Top Mistakes Foreigners Make When Buying Property in Costa Rica – Avoid Them with Cabuya Realty

Buying property in Costa Rica can be a dream come true, but for many foreigners, it turns into a costly lesson. Navigating a new country’s legal system, cultural norms, and real estate practices is no small feat. At Cabuya Realty, we’ve spent years helping international clients sidestep these common issues and make informed decisions.

Let’s walk through the key mistakes foreigners make when buying property in Costa Rica—so you can steer clear of trouble and focus on finding your perfect home.

1. Not Fully Understanding Property Titles

Costa Rica has a unique property ownership system. Some land is fully titled, while others—especially beachfront areas—fall under concession laws. This often confuses first-time foreign buyers.

Pro Tip: Always confirm property title status through the National Registry and let a qualified local attorney review the details. Cabuya Realty ensures every property we list has clean, verified ownership.

2. Ignoring Local Zoning and Building Regulations

Just because land looks suitable for building doesn’t mean it’s legally allowed. Each region has its own regulations. Ignoring this can lead to fines—or worse, a forced demolition.

What to Do: Before buying, ask about zoning laws and approved land use. Cabuya Realty helps you navigate these local rules clearly.

3. Trusting the Wrong People

Unfortunately, not everyone advertising real estate in Costa Rica is licensed or trustworthy. Some buyers fall into scams or purchase overvalued properties.

How to Avoid It: Choose a registered agency with a physical presence and track record. Cabuya Realty is locally rooted and respected for putting client interests first.

4. Overlooking Ongoing Expenses

It’s easy to focus on the purchase price, but many forget about property taxes, utilities, maintenance, and security. Cabuya Realty offers full-service management to make owning property here worry-free.

Smart Move: Set a realistic monthly budget. Our team at Cabuya Realty offers full-service property management to help owners avoid costly surprises.

5. Rushing the Purchase Without Visiting Enough

We’ve seen buyers fall in love with photos or make emotional decisions during short visits. But neighborhoods can feel different depending on the time of year, traffic, and weather.

Reality Check: Spend time in the area during different months. If you're considering Cabuya, Montezuma, or Malpaís, we’ll help you explore the community lifestyle before committing.

Avoid These Common Pitfalls with Cabuya Realty

Buying a home abroad isn’t just about price or location. It’s about making a life change. At Cabuya Realty, we help foreigners navigate Costa Rica’s unique real estate market with local insight and integrity.

We guide you from property tours and legal checks to negotiations and post-sale support. Because your trust means everything—and your future home deserves more than guesswork.

FAQs

1. Can foreigners own property in Costa Rica?

Absolutely. Foreign nationals have the same legal rights as Costa Rican citizens when it comes to owning titled real estate.

2. What is concession property and is it risky?

 Concession land—often beachfront—is leased from the government and involves additional regulations. It’s legal, but more complex—especially for foreigners.

3. Are real estate agents regulated in Costa Rica?

 Not strictly. That’s why working with a reputable agency like Cabuya Realty is essential for protection.

4. Do I need to be in Costa Rica to close a property deal?

 No. You can grant power of attorney to a local lawyer to handle the process, but visiting beforehand is highly recommended.

5. What costs should I expect beyond the purchase price?

 Typical costs include legal fees, property transfer tax (~2.5%), annual property tax (~0.25%), and optional services like maintenance or rentals.

Ready to Buy Smart in Costa Rica?

Avoid rookie mistakes. Trust local experts. Cabuya Realty has helped hundreds of international buyers find their dream property safely and stress-free.

👉 Contact Cabuya Realty Now to schedule a consultation or start your property search today.

Your Costa Rican journey starts with one smart decision—and that’s choosing the right guide.

Can Foreigners Buy Property in Costa Rica?

What International Buyers Need to Know before they buy.

Costa Rica’s breathtaking landscapes and welcoming culture have made it a magnet for international property buyers. If you’re considering real estate in Cabuya, Santa Teresa, Montezuma, or anywhere on the Nicoya Peninsula, understanding the rules for foreign ownership and the benefits of the Inversionista (Investor) Residency Program is essential.

Equal Rights for Foreign Buyers

Foreigners enjoy the same property ownership rights as Costa Rican citizens. You can purchase titled property outright in your own name or through a corporation, with no requirement for residency or citizenship. This makes purchasing property in Cabuya, Santa Teresa, Montezuma, or elsewhere on the Nicoya Peninsula straightforward and secure.

Titled vs. Concession Land

Titled Land:
Most inland and some select coastal properties are titled, meaning you own the land outright. This is the most secure form of ownership and is highly sought after by both locals and foreigners.

Concession Land:
Properties within the Maritime Zone (the first 200 meters from the high tide line) are concession land. Here, the first 50 meters are public, and the next 150 meters can be leased (not owned) for up to 20 years, renewable. Foreigners can only own up to 49% of a concession property unless they have resided in Costa Rica for at least five years. These properties are subject to additional regulations and taxes, so due diligence is crucial.

The Inversionista (Investor) Residency Program

Costa Rica offers a clear path to residency for foreign investors through the Inversionista program. If you invest at least $150,000 USD in real estate, shares, or a Costa Rican business, you can apply for temporary residency. Here’s how it works:

• Minimum Investment: $150,000 USD in real estate, a business, or other approved assets.

• Residency Benefits: Temporary residency for two years, renewable as long as you maintain the investment. After three years, you can apply for permanent residency.

• Family Inclusion: Your spouse and dependent children can be included in your residency application.

• Path to Citizenship: After seven years of legal residency, you may apply for citizenship.

• Additional Perks: Residency holders can import household goods and a vehicle duty-free, and enjoy access to Costa Rica’s healthcare system.

Note: Inversionista residents cannot work as employees in Costa Rica but can earn income from their investments or work remotely for foreign companies.

Final Tips

• Work with a reputable local real estate agent and attorney to ensure a smooth, legal transaction.

• Understand the difference between titled and concession land, especially for beachfront properties.

• Consider the Inversionista program if you plan to invest $150,000 or more, as it offers significant residency and lifestyle benefits.

Costa Rica’s property laws, combined with the natural beauty of Cabuya, Santa Teresa, Montezuma, and the Nicoya Peninsula, make it an ideal destination for your next real estate investment.

5 Ways Cabuya Embodies the Pura Vida Lifestyle

After an invigorating morning surf, I sip my coconut water.

Amid the soothing landscapes of Cabuya, Costa Rica, challenges arise when we yearn for balance in our fast-paced routines.

Many seek a retreat like Cabuya—a haven where the concept of 'Pura Vida' truly thrives, offering a reprieve from life's demands and a return to meaningful living.

Rediscover the essence of life.

1. Embrace Mindful Living

Cabuya perfectly embodies mindful living practices.

Nestled within Cabuya’s serene and lush confines, one finds the perfect opportunity to reconnect with oneself. The gentle whispers of ocean breezes and the soothing rustle of leaves become companions in your journey of self-awareness. Here, life slows to a rhythm that invites introspection and gratitude's gentle embrace.

Mindful living conveys the art of balance.

In Cabuya, mindfulness isn't a goal but a way of being—where the mundane transforms into a transformative experience, and every encounter becomes a source of reflection. Each decision, whether big or small, is infused with purpose and intention.

Such a mindful existence naturally impacts the community, enriching human connections and fostering genuine encounters. Promoting an environment where every resident is encouraged to relish the present fosters a unique camaraderie. By embracing mindfulness, Cabuya paves the way for a life that is not only lived but cherished in every moment.

2. Stay Active Outdoors

Cabuya is a natural playground.

Surrounded by stunning landscapes, this coastal haven offers a bountiful array of exhilarating outdoor activities. Whether you are a thrill-seeker or prefer tranquil pursuits, Cabuya encourages you to embrace life's vibrancy. Kayaking, hiking through verdant trails, or surfing the pristine waves allows residents to revel in nature's grandeur.

Explore the waters to uncover hidden aquatic wonders.

The azure ocean invites you to dive in—to swim, snorkel, or sail against the backdrop of stunning vistas. With each stroke through the water, a sense of freedom and adventure unfolds, keeping body and spirit robust and invigorated.

Peering beyond heart-pounding activities, Cabuya also invites you to embrace practices like yoga and meditation on the powdery sands or among the lush foliage. Embracing these exercises amidst nature's beauty doesn't just strengthen the body, but the spirit—a testament to the vitality that permeates this community. Here the outdoors becomes an extension of your living space, offering an ever-present invitation to live vibrantly, engaged, and in harmony with the majestic environment that is uniquely Cabuya’s.

3. Foster Community Connections

In Cabuya, forging profound connections with those around you is more than an aspiration; it's a way of life, a cherished tradition that enhances the fabric of this vibrant community, embracing a neighborly ethos that fosters genuine friendships.

Neighbors readily extend hands to support one another within this welcoming environment.

Shared experiences become the norm as community gatherings and events, where laughter (and occasionally delectable homemade tamales) are bountiful.

This close-knit bond fosters a network of like-minded individuals exchanging ideas, inspiring both collective problem-solving and personal growth.

From local festivals to beach clean-ups, opportunities abound to build camaraderie, deepening trust among Cabuya’s residents.

Ultimately, the heart of Cabuya beats stronger because of these connections. Community interactions manifest as daily affirmations strengthening individuals within a broader network striving together for a fulfilling, interconnected life.

4. Immerse in Nature

In Cabuya, nature isn’t just scenery; it’s an integral part of daily experiences and personal growth.

With verdant rainforests and pristine beaches at your doorstep, Cabuya gifts residents the tranquil embrace of lush landscapes, etching the enchantment of outdoor spaces into the everyday. Here, the confluence of land and sea crafts an intricate tapestry that invites both exploration and introspection. Enveloping oneself in Cabuya's verdant embrace unlocks a restorative connection, soothing and invigorating the soul while igniting a profound appreciation for the intricacies of the natural world.

Endlessly nurturing, these immersive experiences provide an abundant bounty of renewal. As residents wander through serene trails, kayak along serene waters, or simply bask under the embrace of sunlit foliage, Cabuya encourages them to retreat from the hustle and engage wholly with the earth’s bounty, reinforcing an essential element of the pura vida lifestyle.

This embrace, a testament to Cabuya’s deep-rooted harmony with nature, embodies living sustainably amidst untouched beauty, and coexists gracefully, providing not just visual satisfaction but also soul-nourishing contentment. The sheer vibrancy of Cabuya’s natural surroundings and the kinship it fosters within its residents are testaments to the enduring and life-affirming appeal that make nature’s embrace an irresistible call to those who yearn to live in synergy with the world around them.

5. Know Your Food Sources

In Cabuya, the connection between the plate and the land is palpable and celebrated as part of life.

In 2016, Oscar Ortega, a thriving local farmer, prominently highlighted how knowing your food's journey enriches your culinary experiences and fosters a sense of community. He believes that awareness adds depth to every meal, enhancing both taste and satisfaction.

Here, it's not uncommon for residents to make morning visits to the farmer's market to select from the bounty of freshly harvested produce that graces their kitchens. The rhythmic dance of seasons ensures a vibrant showcase of nature’s best offerings.

Residents who embrace this intimate knowledge discover it's not just about sustenance but also supporting land stewardship and local economies. Fresh fruits, vibrant vegetables, and sustainably caught fish underscore a holistic commitment to health and ethical consumption.

In Cabuya, living the pura vida lifestyle means relishing the inherent connection between nature, nourishment, and community.

Real Estate Costa Rica: Find Your Dream Property Today

The allure of Costa Rica is undeniable. With its spectacular beaches, lush rainforests, and thriving expat community, Costa Rica has emerged as a premier destination for real estate investments. Whether seeking a serene beachfront villa, a cozy mountainside cottage, or a chic urban apartment, you will find boundless opportunities in this tropical paradise.

Why Invest in Costa Rica Real Estate?

Costa Rica's stable political environment, robust economy, and expat friendly investment policies, provides a secure haven for real estate investments. Its warm climate, pura vida lifestyle, and stunning natural landscapes attract investors from all over the world seeking tranquility.

Exquisite properties near pristine beaches, dense rainforests, and bustling cities offer unparalleled living experiences.

The country's strong infrastructure and public services ensure consistent growth and investment returns.

Notably, Costa Rica's commitment to sustainability makes it a desirable location for environmentally conscious investors wishing to invest responsibly.

In addition, the favorable tax policies and incentives for foreign investors underscore the appeal of this vibrant market, promising a prosperous future.

Popular Locations for Buying Property

From the lush landscapes of Guanacaste, a region of breathtaking coastlines, to the serene mountains of Atenas, there are countless enticing destinations. Tamarindo offers a vibrant beach town atmosphere, making it a magnet for surfers and investors alike, while Santa Teresa enchants with its laid-back vibe and pristine surfing conditions. Central Valley cities like Escazú and Santa Ana provide urban conveniences with stunning natural backdrops and cooler climate. Each of these locations in Costa Rica promises a unique blend of beauty, culture, and opportunity, ensuring buyers can find their ideal property to match their lifestyle aspirations.

San José: The Capital City

San José offers residents a tapestry of cultural experiences, bustling markets, and modern amenities. It is the dynamic heart of Costa Rica, embodying both progress and tradition.

For those seeking vibrant city life, San José stands as "the gateway" to the nation's diverse landscapes, balancing urban sophistication with tropical charm.

San José's rich history and architecture make it an awe-inspiring capital city.

Investors find San José's strategic location ideal for both residential and commercial real estate opportunities. Here, one can enjoy an exceptional blend of business potential and personal fulfillment. The capital city's pulsating energy and growth prospects make it an unparalleled destination in Costa Rica's thriving real estate market. It's cooler climate also appeals to many. Vibrant suburbs like Escazú and Santa Ana offer an appealing combination of a termparate climate, rich culture and a diverse expat community.

Guanacaste: Beachfront Bliss

Guanacaste offers pristine beaches and luxurious living, making it a sought-after destination for real estate buyers.

Its golden sands and stunning sunsets beckon those in search of serenity.

Known for its rich biodiversity, it boasts diverse ecosystems that enrich everyday living.

The area is renowned for its upscale resorts and world-class amenities, presenting an ideal mix of opulence and natural beauty. This landscape is perfect for those yearning for both comfort and adventure, providing endless opportunities for marine activities and eco-tourism.

With a steadily growing expatriate community and robust property market, it stands as a paradise for investors and families alike. Whether they are looking for a vacation home or a permanent residence, Guanacaste’s coastal charm and promising investment returns assure long-term satisfaction.

Puntarenas: Coastal Lifestyle

Puntarenas offers a unique coastal lifestyle, with Cabuya village representing the ultimate in the traditional Costa Rican pura vida ambiance.

This captivating province is known for its rich marine life. Whether they are keen on water sports or craving the peaceful ambiance of beachfront properties, Puntarenas presents a diverse range of real estate options. From vibrant markets to secluded beaches, the area offers a harmonious blend of culture and nature.

The region’s relaxed vibe is ideal for rejuvenation.

Investors will find attractive opportunities here - not only does the landscape provide stunning views, but the local infrastructure supports a high quality of life - making Puntarenas and the Nicoya Peninsula, a hidden gem in the real estate market.

As they explore Puntarenas, prospective buyers will discover exceptional property values coupled with unparalleled natural beauty, encapsulating the perfect blend of tropical allure and investment potential. Navigating through this burgeoning market reveals boundless possibilities for creating their dream home, making every moment in Puntarenas an inspiring adventure.

Types of Properties Available

In Costa Rica, potential homeowners can explore a variety of property types, from luxurious oceanfront villas to serene mountain retreats. These diverse selections ensure that every buyer finds something fitting their tastes and investment goals.

For those desiring the hustle and bustle of urban living, there are properties in "La Sabana." This area is known for its proximity to key amenities, offering apartments and condos tailored to modern life. For more tranquil surroundings, the rainforests of Costa Rica provide eco-friendly homes that embody sustainable living, ensuring a perfect match regardless of preference.

Luxury Villas

Luxury villas in Costa Rica offer unparalleled splendor and sophistication amidst breathtaking natural surroundings.

• Oceanfront vistas that provide panoramic views of the Pacific and Caribbean.

• Open-concept designs with expansive indoor-outdoor living spaces.

• Private infinity pools that merge seamlessly with the horizon.

• High-end finishes including imported marble, artisanal woodwork, and custom cabinetry.

• Exclusive amenities such as private beach access, helipads, and state-of-the-art security systems.

These properties represent the epitome of opulence, providing an extraordinary lifestyle.

Designed to cater to discerning tastes, luxury villas serve as perfect sanctuaries.

Beachfront Condos

Imagine waking up to the soothing sound of waves. Beachfront condos in Costa Rica, especially in regions like Santa Teresa, provide just that, adding a touch of serenity to everyday living.

These properties, with their sophisticated designs and premium finishes, promise a unique haven. Featuring expansive balconies, they allow residents to take in the breathtaking ocean views, creating a seamless blend of indoor comfort and coastal charm. Many of these condos incorporate modern amenities, ensuring both luxury and convenience in every aspect of life.

Undoubtedly, these condos offer more than just a residence. By choosing beachfront condos, one steps into a vibrant lifestyle surrounded by nature's beauty. This balance of tranquility and excitement makes these properties an optimal choice for those seeking a harmonious living experience.

Whether seeking investment opportunities or a permanent residence, beachfront condos are an excellent choice. They offer unparalleled access to pristine beaches, nearby gourmet dining, and a myriad of recreational activities. Such investments promise not only a significant return but also the immeasurable joy of owning a slice of paradise.

Mountain Retreats

Imagine a serene haven nestled amidst the lush greenery of Costa Rica's mountains.

Since 2016, mountain retreats have gained immense popularity, offering unparalleled beauty for those in search of tranquility. These retreats provide an escape from the hustle and bustle of city life, allowing one to reconnect with nature.

Here, it’s not just about breathtaking views; it’s an experience of immersive serenity. Fresh, crisp air fills one’s lungs, the symphony of wildlife provides a soothing soundtrack, and majestic landscapes offer countless opportunities for exploration and adventure.

Investing in a mountain retreat in Costa Rica is not just investing in property; it's an investment in wellness. These properties often boast sustainable designs, blending seamlessly with their surroundings and promoting a harmonious coexistence with nature.

For those yearning for peace and a rejuvenating environment, Costa Rica's mountain retreats stand as testament to the beauty of secluded living.

Steps to Buy Real Estate in Costa Rica

First, prospective buyers should research and select a region within Costa Rica that aligns with their lifestyle preferences and investment goals. Engaging a reputable real estate agent knowledgeable about the market is crucial to navigating the purchasing process.

Next, securing financing and understanding local property laws are essential steps. Conducting due diligence, including title searches and property inspections, ensures a smooth transaction.

Legal Requirements

Before purchasing real estate in Costa Rica, it's essential to understand the legal requirements involved.

• Residency Status: While it's not necessary to be a resident to purchase property, complying with immigration laws is essential.

• Property Registration: All properties must be registered with the Public Registry to validate ownership.

• Title Search: A comprehensive title search ensures there are no legal issues or liens on the property.

• Legal Representation: Hiring a qualified real estate attorney is recommended for navigating legal complexities.

• Due Diligence: Thoroughly verifying property boundaries and environmental regulations is critical.

Understanding these legal necessities fosters a secure investment environment.

By adhering to these guidelines, prospective buyers can confidently navigate the Costa Rican real estate market, ensuring a smooth purchasing experience.

Financing Options

Securing financing for a property in Costa Rica requires understanding the available avenues and their respective benefits.

1. Local Banks: Many local banks now offer mortgage options to foreign investors, often with competitive interest rates.

2. International Lenders: Some buyers may qualify for loans from international banks experienced in foreign real estate transactions.

3. Developer Financing: Frequently, developers provide financing packages that can be more flexible and customized to buyers' needs.

4. Private Lenders: Private lenders can offer alternative solutions, especially for unique properties or non-traditional purchases.

Each option has its own merits and requirements. Evaluating these choices diligently ensures the selection of the most advantageous financial route.

Working closely with financial advisors and local experts fosters a confident and seamless purchasing process.

Finding a Reliable Realtor

Choosing the right realtor is essential.

A reliable realtor is a gatekeeper to your dream property. They must possess extensive local knowledge and have established connections in the Costa Rican real estate market pivotal to a successful transaction. Furthermore, a good realtor will offer transparent communication and provide guidance throughout the buying process.

Ensure they have a strong track record.

Consider their reputation and testimonials. Verify their credentials by checking if they are affiliated with recognized real estate organizations or if they hold certifications specific to Costa Rican real estate.

Engaging a trustworthy realtor not only accelerates the search process but also simplifies negotiations, ensuring all legalities and documentation are correctly handled. Ultimately, this partnership forms the foundation of a successful and gratifying real estate investment journey in Costa Rica.

Cabuya Realty has deep connections in the local market, from Santa Teresa, Delicias, Montezuma ,Cabuya, and Tambor, with broad connections among sellers and buyers and a wealth of local legal knowledge.

Benefits of Owning Property in Costa Rica

Owning property in Costa Rica opens doors to unparalleled natural beauty and serene living. Costa Rica's commitment to environmental sustainability further enhances its appeal.

Its stable political climate and welcoming expat community provide a sense of security. Moreover, the consistent growth in property values makes it a wise investment choice.

Imagine enjoying breathtaking sunsets, the tranquil sound of waves, and vibrant local culture, all from your own slice of paradise. This unique combination renders Costa Rica an ideal destination for both vacation homes and permanent residences.

Financially, owning property can offer great returns due to the country's popularity as a tourist destination. Whether renting out the property or using it for personal enjoyment, the benefits are manifold. Embrace this opportunity to invest in Costa Rica—a true gateway to an enriched lifestyle.

Real Estate Market Trends in Costa Rica

Costa Rica's real estate market continues to flourish, reflecting a robust balance of supply and demand, fostering a promising environment for both buyers and investors.

Luxury properties remain in high demand, fueled by foreign interest.

Significant growth in the market has also been driven by eco-friendly developments.

Sustainable living spaces attract environmentally conscious buyers, bolstering the real estate sector.

Remote working trends have boosted interest in residential properties, impacting market dynamics positively. This shift has further increased real estate values, particularly in coastal areas and mountainous regions.

In conclusion, Costa Rica's real estate market is set to remain dynamic. Its sustained growth and diverse opportunities make it an ideal destination for savvy investors seeking long-term gains.

Tips for Foreign Buyers

Understanding the local legal framework is key to making informed decisions about real estate in Costa Rica, ensuring a smooth transactional process.

Foreigners can purchase real estate in Costa Rica with the same rights as locals.

However, it is highly recommended to hire reputable legal and financial professionals proficient in Costa Rican laws to facilitate compliance and safeguard interests.

Additionally, considering factors such as property location, market trends, and residency requirements will empower foreign buyers to make educated choices. By staying informed, engaging the right expertise, and maintaining due diligence, they can confidently secure their ideal investment in this beautiful country.

Real Estate Costa Rica: Your Path to Paradise

Imagine waking up to the symphony of nature, surrounded by the pristine beauty of Costa Rica's lush landscapes.

Since 2016, this tropical haven has enchanted expatriates and investors alike with its vibrant culture, welcoming community, and the promise of an idyllic lifestyle.

Here, it’s easy to see why many believe Costa Rica embodies the essence of paradise on earth, providing a unique blend of stunning natural beauty and modern amenities.

Nestled between the Caribbean Sea and Pacific Ocean, Costa Rica offers diverse property options ranging from luxurious beachfront villas to serene countryside retreats, each reflecting unparalleled natural splendor.

Venturing into the world of real estate Costa Rica opens doors to not just new homes, but new beginnings for those seeking tranquility and adventure.