Can Foreigners Buy Property in Costa Rica?
Yes — and this is one of the biggest reasons the market attracts international buyers. Under Costa Rica's constitution, foreigners have identical property rights to citizens. You can hold title in your own name, in a corporation (S.A.), or in a trust structure. No local partner required. No special visa. No government approval process.
You can buy on a tourist visa, close the deal, fly home, and own the property from abroad. Many owners visit a few times a year and manage their properties remotely. It's straightforward — more so than most of Mexico, much of the Caribbean, and many Southeast Asian countries.
One exception: the maritime zone. If the property falls within 200 meters of the high tide line, different rules apply. Keep reading.
The Maritime Zone — Explained Simply
This is the single most important legal concept for coastal property buyers. Get this right and you'll avoid 90% of the problems foreigners run into. I'm going to explain it clearly because most explanations make it sound more complicated than it actually is.
Costa Rica's Maritime Zone Law (Ley de la Zona Marítimo Terrestre, Law 6043) was enacted in 1977 to protect coastal access and prevent private monopolization of beaches. It divides the first 200 meters from the mean high tide line into two zones:
Zone 1 — Public Zone (Zona Pública, 0–50 meters): This is public land. Period. Full stop. Nobody can own it, build on it, fence it, or restrict access to it. It belongs to all Costa Ricans and visitors. If someone tells you they're selling "beachfront land" within 50 meters of the tide line, they're either lying or selling something that will be demolished when the municipality eventually enforces the law. Walk away immediately.
Zone 2 — Restricted/Concession Zone (Zona Restringida, 50–200 meters): This land belongs to the municipality and can be leased through a long-term concession (concesión). Think of it like a 20-year renewable ground lease with the local government. Costa Rican citizens and legal residents can hold concessions directly in their own names. Foreigners cannot — but there's a well-established workaround.
The Fideicomiso Solution: Foreign buyers use a fideicomiso — a bank-administered trust — to hold concession rights. Here's how it works: A Costa Rican bank (Banco Nacional, BAC, BCR, etc.) creates a trust that holds the concession in its name. You're the beneficiary of the trust, which gives you all the practical rights of ownership — you can build, rent, sell, and pass the property to heirs. The bank acts as a neutral administrator, ensuring all concession fees are paid and regulations are followed.
The fideicomiso costs about $1,500–3,000 to set up and roughly $800–1,500 per year in administrative fees. It's an extra layer of cost and paperwork, but it's completely legal, widely used, and backed by decades of precedent. Your attorney handles all of it. Most concession properties in Tamarindo operate this way — it's the standard model, not some exotic loophole.
The Tamarindo Reality: Here's what matters for actual buyers — not all of Tamarindo is within the maritime zone. Much of the town center, Playa Langosta, and the hills behind the beach were titled decades before the 1977 maritime zone law was enacted. These properties have full fee-simple title (título de propiedad) and can be owned outright by anyone, foreign or domestic, with no fideicomiso required. This is the majority of what's actually for sale in Tamarindo proper.
Properties that ARE within the maritime zone include much of Playa Grande, some of Playa Langosta beachfront, parts of Hacienda Pinilla near the beach, and certain sections of Tamarindo's northern hotel strip. Your attorney will pull a coastal map (plano catastrado de zona marítimo terrestre) from the municipality showing exactly which zone your property falls into. This is a standard part of due diligence — not optional.
Concession Risks to Understand: Concessions are generally secure, but they're not equivalent to ownership. The municipality can (theoretically) decline to renew a concession after 20 years, though this almost never happens if you've maintained the property and paid all fees. Concessions also come with restrictions — you can't subdivide the land beyond certain limits, building height is restricted (usually 3 stories max), and you must maintain the property in accordance with the municipal development plan (plan regulador). Most importantly, if the concession is ever revoked or non-renewed, the improvements (your house) become property of the municipality with no compensation. Again, this is extremely rare, but it's why concession properties typically sell for 20–30% less than equivalent titled properties.
Due Diligence Non-Negotiables: If you're buying concession property, verify: (1) The concession is current and all fees are paid, (2) The concession is properly registered with the municipality, (3) There are no pending violations or municipal sanctions, (4) The fideicomiso is properly structured and the bank is reputable, (5) Title insurance is in place (essential for concessions). Skip any of these checks and you're gambling with hundreds of thousands of dollars.
Do I Need Residency to Buy?
No. You do not need to be a resident, have a cédula (Costa Rican ID), or hold any special immigration status to buy, own, or rent out property. Thousands of property owners in Guanacaste are non-resident foreigners who visit on tourist stamps.
That said, residency has benefits if you plan to spend significant time here:
- Pensionado (Retiree) Visa: Requires $1,000/month provable income. Popular with retirees.
- Rentista Visa: Requires $2,500/month provable income for 2 years. Good for remote workers.
- Inversionista (Investor) Visa: Requires $150,000+ investment in Costa Rica. The property purchase itself can qualify.
Residency gives you access to the CAJA (public healthcare system), eliminates the need to do border runs, and makes banking easier. But it's not required for property ownership.
Due Diligence — What to Verify Before You Buy
This is where deals go right or go wrong. I've seen buyers skip steps to close faster, only to discover problems that cost them $20,000–50,000 to fix. I've also seen thorough due diligence uncover issues that let buyers renegotiate $40,000 off the purchase price or walk away before wiring life savings into a bad deal.
Your attorney handles the actual work, but you need to understand what they're checking and why each piece matters. Here's the complete due diligence checklist for Tamarindo coastal property, with the local specifics that generic guides leave out:
📋 Title Search (Registro Nacional)
Your attorney pulls a certified copy of the property's title folio (folio real) from Costa Rica's National Registry (Registro Nacional de la Propiedad). This document shows the complete ownership chain, any mortgages or liens against the property, recorded easements, annotations, and restrictions.
What we're looking for: Clean title in the seller's name with no outstanding liens, no court orders (embargos), no annotations suggesting disputes, and no mortgages unless they'll be paid off at closing. The registry also shows the fiscal value (valor fiscal) — which affects property taxes — and whether the boundaries match the registered survey.
Local gotcha: Some Tamarindo properties have easements (servidumbres) for utility access, shared driveways, or beach access paths that cross the land. These are legal and normal, but you need to know where they are and who has rights. I've seen buyers upset to learn their "private" lot has a recorded easement allowing neighbors to walk across it to reach the beach. The registry shows this — read it carefully.
📐 Survey (Plano Catastrado)
A plano catastrado is a registered, certified survey showing exact GPS coordinates, boundary markers, total area in square meters, and any easements or public right-of-ways. In Costa Rica, this isn't just helpful — it's legally required. No registered survey = no legal property transfer.
What we're verifying: The plano on file at the National Registry matches physical reality. Your attorney (or a hired topographer) should verify the boundary markers are actually where the survey says they are. Discrepancies between the registered plano and the physical property are shockingly common, especially on older parcels.
Tamarindo-specific issue: Properties in the hills above Tamarindo sometimes have boundary disputes because the original surveys from the 1990s used imprecise measurements. If neighboring properties have overlapping planos (yes, this happens), you have a problem that requires a new survey, potential negotiation with neighbors, and Registry amendments before you can close. Budget 2–4 months and $1,500–3,000 to fix if this comes up.
💧 Water Letter (Carta de Disponibilidad de Agua)
This is a formal letter from the water provider confirming that water service is available to the property. In Tamarindo, water comes from either AyA (Instituto Costarricense de Acueductos y Alcantarillados — the national utility) or one of the local ASADAs (Asociaciones Administradoras de los Sistemas de Acueductos y Alcantarillados Comunales — community water associations).
Why it matters: No water letter = no building permits. The municipality won't issue construction permits without proof of water availability. Even if the property currently has water service, you need a current water letter (issued within the past 6–12 months) to build or expand.
Tamarindo water reality: Tamarindo proper and Playa Langosta are served by AyA and generally have good water availability. Properties in the hills (Villareal, San Josecito) rely on local ASADAs, which can be more variable. Some ASADAs have capacity limits and periodically stop issuing new water letters until infrastructure is upgraded. Your attorney should verify not just that a water letter exists, but that it's current and transferable to the new owner. If the seller's water letter expired, getting a new one can take 4–8 weeks and might require paying past-due infrastructure fees to the ASADA.
Also verify: Does the property have a water meter? Is the water account current? Are there any unpaid bills or connection fees? These seem like details, but unpaid water bills can delay closing.
🏗️ Building Permits & Zoning
Costa Rica requires building permits (permisos de construcción) for virtually all construction. Your due diligence must verify: (1) All existing structures were legally permitted, (2) Construction matches the approved plans, (3) The property complies with current zoning (plan regulador), and (4) You can build what you want to build.
The permit audit: Your attorney requests a certificate (certificado de uso de suelo) from the municipality showing permitted vs. actual construction. If the seller added a second story, built a pool, or expanded the kitchen without permits, that's unpermitted construction (construcción sin permisos). The municipality can issue fines, require demolition, or refuse to permit future work until it's remediated. This is not theoretical — Tamarindo's municipal government has been cracking down on unpermitted additions, especially in high-end developments.
Zoning verification: Tamarindo's plan regulador (municipal master plan) divides the area into zones with different rules: residential density limits, commercial vs. residential use, building height maximums (usually 10–12 meters / 3 stories), setback requirements from property lines (typically 3–5 meters), and lot coverage limits (often 50–60% of lot area). If you're buying to rebuild or expand, verify your plans comply with current zoning before you close. Zoning can change — what was permitted in 2010 might not be permitted today.
🏛️ Municipal Tax Status
Verify all municipal property taxes (impuesto territorial or impuesto de bienes inmuebles) are current. In Costa Rica, unpaid property taxes become a lien on the property itself, not just the owner's personal debt. If the seller owes three years of back taxes, that debt transfers to you as the new owner unless it's cleared before closing.
What to check: Request a certificado de no adeudos (certificate of no debts) from the Municipalidad de Santa Cruz (the municipality that governs Tamarindo). This shows all municipal taxes, garbage fees, and special assessments are current. Properties in gated communities or condos may also have unpaid HOA fees (cuotas de mantenimiento), which should also be cleared before closing — request a letter from the HOA administrator (administrador) confirming the account is current.
Common issue: Some sellers let property taxes accumulate because they're leaving Costa Rica and don't plan to return. The buyer usually pays these at closing out of the purchase price, but you need to know about them to adjust your offer. I've seen cases where $3,000–5,000 in back taxes weren't discovered until a week before closing, forcing a renegotiation or a delay.
🌊 Maritime Zone Status
If the property is within 200 meters of the coast, you must verify whether it's titled land (propiedad privada) or concession land (concesión). This is non-negotiable — the entire deal structure, pricing, and risk profile depends on this distinction.
How to verify: Your attorney requests a coastal map (plano catastral de zona marítimo terrestre) from the municipality showing the Zone 1 (0–50m) and Zone 2 (50–200m) boundaries for your specific beach section. They'll overlay this with your property's plano catastrado to determine if any portion falls within the zones. If it does, they pull the concession record (expediente de concesión) from the municipality to verify it's current, fees are paid, and there are no violations.
What can go wrong: Concessions that haven't been renewed, concessions with unpaid annual fees (canon), concessions issued to a person who's now deceased (requiring estate proceedings to transfer), or worst case — properties within Zone 1 that legally cannot be privately held at all. I know of one case where a foreign buyer purchased what they thought was titled beachfront land, only to discover after closing that a 10-meter strip of their lot was actually in Zone 1. The property is now in litigation. Their attorney — who skipped this check — is also in litigation.
Timeline reality: Thorough due diligence takes 3–4 weeks minimum, sometimes 6–8 weeks if issues arise. Sellers who push for "quick closes" are either naive or hiding something. Protect yourself: make your deposit refundable contingent on satisfactory due diligence, and don't waive contingencies until your attorney gives written confirmation that everything checks out.
Title Insurance
Title insurance is available in Costa Rica through companies like Stewart Title Latin America and First American Title. It's not required — and many local buyers skip it — but it's increasingly common for foreign buyers, especially on higher-value purchases.
A policy typically costs 0.5–0.75% of the purchase price and protects against title defects, undisclosed liens, boundary disputes, and fraud. Given that the cost is a one-time expense and the legal system can be slow, most international buyers find it worth the peace of mind.
Our take: Get it on any purchase over $200K. The cost is minimal relative to the protection. On properties within the maritime zone, it's essentially non-negotiable.
Finding a Real Estate Lawyer
This is arguably the most important decision you'll make in the buying process — more important than your real estate agent, more important than the property inspector, more important than anyone else in the transaction. A good bilingual real estate attorney is your shield against the gotchas that sink foreign buyers who don't know the system.
When I bought my first property in Tamarindo, I made the mistake of using the developer's recommended attorney. Everything seemed fine until we discovered during closing that the water letter had expired and would take another six weeks to renew. My agent shrugged. The developer's attorney said "these things happen." I learned the hard way: hire your own independent counsel, period.
What a good attorney actually does:
- Conducts comprehensive due diligence — title search at the Registro Nacional, survey verification, water letter confirmation, building permit review, maritime zone analysis, tax status check, environmental compliance review, and HOA financial audit if applicable
- Drafts or reviews the purchase agreement — making sure your deposit is protected, contingencies are properly written, penalty clauses are fair, and the Spanish version matches the English
- Sets up your corporate structure — whether that's a Costa Rican S.A. (corporation), a fideicomiso (bank trust for concession properties), or direct personal ownership with proper succession planning
- Coordinates the closing — working with the notary, escrow company, and seller's attorney to ensure all documents are in order and funds are protected until transfer is complete
- Handles the National Registry transfer — filing the escritura (transfer deed), paying all stamps and fees, and tracking the inscription until your name appears on the title folio
- Advises on tax strategy — corporate vs. personal ownership tax implications, rental income tax planning, capital gains optimization, and estate planning for cross-border assets
Where to find them: Most reputable real estate attorneys who work with foreign buyers are based in San José, specifically in Escazú — the business district where international law firms cluster. Don't let the distance concern you; Escazú attorneys handle Guanacaste transactions daily and know the Tamarindo market inside out. They'll coordinate everything remotely and only need you present for the actual closing (and even that can be done by power of attorney).
Firms like Outlier Legal (formerly BLP Costa Rica), Garnier BBDO, Pacheco Coto, and Consortium Legal are well-established and handle significant foreign buyer volume. Expect truly bilingual service — not "I studied English in school" bilingual, but "I did my graduate work at Georgetown" bilingual. These firms typically charge 1–1.5% of purchase price with minimums of $2,500–4,000, but the peace of mind is worth every dollar.
There are also excellent local attorneys in Tamarindo and nearby Santa Cruz who specialize in Guanacaste coastal real estate. They tend to charge slightly less (1% with $1,500–2,500 minimums) and have deep relationships with local municipalities, which can expedite water letters and permits. Ask your real estate agent for references, but remember: the agent's recommendation might be biased toward attorneys who close deals quickly rather than those who protect buyers thoroughly. Do your own vetting.
Red flags to avoid:
- Dual representation — An attorney who also represents the seller has a fundamental conflict of interest. This is shockingly common in Costa Rica ("we represent both parties to make it easier"). Run away.
- Dismissive of due diligence — Any attorney who says "this is a simple transaction, we don't need a full title search" or "water letters are optional" is either inexperienced or cutting corners to close faster. Due diligence is never optional.
- Can't explain the maritime zone — If an attorney can't clearly articulate the difference between Zone 1 and Zone 2, explain concession vs. titled land, or describe how a fideicomiso works, they're not a coastal property specialist. Find someone else.
- Pressures you to close quickly — Costa Rican closings typically take 45–90 days for good reason. An attorney pushing for a 2-week close is skipping steps. The only people who benefit from rushed closings are sellers with something to hide.
- Won't provide references — Established real estate attorneys have closed dozens or hundreds of foreign buyer transactions. If they won't connect you with a past client or two for a reference call, that's a problem.
The interview questions that matter: Before you hire anyone, ask these specific questions: How many maritime zone properties have you closed? (Should be dozens.) Can you walk me through the water letter process in Tamarindo specifically? (There are two AyA offices and three local ASADAs — they should know which one applies to your property.) What's your relationship with the seller's attorney? (Should be professional but independent.) How do you handle title insurance? (They should work with Stewart Title or First American and recommend it for purchases over $200K.) What happens if you find a problem during due diligence? (They should have a clear process for renegotiating or walking away.)
The right attorney won't just process your transaction — they'll educate you, protect you, and set up your ownership structure for long-term success. Invest the time to find someone good. This is a $300K–$1M+ decision. Saving a few hundred dollars on legal fees is the definition of penny-wise, pound-foolish.
Property Taxes & Ongoing Costs
One of Costa Rica's biggest draws for property owners: taxes are low.
Property Tax (Impuesto de Bienes Inmuebles): 0.25% of the registered (fiscal) value, paid quarterly to the municipality. The fiscal value is often significantly below market value, making the effective tax rate even lower.
Luxury Home Tax (Impuesto Solidario): Properties valued above approximately ₡137 million (~$250K USD, adjusted annually) pay an additional 0.25% on the value exceeding the threshold. Still far below North American rates.
Capital Gains Tax: Properties held for more than 3 years are exempt from capital gains tax. Properties sold within 3 years are subject to a 15% capital gains tax on the profit. Structure accordingly.
Corporation Maintenance: If you hold property in a Costa Rican S.A. (corporation), there's an annual corporation tax of approximately $120–400 depending on the registered value. This is changing — the government is encouraging dissolution of inactive corporations.
HOA Fees: The Hidden Cost Nobody Warns You About
If there's one expense that catches foreign buyers off guard, it's HOA (Homeowners Association) fees in beachfront condos and gated communities. And it's not just the amount — it's the variability, the special assessments, and the lack of transparency in some developments.
What you'll actually pay: Standard Tamarindo condos run $200–$400/month in HOA fees. Mid-range developments with larger pools, security, and landscaping charge $350–$600. Premium communities like Hacienda Pinilla, Reserva Conchal, and Las Catalinas charge $500–$1,500/month. These aren't optional — they're mandatory, and they come out of your pocket whether the property is rented, vacant, or occupied by you.
What HOA covers (and what it doesn't): Good HOA management covers common area maintenance (pools, landscaping, lighting, security, building exteriors), water and sewer for common areas, master insurance for the building structure, reserve funds for major repairs, and basic pest control. What it typically does NOT cover: your unit's interior maintenance, your A/C system, your appliances, your plumbing, individual unit insurance, or any special modifications you've made.
The special assessment trap: Here's what kills uninformed buyers: special assessments. If the HOA's reserve fund is depleted (or was never properly funded), the board can levy a one-time special assessment on all owners to cover major repairs — roof replacement, pool resurfacing, elevator repair, parking lot repaving, structural repairs. These assessments can range from $2,000 to $15,000+ per unit, payable within 30–90 days. We've seen owners hit with $8,000 special assessments within six months of closing because the HOA they bought into had deferred maintenance for years.
Due diligence on HOA: Before buying into any development, demand: (1) The last 24 months of HOA financial statements, (2) The current reserve fund balance and percentage funded, (3) Meeting minutes from the last 3 board meetings, (4) Any pending or planned special assessments, (5) The delinquency rate — what percentage of owners are behind on payments. A high delinquency rate (>15%) means the HOA is underfunded and a special assessment is likely coming.
Realistic Timeline for Foreign Buyers: Start to Finish
Everyone asks "how long does it take?" Here's the honest answer, broken into phases, based on what we've seen with dozens of foreign buyer transactions in the Tamarindo market.
Phase 1: Research & Reconnaissance (1–6 months): Most buyers spend 2–4 months researching online before their first visit. Read this site, browse listings on Encuentra24 and Point2 Homes, follow Tamarindo real estate Facebook groups, and narrow down your target neighborhood and budget. Then book a 5–7 day scouting trip where you look at properties, meet agents, visit neighborhoods at different times of day, and get a feel for the town. Don't buy on your first trip unless you've done extensive research beforehand — and even then, take a breath.
Phase 2: Property Selection & Offer (1–4 weeks): Once you've identified a property (often on a second visit), the offer process moves quickly. Your agent helps you draft an LOI (Letter of Intent) within days. Back-and-forth negotiations typically take 3–10 days. If terms are agreed, you move to formal purchase agreement.
Phase 3: Due Diligence (3–6 weeks): This is where your attorney earns their fee. Title search, survey verification, water letter, building permits, maritime zone status, tax clearance, environmental compliance, and HOA financial review if applicable. Budget 3–4 weeks for straightforward deals, 5–6 weeks if issues arise (expired water letters, boundary disputes, permit questions).
Phase 4: Closing (2–4 weeks): Once due diligence clears, your attorney drafts the escritura, coordinates with the notary and escrow company, and schedules the signing. Wire transfer of funds takes 3–5 business days. The actual signing appointment takes 30–60 minutes. Registry processing adds another 1–2 weeks after signing.
Total realistic timeline: From first serious property viewing to keys in hand, expect 45–90 days for a straightforward transaction. From "I'm thinking about buying in Costa Rica" to ownership, most foreign buyers take 4–12 months including research, scouting trips, and decision-making. There's no rush — rushing is how people make $300K mistakes.
2026 Tamarindo Real Estate Market — What Buyers Need to Know Right Now
Market conditions in Tamarindo shifted meaningfully between 2024 and 2026. If you're researching on data from 2022 or 2023 (when the post-pandemic frenzy was driving prices up 15–20% annually), recalibrate. Here's what the market actually looks like heading into mid-2026.
📊 Current Price Ranges by Category
Entry-level (older 1BR condos, Villareal/Santa Rosa): $180,000–$250,000. Small units, older buildings, further from the beach — but walkable to town, fully legal, and the lowest barrier to get into the Tamarindo market.
Mid-range (2–3BR condos/homes): $350,000–$800,000. This is where most buyers land. Well-located 2BR condos with pool access start around $350–450K. Standalone 3BR homes with ocean views start around $550–700K.
Beachfront & Langosta: $5,000–$9,000 per square meter. Prices in this category have held up better than inland because supply is truly limited — you can't build more oceanfront.
Luxury villas (Langosta, Hacienda Pinilla, Las Catalinas): $1.8M–$4.5M+. Four to six bedrooms, 300–600 sqm, gated communities with amenities. This segment has the most inventory and the longest days-on-market.
New construction premium: Expect to pay roughly 20% more for new vs. comparable older resale, primarily for modern finishes and lower short-term maintenance. Whether that premium is justified depends on your rental income projections and personal preference.
🤝 Negotiation in 2026
Tamarindo is currently a buyer-friendly market — the first time that's been true since the pre-2020 period. Inventory expanded significantly in 2025 as developers completed projects and some pandemic-era buyers decided to sell. Buyer demand hasn't kept pace, which means you have more leverage at the negotiating table.
Standard negotiations: Expect to negotiate 4–8% off the asking price on condos and standard homes. Don't be embarrassed to offer 7% below ask on a property that's been listed for 90+ days.
Luxury properties (90+ days on market): 10–15% discounts are achievable. Sellers in the $1M+ range often have high equity and low urgency — but they also have high carrying costs (HOA fees, property taxes, caretaker costs). Patience is your best tool.
What won't negotiate: Recently completed new construction in sought-after developments. Developers rarely discount below a certain floor because it affects other units in the same project. If you want a deal, look at resale, not new construction.
Closing costs to budget: 3.5–4.5% of the purchase price, covering transfer tax (1.5% on the declared value), National Registry fees, notary charges, and stamp duties. These are in addition to your attorney's fee (1–1.5%) and any title insurance (0.5–0.75%). Total transaction cost: plan for 5–6% on top of the purchase price.
📈 Long-Term Picture
Despite the 2025–2026 softening, the 10-year view remains strong: Tamarindo home prices are up roughly 130% in nominal terms over the past decade, driven by a steady influx of North American and European buyers — retirees, remote workers, and income-property investors.
What's driving long-term demand: Costa Rica's stability (no army since 1948, continuous democracy), improving flight connectivity (direct flights from multiple US cities to Liberia, 45 minutes from Tamarindo), growing digital nomad community, favorable tax treatment of foreign buyers, and a lifestyle that's increasingly hard to find elsewhere — genuine small-town beach life with broadband internet and decent restaurants.
What could disrupt it: Global recession cutting discretionary spending, a significant hurricane hitting Guanacaste (rare but possible), or regulatory changes to foreign ownership (currently zero threat given Costa Rica's constitution). None of these are imminent risks, but they're not zero probability either.
The honest summary for 2026: It's a better time to buy than 2022 or 2023, because you have negotiating power and less competition. It's not a distressed market — you're not going to find panic selling. But you're buying into a proven 10-year trend with current-cycle softness giving you a reasonable entry point.
Squatter Law (Ley de Posesión)
This one scares foreign buyers more than it should — but you should understand it. Costa Rica's adverse possession law allows someone who has continuously, openly, and peacefully occupied a property for 10+ years to potentially claim ownership rights.
Reality check: This almost never affects properly titled, maintained properties. It's primarily a concern with:
- Vacant rural land left unattended for years
- Absentee owners with no caretaker or fencing
- Properties without clear boundaries or registered surveys
How to protect yourself:
- Visit your property regularly or hire a caretaker
- Maintain clear boundaries (fencing is recommended)
- Pay your property taxes on time (tax receipts prove active ownership)
- Keep your property registered and surveys up to date
- If renting, have proper lease agreements in place
If you're buying a condo or a property in a gated community, squatter law is essentially irrelevant. It's primarily a consideration for standalone homes on large parcels or vacant land.
More Questions
Can I get a mortgage in Costa Rica?
Yes, but it's not like home. Costa Rican banks offer mortgages to foreigners, but expect higher interest rates (7–10%), shorter terms (15–20 years), and more paperwork. Most foreign buyers pay cash or arrange financing in their home country. Some developers offer in-house financing on new construction — typically 50% down with 3–5 year terms.
Should I buy in my name or a corporation?
Both are common. Buying in a Costa Rican S.A. (corporation) adds anonymity, simplifies estate transfer, and allows you to "sell" the property by transferring shares (potentially avoiding transfer tax). The downside: annual corporate taxes and filing requirements. Discuss with your attorney based on your specific situation.
Is Costa Rica politically stable?
Remarkably so. Costa Rica abolished its military in 1948 and has had continuous democratic governance since. It's consistently ranked as the most stable democracy in Central America and one of the most stable in Latin America. Rule of law is strong, property rights are constitutionally protected, and the country has never experienced the political upheavals seen in neighboring nations.
What about healthcare?
Costa Rica has universal healthcare through the CAJA system, available to residents. Private healthcare is also excellent and affordable — a doctor's visit costs $60–100, dental cleaning $50–80, and major procedures are a fraction of US prices. Hospital CIMA in San José is JCI-accredited. The nearest private hospital to Tamarindo is in Liberia (1 hour).
Can I bring my pets?
Yes. Costa Rica requires a health certificate from your home country vet (issued within 2 weeks of travel) and proof of rabies vaccination. No quarantine period. The process is straightforward and most vets are familiar with the requirements.
What about internet and working remotely?
Fiber internet is available in most of Tamarindo proper (100–300 Mbps). Newer developments and condos typically have strong connections. Rural properties may rely on fixed wireless or Starlink. Many expats and digital nomads work remotely from Tamarindo without issues — there are coworking spaces and cafés with reliable wifi throughout town.
Ready to Move Forward?
Now that you understand the legal framework, see exactly what the closing process looks like step by step. Or if you're still deciding where to buy, check our neighborhood guide.