Can a Foreigner Borrow Money in Costa Rica?

Yes. Foreigners can request property-backed financing in Costa Rica. GAP reviews qualified requests from borrowers of any nationality, using Costa Rica real estate as collateral.

GAP reviews property-backed financing requests starting at US$50,000. GAP does not require a credit score for a normal property-backed loan request, and GAP uses first-lien property security only.

• Requests starting at US$50,000
• Borrowers of any nationality may be reviewed
• GAP does not require a credit score
• First-lien security only
• Terms generally range from 6 months to 3 years
• 30%–40% LTV can often be easier to structure for stronger completed properties
• Some stronger files may approach 50% LTV, depending on the complete file
• After a complete file and due diligence, qualified loans can often close in about 10 business days

Rates may be similar to Costa Rica bank rates available to expats and foreign borrowers. Each request is reviewed individually, not by one automatic formula. Sending information does not create an approval, funding commitment, rate, loan amount, term, or closing date.

The basic question is whether the property is practical collateral today and whether the requested financing has a credible payment and principal-repayment plan.

Can Foreigners Own Property in Costa Rica?

Foreigners can generally own Costa Rica real estate in their personal name or through a Costa Rica corporation or another legal structure. The right ownership structure depends on the buyer’s individual plans and should be reviewed with qualified legal and tax professionals.

Foreign ownership alone does not create financing approval. The property still needs to be suitable collateral, and the borrower needs a credible plan for payments during the term and repayment of the principal balance at maturity.

Financing Options for Foreigners

Foreign buyers and property owners may consider several financing options:

• Costa Rica bank financing
• Seller financing negotiated with the property owner
• Private property-backed financing
• Borrowing against equity in an existing Costa Rica property
• Financing from a bank or lender in the borrower’s home country
• A combination of cash and financing

The best option depends on the property, timing, amount needed, available documents, intended use of funds, and repayment plan.

Private Property-Backed Financing for Foreigners

Private property-backed financing may be worth reviewing when a bank loan is not practical for the specific property or request. This may relate to timing, the requested term, ownership structure, property type, purpose of funds, or available documentation.

GAP reviews qualified property-backed financing requests starting at US$50,000 from borrowers of any nationality. GAP does not require or pull a credit score for a normal property-backed loan request.

GAP uses first-lien property security only. GAP works with private lenders and may participate directly in selected opportunities. The final structure depends on the property, lender review, due diligence, legal work, and signed documents.

What GAP Reviews

A complete request is reviewed individually. The review can consider:

• Title, ownership, corporate authority where relevant, and existing liens
• Road access, location, condition, drainage, utilities, and marketability
• Realistic current property value and comparable support
• The requested loan amount and exact purpose of funds
• How agreed payments will be made during the loan term
• How the principal balance will be repaid at maturity
• Recorded rights of way, easements, utility rights, and neighboring-use issues

A clear file helps GAP understand whether the property is practical collateral. It does not create an approval.

The Property Must Be Practical Collateral

For a property-backed loan, the real estate is the lender’s security. The lender needs to understand whether it has realistic current value, workable title, usable access, and practical resale marketability.

Completed, well-maintained homes in marketable locations can often be more workable collateral because they may be usable or rentable if a lender ever has to take the property back.

Raw land, remote property, unfinished construction, specialized buildings, or properties with unanswered access, water, permit, drainage, or utility questions may be harder to structure.

Recorded easements, rights of way, utility rights, and neighboring-use issues are not automatically a problem. They need to be understood because they can affect access, use, value, and resale.

How Much Can a Foreigner Borrow Against Costa Rica Property?

Private lenders compare the requested loan amount with the property’s realistic current value. This is called loan-to-value, or LTV.

For example, a US$200,000 request against a property realistically valued at US$500,000 equals 40% LTV.

US$200,000 ÷ US$500,000 = 40% LTV

For stronger completed homes in marketable locations, requests around 30%–40% of realistic value can often be easier to structure. Some stronger files may sometimes support an amount approaching 50% LTV, depending on the full file, title position, repayment plan, lender requirements, and legal structure.

No LTV amount is guaranteed. Listing price, purchase price, construction cost, insured value, or a hoped-for future sale price is not automatically the value a lender will use.

Raw or vacant land is reviewed more cautiously. It is not normally treated like a completed home for LTV purposes, and workable requests may be much lower depending on location, access, utilities, usable area, title, and marketability.

Read what loan-to-value means in Costa Rica.

Existing Mortgages and Liens

GAP uses first-lien security only. An existing mortgage, private loan, lien, annotation, unpaid tax balance, or other registered issue does not automatically rule out a request.

The current balance, payoff requirements, and closing structure need to be understood early. In some situations, existing registered debt must be paid through the proper closing process before a new lender can register in the required first position.

Closing documents and registration are handled through the appropriate closing attorney or notary. Legal fees and closing costs are reviewed as part of the transaction structure.

The Property Is Security, Not the Repayment Plan

The lender needs to understand 2 separate things:

• How agreed payments will be made during the loan term
• How the principal balance will be repaid at maturity

A repayment plan may involve established business income, rental income, the sale of another asset, expected investment liquidity, a realistic refinance plan, or another documented source of funds.

A future sale or refinance can be part of the plan, but neither should be assumed. A loan renewal is not automatic, and a new lender may not replace the loan at maturity.

Read why your repayment plan matters for a private loan.

How Long Are Private Property-Backed Loan Terms?

Terms generally range from 6 months to 3 years. Payment structure, maturity, interest, legal fees, closing costs, and early-repayment provisions depend on the lender and signed loan documents.

Any early repayment should be reviewed against the signed loan documents and applicable published interest-guarantee guidelines.

How Quickly Can a Qualified Loan Close?

After GAP has a complete file and due diligence is finished, qualified loans can often close in about 10 business days.

Timing depends on title, lender review, legal work, banking, documents, existing debt, and closing requirements. No closing date is guaranteed.

What Information Helps Start the Review?

• A Google Maps, Waze, or WhatsApp location pin
• Current photographs of the property, road access, driveway, and surrounding area
• A Folio Real and Plano Catastro, if available
• The requested loan amount and exact use of funds
• Realistic value support, appraisal information, purchase information, or comparable properties
• Details of existing mortgages, liens, annotations, tax balances, or legal concerns
• Corporate records and signing authority if a corporation owns the property
• A clear payment plan and principal repayment plan

Start your loan request here. You can also contact GAP through WhatsApp at +506 4001 6413.

Frequently Asked Questions

Can a foreigner get a loan in Costa Rica?

Yes. A foreigner can seek financing in Costa Rica. Options may include bank financing, seller financing, private property-backed financing, financing from the borrower’s home country, or a combination of cash and financing.

Can a foreigner apply for a property-backed loan with GAP?

Yes. GAP reviews qualified requests from borrowers of any nationality. Permanent residency, Costa Rican citizenship, and a local guarantor are not automatic requirements. The property, title position, requested amount, payment plan, and principal repayment plan still need to work.

Does GAP require or pull a credit score?

No. GAP does not require or pull a credit score for a normal property-backed loan request. Each request is reviewed individually based on the property, title, requested amount, repayment plan, and complete file.

How much can I borrow against Costa Rica property?

For stronger completed homes in marketable locations, requests around 30%–40% of realistic value can often be easier to structure. Some stronger files may sometimes support an amount approaching 50% LTV. No amount is guaranteed.

Can a property with an existing mortgage be used as collateral?

Possibly. GAP uses first-lien property security only. Existing debt does not automatically rule out a request if a proper first-lien closing structure can be arranged.

How long are private property-backed loan terms?

Terms generally range from 6 months to 3 years. The final structure depends on the lender and signed loan documents.

How quickly can a qualified loan close?

After GAP has a complete file and due diligence is finished, qualified loans can often close in about 10 business days. Timing depends on the full file and closing requirements. No closing date is guaranteed.

This article is for general information only. It is not a loan offer, legal advice, financial advice, tax advice, real estate advice, or a promise of financing. Loan availability, loan amounts, rates, terms, costs, and closing timing depend on the individual property, borrower file, lender requirements, due diligence, and signed documents.

Article by Glenn Tellier (Founder of CRIE and Grupo Gap)