Coco Law

A beautiful view, a persuasive listing, and a quick flight from the United States can make a Costa Rica property feel like an easy decision. The legal work is where the real decision begins. This international buyer legal checklist helps you ask the right questions before committing funds, signing an offer, or picturing your first sunset from the terrace.

Foreigners can generally own Costa Rican property with the same ownership rights as Costa Rican citizens. That is encouraging, but it does not make every property, transaction structure, or coastal location identical. A carefully managed purchase protects more than a home or investment. It protects your capital, your family’s plans, and the freedom to enjoy Pura Vida without unexpected legal complications.

Start With the Right Ownership Structure

Before you select a property, decide how you intend to own it. Some buyers purchase in their personal names. Others use a Costa Rican corporation, particularly when buying an investment property, holding multiple assets, or planning for estate and succession considerations.

There is no universal best choice. Personal ownership can be straightforward, while a corporation may offer practical flexibility in certain circumstances. A corporation also carries ongoing obligations, including annual tax filings, legal representation, and compliance requirements. The right structure depends on your intended use of the property, your family situation, financing plans, and broader tax advice in both Costa Rica and your home country.

Do not assume an existing seller-owned corporation should simply be transferred to you. Buying the entity rather than the real estate can mean taking on its history, liabilities, and compliance concerns. In some transactions it may be appropriate, but it requires a different level of legal review.

Confirm What Is Actually Being Sold

A listing description is not proof of ownership, boundaries, access rights, or construction legality. Your legal review should begin with the property’s registration details and continue through every document that affects its use and value.

Verify title and registry information

A Costa Rican attorney should obtain and review a current property certification from the National Registry. This review confirms the registered owner and identifies mortgages, liens, easements, annotations, restrictions, and other recorded matters.

It should also confirm that the information presented by the seller matches the registry record. A mismatch in the owner’s name, legal entity, property size, or registered boundaries is not necessarily a deal breaker. It is, however, a reason to pause and understand the issue before moving forward.

Match the property to its survey plan

The registered survey plan, known as a plano, should align with the land being shown to you. This sounds obvious until a buyer discovers that a fence, driveway, garden, or ocean-view portion of the lot does not sit where expected.

The review should consider the lot’s dimensions, neighboring parcels, recorded easements, and physical access. In Guanacaste, where terrain and development patterns can vary greatly from one community to the next, legal access deserves special attention. A property without reliable recorded access may be far less useful than it appears during a showing.

Check taxes, municipal status, and permits

Confirm that property taxes, municipal taxes, condominium fees where applicable, and other charges are current. If the property includes a home, rental units, a pool, or other improvements, verify that the relevant construction permits and municipal records support what exists on the land.

For a vacant lot, investigate what you may realistically build. Zoning, land-use rules, setbacks, water availability, environmental restrictions, road conditions, and local permitting requirements can all affect your plans. The best lot for a future vacation home is not always the best lot for a rental property or a larger family residence.

Treat Coastal Property as Its Own Category

Costa Rica’s coastal zone requires particular care. Not all beachfront or near-beach property is titled private land. Some property falls within the Maritime Terrestrial Zone, where rights are typically held through a government concession rather than traditional fee-simple ownership.

A concession can be valuable, but it is not the same as owning titled land. Its validity, term, authorized use, municipal status, payment history, transferability, and development limitations must be reviewed with precision. The location of the property within the coastal zone also matters.

Never rely on casual descriptions such as “oceanfront,” “beach access,” or “steps from the sand” to determine the legal nature of a property. A local legal review should explain exactly what interest is being offered and what rights you would receive.

Make the Offer Protect Your Position

An offer or purchase agreement should do more than state a price and closing date. It should give you sufficient time and clear contractual rights to complete due diligence before your deposit becomes nonrefundable.

Your agreement should identify the parties, property, purchase price, payment schedule, included furnishings or equipment, closing conditions, and responsibility for taxes and closing expenses. It should also state what happens if due diligence reveals a material issue, the seller cannot deliver clear title, or either party fails to close.

Avoid sending a significant deposit based only on an email, an informal reservation form, or a verbal assurance that documents are “in process.” A properly drafted agreement should reflect the transaction you are actually making, not a generic form designed for speed.

Use a Secure and Documented Funds Process

International purchases bring additional banking and compliance considerations. Costa Rican banks, escrow providers, and legal professionals may require documentation showing the source of funds. Collecting this paperwork early can prevent delays later in the transaction.

You may need bank statements, evidence of a property sale, business records, investment account documentation, or other records that explain the funds used for the purchase. Requirements vary by institution and transaction, so there is no benefit in waiting until closing week to organize them.

When a deposit or purchase payment is required, use an appropriate escrow arrangement and make sure the written escrow instructions are clear. The instructions should specify when funds may be released, under what conditions, and who has authority to approve disbursements. Wire funds only after independently confirming account details through a trusted channel.

Plan for Closing, Not Just the Contract

In Costa Rica, a notary public plays a central role in formalizing and registering a real estate transfer. The closing process generally includes preparing the deed, confirming payment arrangements, signing the transfer, paying applicable taxes and fees, and submitting the transaction for registration.

Registration matters. Until the transfer is properly presented and completed through the National Registry process, there can be exposure to intervening claims or other complications. Your legal team should monitor the registration process and confirm when the property is registered in your name or in the name of your entity.

If you will not be in Costa Rica for every step, a power of attorney may be useful. It should be prepared thoughtfully. A narrowly tailored power of attorney for a specific transaction offers more protection than broad authority that extends beyond what is necessary.

Separate Property Ownership From Residency and Tax Planning

Buying property in Costa Rica does not automatically grant residency, and residency is not required to own property. These are separate decisions with separate requirements. A family purchasing a second home may have very different immigration needs from a retiree planning to live in Costa Rica year-round or an investor managing rental activity.

Likewise, property ownership can have tax implications in more than one country. Costa Rican legal guidance should work alongside advice from qualified U.S. tax and estate professionals when appropriate. The goal is not to overcomplicate a purchase. It is to avoid building a long-term plan on assumptions that were never reviewed.

A Final Pre-Closing Review

Before authorizing closing, confirm that due diligence has been completed, closing documents reflect the agreed terms, payment instructions are verified, and there are no unresolved title, tax, access, permit, or corporate issues. Also confirm what you will receive at handover, including keys, access devices, utility information, appliance records, condominium documents, and any inventory list for furnishings.

The right property in Costa Rica should feel exciting, not uncertain. With local counsel involved early, the legal process becomes a practical path toward enjoying your investment, your home, and the life you came here to create.