Costa Rica is the #1 overseas destination for American retirees and second-home buyers — and for good reason: full ownership rights, no residency requirement to buy, a warm climate, and world-class healthcare just a short flight from home. This 2026 guide walks US citizens through exactly how to buy real estate in Costa Rica, from ownership rights to the tax paperwork the IRS expects.
Can Americans own property in Costa Rica?
Yes. Foreigners — including US citizens — have the same ownership rights as Costa Rican nationals, with full titled (fee simple) ownership. You do not need residency or citizenship to buy. See can foreigners buy property in Costa Rica.
The buying process, step by step
Make an offer → sign a purchase-sale agreement → place funds in escrow → your attorney runs due diligence on the title → close before a notary. Budget about 3–4% in closing costs. Read closing costs, taxes & fees and title due diligence.
US tax obligations you can’t skip
Owning property abroad doesn’t remove your US filing duties. If your foreign bank/escrow accounts exceed $10,000 at any point, you file an FBAR (FinCEN 114); larger foreign assets may trigger FATCA (Form 8938). Holding Costa Rican property through a corporation adds forms (5471). Rental income is reportable to the IRS (with foreign tax credits available). Always use a cross-border CPA. More on structures: owning through a corporation.
Costa Rica taxes are low
Annual property tax is just 0.25% of registered value; a luxury-home tax applies above roughly $230,000 of construction value; and capital-gains tax is 15% on investment sales. Details: property taxes and capital gains.
Financing & paying
Most Americans pay cash — local mortgages for foreigners are limited and carry higher rates. Seller and developer financing exist. See how to finance property.
Where Americans buy
The Central Valley (Escazú, Atenas, Grecia) for climate and hospitals; Guanacaste and the Central Pacific for the beach. Compare regions: best places to retire.
Buying from the US remotely
Many Americans buy without a second trip using power of attorney and escrow. See how to buy remotely.
Frequently asked questions
Do I need residency to buy? No — ownership is open to all foreigners.
Will I owe US tax? You still file with the IRS and report foreign accounts (FBAR/FATCA), but foreign tax credits usually prevent double taxation.
Can I get residency by buying? Yes — a $150,000+ investment qualifies for the Inversionista program; see every residency path.
Talk to a Costa Rica Real Estate Expert
Costa Rica Retirement Vacation Properties has helped buyers from the U.S., Canada, and Europe find homes, condos, lots, and investment properties since 2010. Browse our current listings or contact our bilingual team for a free, no-pressure consultation — by email, phone, or WhatsApp.