restrictions

• short-term rental rules

• architectural guidelines

• upcoming special assessments

This helps avoid surprises after closing.

11. Closing Day: What You Receive

At closing, you will receive:

• the transfer deed (escritura)

• a notarized copy of the deed

• proof of registration submitted to the National Registry

• final closing statement

• corporation documents (if applicable)

• utility transfer instructions

Once recorded at the Registry (usually within 30–60 days), you officially appear as the owner in the public records.

12. After Closing: Taxes & Annual Obligations

After purchasing, confirm:

• municipal property tax registration

• luxury home tax (if applicable)

• annual corporation tax

• RTBF (shareholder disclosure)

• electricity/water/service transfers

Your attorney or property manager can handle these steps easily.

Final Thoughts: Buying Property in Costa Rica Is Safe — With the Right Process

Costa Rica offers foreigners full ownership rights and a stable, transparent legal system.

When you follow a proper due diligence checklist and work with the right professionals, the process is smooth, secure, and incredibly rewarding.

Whether you’re buying a condo, home, land, or luxury villa, a clear legal roadmap ensures you’re protected from start to finish.

If you need help navigating any part of the legal process or want a trusted team to guide you, I’m here to support you every step of the way.