Buying land in Costa Rica can be a dream—or a disaster—depending on how well you prepare. Before signing anything, get informed. Here are five things most buyers don’t know (but should).
1. Not All Land Is Clearly Titled
Even if a seller provides documents, only a real title search in the National Registry will confirm ownership, boundaries, easements, or legal claims. Buying without due diligence is risky—even if the price is right.
2. There Are Land Use Restrictions That Affect Your Plans
Want to build a hotel, farm, or home? Check the municipal zoning planfirst. Some land may be restricted to conservation or agricultural use. An experienced lawyer will help you verify what you can—and cannot—do.
3. Coastal Lands Have Special Rules
If you’re buying land near the beach, make sure it’s not within the Maritime Zone (the first 200 meters from high tide). It cannot always be sold freely and may require concessions subject to strict regulations.
4. “Water and Access” Are Not Always Guaranteed
Many properties for sale don’t have legal access to a public street or connection to legal water sources. These basic issues can take years to resolve. Your attorney must verify these before closing the deal.
5. Real Estate Due Diligence Is Essential
From verifying permits to confirming boundaries, tax status, and environmental restrictions— legal due diligence protects your investment. Don’t rely on realtors alone. Work with a legal team that knows how to uncover hidden risks.
And when is time to sell do know thatCapital Gains Tax May Apply. If the land is not your primary residence, you may face a 15% capital gains taxon the profit from the sale. But exemptions and strategic planning may reduce or eliminate that tax—only if handled correctly from the start.
📞 Thinking about buying land in Costa Rica? Give us a call. We are a law firm based in San Jose Costa Rica with 32 years of experience in real estate transactions. Your investment deserves to be protected.