Discover the Best Ways to Finance Your Dream Home in Costa Rica


Costa Rica is a beautiful country known for its breathtaking landscapes, friendly locals, and incredible biodiversity. It's no wonder that many people dream of owning a home in this tropical paradise. However, financing a property in another country can be a complex process. In this article, we will explore the best ways to finance your dream home in Costa Rica, focusing on options available to international buyers.

Mortgage Options for International Buyers

When it comes to financing a home in Costa Rica, international buyers have several mortgage options to consider. These options include:

  • Local Banks: Some local banks in Costa Rica offer mortgage loans to international buyers. It's worth exploring this option, as local banks have a better understanding of the local real estate market.
  • International Banks: Many international banks, such as Scotiabank and HSBC, have branches in Costa Rica and offer mortgage loans to international buyers. These banks typically have requirements specific to foreign borrowers.
  • Private Lenders: There are also private lenders in Costa Rica who specialize in providing mortgage loans to international buyers. These lenders may have more flexibility in terms of requirements and interest rates.

Before applying for a mortgage, it's important to understand the eligibility criteria, interest rates, and repayment terms. Working with a local real estate agent or a mortgage broker can help you navigate the process and find the best mortgage option for your needs.

Alternative Financing Options

In addition to traditional mortgages, there are alternative financing options available for those looking to purchase a home in Costa Rica. These options include:

  • Owner Financing: In some cases, the seller may be willing to offer owner financing. This means that instead of getting a loan from a financial institution, you make payments directly to the seller. Owner financing can be a flexible and convenient option, especially for those who may not meet the strict requirements of traditional lenders.
  • Home Equity Loans: If you already own a property in your home country, you may be able to secure a home equity loan to finance your Costa Rican home. This option allows you to tap into the equity of your current property and use it as collateral for the loan.
  • Retirement Funds: If you have retirement funds saved up, you may be able to use a portion of these funds to purchase a property in Costa Rica. It's important to consult with a financial advisor to understand the tax implications and withdrawal rules.
  • Local Financing Programs: Costa Rica has various financing programs available to promote real estate investment in the country. These programs may offer special incentives and financing options for international buyers. It's recommended to research and reach out to local government agencies or investment promotion organizations for more information.

Considerations for Financing in Costa Rica

Before embarking on the process of financing your dream home in Costa Rica, there are several important considerations to keep in mind:

  • Legal Assistance: It's highly recommended to seek legal assistance from a qualified attorney familiar with the local real estate laws and regulations. A professional attorney can guide you through the legal aspects of purchasing a property and help ensure a smooth transaction.
  • Insurance: In Costa Rica, it is important to have proper insurance coverage for your property. This includes homeowners insurance, title insurance, and potentially earthquake or flood insurance depending on the location of your property.
  • Currency Exchange Rates: As an international buyer, you'll need to consider the exchange rates when making mortgage payments. Fluctuations in currency exchange rates can impact the affordability of your mortgage payments. It's important to closely monitor the rates and consider using the services of a foreign exchange provider to secure a favorable rate.
  • Tax Considerations: Before purchasing a property in Costa Rica, it's essential to understand the tax implications. This includes property taxes, capital gains taxes, and any other taxes or fees associated with property ownership. Consulting with a tax advisor can help you navigate the local taxation system.


Financing your dream home in Costa Rica is an exciting endeavor, but it requires careful consideration and planning. Whether you choose a traditional mortgage, explore alternative financing options, or take advantage of local financing programs, being well-informed and working with professionals will help ensure a successful and smooth process. Remember to do thorough research, consult with experts, and take into account any legal, insurance, currency exchange, and tax considerations. With the right approach, you can make your dream of owning a home in Costa Rica a reality.

22 October 2023
Written by John Roche