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Buying Land In Costa Rica


The Nicoya Peninsula, on the Pacific Coast of Guanacaste Province, enjoys a steady and significant increase in land values. The peninsula features some of the country’s best and most remote beaches, wildlife reserves and parks. Europeans and Americans continue to move to this area, which is undergoing rapid development. Market demand for property is substantial and current supply is becoming scarce, while prices rise.

San Juanillo Properties is very familiar with the administrative process of buying and owning real estate in Costa Rica. We refer clients to our local legal counsel who has represented both buyers and sellers in many land transactions on the Nicoya Peninsula. We also encourage clients to retain their own counsel if they wish.

The following is a basic description of the administrative process:

OWNERSHIP:  Property may be purchased by an individual (including a foreign national), jointly by two or more persons; or by a corporation.

FINANCING:  Bank financing is possible in Costa Rica, and is limited to approximately 70% of the appraised value of the property.      

REGISTRATION NUMBER:   Most properties have a titled registration number known as the Folio Real, and the records database can be searched with this number or by name index. The website for the National Registry is: www.registronacional.go.cr

PROPERTY DEED:   In Costa Rica, the seller transfers land to the buyer by executing a transfer deed (escritura) before a notary public. Unlike in common-law countries, such as the United States or Canada, in Costa Rica the notary public has extensive powers. In order to close on the property, the buyer and seller must select a notary/attorney who will draft the transfer deed and register the sale in the Public Registry (Registro Nacional).

TITLE INSURANCE:   Title insurance is available through a local escrow company, i.e., Stewart Title.

CLOSING COSTS:  It is customary for the buyer and seller to share equally in closing costs, however, this is sometimes negotiable. Closing costs include government taxes and fees, notary fee and mortgage costs.