Property Ownership in Costa Rica: Options and Strategies for American Citizens

We get a lot of inquiries about owning property in Costa Rica. It makes sense – the country has long been a magnet for American investors and expats drawn to its stunning beaches, lush mountains, stable democracy, and relatively accessible property market.  But it’s not necessarily the easiest market to work in for US investors, particularly when it comes to estate planning. In the worst-case scenario, your property could leave your heirs with a probate nightmare that drags on for as long as 10 years after you’re gone.

The good news? With the right planning, owning property in Costa Rica can be straightforward, tax-efficient, and hassle-free. But you need to understand your options before signing on the dotted line.

In this Alert, we’ll walk you through the four primary options for holding Costa Rican property, highlighting the advantages and drawbacks of each. We’ll also cover the crucial tax implications, probate considerations, and practical recommendations based on our decades of experience helping Americans protect their assets internationally.

Our goal is simple: give you the knowledge to make smart decisions about structuring your Costa Rican property ownership. No fluff, no sales pitch – just practical information you can use.

The Four Primary Ownership Options

When it comes to owning property in Costa Rica, Americans have four main structures to consider. Each comes with its own set of advantages, limitations, and costs.

1. Personal Ownership

The Simplest Approach—But Beware the Drawbacks

Personal ownership is exactly what it sounds like: owning Costa Rican property directly in your own name. While this approach is straightforward (and the most common), it comes with significant disadvantages that make it less than ideal for most investors.

How It Works: You purchase the property directly, with the title deed in your personal name. It’s the same as owning a house in your name in the US.

Advantages:

• Simplicity of setup – no corporate documents or annual filings
• No annual maintenance fees for corporate structures
• Direct control over the property
• Lowest initial transaction costs

Disadvantages: