Costa Rica Real Estate Starter Guide

(Updated January 2025)

Costa Rica Real Estate Buyers’ Guide by REMAX Oceanside Realty based out of Jaco Beach Costa Rica

Table of Contents: [ Costa Rica Real Estate Intro | Costa Rica Property Ownership | Real Estate Purchase Process | Financing in Costa Rica | Property Holding Cost | Rental Management | Costa Rica Residency | Jaco Beach Travel Guide }

At REMAX Oceanside Realty, based in Jaco Beach, we are committed to empowering both new and experienced investors by answering the most frequently asked questions about buying property in Costa Rica. Whether you’re considering a beachfront home, a mountain retreat, or an income-generating vacation rental, this guide will serve as your roadmap to a successful investment.

Foreign Investment: Why are so many expats choosing Costa Rica?

Costa Rica’s appeal lies in its investor-friendly policies, pristine nature, and vibrant expat community. Unlike many Latin American countries, Costa Rica grants foreign buyers the same property ownership rights as locals, ensuring your investment is legally protected. This pertains to most of the property bought and sold, but there are a few exceptions. For this reason, it’s crucial to understand the unique regulations surrounding beachfront properties, particularly those in the Maritime Zone. Our team will help you navigate these complexities, making sure you are equipped to make the best decision.

The zone includes the first 200 meters off the coast on both the Pacific and Atlantic. A law was passed in the 1970s allowing owners of beachfront property to gain a fee-simple title to their waterfront land. Only 10-15% of the landowners took advantage of this, leaving the remaining 85-90% of the coast in a concession zone.

Concession property is a restricted lease from the government. The restrictions to ownership and development on concession property center around protecting the environment, but there are also obstacles to foreign ownership. When buying beachfront condos, homes, or lots, we suggest you do your due diligence and consider sticking to the titled property, which is mostly located in and around the Jaco Beach area on the Central Pacific coast.

Safe Investment | The Real Estate Due Diligence Process

Costa Rica’s stable political climate and transparent property registry make real estate transactions straightforward. All properties are registered in the National Property Registry, allowing for clear due diligence. Once verified, ownership can be secured through a Costa Rican corporation, offering tax advantages and simplifying future sales or inheritance processes.

Costa Rica Low Cost of Living

Owning property in Costa Rica comes with remarkably low annual costs. Property taxes are only 0.25% of the declared value ($250 per $100,000), making long-term ownership affordable. Additionally, healthcare, utilities, and services are competitively priced compared to other popular expat destinations without compromising on quality. With access to drinkable water, modern infrastructure, and a variety of climates, Costa Rica offers an unparalleled quality of life. In Costa Rica, you do not have to sacrifice your quality of life to gain an affordable cost of living.

Quality of Life | Climate and Landscape

In Costa Rica there is something for everyone! With very little research you will find there is a variety of pleasant climate types and landscape options from cooler mountains to beaches, deserts to rainforest.  The coast lined with tropical beaches that stay in the high 70s to mid-90s all year around. The central valley and mountain highlands boast of spring weather all year with cooler breezes in the mid-60s to mid-80s all year around.

On the coast, the areas that get a little more rain like the Central and Southern Pacific coast (including Jaco, Esterillos, Manuel Antonio and Dominical) says green all year it is called the “Green coast”. The “Gold coast” is the Northern Pacific or Guanacaste peninsula which stays much dryer with landscapes that will remind you of the Southern California hillsides. If you browse through our Expat Community and Real Estate Locations you will find the average temperatures and rainfall  included.

The highlands change with the altitude. You can find mountain tops covered with coffee farms, cloud forest, and of course the urban jungle, San Jose which is come to the majority of Costa Rica residence. Nevertheless, approximately 25% of the landmass in Costa Rica is protected environmental reserves so nature is nearby no matter where you end up.

Real Estate Market Values and Influencers

The last year was our top producing year in our 10-year history that we attribute to the following conditions.

• Growth of the North American Markets: The performance of the stock market and increase in real estate values all over North America has provided extra purchasing power. Additionally, some are recognizing that these markets may be nearing a correction meaning that now is a great time to cash out of the stock market and diversify with real estate in Costa Rica. We are even seeing clients with more bitcoin than they know what to do with, so they are purchasing property as well.
• The US election: As with every election we have folks that are unsatisfied with the direction of the United States and others on the complete opposite side of the coin who now feel more secure with their finances.
• Caribbean hurricanes: Our hearts and prayers go out to everyone who was devastated by the hurricanes that tore through the Caribbean this year where we have many RE/MAX affiliate offices. A side affect of these storms is that tourists changed

  

  their vacation plans and are ending up in Costa Rica. I hear over and over again from folks that come in our office that they had plans to visit the Caribbean but were forced to change their plans.
• Regional development: Progress is apparent in Jaco Beach where 6 new commercial developments came to completion last year with the most notable being the Jaco Walk plaza that is pictured to the right. This plaza alone hosts 98 commercial stores and ample parking. This family friendly plaza is a favorite of ours with EXCELLENT cuisine and entertainment.
• Announcement of the Orotina Airport: Pictured below is a rendering of the Orotina International airport that is expected to open in 2027. In May of the previous year, the president of Costa Rica signed an executive decree to start the process of acquiring 370 privately owned properties to facilitate this project. Once complete, the current international airport in San Jose will facilitate regional flights and the

  

  Orotina airport will become the countries main international airport. This is great news for us on the Central Pacific because Orotina is only a 30-minute drive from Jaco Beach. However, it’s no secret that things move slow in Costa Rica, but we believe that this airport will be a reality even if it is behind schedule.

Prices are still low: Real estate values in the Central Pacific have yet to recover to their pre-2008 values. We attribute that to the difficulty of foreigners in obtaining financing here in Costa Rica. Obtaining a loan from a local bank is possible but extremely difficult and the rates aren’t pretty. For that reason we have been selling many properties with Seller financing. We also see clients using home equity lines on their North American residence as well as self-directed IRA’s to purchase property down here.

Ready to Start Your Journey?

We hope this guide helps answer your questions and inspires you to take the next step toward owning your dream property in Costa Rica. If you’d like personalized assistance or have specific questions, don’t hesitate to contact our team. One of our experienced, licensed agents will be happy to guide you through every step of the process.

Table of Contents: [ Costa Rica Real Estate Intro | Costa Rica Property Ownership | Real Estate Purchase Process | Financing in Costa Rica | Property Holding Cost | Rental Management | Costa Rica Residency | Jaco Beach Travel Guide }