Frequently Asked Questions

Here’s a comprehensive list of frequently asked questions (FAQs) covering buying property, investing in vacation rentals, and setting up short-term rentals in Costa Rica.

Buying Property in Costa Rica

Can foreigners buy property in Costa Rica?

Yes! Costa Rica allows 100% foreign property ownership with the same rights as locals. The only exception is maritime zone properties (beachfront within 200m of the high tide line), which are under a concession system. Foreigners need a Costa Rican partner or corporation to own these properties.

What are the closing costs and fees when buying property?

Closing costs in Costa Rica typically range between 3%–5% of the purchase price and include:
✔ Transfer tax (1.5%)
✔ Legal fees (1%–1.5%)
✔ Notary & registration fees (varies)

Do I need a Costa Rican bank account to buy property?

No, but it can help with utility payments and expenses. Most property purchases are done via international wire transfers to an escrow account.

Is financing available for foreigners?

Costa Rican banks have strict lending requirements for foreigners, so most buyers use:
✔ Cash purchases
✔ Home equity loans from their home country
✔ Private financing or seller financing (case by case)

What is the process of buying a property?

Find a property and negotiate an offer.
Sign a formal purchase agreement with a deposit (typically 10%).
Conduct due diligence (title search, inspections, legal verification).
Sign the final closing contract with a notary.
Transfer funds & register the property in your name or corporation.

Are property taxes expensive in Costa Rica?

No, property taxes are low—just 0.25% of the registered property value per year.

How do I verify that a property has a clean title?

A real estate attorney will conduct a title search in the National Registry to confirm:
✔ The seller has legal ownership.
✔ The property has no liens, encumbrances, or legal disputes.
✔ Zoning regulations allow your intended use (residential, commercial, etc.).

Can I buy property remotely from another country?

Yes! Many buyers purchase property remotely with the help of a trusted real estate attorney. All documents can be signed via power of attorney, and funds are wired through escrow services.

What happens if I want to sell my property later?

✔ Property sales are subject to capital gains tax (15%), but exemptions exist for primary residences.
✔ Resale values are strong in sought-after areas like Samara, Nosara, and Carrillo.
✔ Listings are marketed through local MLS databases, real estate agents, and online platforms.

Investing in Vacation Rentals

Is Costa Rica a good place for vacation rental investments?

Yes! Costa Rica has a strong tourism industry with high demand for short-term rentals in beachfront and jungle destinations.

How profitable are vacation rentals in Costa Rica?

A well-located rental property can generate 6%–12% ROI annually, depending on:
✔ Occupancy rates (higher in tourist hotspots).
✔ Nightly rates (luxury homes and beachfront rentals earn more).
✔ Property management & maintenance costs.

What are peak rental seasons in Costa Rica?

✔ High season (Dec–April): Best months for bookings & premium rates.
✔ Green season (May–Nov): Slower, but still attracts long-term stays & digital nomads.
✔ Holiday weeks (Christmas, New Year's, Easter): Maximum demand & highest rental income.

What are the best locations for vacation rental properties?

✔ Samara – Family-friendly, strong rental demand, swimmable beach.
✔ Nosara – Luxury & wellness tourism, high-end rental market.
✔ Carrillo – Quiet, scenic, up-and-coming for investors.
✔ Tamarindo, Jaco, Manuel Antonio – High tourist traffic, strong rental markets.

Do I need a property manager for my rental?

If you’re not living in Costa Rica full-time, hiring a property manager is highly recommended. They handle:
✔ Guest check-ins/outs
✔ Cleaning & maintenance
✔ Bookings & marketing
✔ Emergency issues

What are the costs of running a short-term rental?

✔ Property management fees (20%–30% of rental income)
✔ Utilities (water, electricity, internet, pool maintenance)
✔ Cleaning & laundry services
✔ Booking platform fees (Airbnb, VRBO, etc.)

Do I need a special permit to run an Airbnb?

No special permit is required, but all rental income must be declared for tax purposes.

Should I buy a furnished property for a vacation rental?

Yes! Turnkey properties rent faster and command higher rates. If furnishing from scratch, focus on:
✔ Comfortable, high-quality furniture.
✔ Reliable Wi-Fi & air conditioning.
✔ Outdoor living spaces (hammocks, patios, pools).
✔ Fully equipped kitchens for long-term stays.

What platforms should I use to list my rental?

✔ Airbnb – The most popular for short-term stays.
✔ VRBO – Great for family & luxury vacation homes.

Can I live in my rental part-time and rent it out when I’m not using it?

Yes! Many owners block off personal dates and rent out the property when not in Costa Rica. Dynamic pricing tools help maximize earnings while keeping flexibility for personal stays.

Short-Term Rental Taxes & Regulations

What taxes do I need to pay as a vacation rental owner?

✔ Value-Added Tax (VAT) – 13% on short-term rentals (if rented for fewer than 30 days).
✔ Income Tax – Variable, but rental profits must be reported.

Do I need a Costa Rican corporation to run an Airbnb?

Not required, but many investors own properties under a Costa Rican corporation (S.A. or S.R.L.) for tax and liability benefits.

What legal requirements exist for running a short-term rental?

✔ Vacation rental income must be declared for tax purposes.
✔ If you offer additional services (like tours, meals, or housekeeping), you may need a local business permit.
✔ Guest safety measures (fire extinguishers, security features) are recommended.

Setting Up a Vacation Rental

What are the essential steps to setting up a successful short-term rental?

Furnish and decorate with high-quality, comfortable furniture.
Install fast Wi-Fi, AC, and modern amenities.
Create professional listings on Airbnb, VRBO, and Booking.com.
Hire a property manager (if remote) to handle bookings and maintenance.
Market your rental through social media.

How much should I charge for nightly rates?

Pricing depends on location, property size, amenities, and seasonality. We recommend:
✔ Peak season (Dec–April): Higher rates due to tourist demand.
✔ Low season (May–Nov): Competitive pricing or monthly stays.

How do I avoid bad guests?

✔ Use Airbnb’s screening tools (verified ID, reviews).
✔ Set clear house rules to prevent parties or damage.
✔ Require security deposits and rental agreements.

How do I handle cleaning & maintenance?

✔ Hire a local cleaning team (before and after guest stays).
✔ Schedule regular AC, pool & plumbing maintenance.
✔ Use lockboxes or smart locks for keyless entry.

Living in Costa Rica & Residency

Do I need residency to own property in Costa Rica?

No, you do not need residency to buy, own, or rent out property.

How can I get Costa Rican residency?

Common residency options include:
✔ Investor Residency – Requires a $150,000 real estate investment.
✔ Pensionado (Retirement) Residency – Proof of $1,000/month pension.
✔ Rentista Residency – Proof of $2,500/month income for two years.

What are the healthcare options for expats?

✔ Public Healthcare (Caja) – Low-cost but slower service.
✔ Private Healthcare – High-quality clinics in major areas.
✔ International Insurance – Many expats keep private coverage.

What are the best international schools in Samara, Nosara and Carrillo?

Samara

✔ Escuela ad Astra de Samara

✔ La Petite Ecole

✔ Samara Pacific

✔ Mareas Academy

Nosara

✔ Crear Homeschool Co-Op

✔ Del Mar Academy
✔ Casa de las Estrellas

✔ Nosara Home School Co-Op

Carrillo

There are fewer school options in Carrillo compared to Samara and Nosara, but families in Carrillo often send their children to schools in Samara (10 min away) or Nosara (30–40 min away).

✔ Escuela de Puerto Carrillo

Transportation & Infrastructure

Do I need a car to live in Costa Rica?

It depends!
✔ Yes if you live in a rural or hilly area.
✔ No if you live in a walkable town (Samara, Nosara).

4x4 vehicles are highly recommended due to unpaved roads, river crossings and rainy-season conditions.

What’s the best way to send money to Costa Rica?

✔ International wire transfers for large amounts.
✔ Paypal
✔ Costa Rican bank accounts for paying local expenses.

Have More Questions? Let's Talk!