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Why is Costa Rica a Favorite Destination for Americans to Buy a Second Home?

Costa Rica is a stable country with a tropical climate and a thriving economy. The government makes an effort to encourage foreign investment. Americans wanting a second home in a country with beautiful scenery and amazing beaches are attracted like magnets to Costa Rica. 

The country has one of the lowest crime rates compared to other countries in Central America, the people are welcoming and the cost of living is reasonable.  

Americans can purchase and own property

Citizenship and residence in Costa Rica are not required for property ownership. The Costa Rican constitution guarantees Americans and other foreigners the same ownership rights as Costa Ricans. Americans can buy a property with a tourist status visa. Few physical restrictions apply, besides a 50-meter limit from the beach on oceanfront property. Doing due diligence and working with reputable real estate agents is important. 

Blue Water Properties of Costa Rica offers the widest and highest caliber selection of Costa Rica Real Estate in Guanacaste, from condos and traditional single-family homes to sprawling beachfront villas and homes in gated communities. They deliver a best-in-class experience with their bilingual and local expertise.   

The perfect location

Costa Rica borders the Caribbean in the east and the North Pacific Ocean in the west. It covers about 800 miles of coastline and includes several islands. From the golden sands of Guanacaste to the rainforests in the south, the tiny country offers plenty of adventure, stunning beaches and caters to every kind of lifestyle. 

There are many national parks, protected zones, wetland areas and forest reserves. It has pristine beaches and the weather is sunny and warm almost every day, despite a windy December and a rainy season.     

A valuable investment

With tourists and expats buoying the real estate market, properties have been steadily increasing in value for a couple of decades and this is likely to continue thanks to its endless natural attraction and its friendliness to foreigners. There are definite benefits from investing in an established market with good solid gains.   

 An investment property in Costa Rica can also provide an opportunity for rental income and a good real estate company can help investors to organize this. There is always a demand for rentals as the natural beauty of Costa Rica is an irresistible draw. Buying a condominium may be preferable for absent owners because they have good security and usually have additional amenities that are an advantage if the plan is to rent it out. 

Low taxes

The property taxes in Costa Rica are low – a quarter to 1% annually. The tax can be paid on a quarterly basis or in one payment for the year that gives a small tax break. 

A good incentive for American investors is that Costa Rica has no capital gains tax. The Costa Rican government does not tax sellers on profit from a sale as long as it isn’t undertaken as a means of business. Americans do still have to pay taxes on any declared earnings they bring back to America. 


There are direct flights from many major U.S. cities to San Jose, the capital of Costa Rica and it is possible to find cheap ones. This makes it easy for Americans to fly back and forth. The locals in Costa Rica generally speak English and have a high literacy rate so there are few language barrier issues. 

Experts predict that Americans from North America are likely to make up about a fourth of Costa Rica’s total population in the future. Their dollars go much further in Costa Rica, where they can enjoy entertainment, dining and accommodation for less. 

Posted by Emily Dawson on Aug 17, 2021 3:42 PM Europe/London

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