How to Buy Real Estate in Costa Rica (Even with Funds in the US)
Buying property abroad does not have to be overwhelming or complicated. If your investment funds are held in the United States or elsewhere, the entire financial and legal process can be handled securely and remotely.
Understanding each phase brings peace of mind—and having trusted, on-the-ground representation ensures your interests are protected every step of the way.
Step-by-Step: The Buying Process in Costa Rica
- Property Tour & Letter of Intent (LOI): We view the property together (in person or via virtual walkthrough). Once you find the right fit, we draft a formal Letter of Intent (LOI) to establish initial terms and price.
- Sale & Purchase Agreement (SPA) & Due Diligence: A qualified attorney/notary drafts the formal contract and begins a comprehensive legal review with the National Registry (Registro Nacional). This stage verifies property boundaries, cadastral plans, clear title, tax compliance, and water/utility availability.
- Inspection & Contingencies: Key terms are defined according to the property's specific needs, including physical home inspections, contingency timelines, and earnest money deposits. The deposit is typically held in escrow and remains refundable until all due diligence conditions are fully met.
- Closing & Title Transfer: Once due diligence is completed and approved, the notary executes the transfer deed (Escritura Pública) and submits it to the National Registry for final title recording.
Why and When to Use an Escrow Account
In Costa Rica, real estate brokerages and agents are legally prohibited from holding third-party funds. We consistently recommend using a SUGEF-registered escrow service for several key advantages:
- Neutral Custody: An independent fiduciary holds the deposit and releases funds only when all contractual milestones are satisfied by both parties.
- Regulatory Compliance: It streamlines the source-of-funds verification (KYC/AML compliance) required by Costa Rican banking regulations.
- International Flexibility: If the seller is also based in the US and prefers funds disbursed domestically, the transaction can be structured accordingly without transferring funds into the Costa Rican banking system.
Standard Closing Costs Breakdown
Exact expenses depend on specific negotiations, but the general market standard is structured as follows:
| Expense | Typically Paid By | Estimated Share / Notes |
|---|---|---|
| Transfer Taxes & Legal Fees | Buyer | ~3.5% to 4% (stamp taxes, transfer duties, and notary fees) |
| Escrow Service Fees | Buyer / Shared | Standard flat fee or percentage based on the selected escrow firm |
| Real Estate Commission | Seller | Agreed percentage defined in the listing agreement |
Good to know: You do not need to be a citizen or legal resident to purchase property in Costa Rica. You can hold title in your personal name or through a local corporation (a topic we will cover in depth in an upcoming post).
We Are Here to Guide You
Every property transaction involves unique legal, tax, and logistical details. You don't have to navigate them alone. We coordinate the entire process alongside trusted legal and escrow professionals so you can invest with clarity and confidence.
Ready to start your journey? Reach out today to discuss your criteria or schedule a private consultation.