There are many ways to capitalize on Costa Rica's real estate market.

Some people choose to source labor and build a house themselves, which can reduce costs by 20-30%. However, managing construction from overseas can be challenging, especially without experience in real estate development or construction.

Others prefer to buy new builds or land and attempt to flip them within 2-3 years, banking on market price appreciation. Rental prices have also been rising, typically at a rate of about 5% per year.

Another common approach is purchasing established short-term rental properties or developing them independently, targeting international travelers. This strategy can be quite lucrative, as gross yields can be high (around 10-15%). Costa Rica's high season lasts from December to April and even during the shoulder- and low seasons the market is still strong in terms of tourism.

Furthermore, the government actively encourages foreign investment through clear property ownership laws that grant non-residents the same property rights as citizens. 

Lastly, Costa Rica’s strategic location in Central America offers convenient access to both North and South America, making it attractive to international investors.

Popular Investment Property Locations

Tamarindo: Known for its beautiful beaches, surfing, and vibrant nightlife, Tamarindo attracts a steady stream of tourists, making it ideal for short-term rentals.

Jaco: As one of Costa Rica’s most developed beach towns, Jaco offers a strong rental market driven by its proximity to San José and reputation as a surfing and nightlife hub.

Quepos: This town is the gateway to Manuel Antonio National Park, one of Costa Rica’s most visited attractions. Properties here benefit from consistent tourist traffic, making it a strong market for vacation rentals.

Playa Flamingo: Famous for its pristine white sand beaches and luxury resorts, Playa Flamingo is a hotspot for high-end travelers. The area is experiencing rapid development, with new marinas and amenities that are increasing property values.

Sámara: Known for its laid-back vibe and family-friendly atmosphere, Sámara attracts long-term renters and retirees. The area offers a balance of tourism and a tight-knit community, making it suitable for both short- and long-term rental investments.

San José: As the capital and business hub of Costa Rica, San José offers opportunities for long-term rentals, particularly catering to professionals and expatriates. The city’s strong economy, universities, and medical centers drive consistent rental demand.

Rental Yields

Gross rental yields for apartments in Costa Rica averaged 7.27% in July 2024, showing a slight increase from 7.18% reported at the end of 2022.

Among major locations, San José recorded the highest gross rental yields at 8.25%, followed by Heredia at 7.67%, and Santa Ana at 7.01%.

Average gross rental yields by city and apartment type:

• San José: 1-bedroom (8.16%), 2-bedroom (7.65%), 3-bedroom (8.95%), submarket average (8.25%)
• Heredia: 1-bedroom (7.20%), 2-bedroom (8.14%), submarket average (7.67%)
• Santa Ana: 1-bedroom (6.62%), 2-bedroom (8.91%), 3-bedroom (5.49%), submarket average (7.01%)
• Escazú: 1-bedroom (6.63%), 2-bedroom (7.03%), 3-bedroom (7.23%), submarket average (6.74%)
• Curridabat: 1-bedroom (6.52%), 2-bedroom (6.94%), 3-bedroom (6.59%), submarket average (6.68%)

Additionally, data from the Household Financial Survey (ENFIHO), conducted by INEC in 2022, showed that 32% of Costa Rican households rented their primary residence - a figure that appears to have continued growing since then.

Where to Find Properties Online

These three websites cover a large portion of the Costa Rican real estate market. Be sure to check all of them:

• https://www.encuentra24.com/
• https://www.realestate.com.au/international/cr//
• https://www.remax-costa-rica.com/

If you’re serious about buying or investing in Costa Rica, it’s essential to connect with local real estate agents and visit properties in person. This will give you a clearer understanding of the market and help you decide whether to move forward with a purchase or explore other options.

Financing Options for Non-Residents

Foreigners can obtain property loans in Costa Rica.

The Costa Rican government allows non-residents to apply for loans, provided they meet certain conditions and requirements.

Typically, these requirements include having a valid residence permit, proof of income and identity, and meeting the eligibility criteria set by local lending banks.

Foreigners can also apply for business loans if they wish to establish a real estate business in Costa Rica. However, business loan interest rates are typically higher - 10% and higher The approval process for business loans usually requires submitting a detailed business plan, proof of financial stability, and collateral. 

Mortgage rates in Costa Rica are relatively high, hovering around 8%, although they have been declining as of 2025. 

When purchasing new builds, seller financing is sometimes an option.

Alternatively, you can approach your local bank in your home country to fund your investment property abroad. This route could offer a lower interest rate than local Costa Rican banks.

However, your home bank will likely require collateral in your home country, as banks in the US or EU generally do not accept Costa Rican property as collateral.

While it is possible for foreigners to secure business financing, it is highly recommended to consult with local banks or financial advisors to fully understand the terms and requirements.

Due Diligence and Sales Contract 

When conducting due diligence in Costa Rica, you can either hire professionals or handle some steps yourself, depending on your experience and comfort level.

It is important to be aware of any tax implications and to verify that the property has a clear title. International buyers should also familiarize themselves with local laws and practices.

However, it is highly recommended to work with a reputable real estate attorney who specializes in Costa Rican property law.

They can conduct a title search through the National Public Registry (Registro Nacional) to ensure the property has no liens, encumbrances, or legal disputes.

For property inspections, a certified home inspector or experienced contractor can assess the building's condition and identify potential issues.

If you want to do it yourself, you can search property records directly through the Costa Rican National Registry’s online platform to review ownership details and verify any liens or encumbrances. You can also visit the property personally, meet neighbors, and assess the area’s infrastructure and build quality.

However, for legal matters and contracts, it’s still advisable to have a local attorney review everything before signing.

In Costa Rica, the property purchase agreement is referred to as the "Contrato de Compra-Venta."

This formal contract between the buyer and the seller is legally binding and ensures that both parties adhere to their commitments. It specifies the responsibilities and obligations of each party involved.

The property transfer process also requires the involvement of a notary, who also serves as an attorney, to ensure all legal formalities are properly handled.

Property Buying Costs and Taxes in Costa Rica

Notary fees are levied according to the following scale:

For further reading: Property Taxes in Costa Rica