Costa Rica Real Estate Investment Guide 2026

If you’re considering Costa Rica real estate investment, you’re likely attracted by the country’s political stability, strong tourism economy, and the fact that you can close on a property and hold title in US dollars. Costa Rica has been a favored destination for North American and European property investors for decades, and for good reasons. But like any international real estate market, it has its own rules, risks, and realities that differ significantly from investing domestically.

This guide walks through what you need to know as a property investor: why Costa Rica attracts capital, what the market actually looks like today, where investors are buying and what returns they’re seeing, the legal and tax framework, the real costs involved, and how to exit your investment when the time comes.

Legal Disclaimer: This guide is for informational purposes only and does not constitute legal or tax advice. Consult a qualified Costa Rican attorney or tax professional before making any investment decisions.

Why Costa Rica for Real Estate Investment

Costa Rica has maintained a stable democracy since 1949 and abolished its military in the same year. For foreign investors, this political stability is foundational. You’re not navigating frequent regime changes, currency controls, or nationalization risk. Property rights are constitutionally protected, and the legal system, while slow, is functional.

Economic and Currency Stability

Costa Rica uses a dual-currency economy. While the local currency is the colón, US dollars are widely accepted, and nearly all real estate transactions are priced and closed in dollars. This eliminates currency risk for US-based investors. You’re not converting into a volatile local currency and hoping the exchange rate holds when you repatriate funds.

The Costa Rican economy is heavily reliant on tourism, which brought in over 3 million visitors in 2019 before COVID-19. The sector recovered to approximately 2.4 million visitors in 2022 and continues growing. Tourism is the primary driver of vacation rental demand, and those visitor numbers directly correlate with occupancy rates and rental income.

Tourism Fundamentals

Costa Rica’s tourism appeal is well-established: biodiversity (5% of the world’s species in a country the size of West Virginia), two coastlines (Pacific and Caribbean), national parks covering about 25% of the country, and a tourism infrastructure that’s mature without being overdeveloped. The country actively markets itself as an eco-tourism and adventure destination, and that branding has staying power.

Unlike some emerging markets where tourism is a new phenomenon, Costa Rica has been attracting consistent visitor volumes for 30+ years. This is not speculative demand.

Natural Appeal for Renters and Owners

The country’s appeal isn’t just to tourists. Many investors buy property with the intention of using it themselves part of the year and renting it out when they’re not there. The proximity to the US (a 3-5 hour flight from most major cities), English proficiency in tourist areas, and established expat communities make it accessible for part-time ownership.

This dual-use dynamic (personal use + rental income) is common among foreign buyers and shapes the types of properties in demand. Condos and turnkey villas are favored because they’re easier to maintain remotely and require less hands-on management than raw land or fixer-uppers.

Market Trends and Growth Patterns

Costa Rica is not a high-growth real estate market. If you’re looking for rapid appreciation like you might find in a frontier emerging market, this isn’t it. The market is mature, and price growth is moderate.

Historical Appreciation

Over the past two decades, well-located properties in established markets have generally appreciated at 3-5% annually in dollar terms during normal years. This is roughly in line with or slightly below US averages and far below what you’d see in high-growth Latin American markets like parts of Mexico or Colombia during their boom periods.

The 2008 global financial crisis hit Costa Rica hard, particularly in developments that were pre-construction or targeting speculative buyers. Some coastal developments saw price drops of 30-50% and took years to recover. The lesson: established, income-producing properties held value far better than speculative land plays or pre-construction condos.

COVID-19 created a similar but shorter shock. Tourism stopped in March 2020, rental income dropped to zero for many properties, and prices softened in 2020-2021. However, the recovery was faster than 2008, with tourism rebounding significantly by late 2021 and 2022.

Foreign Buyer Trends

Foreign buyers, primarily from the US and Canada, represent a significant portion of coastal real estate transactions. Exact percentages are difficult to pin down because the government doesn’t publish comprehensive buyer nationality data, but anecdotal evidence from real estate agents and title companies suggests foreigners account for 40-60% of transactions in popular beach towns like Tamarindo, Jacó, and Manuel Antonio.

The Central Valley, where the majority of Costa Ricans live (San José, Escazú, Santa Ana, Heredia), sees far less foreign investment because it’s not a tourism destination. Foreign buyers in the Central Valley are typically expats relocating for retirement or remote work, not rental property investors.

Supply and Demand Dynamics

Costa Rica does not have the inventory glut issues you might find in markets with speculative overbuilding. Development is constrained by infrastructure limitations, environmental regulations, and the fact that much of the best coastal land is already developed or protected. This keeps supply relatively tight in established markets.

Demand is driven by three segments:

1. Tourists renting short-term vacation properties
2. Expats and retirees buying for full-time or part-time residence
3. Investors buying for rental income or long-term appreciation

All three segments favor coastal and tourism-centric areas, which is why those markets have the most liquidity and the best rental fundamentals.

Popular Investment Locations and ROI Profiles

Not all Costa Rican markets are equal from an investment perspective. Returns, liquidity, property management availability, and risk profiles vary significantly by location.

Central Valley (Escazú, Santa Ana, San José)

The Central Valley is the country’s economic and population center. Escazú and Santa Ana are affluent suburbs west of San José, home to corporate offices, expat residents, and wealthier Costa Ricans.

Investment profile:

• Property types: Condos and houses, primarily for long-term rental or personal residence
• Rental yields: 4-6% gross annually (long-term leases, not vacation rentals)
• Appreciation: Moderate, 2-4% annually in established neighborhoods
• Liquidity: Moderate. Properties take 6-12 months to sell on average.
• Who buys here: Expats relocating, investors seeking stable long-term rental income

The Central Valley is not a vacation rental market. If you’re buying for short-term rental income, this is the wrong location. It is, however, a relatively stable market for long-term rentals because demand is driven by the local economy and expat residents, not tourism.

Pacific Coast: Guanacaste Province

Guanacaste, in the northwest, is Costa Rica’s most developed tourism region. It includes the Liberia airport (LIR), which receives direct international flights, and dozens of beach towns along the Pacific coast.

Tamarindo

Tamarindo is the largest and most developed beach town in Guanacaste. It has restaurants, nightlife, surf schools, and a well-established tourism infrastructure.

Investment profile:

• Property types: Condos, beachfront or near-beach villas
• Rental yields: 6-8% gross annually for well-managed vacation rentals
• Occupancy: 50-70% annual occupancy is realistic for well-marketed properties
• Appreciation: 3-5% annually in recent years
• Liquidity: Good. Properties sell faster here than most other Costa Rican markets.
• Management availability: Extensive. Multiple property management companies operate in Tamarindo.

Tamarindo is one of the most liquid markets in Costa Rica. It’s also competitive, meaning rental performance depends heavily on your property’s quality, location (walkable to the beach vs. requiring a car), and how well it’s managed and marketed.

Playa Conchal / Reserva Conchal

Playa Conchal is a shell-sand beach north of Tamarindo, home to the Reserva Conchal resort development. The area is more upscale and quieter than Tamarindo.

Investment profile:

• Property types: Condos and villas within gated resort communities
• Rental yields: 5-7% gross annually
• HOA fees: Higher than Tamarindo due to resort amenities (golf course, beach club)
• Liquidity: Moderate. Fewer transactions than Tamarindo but still reasonably active.

Conchal appeals to investors seeking a more controlled, resort-style environment. The trade-off is higher HOA fees (often $500-800/month or more) and slightly lower yields.

Pacific Coast: Central Pacific

The Central Pacific includes Jacó, Los Sueños, and Manuel Antonio. These are closer to San José than Guanacaste (about 1.5-2 hours by car), making them accessible for domestic weekend tourism in addition to international visitors.

Jacó

Jacó is a beach town known for surfing and nightlife. It has a grittier, more local feel than Tamarindo but is popular with surfers and younger travelers.

Investment profile:

• Property types: Condos (many high-rise buildings), some houses
• Rental yields: 6-8% gross for vacation rentals
• Occupancy: 50-65% annual occupancy is realistic
• Appreciation: 3-5% annually
• Liquidity: Good, though the condo market is somewhat saturated
• Management availability: Strong

Jacó has a large inventory of condo units, many built during the 2000s boom. This creates competition for rentals. Location within Jacó matters: beachfront properties perform significantly better than those a few blocks inland. For more on the Jacó market, see our Jacó market guide.

Los Sueños (Herradura)

Los Sueños is a master-planned resort community adjacent to Jacó. It includes a 200-slip marina, a golf course, beach club, and gated residential communities.

Investment profile:

• Property types: Condos and villas within the resort
• Rental yields: 5-7% gross annually
• Occupancy: Marina-view and golf-view condos perform well
• HOA fees: $400-700/month typical for condos
• Liquidity: Moderate to good
• Management availability: Excellent

Los Sueños attracts sport fishing enthusiasts (the marina is one of the best in Central America for billfish) and golfers. Properties here tend to command higher nightly rates than Jacó due to the resort amenities and controlled environment. For detailed rental income potential and investment analysis, see our Los Sueños market guide.

Manuel Antonio

Manuel Antonio is one of Costa Rica’s most visited national parks, known for its beaches, wildlife (monkeys, sloths, tropical birds), and jungle setting. The town of Quepos serves as the gateway.

Investment profile:

• Property types: Villas and condos, often with ocean or jungle views
• Rental yields: 6-8% gross annually for well-located properties
• Appreciation: 4-6% annually in recent years
• Liquidity: Moderate
• Management availability: Good

Manuel Antonio properties appeal to families and nature-focused travelers. The area has limited flat buildable land, which constrains supply and supports prices. However, properties here often require 4WD access due to steep, unpaved roads, which can be a consideration for renters.

Caribbean Coast

The Caribbean side (Puerto Viejo, Cahuita) has a different vibe: Afro-Caribbean culture, reggae, laid-back beach towns. It’s less developed than the Pacific coast and receives fewer international tourists.

Investment profile:

• Rental yields: 4-6% gross annually
• Liquidity: Low
• Management availability: Limited

The Caribbean coast is not a primary market for rental property investors. It attracts a niche audience (backpackers, eco-tourists, surfers seeking uncrowded waves), and infrastructure is less developed. This is a market for buyers who know the area well and are comfortable with lower liquidity.

Rental Yield Expectations by Property Type

Gross rental yields in Costa Rica vary by location and property type. These figures are estimates based on market data and should be verified with local property managers before making assumptions.

Condos

Typical gross yields: 5-7% annually

Condos are the most common investment property type because they’re easier to manage remotely. HOA fees cover exterior maintenance, landscaping, pool upkeep, and often security.

Pros:

• Lower maintenance burden than single-family homes
• Easier to rent because they’re often in central locations
• Shared amenities (pool, gym, security) without individual maintenance responsibility

Cons:

• HOA fees reduce net income (budget $200-800/month depending on amenities)
• Less control over the property (HOA rules, special assessments)
• Resale value tied to the health of the HOA and the building’s condition
• Oversupply in some markets (Jacó, Tamarindo) creates rental competition

Villas and Single-Family Homes

Typical gross yields: 6-8% annually for vacation rentals

Villas, particularly 3-4 bedroom homes with private pools, often command higher nightly rates than condos and appeal to families and larger groups.

Pros:

• Higher nightly rates and rental income potential
• More privacy, which appeals to many renters
• Greater control over the property (no HOA restrictions)
• Potentially stronger appreciation if on titled land

Cons:

• Higher maintenance costs (you pay for pool service, landscaping, repairs)
• Requires more active property management
• Less liquid than condos (smaller buyer pool)
• Utilities and upkeep costs can be significant, especially for larger homes

Land

Typical yields: 0% (no rental income unless developed)

Raw land does not generate income unless you develop it or lease it for agriculture, which is uncommon for small parcels.

Pros:

• Lower entry cost than finished properties
• Potential for appreciation if the area develops
• Fewer ongoing costs (property taxes are 0.25% of registered value annually)

Cons:

• No cash flow
• Longer holding periods required to see meaningful appreciation
• Development costs in Costa Rica are high (labor, materials, permitting)
• Riskier: infrastructure may not improve as expected, or market demand may not materialize

Land is a speculative play, not an income investment. Unless you have a specific development plan and the capital to execute it, land is generally not recommended for investors prioritizing cash flow.

Legal Framework for Foreign Buyers

Costa Rica is one of the most foreigner-friendly property markets in Latin America. The legal framework is straightforward, but due diligence is critical.

Ownership Rights

Foreigners have the same property ownership rights as Costa Rican citizens. You can hold title in your personal name or through a legal structure like a Costa Rican corporation (sociedad anónima). There are rare exceptions: certain coastal concession zones restrict foreign ownership, but these apply to specific government-leased land, not titled private property.

If you’re buying beachfront property, verify that it’s titled land, not maritime zone concession land. Concession land requires a lease from the municipality and has restrictions on ownership transfer.

For more on the legal framework for foreign buyers, see our guide to foreigners buying property in Costa Rica.

Corporate Structures

Many foreign buyers hold property through a Costa Rican corporation rather than in their personal name. This offers several advantages:

• Simplified transfers: Selling the property can be done by transferring shares of the corporation, which avoids the 1.5% transfer tax on the property itself. (Note: this only works if the corporation’s only asset is the property. If you hold multiple properties in one corporation, you lose this benefit.)
• Privacy: Corporate ownership keeps your personal name off the public registry.
• Estate planning: Shares in a corporation can be transferred to heirs more easily than direct property ownership in some cases.

The trade-off is cost: setting up and maintaining a corporation runs approximately $800-1,500 initially, plus $300-600 annually for resident agent fees and filings.

For a detailed breakdown of corporate structures, read our guide to holding companies for Costa Rica property.

Title Verification and Due Diligence

Costa Rica has a national property registry (Registro Nacional), and title searches are relatively straightforward. However, due diligence is essential.

Critical steps:

1. Hire a qualified Costa Rican attorney (ideally one who specializes in real estate, not a general practice attorney)
2. Title search: Your attorney will verify that the seller has clear title, no liens, and no encumbrances
3. Survey verification: Ensure the property boundaries match the registered plat (property survey). Boundary disputes are not uncommon, especially in rural areas.
4. Permits and compliance: If buying a house, verify that all construction was legally permitted. Unpermitted construction can create issues with future sales or financing.
5. Maritime zone verification: If coastal, confirm the property is titled land, not concession.
6. Utility access: Verify water, electricity, and road access are legally established, especially for rural properties.

Cutting corners on legal due diligence to save $1,000-2,000 in attorney fees is a false economy. Title issues are the single biggest risk in Costa Rican real estate, and they’re almost entirely preventable with competent legal counsel.

Key Costs of Ownership

Understanding the real cost structure is critical for accurate return projections.

Purchase Closing Costs

Closing costs in Costa Rica typically run 3-5% of the purchase price, broken down approximately as follows:

• Transfer tax: 1.5% of the registered property value (paid by the buyer)
• Legal fees: 1-1.5% (attorney fees for due diligence, title search, closing)
• Notary fees: 0.5-1% (notary public witnesses the deed and registers the transfer)
• Miscellaneous: Surveys, translations, corporate setup if applicable

Closing costs are higher than in the US (where 1-2% is common), so budget accordingly.

Annual Property Taxes

Property taxes in Costa Rica are approximately 0.25% of the registered fiscal value of the property annually. This is significantly lower than most US states.

The fiscal value (valor fiscal) is not the same as market value. It’s an assessed value determined by the municipality, often 50-70% of actual market value. For example, a property worth $400,000 might have a fiscal value of $250,000, resulting in annual property taxes of about $625.

Taxes are due quarterly, and penalties for late payment accrue quickly (2% per month).

HOA Fees (Condos and Gated Communities)

If you’re buying a condo or a property within a gated community, HOA fees (cuota de mantenimiento) are a major ongoing cost.

Typical ranges:

• Basic condo with pool: $200-400/month
• Condo in resort community with amenities (golf, beach club, gym): $500-800+/month
• Gated single-family community: $100-300/month

HOA fees cover common area maintenance, security, landscaping, pool service, and sometimes insurance and utilities for shared facilities. They do not cover your unit’s interior maintenance or your individual utility bills.

Before buying, request:

1. Current HOA budget
2. Reserve fund status (for capital improvements)
3. Delinquency rate (if many owners aren’t paying, the HOA is likely underfunded)
4. Minutes from recent HOA meetings (to identify any disputes or upcoming special assessments)

HOA mismanagement is a common issue in Costa Rica. Some developments have underfunded reserves, deferred maintenance, or high delinquency, which leads to special assessments or declining property values.

Utilities

Monthly utility costs vary by property size and usage, but budget approximately:

• Electricity: $80-200/month for a typical vacation rental (higher if you run AC constantly)
• Water: $20-50/month
• Internet: $50-80/month for fiber or cable (if available)
• Trash collection: $10-20/month

Electricity in Costa Rica is relatively expensive compared to the US. Many properties rely on ceiling fans rather than central AC to manage costs.

Property Management

If you’re renting the property as a vacation rental, professional property management is essential unless you live locally.

Property management fees typically range from 15-30% of gross rental income, with 20-25% being the most common for full-service management. This includes listing management, guest communication, cleaning coordination, maintenance oversight, and financial reporting.

For a detailed breakdown of what’s included and how to evaluate management fees, see our guide to property management fees in Costa Rica.

Maintenance and Repairs

Budget 1-2% of property value annually for maintenance and repairs. Coastal properties face higher maintenance due to salt air, humidity, and tropical weather. Pools, air conditioners, and appliances wear out faster than in temperate climates.

Deferred maintenance is costly. A property that sits vacant or is poorly maintained will deteriorate quickly in Costa Rica’s climate.

Property Management and Why It Matters

If you’re buying a rental property and don’t live in Costa Rica full-time, professional property management isn’t optional. It’s the single most important factor determining whether your investment generates consistent income or becomes a financial drain.

What Good Management Does

A competent property manager:

• Markets your property on Airbnb, Vrbo, Booking.com, and direct booking channels
• Optimizes pricing dynamically based on demand, seasonality, and local events
• Responds to inquiries quickly (critical for conversion rates on booking platforms)
• Coordinates cleaning and turnovers between guests
• Handles guest issues during stays (broken AC, WiFi problems, questions)
• Inspects the property regularly and coordinates maintenance and repairs
• Manages vendor payments (cleaners, pool service, landscaping, utilities)
• Provides financial reporting monthly

The quality gap between professional management and amateur management is enormous. A poorly managed property will underperform on occupancy (because listings aren’t optimized and inquiries go unanswered), guest satisfaction (leading to poor reviews), and property condition (deferred maintenance becomes expensive problems).

Management Fees and Net Returns

Management fees typically eat 15-30% of gross rental income. This is a significant cost, but it’s also the price of not having to manage a property from another country.

When calculating net returns, also deduct:

• Platform commissions (Airbnb, Vrbo): 3-5%
• Cleaning fees: $80-150 per turnover (often passed to guests but not always)
• Consumables and supplies: $50-100/month
• Maintenance and repairs: 1-2% of property value annually

After all costs, net rental yields typically fall to 3-5% annually for most properties. This is before your own time, travel costs to visit the property, and any financing costs if you have a mortgage.

For guidance on selecting a property manager, see our guide to choosing a property manager in Costa Rica.

Exit Strategies

Real estate is an illiquid investment, and Costa Rica is more illiquid than the US. Understanding how you’ll eventually exit the investment is part of responsible planning.

Resale

The most straightforward exit is selling the property. The Costa Rican real estate market is slower than US markets. Expect a property to take 6-18 months to sell on average, depending on location and price point.

Transaction costs on sale:

• Transfer tax: 1.5% (paid by buyer, but priced into negotiations)
• Real estate commission: 5-7% of sale price (split between buyer’s and seller’s agents)
• Capital gains tax: 15% on the gain if you held the property less than 2 years; exempt if you held it for 2+ years and it was your primary residence

Liquidity varies by location. Tamarindo, Jacó, and Los Sueños have the most active resale markets. Remote areas and niche properties take longer to sell and may require significant price reductions to attract buyers.

Rental Income (Hold Long-Term)

Many investors hold properties long-term and treat rental income as the primary return, with appreciation as a secondary benefit. This is a sound strategy if:

• The property is well-located in a strong tourism market
• You have competent property management in place
• You’re comfortable with 3-5% net annual returns
• You’re not relying on the income for living expenses (rental income is variable and will have down years)

1031 Exchange Equivalents

The US allows 1031 exchanges (tax-deferred swaps of investment properties). Costa Rica does not have a direct equivalent.

If you’re a US taxpayer, you cannot execute a 1031 exchange involving a Costa Rican property because the property must be located in the US to qualify under IRS rules. This means selling a Costa Rican property triggers capital gains tax in the US (and potentially in Costa Rica if you held it less than 2 years).

Consult a cross-border tax advisor to understand your specific tax obligations. For more on Costa Rican tax treatment of rental income, see our guide to Costa Rica rental income tax.

Funnel to Nest Stays Management Services

If you’re investing in a vacation rental property in Costa Rica and want professional, transparent management, Nest Stays provides full-service property management across the Central Pacific region, including Los Sueños, Jacó, and nearby markets.

What we do:

• Full-service vacation rental management (listing optimization, dynamic pricing, guest communication, cleaning coordination, maintenance oversight)
• Transparent reporting and fair pricing (no hidden fees or nickel-and-diming)
• Concierge-level guest service, which drives higher occupancy, better reviews, and higher nightly rates
• Ongoing property audits to catch maintenance issues early and protect your investment

We work with property owners who expect professional service and want to maximize returns without the headache of managing the property themselves.

Learn more: Property management fees in Costa Rica | Choosing a property manager | Schedule a call

Final Thoughts

Costa Rica real estate investment offers political stability, strong tourism fundamentals, and the ability to transact in US dollars. It’s a mature market with moderate appreciation potential and realistic rental yields in the 4-8% gross range (3-5% net after costs).

It’s not a get-rich-quick market. Returns are steady but modest. Liquidity is lower than US markets. Costs (closing, HOA fees, management, maintenance) are higher than many investors expect.

If your goal is diversification, a property you can use personally, and steady rental income from a politically stable jurisdiction, Costa Rica can make sense. If you’re looking for rapid appreciation or high cash-on-cash returns, you’re in the wrong market.

Do your due diligence. Hire a qualified attorney. Budget for real costs, not best-case scenarios. Visit the market in person before buying. And if you’re renting the property, hire competent property management from day one.

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Sources:

• Costa Rica Tourism Board (ICT): visitcostarica.com
• National Registry of Costa Rica (Registro Nacional): registronacional.go.cr
• Central Bank of Costa Rica: bccr.fi.cr
• Property management fee data: industry surveys and interviews with local property managers, 2023-2026

Related Guides:

• Foreigners Buying Property in Costa Rica
• Holding Companies for Costa Rica Property
• Costa Rica Rental Income Tax
• Property Management Fees in Costa Rica
• Choosing a Property Manager in Costa Rica