Lending in Costa Rica Without Living Here

You do not have to live in Costa Rica to fund a loan secured by Costa Rica property. If you want to lend money in Costa Rica from abroad, much of the process can be handled remotely, but it still pays to understand how documents, money and payments move, and what rules may apply to you. This guide walks through it.

You do not need residency

Lenders of any nationality can lend through GAP, and Costa Rican residency is not required. Loans are secured by Costa Rica real estate, with the lender in first-lien position and lender rates from 9% to 16% a year. Standard loans start at US$50,000.

Reviewing loans from a distance

Before you fund a loan, make sure you have the key details in writing: the property, the value used, the amount and loan-to-value, the term, the rate and the borrower’s repayment plan. The decision to fund is always yours. How private lenders choose which loan to fund covers what to look for.

Before you commit, have your own Costa Rican attorney review the loan documents. Distance is not a reason to skip that step.

Closing without being in the room

Closings are coordinated with an attorney and notary, who document the loan and register the lender’s mortgage in first position in the National Registry. Under Law 3883, the Registry’s purpose is to guarantee the security of registered property and rights with respect to third parties. A lender does not always need to travel for a closing; your attorney explains how signing and funding will work for you.

After closing, ask your attorney for confirmation that the mortgage is registered, and keep it with your records. How a first-lien mortgage protects a private lender explains why that matters.

Moving money safely

Loans can be made in US dollars: Costa Rican law recognises contracts and obligations in foreign currency as valid and enforceable (Law 7558, article 48). When you send funds, confirm the payment instructions by phone, using a number you already have, and treat any last-minute change of account details as a warning sign.

Receiving payments

Borrowers pay interest to the lender directly each month, and the principal is repaid at maturity. GAP does not collect payments, but it can help with communication if you or the borrower report a problem. You receive the full agreed rate, because borrowers pay the loan fees; see why lenders pay no loan fees.

Rules that may apply to you

• SUGEF registration. Law 7786, article 15 bis, requires registration for granting credit in an organized, habitual way using accounts at supervised financial entities, with an exclusion for activity averaging US$5,000 a month or less. Foreign lenders should read SUGEF registration for foreign lenders.
• Taxes. Interest income may have tax consequences in Costa Rica and in your home country. Ask qualified tax advisers in both places.
• Retirement accounts. If you want to lend through a self-directed retirement account, the custodian and your advisers confirm what is allowed; GAP can work with custodians case by case.

The risks do not change with distance

No return is guaranteed. Borrowers can pay late or default, and enforcing a mortgage takes time and legal cost. When you lend money in Costa Rica from abroad, distance can make it slower to act, so keep good records and stay in contact with your attorney.

Frequently Asked Questions

Can I lend money in Costa Rica from abroad without visiting?

Often, yes. A lender does not always need to travel for a closing. Your attorney explains how signing and funding work for you.

Do I need a Costa Rican bank account?

Ask your attorney and advisers how funds and payments should be handled for your situation, including any SUGEF registration requirements.

Can a loan be in US dollars?

Yes. Contracts in foreign currency are valid and enforceable under Law 7558, article 48.

Does GAP guarantee my return?

No. Lending carries risk, and returns are not guaranteed.

This article is general information only and is not legal, financial or tax advice. Legal references summarize Costa Rican law as published in SCIJ. Private lending carries risk, and no return is guaranteed.

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