Top Mistakes Foreigners Make When Buying Property in Costa Rica – Avoid Them with Cabuya Realty
Buying property in Costa Rica as a foreigner can be an exciting adventure—but it also comes with unique challenges. From ensuring the property has a clean title to verifying utilities like water and electricity are in place, many buyers make costly mistakes by skipping crucial steps. Avoid common pitfalls and protect your investment by learning what to watch out for before signing on the dotted line. For expert guidance, visit www.cabuayrealty.com.
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?
Dreaming of Owning Property in Paradise? Here’s What You Need to Know
In this guide, we’ll break down everything you need to know about buying property in Costa Rica, from legal considerations to the best locations—so you can make your tropical real estate dreams a reality. ¡Vamos!
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.