Once you’ve found your dream property, one of the most important decisions you’ll make is how to legally structure the ownership of that land.

Costa Rica offers multiple ways to hold title — and choosing the right one protects your investment, simplifies taxes, and makes future resale or inheritance easier.

Let’s break down the main options and what you need to consider.

Option 1: Buy in Your Personal Name

Yes — Americans can buy property in their own name. It’s 100% legal, and ownership is recorded in the National Registry with you listed as the direct owner.

Pros:

• Simple and fast
  

• Fewer annual compliance requirements
  

• Lower upfront legal costs
  

Cons:

• Less privacy

• More complex if you’re planning to share ownership (e.g., with family or business partners)

• Can complicate estate planning and resale
  
  

Best for:
Smaller purchases, short-term ownership, or buyers without plans to develop or pass down the land.

Option 2: Create a Costa Rican Corporation (S.A. or S.R.L.)

This is the most common option for American buyers — especially when purchasing land for development, rental, or long-term use.

You’ll create a Costa Rican company (either an S.A. or an S.R.L.) and have that company own the land.

S.A. (Sociedad Anónima) – similar to a U.S. C-corp
S.R.L. (Sociedad de Responsabilidad Limitada) – more like an LLC

Pros:

• Asset protection & liability separation
  

• Easier inheritance transfer (just transfer the shares)

• Streamlined resale (you can sell the corporation, avoiding transfer taxes)

• Better structure for building projects, rental income, or multiple investors

• More privacy — your name isn’t publicly tied to the title
  
  

Cons:

• Annual legal maintenance (~$300–$500/year)

• Must file yearly tax declarations and maintain meeting records

• Requires a legal representative and registered agent
  
  

Best for:
Buyers planning to build, rent, or hold the property long-term — especially if managing it as an investment or business.

Option 3: Trust or Foundation (Less Common)

Some foreigners structure land ownership through a trust (fideicomiso) or an international foundation, particularly for asset protection or tax reasons. These are less common for most land purchases unless you’re doing more complex estate or tax planning.

Pros:

• Strong protection in case of legal disputes or debt

• Often used for estate structuring or multi-jurisdiction ownership
  
  

Cons:

• Expensive to set up and maintain

• Requires specialized legal and tax advisors
  
  

Best for:
High-net-worth individuals or those integrating Costa Rican land into a broader international wealth plan.

Choosing the Right Option: A Quick Comparison

Extra Tips on Structuring:

• Add heirs to your corporation now to avoid probate headaches later.

• Don’t rely on U.S. tax law only — consult an accountant familiar with Costa Rican AND U.S. tax implications.

• Keep your corporation in good standing by filing required reports — your attorney can help.

• Use escrow and notarized documents for any financial or ownership transfers.
  
  

We Make It Simple

At The Real Pacific, we help Americans not only find the right property — but set up the right legal structure for ownership, construction, and beyond. We’ll coordinate with your attorney, set up your corporation (if needed), and guide you every step of the way.

Need help deciding the best ownership structure for your goals?

👉 Book a free consult with our team