Table of Contents
- Introduction: The 2025 Regulatory Landscape in Costa Rican Real Estate
- Key Authorities and Official Resources for Real Estate Compliance
- Ownership Rights: Foreigners vs. Citizens Explained
- Land Use, Zoning, and Building Permit Changes for 2025–2029
- Essential Taxes: Property, Capital Gains, and Transfer Fees
- Legal Due Diligence and Title Verification Procedures
- Recent Legislative Updates and Major Court Rulings
- Compliance Pitfalls: Common Mistakes and How to Avoid Them
- Key Statistics: Market Trends, Foreign Investment, and Transaction Volumes
- Future Outlook: Predicted Regulatory Shifts and Strategic Recommendations
- Sources & References
Introduction: The 2025 Regulatory Landscape in Costa Rican Real Estate
The regulatory landscape for real estate in Costa Rica entering 2025 is characterized by stability in core legislation, ongoing modernization efforts, and increased emphasis on transparency and compliance. Real estate transactions are primarily governed by the Registro Nacional (National Registry) framework, which ensures property rights are clearly recorded and accessible. The Civil Code and the Regulatory Law of Real Estate Brokers (Ley 8422) establish foundational requirements for ownership, transfer, and professional conduct in the sector.
Recent years have seen the Costa Rican government intensify anti-money laundering (AML) and know-your-customer (KYC) compliance within the real estate market, in line with international standards and recommendations from the Financial Action Task Force (FATF). The Superintendencia General de Entidades Financieras (SUGEF) issued updated guidelines in 2023 that require stricter reporting obligations for real estate agents, lawyers, and notaries engaging in property transactions. These measures aim to mitigate risks associated with illicit financial flows and to strengthen the integrity of the market.
From a statistical perspective, Costa Rica’s property market remains attractive to both domestic and foreign investors. According to the Registro Nacional, the number of property registrations remained robust in 2023–2024, with a moderate increase in foreign ownership, particularly in coastal and tourism-driven regions. The government does not impose special restrictions on foreign real estate investment, except for maritime zones, where concessions are required and subject to zoning and environmental regulations under the Maritime Terrestrial Zone Law (Ley sobre la Zona Marítimo Terrestre).
Looking ahead to 2025 and beyond, Costa Rica is expected to continue modernizing its property registration systems with further digitalization and enhanced interoperability between government registries. Legislative proposals are under discussion to reinforce consumer protection and clarify zoning requirements, particularly in response to growing demand for sustainable development. The regulatory outlook remains favorable for investment, but stakeholders must maintain vigilance regarding evolving compliance expectations, especially in AML, environmental, and municipal permitting domains. These ongoing reforms aim to balance investor confidence with robust oversight, supporting the sustained growth and integrity of Costa Rica’s real estate sector.
Key Authorities and Official Resources for Real Estate Compliance
Costa Rica’s real estate regulatory landscape is shaped and enforced by a network of government agencies, registries, and professional bodies that ensure legal compliance and transactional transparency. Understanding the authorities and official resources is fundamental for investors, developers, agents, and buyers operating in the Costa Rican property market in 2025 and beyond.
- National Registry (Registro Nacional): The Registro Nacional is the cornerstone of property registration in Costa Rica. All property titles, liens, and encumbrances are recorded here. Potential buyers and legal professionals rely on the registry to verify ownership and conduct due diligence.
- Public Notaries: Real estate transactions in Costa Rica require the involvement of a licensed Public Notary, who is also an attorney. Notaries are responsible for drafting and authenticating public deeds, registering transactions with the National Registry, and ensuring compliance with property and tax laws. Oversight and licensure is provided by the Costa Rican Bar Association (Colegio de Abogados y Abogadas de Costa Rica).
- Municipal Governments: Each municipality oversees local land use, zoning (Uso de Suelo), property tax assessments, and construction permits. Information and regulations can be accessed through the Instituto de Fomento y Asesoría Municipal (IFAM), which provides guidance to municipal governments.
- Ministry of Finance (Ministerio de Hacienda): All property transfers are subject to transfer taxes and must be reported to the Ministerio de Hacienda. The Ministry also oversees property tax regulations and anti-money laundering compliance in real estate transactions.
- General Directorate of Migration and Foreigners (DGME): For foreign buyers, residency and investment-related requirements are administered by the Dirección General de Migración y Extranjería.
- Professional Associations: While not mandatory, many real estate brokers are members of the Costa Rican Chamber of Real Estate Brokers (CCCBR), which promotes best practices and offers mediation services.
Staying updated with these authorities’ official publications and digital resources is critical for ensuring compliance, minimizing legal risks, and understanding evolving requirements—especially as Costa Rica continues to modernize its property laws and digitalize processes through 2025 and beyond.
Ownership Rights: Foreigners vs. Citizens Explained
Costa Rica’s real estate regulations establish a framework that upholds both domestic and foreign ownership rights, with nuanced distinctions depending on property type and location. As of 2025, the general principle is that foreigners enjoy the same property ownership rights as Costa Rican citizens for most land acquisitions, with some restrictions applying to maritime and concession zones.
Under Costa Rican law, all individuals—regardless of nationality—may acquire, own, and sell titled property. There is no requirement for foreign buyers to be residents or citizens. This parity is enshrined in the country’s Constitution and Land Code, fostering an open investment climate Registro Nacional de Costa Rica. All titled properties are registered in the National Registry, ensuring legal security and traceability for foreign and domestic owners alike.
A critical exception applies to properties situated within the Maritime Zone (the first 200 meters inland from the high tide line along the coast). The first 50 meters are public domain, with no private ownership allowed. The remaining 150 meters are subject to a concession regime, where land is leased from the municipality or government rather than owned outright. By law, foreigners may not directly hold more than 49% of the rights in a concession; at least 51% must be controlled by Costa Rican citizens or legal entities with majority Costa Rican ownership Instituto Costarricense de Turismo.
Compliance for both citizens and foreigners involves a thorough due diligence process. All real estate transactions require notarization by a Costa Rican Notary Public, registration in the National Registry, and payment of property transfer taxes and fees. Recent digitalization efforts have streamlined these processes, improving transparency and reducing processing times Registro Nacional de Costa Rica.
Statistically, foreign investment in Costa Rican real estate remains robust, especially in coastal and tourism-driven areas. The government reports continued growth in property registrations by non-citizens, indicating sustained international confidence in the legal framework Ministerio de Comercio Exterior.
Looking ahead to 2025 and beyond, there are no significant legislative changes anticipated regarding core ownership rights for foreigners. Regulatory authorities continue to emphasize compliance with anti-money laundering and tax transparency requirements, applying equally to citizens and foreigners. As Costa Rica strengthens its digital registry and monitoring systems, both groups can expect greater efficiency and legal certainty in property transactions.
Land Use, Zoning, and Building Permit Changes for 2025–2029
In Costa Rica, real estate development hinges on strict adherence to land use, zoning, and building permit regulations, all of which are overseen by national and municipal authorities. As of 2025, several regulatory updates and trends are shaping the landscape for investors, developers, and property owners.
Land use and zoning in Costa Rica are primarily governed by Planes Reguladores (Regulatory Plans), which are municipal-level statutes dictating permitted uses, densities, and development parameters for each parcel. The Ministry of Housing and Human Settlements (Ministerio de Vivienda y Asentamientos Humanos) sets national urban policy and supervises regulatory plan approval. In the coming years (2025–2029), municipalities are under increasing pressure to update their plans to align with sustainable development mandates set forth by the Ministerio de Ambiente y Energía and national climate adaptation policies. Key urban centers—including San José, Liberia, and Limón—are revising zoning to address urban sprawl, promote mixed-use districts, and expand green corridors.
Securing building permits requires navigating a multi-step process coordinated by local governments and the Colegio Federado de Ingenieros y de Arquitectos de Costa Rica (CFIA). As of 2025, all architectural and engineering plans must be digitally registered via the CFIA’s Trámite Ya digital platform, which has streamlined compliance and documentation. According to the CFIA, over 90% of new permit applications in 2024 were processed digitally, reducing average approval times to under 60 days in compliant municipalities.
Recent reforms have strengthened environmental review. Projects near coastal zones, protected areas, or water resources now require environmental viability clearance (Viabilidad Ambiental) from the Secretaría Técnica Nacional Ambiental (SETENA) prior to municipal permitting. SETENA has increased its review staff and digitized submissions, aiming to reduce backlog and increase compliance transparency through 2027.
- As of 2025, 65% of municipalities have updated zoning plans within the last five years (per Ministerio de Vivienda y Asentamientos Humanos).
- Municipalities with updated plans are seeing higher real estate values and faster permitting cycles.
- New coastal zoning rules, effective 2026, will further limit high-density development within 200 meters of the high-tide line, in accordance with the Instituto Meteorológico Nacional climate resilience recommendations.
Looking ahead to 2029, Costa Rica’s real estate regulatory environment is expected to become increasingly standardized and transparent, with digital permit tracking, stricter environmental safeguards, and a continued push for sustainable urban growth. Investors should monitor ongoing regulatory plan updates and anticipate compliance costs, particularly in sensitive or high-demand regions.
Essential Taxes: Property, Capital Gains, and Transfer Fees
Costa Rica’s real estate regulatory environment imposes several essential taxes on property transactions, which are critical for both domestic and foreign investors to understand. As of 2025, property owners and buyers must comply with three main tax obligations: property tax, capital gains tax, and transfer fees.
- Property Tax (Impuesto sobre Bienes Inmuebles): This municipal tax is levied annually at a standard rate of 0.25% of the registered property value, as determined by the local municipality. Property owners are required to update property values every five years. Municipalities are empowered to collect, audit, and enforce this tax, and non-compliance can result in penalties or property liens (Ministerio de Hacienda).
- Capital Gains Tax (Impuesto a las Ganancias de Capital): Since 2019, Costa Rica has applied a capital gains tax of 15% on profits from the sale of real estate. Exemptions exist for properties classified as a seller’s habitual residence. For properties acquired prior to July 1, 2019, sellers may opt for a reduced rate of 2.25% on the gross sale price instead of the 15% on net gains. All sellers must file the corresponding declaration and pay the tax within 15 business days after closing (Ministerio de Hacienda).
- Transfer Tax and Fees (Impuesto de Traspaso): Property transfers are subject to a 1.5% transfer tax, calculated on the highest value among the fiscal value, registered value, or sale price. Additional notarial and registry fees, typically totaling about 2.5% of the property value, are also imposed. The buyer usually assumes responsibility for these costs, which must be paid at the time of registration with the Registro Nacional de Costa Rica.
Recent efforts by Costa Rican authorities have focused on enhancing tax compliance and digitalizing records to improve transparency and prevent tax evasion. Ongoing digital reforms by the Ministerio de Hacienda and Registro Nacional are expected to streamline compliance and enforcement in the coming years. As property values and transaction volumes rise—driven by foreign investment and tourism—tax revenues from real estate are projected to increase through 2025 and beyond.
Legal Due Diligence and Title Verification Procedures
Legal due diligence and title verification are critical components of real estate transactions in Costa Rica, governed by a robust legal framework designed to protect both domestic and foreign investors. The cornerstone of property rights in Costa Rica is the Public Registry system, operated by the Registro Nacional, which maintains centralized records of title, encumbrances, liens, and property boundaries. As of 2025, all real estate transactions must be formalized through a public deed executed before a Costa Rican notary public and subsequently registered with the National Registry to ensure legal validity and enforceability.
The standard due diligence process involves several key steps:
- Title Search: Prospective buyers or their legal representatives are required to conduct a thorough title search through the National Registry’s digital platform. This verifies the seller’s ownership, identifies any mortgages, liens, easements, annotations, or restrictions, and confirms the property’s cadastral (boundary) details.
- Verification of Encumbrances: The presence of any liens, lawsuits, or pending municipal taxes is checked, as these can affect transferability or future use. Notaries are legally obligated to disclose such encumbrances to the parties before transaction completion (Registro Nacional).
- Corporate Ownership Review: When the property is held by a corporation, due diligence extends to confirming the corporation’s legal standing, representative powers, and compliance with anti-money laundering regulations administered by the Superintendencia General de Entidades Financieras (SUGEF).
- Land Use and Zoning Compliance: Verification of municipal land use permits and zoning restrictions is mandatory, as local governments regulate development and environmental impact through the Municipalities and the National Territorial Information System (SNIT).
Recent years have seen digitalization initiatives by the Registro Nacional, improving accessibility and accuracy of title information. However, legal practitioners emphasize the need for continuous vigilance due to occasional discrepancies between cadastral and registry records. According to government data, over 98% of property titles are now digitized, with ongoing efforts to resolve the remaining anomalies by 2026.
Looking ahead, Costa Rica is expected to further streamline due diligence through expanded digital services and enhanced integration among municipal, registry, and judicial platforms. Nonetheless, comprehensive legal review and notarial oversight will remain mandatory, reflecting the country’s commitment to transparency and protection in real estate transactions.
Recent Legislative Updates and Major Court Rulings
Costa Rica’s real estate sector is experiencing notable regulatory changes and legal clarifications as authorities address both domestic growth and increased foreign investment. In 2024 and into 2025, several legislative measures and judicial decisions have shaped the landscape for property transactions, ownership rights, and compliance in the country.
A significant legislative update is the ongoing modernization of the National Property Registry (Registro Nacional), which aims to digitize records and streamline property transfers. This initiative, led by the Registro Nacional, is designed to reduce fraud and errors in title registration, making due diligence and compliance more transparent for investors and legal professionals.
Another relevant development is the enforcement of anti-money laundering (AML) provisions for real estate professionals, in accordance with Law No. 9449. The Superintendencia General de Entidades Financieras (SUGEF) has intensified oversight on real estate agents, requiring stricter customer identification procedures and reporting of suspicious transactions. Starting in late 2024, real estate brokers are now subject to regular compliance audits to ensure adherence to these AML standards.
Judicially, the Supreme Court’s Civil Chamber (Sala Primera) issued a notable 2024 decision clarifying the rights and obligations regarding concession land in the Maritime Terrestrial Zone (Zona Marítimo Terrestre). The ruling reaffirmed that foreign individuals must obtain municipal concessions and comply with specific residency and use restrictions, reinforcing the special legal framework governing coastal properties. This decision, published by the Poder Judicial de Costa Rica, provides clearer guidance for both municipal authorities and international buyers.
Statistically, the Registro Nacional reported a 12% increase in registered property transfers in 2024 compared to the previous year, with over 68,000 transactions processed. Coastal regions and the Central Valley continue to attract the highest volumes, reflecting sustained demand from both domestic and foreign purchasers (Registro Nacional).
Looking ahead, the Ministry of Housing and Human Settlements (MIVAH) has announced public consultations for a proposed reform to the Urban Planning Law (Ley de Planificación Urbana). The reform aims to update zoning, land use, and environmental impact assessment procedures to better align with sustainable development and international investment standards. These changes, expected to be debated in the Legislative Assembly in 2025, could further influence permitting processes and compliance requirements for developers and property owners.
Compliance Pitfalls: Common Mistakes and How to Avoid Them
Navigating real estate regulations in Costa Rica presents unique compliance challenges for both local and foreign investors. As of 2025, the nation’s property market remains attractive, but regulatory pitfalls—especially in areas such as property registration, due diligence, and environmental compliance—continue to ensnare the unwary.
- Incomplete Title Verification: One of the most frequent errors is inadequate verification of property titles. Under Costa Rican law, all real estate transactions must be registered with the Registro Nacional, which maintains the official records. However, buyers sometimes neglect to confirm the full chain of title, which can result in disputes or even loss of property if prior encumbrances exist. A title search through the official registry is essential before any transaction.
- Failure to Confirm Zoning and Land Use: Misunderstanding zoning restrictions and land use regulations is another common pitfall. Municipalities, overseen by the Instituto de Fomento y Asesoría Municipal, establish zoning plans that dictate permissible uses for each parcel. Purchasers must ensure the intended use aligns with local plans, or risk costly legal challenges and forced cessation of activities.
- Environmental Oversights: Costa Rica’s strong environmental protections, enforced by the Sistema Nacional de Áreas de Conservación and Secretaría Técnica Nacional Ambiental (SETENA), mean that certain developments require rigorous environmental impact studies. Failing to obtain proper permits or ignoring protected status of land can result in fines, demolition orders, or criminal liability.
- Improper Corporate Structures: Many investors acquire property through corporations, but errors in company registration, shareholder records, or failure to comply with annual reporting requirements to the Registro Nacional de Personas Jurídicas expose owners to penalties and difficulties in proving ownership.
- Tax Compliance Lapses: Property owners must register with the Ministerio de Hacienda for property tax and, where applicable, luxury tax. Non-compliance leads to interest, fines, and liens on property.
To avoid these pitfalls, experts recommend engaging a local attorney, conducting thorough due diligence via the pertinent authorities, and maintaining meticulous compliance with all municipal and national requirements. As Costa Rica continues to refine its regulatory frameworks in response to economic growth and environmental concerns, proactive compliance will remain crucial for sustainable investment through 2025 and beyond.
Key Statistics: Market Trends, Foreign Investment, and Transaction Volumes
Costa Rica’s real estate sector continues to attract significant attention from both domestic and foreign investors, with regulatory trends shaping the pace and nature of market activity. As of 2025, the Costa Rican property market remains open to foreign ownership, provided all transactions comply with local regulations regarding property registration, taxation, and environmental protection. The National Registry (Registro Nacional de Costa Rica) is the principal authority for recording real estate transactions and ownership, ensuring transparency and legal certainty in property dealings.
Recent data from the Banco Central de Costa Rica indicate that real estate transaction volumes grew by approximately 6% in 2024 compared to the previous year, reflecting sustained demand, particularly in the coastal and urban areas favored by foreign buyers. Notably, foreign direct investment in real estate accounted for an estimated 18% of total FDI inflows in 2023–2024, underscoring the sector’s continued international appeal.
Key regulatory developments include the ongoing implementation of the Law for the Strengthening of Tax Administration and Taxation (Ministerio de Hacienda), which requires comprehensive disclosure of property transactions and stricter enforcement against money laundering and tax evasion. Real estate agents and notaries are subject to mandatory due diligence procedures under the Anti-Money Laundering Law, with oversight by the Superintendencia General de Valores and the Superintendencia General de Seguros, ensuring compliance with international standards.
For 2025 and beyond, the outlook is shaped by the government’s commitment to digitizing property records through the continued modernization of the National Registry, enhancing accessibility and reducing transaction times. Additionally, proposed reforms to streamline land use permitting and environmental approvals are expected to further attract both local and international investors. The Ministry of Environment and Energy (MINAE) plays a pivotal role in enforcing environmental compliance for development projects, particularly in protected and coastal zones.
With these regulatory safeguards and modernization initiatives, Costa Rica’s real estate market is projected to maintain stable growth. Market observers anticipate transaction volumes to rise moderately over the next few years, supported by regulatory transparency and the continued appeal of Costa Rica as a destination for investment and lifestyle relocation.
Future Outlook: Predicted Regulatory Shifts and Strategic Recommendations
Costa Rica’s real estate regulatory landscape is anticipated to undergo significant shifts in the coming years, as the government and relevant authorities respond to evolving market dynamics, increased foreign investment, and international compliance pressures. As of 2025, several drivers are influencing the direction of regulatory reforms, with a focus on transparency, anti-money laundering (AML) compliance, sustainable development, and digital transformation.
One of the most notable recent developments is the continued implementation of Law No. 9449, which strengthened Costa Rica’s AML framework by requiring all companies and legal entities to disclose beneficial ownership and submit this information to the Banco Central de Costa Rica. This measure meets recommendations from the Financial Action Task Force (FATF), and further regulatory tightening is expected in the real estate sector to monitor high-value transactions and foreign buyers.
Additionally, the Superintendencia General de Entidades Financieras (SUGEF) is anticipated to expand its oversight on real estate agents and property managers, requiring stricter due diligence for clients and enhanced reporting of suspicious activities. The government is also reviewing legislative proposals to create a mandatory national registry for real estate brokers to improve professional standards and consumer protection. This registry would be managed by the Ministerio de Vivienda y Asentamientos Humanos (MIVAH) and is likely to become operational within the next two years.
On the environmental front, Costa Rica’s commitment to sustainable development is expected to result in stricter building codes and zoning regulations, aligning with the country’s National Decarbonization Plan. The Secretaría Técnica Nacional Ambiental (SETENA) is poised to update environmental impact assessment requirements for new projects, especially in sensitive coastal and forested areas, affecting both local and foreign real estate developers.
Digital transformation is also on the agenda. The Registro Nacional de Costa Rica is advancing efforts to digitize property records and streamline transaction processes, reducing fraud risks and increasing market efficiency.
- Strategic Recommendations:
- Developers and investors should prioritize compliance with AML regulations and ensure full disclosure of beneficial owners.
- Foreign buyers must engage licensed legal professionals to navigate evolving due diligence requirements.
- Real estate professionals should prepare for licensing requirements and ongoing professional education.
- Sustainable building practices should be integrated early in project planning to meet forthcoming environmental standards.
- Stakeholders should leverage digital platforms for secure and transparent transactions as national registries expand digital services.
In summary, Costa Rica’s real estate sector faces increasing regulatory complexity in 2025 and beyond, shaped by global compliance standards, environmental imperatives, and technological advancements. Stakeholders who proactively adapt will be best positioned for long-term success.
Sources & References
- Registro Nacional
- Superintendencia General de Entidades Financieras (SUGEF)
- Costa Rican Bar Association (Colegio de Abogados y Abogadas de Costa Rica)
- Costa Rican Chamber of Real Estate Brokers (CCCBR)
- Instituto Costarricense de Turismo
- Ministerio de Comercio Exterior
- Ministerio de Vivienda y Asentamientos Humanos
- Colegio Federado de Ingenieros y de Arquitectos de Costa Rica
- Secretaría Técnica Nacional Ambiental
- National Territorial Information System (SNIT)
- Poder Judicial de Costa Rica
- Banco Central de Costa Rica
