Dreaming of owning property in Costa Rica? You are not alone. With its stunning landscapes, stable economy, and welcoming legal framework, the country has become a popular destination for international buyers. The good news: foreigners enjoy the same ownership rights as locals. The key, however, is understanding how the process works so you can move forward with confidence.
Here is an easy-to-follow guide that walks you through the journey—from making an offer to finalizing your purchase and managing ongoing costs.
Once you have found the right property, the first formal step is to present an offer. This is typically done through a short written document outlining the key terms—such as the proposed purchase price, deposit amount, due diligence period, and expected closing date. Your real estate agent will help you draft the offer letter.
While some buyers skip straight to a formal contract, putting your main terms in writing early helps avoid confusion and ensures both sides are aligned before moving forward.
After the initial terms are accepted, the next step is creating a legally binding Sales and Purchase Agreement (SPA). This document expands on the offer and includes detailed legal language to protect both parties.
At this stage, attorneys representing the buyer and seller review, negotiate, and finalize the agreement. This step is crucial, as it sets the foundation for the rest of the transaction.
Once the agreement is signed, the buyer typically deposits 10% of the purchase price into an escrow account. This process may take a couple of weeks due to strict anti-money laundering regulation in Costa Rica. The escrow company will require a number of documents from the buyer before they can open the account and receive the deposit.
Buyers should be prepared to show proof of where their funds are coming from—such as savings, income, or proceeds from another sale. Preparing these documents in advance can help prevent delays.
The deposit is usually refundable during the due diligence period but becomes non-refundable once the Due Diligence term has been completed and the Buyer has declared positive due diligence.
This is one of the most important stages of the purchase. Typically lasting about 30 days, the due diligence period allows you to thoroughly investigate the property.
Key checks will include:
At the end of this period, you will decide whether to proceed or withdraw. If everything checks out, you move forward to closing.
Once due diligence is complete and approved, the remaining funds are transferred into escrow. The final legal documents are prepared and signed, officially transferring ownership from the seller to the buyer.
Once the title deed transfer has been signed, the escrow agent releases the funds to the seller, and the property is legally yours.
Buyers should plan for closing costs of roughly 4% to 5% of the purchase price. These typically include:
It’s wise to request a detailed cost estimate from your attorney early in the process so you can budget accurately.
Owning property in Costa Rica comes with relatively low recurring costs, but there are still a few to plan for:
A knowledgeable, trustworthy attorney can make all the difference when buying property abroad. From drafting contracts to ensuring compliance, having expert guidance helps you avoid pitfalls and keeps the process running smoothly.
Purchasing property in Costa Rica as a foreigner is a straightforward process when handled correctly. With the right preparation and professional support, you can turn your investment—or dream home—into a reality without unnecessary stress.
Whether you're looking for a vacation home, a rental investment, or a permanent move, understanding the steps ahead of time is the best way to ensure a successful experience
Josie Green +506 8703 5795 josie@2crre.com