Land Loans in Costa Rica: Borrowing Against Titled Land

Land is one of the hardest assets to borrow against in Costa Rica. A lot produces no income, it usually takes longer to sell than a house, and banks set their own requirements, which can make bank loans harder for newcomers. Land loans in Costa Rica are still possible through GAP Equity Loans, as long as the land is titled, but the terms are stricter than for a house. This guide explains what that means, what a lender reviews on a lot, and which coastal land does not qualify.

Can foreigners own land and borrow against it?

Yes. Article 19 of Costa Rica’s Constitution gives foreigners the same individual and social rights as Costa Ricans, with the exceptions and limitations set by the Constitution and the laws. A foreigner can hold titled land registered in the National Registry, and GAP reviews borrowers of any nationality. Costa Rican residency is not required and no credit score is required.

Titled land versus coastal concessions

Not every piece of land near the beach is titled. Under Law 6043, the maritime-terrestrial zone is the 200-metre strip along the Atlantic and Pacific coasts, measured from the ordinary high-tide line (article 9). That zone belongs to the State and cannot be sold or acquired by possession (article 1). The first 50 metres are the public zone, and the remaining 150 metres are the restricted zone (article 10), where the only rights available are municipal concessions (article 39).

GAP lends only against titled property registered in the National Registry, not against concessions. If a lot sits near the coast, check its registry record and its location relative to the 200-metre zone with a Costa Rican attorney before counting on it as collateral. Our article on concession property loans in Costa Rica explains the difference in more detail.

Why land loans in Costa Rica have stricter terms

A house can be lived in, rented or sold to a wide pool of buyers. A lot depends on things a buyer has to imagine: access, water, permits and what can be built. If a lender ever had to recover a loan, land is usually slower to sell.

That is why GAP reviews land case by case and usually at a lower loan-to-value than a house. For standard property-backed loans, around 30% loan-to-value or less is preferred and 50% is the maximum; land typically sits toward the lower end. GAP determines the property value used for the loan, with input and acceptance from the lender.

What a lender reviews on a lot

• Title and liens: who owns the land, how it is registered, and whether anything is recorded against it.
• The survey plan: whether the registered plan matches the land on the ground.
• Access: how the lot is reached, and whether that access is legal and practical.
• Water: whether water is available for the intended use. See water letters in Costa Rica.
• Land use: what the local rules allow on the lot.
• Location and marketability: how easily the land would sell at a realistic price.
• Your plan: what the funds are for and how the loan will be repaid at maturity.

Ways land can help you raise capital

Owners use titled land in a few common ways. Some borrow against a lot they already own to buy another property, fund a business need or start building. Others plan a construction project and need to understand how land fits into that; see how to get a construction loan in Costa Rica.

If you are buying land, ask whether the purchase can be secured against the lot itself or against other titled property you own. Every request is reviewed on its own facts, and a land loan is never automatic.

Terms and costs

Loans start at US$50,000, with additional paperwork and due diligence above US$1 million. Terms run from six months to three years, with monthly interest-only payments and the principal due at maturity. Borrowers pay the loan fees, which are deducted from the loan proceeds at closing, and there are no costs to pay before closing. Early repayment has a penalty that depends on the lender.

Banks can take many months, if not longer, to close. GAP closes loans within 10 business days once the required documents are complete; missing documents or extra verification on a lot can add time.

Frequently Asked Questions

Can I get a loan on land without a house?

Yes, if the land is titled. Land is reviewed case by case and usually at a lower loan-to-value than a house.

Can a foreigner get a land loan in Costa Rica?

Yes. GAP reviews borrowers of any nationality, and Costa Rican residency is not required.

Does GAP lend against beachfront concession land?

No. GAP lends only against titled property registered in the National Registry, not against maritime-zone concessions.

Do I pay anything before closing?

No. On standard loans the fees are deducted from the loan proceeds at closing.

This article is general information only and is not legal, financial, or tax advice. Every loan depends on property review, documentation, and lender approval. Legal references are summaries of Costa Rican law as published in SCIJ; confirm how they apply to a specific property with a Costa Rican attorney.

WhatsApp us at +506 4001 6413 to get started, or call 855-562-6427 from the US or Canada.

Own titled land and need capital? Start a loan request, review the loan requirements, or email info@gap.cr.

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