Guide for Canadians Buying Property in Costa Rica

Get the scoop on buying property in Costa Rica and paying for it online as a Canadian.

Costa Rica is a beautiful, friendly country, and buying property in Costa Rica is a dream for many. However, deciding to buy a house in Costa Rica is only a tiny step toward making that dream come true. Before buying a house in Costa Rica, looking for helpful resources and learning about the best places to buy, working with realtors, mortgages, citizenship issues, and more is crucial.

Here, we provide a front-line resource about all aspects of buying property in Costa Rica as a Canadian.

Can Canadians buy property in Costa Rica?

Yes, Canadians can buy property in Costa Rica, and the process is generally straightforward. Costa Rican laws allow foreigners, including Canadians, to own property with the same rights as citizens. This means you can purchase land, homes, or commercial properties in your name without needing a local partner. The most common form of property ownership is "fee simple," which gives you full rights to the property.

However, if you're considering buying property near the coast, be aware that certain areas are regulated under concession laws, which require a government-granted lease rather than outright ownership. Overall, Costa Rica is a popular destination for Canadians looking to invest in real estate due to its stable property laws and welcoming environment.

Top reasons to buy property in Costa Rica

Costa Rica has long been a favoured destination for international property buyers, and Canadians are increasingly drawn to its stunning landscapes, favourable climate, and investment potential. Here are some of the top reasons to consider buying property in Costa Rica:

Favourable ownership laws: Costa Rica offers foreign buyers the same property ownership rights as locals, making it easy for Canadians and foreigners to invest in real estate without complicated legal hurdles.

Natural beauty and biodiversity: Costa Rica is renowned for its stunning landscapes, including beaches, rainforests, and mountains. Owning property here allows you to enjoy and preserve a piece of this natural paradise.

Strong tourism industry: As one of Central America's most popular tourist destinations, Costa Rica has a thriving tourism industry. This makes it a great place to invest in vacation rentals or other tourism-related properties.

High quality of life: Costa Rica consistently ranks high, offering a laid-back lifestyle, excellent healthcare, and a friendly community. It's a popular destination for retirees and those looking for a relaxed lifestyle.

Favourable climate: With its warm, tropical climate, Costa Rica offers year-round sunshine, making it an attractive location for vacation homes or retirement properties.

Proximity to North America: Costa Rica is easily accessible from Canada and the United States, with many direct flights available, making it convenient for Canadian property owners to visit regularly.

Diverse property options: Whether you're looking for a beachfront property in Costa Rica, a mountain retreat, or an urban condo, the country offers various property types to suit different tastes and budgets.

Strong expat community: Popular expat areas like Tamarindo, Atenas, and Nosara provide a welcoming and supportive environment for newcomers, making the transition to living in Costa Rica easier.

Residency and retirement options: Costa Rica offers the Pensionado Program, which is ideal for retirees. Under this program, individuals who receive a minimum monthly pension of $1,000 USD are eligible for residency

How to buy property in Costa Rica?

Investing in Costa Rica real estate has become a popular choice for Canadians looking to purchase property abroad. Whether you’re seeking breathtaking views of mountains, beaches, jungles, or waterfalls, the process of buying property in Costa Rica requires following some essential steps. Here’s a detailed guide to help you turn your dream of owning a home in Costa Rica into a reality.

1. Visit and explore Costa Rica

The best way to get a feel for the Costa Rica real estate market is to visit the country yourself. Spend time in different areas of interest, rent properties, and explore the local environment. By staying in various regions, such as beach towns, mountain areas, or near the rainforest, you’ll be able to determine where you’d like to live or invest. Each region in Costa Rica offers a unique lifestyle, so experiencing the local culture, climate, and community firsthand is crucial to making an informed decision.

2. Decide how to finance the purchase

Financing is a critical step when purchasing property in Costa Rica. The most straightforward method is to buy the property with cash, as it avoids complications and red tape associated with foreign financing. If cash isn’t an option, consider a loan from a Canadian lender or a cross-border mortgage from banks that operate in both Canada and Costa Rica, such as Scotiabank, HSBC, and Citibank. These banks offer financing solutions for Canadians buying property abroad, allowing you to manage the loan across both countries. Keep in mind that mortgage options in Costa Rica may come with stricter conditions or higher interest rates compared to Canadian loans.

3. Find a reputable real estate agent

To navigate the Costa Rican real estate market efficiently, work with a local and reputable real estate agent. An experienced agent will have in-depth knowledge of the local property laws, market trends, and specific areas that may align with your preferences. They can help you find viable property listings that meet your needs, whether it’s a beachfront home, jungle retreat, or mountain villa. It’s also important to ensure that the agent is licensed and has a good track record with international buyers to avoid potential pitfalls.

4. Get additional help from a lawyer

When buying property in Costa Rica, it’s essential to hire a bilingual lawyer who speaks both Spanish and English. Legal documentation and contracts will be in Spanish, so having an experienced lawyer to interpret the documents and handle the legal process is crucial. Your lawyer will conduct a title search, verify ownership, ensure no outstanding debts or liens on the property, and handle the registration process. If necessary, they can also assist you in forming a corporation to purchase the property, which is a common practice among foreign buyers for tax and liability purposes.

5. Close the deal

Once your lawyer has handled the legal due diligence, it’s time to close the deal. You’ll need to sign the necessary documents and transfer funds from Canada to Costa Rica to finalize the purchase. To ensure a smooth transfer of funds, use a reliable foreign exchange provider. They usually offer competitive exchange rates and fast turnaround times (24-48 hours), ensuring that your money reaches its destination quickly and without high fees. This speed can help expedite the closing process, allowing you to finalize your purchase and celebrate your new home sooner.

Are there houses for sale in Costa Rica on the beach?

Yes, you can buy beachfront property in Costa Rica. The country is known for its beautiful coastline, with plenty of beachfront properties in various regions. Popular areas where you can find beachfront homes include:

Guanacaste: This northwestern province is home to some of the most sought-after beachfront real estate in Costa Rica, with areas like Tamarindo, Flamingo, and Playa Hermosa offering luxury homes right on the beach.

Nicoya Peninsula: Known for its pristine beaches and more secluded feel, it has beachfront properties in places like Santa Teresa, Malpais, and Montezuma, famous among surfers and those seeking a laid-back lifestyle.

Central Pacific Coast: Areas like Jaco, Manuel Antonio, and Dominical offer beachfront homes with easy access to amenities, national parks, and vibrant communities.

Southern Zone: The southern Pacific coast, including places like Uvita, Ojochal, and the Osa Peninsula, is known for its stunning, less-developed beaches, offering more privacy and a connection with nature.

Caribbean Coast: Though less developed than the Pacific, it has beachfront homes in Puerto Viejo and Cahuita, known for their Afro-Caribbean culture and lush surroundings.

What are the best places to look for homes for sale in Costa Rica?

Costa Rica offers a diverse range of regions, each with its own unique appeal. Whether you’re seeking a beachfront property, a mountain retreat, or a vibrant city home, here are some of the best places to consider when looking for homes for sale in Costa Rica:

Tamarindo, Guanacaste

Tamarindo is a lively beach town on Costa Rica's northwestern Pacific coast, known for its excellent surf, vibrant nightlife, and a wide range of dining options. It's a popular spot for expats and tourists, offering everything from luxury beachfront villas to more affordable condos. The town has a laid-back vibe but enough amenities for a comfortable lifestyle.

Santa Teresa, Nicoya Peninsula

Santa Teresa is a small, laid-back beach town on the Nicoya Peninsula, famous for its surf culture and stunning sunsets. The area attracts those seeking a bohemian lifestyle, focusing on wellness, yoga retreats, and eco-friendly living. Real estate here ranges from beachfront homes to hillside properties with panoramic ocean views, making it ideal for tranquillity and natural beauty.

Manuel Antonio, Central Pacific Coast

Manuel Antonio is home to one of Costa Rica's most famous national parks, offering a unique blend of wildlife, lush rainforest, and stunning beaches. The real estate market in Manuel Antonio is diverse, with luxury homes perched on cliffs overlooking the ocean and more modest properties. The area is ideal for those looking to invest in vacation rentals due to its popularity with tourists.

Uvita, Southern Zone

Uvita is known for its iconic "Whale's Tail" beach and as a gateway to the Marino Ballena National Park. The town is quieter than its northern counterparts but offers a strong sense of community and a focus on eco-tourism. Homes here range from luxury villas with ocean views to more affordable options in lush, tropical settings. Uvita is perfect for those seeking a peaceful lifestyle close to nature.

Escazú, Central Valley

Located just outside the capital, San José, Escazú is an affluent suburb known for its upscale homes, modern shopping centers, and international schools. It's popular among expats who want the convenience of urban living while enjoying panoramic views of the Central Valley. Properties in Escazú range from luxury gated communities to high-end condos, offering a cosmopolitan lifestyle with easy access to the city's amenities.

Puerto Viejo, Caribbean Coast

Puerto Viejo is a vibrant coastal town on Costa Rica's southeastern Caribbean coast, famous for its Afro-Caribbean culture, laid-back atmosphere, and beautiful beaches lined with palm trees. The area is known for its colourful homes, beachfront properties, and eco-lodges, making it a perfect spot for those seeking a more relaxed, tropical lifestyle. It's also a hub for organic farming and sustainable living.

Why does the exchange rate matter when buying foreign property?

Most Caribbean islands peg their local currency against the U.S. dollar, and Costa Rica is no exception. So, although the official currency of Costa Rica is the Costa Rican colón, your primary focus should be on the USD/CAD exchange rate. The USD/CAD exchange rate matters because an inferior exchange rate can lead to high conversion losses, so you'll have to invest more in your property than planned.

Want to send money from Canada to Costa Rica and save thousands of dollars in exchange rates, fees, and costs? Then MTFX has got you covered. Need an easy way to keep an eye on the USD/CAD exchange rate? Use MTFX's live rate calculator to make an informed decision before paying.

Where to find the best exchange rates?

When you compare the range of international money transfer services available, it's easy to see they are not created equal. Take, for instance, sending money via MTFX vs. a bank. Although banks appear to be the easiest option, they are generally not the most cost-effective way to transfer money internationally.

Many banks charge high fees on top of less competitive exchange rates, and the transfer can take longer (up to 5 days or more). The better option is an international transfer specialist like MTFX, which offers exchange rates 3-5% lower than banks and low transfer fees. 

Paying for your overseas property with an MTFX online account is highly convenient. Additional benefits of using MTFX include guidance from foreign exchange specialists, fast turnaround times (24-48 hours), and access to the best foreign exchange tools. You can also set up CAD to USD rate alerts so you can make transfers at the exchange rate you want.

Pay online without going to the bank

Wiring money should be the least of your concerns when purchasing property in Costa Rica. With MTFX, you can skip the bank trip and log into your account to make the payment anytime and anywhere.

Do you need to make regular online payments to Costa Rica? MTFX's secure platform is powered by industry-leading automated technologies that enable you to set up regular payments with a few clicks. You can save time and money by skipping lengthy banking protocols and unfavourable exchange rates.

Save more with MTFX exchange rates

MTFX offers a safe, convenient, and cost-effective way to send property payments internationally. The numbers don't lie – you can save up to $5,000 on property worth $100,000 with exchange rates that beat bank offers by 3-5%.

When you register your account with MTFX, you can enjoy the most optimal way to transfer money internationally.

FAQs

1. How do I make the most of my Costa Rican property-buying experience?

Learning Spanish can make life easier as it helps you communicate better with Costa Ricans you may need to associate with, such as real estate agents, attorneys, tenants, etc. In addition, the more you learn about buying property in Costa Rica, the more you'll feel comfortable making an informed decision. So dig deeper and research the economic and political climate, maintenance, taxes, re-selling, geographical issues, bank account opening, and more.

2. Can Canadians use RRSP funds to buy Costa Rica Estate?

Yes, Canadians can use some of their RRSP money to invest in a Costa Rican vacation property, all thanks to the Home Buyers' Plan (HBP) program.

3. What are the top home-buying destinations in Costa Rica?

Coastal towns like Tamarindo, Nosara, Grande, Flamingo, Brasilito, Catalinas, and Papagayo are popular.

4. Do I become a resident when I buy a property?

No, Canadian citizens do not require a visa to enter Costa Rica. However, if you plan an extended stay after buying the property, you must submit a residency application and get approved.

5. Can foreigners buy property in Costa Rica?

Yes, foreigners can purchase property in Costa Rica. The country has open property ownership laws, allowing non-residents to purchase real estate, including land and homes. This openness leads many to seek information on "How to buy a property in Costa Rica," which involves understanding the local real estate laws, engaging with reliable real estate agents, and potentially hiring legal assistance to navigate the buying process smoothly.

6. How much is a beach house in Costa Rica?

The cost of a beach house in Costa Rica can vary widely based on location, size, amenities, and proximity to the beach. Prices can range from a few hundred thousand dollars to several million dollars, depending on the specific area and the features of the property. It is advised to consult with local real estate agents, and consider your budget and preferences to get a better idea of the pricing and cost of living in Costa Rica.

7. How much does it cost to live in Costa Rica?

The cost of living in Costa Rica varies, but generally, it's considered more affordable than many Western countries. Individual spending habits and location influence the rent, grocery, and commute prices.

8. Can Canadians live in Costa Rica?

Yes, Canadians can live in Costa Rica. Many choose to reside there, either part-time or full-time. Residency requirements may apply, so checking with the Costa Rican authorities for specific details is recommended.

9. How complicated is the buying process in Costa Rica?

The buying process in Costa Rica is relatively straightforward, especially with the assistance of a reputable real estate agent and lawyer. Foreigners have the same property rights as locals, so you can buy property in your name without restrictions. The process typically involves making an offer, conducting due diligence, signing a purchase agreement, and transferring the title. Verifying all legal documents and ensuring no liens or encumbrances on the property is essential.

10. Is Costa Rica property a good investment?

Yes, Costa Rica property is generally considered a good investment. The country has a stable political environment, substantial property rights for foreigners, and a growing real estate market. Additionally, Costa Rica's popularity as a tourist destination offers opportunities for rental income, particularly with beachfront or vacation properties. However, like any investment, it's essential to research the market and consider factors like location, property type, and long-term goals before purchasing.