This is one of the most common questions I get from people considering a move to Guanacaste, and there's no single right answer — it depends on your timeline, how sure you are about the area, and how the financing numbers work out for you specifically. Here's how I'd think it through.
The Case for Renting First
If you're not 100% sure Coco, Hermosa, or wherever else in Guanacaste is the right fit long-term, renting for six to twelve months before buying is a smart, low-risk way to test it out. It buys you time to get to know different neighborhoods, avoid rushing into a purchase, and sidestep the due diligence work (title checks, maritime zone restrictions) until you're actually ready to commit. The good news is rental demand here is strong and consistent, so if you do end up buying later, that same demand can work in your favor if you decide to rent the property out.
The Case for Buying
Costa Rica gives foreigners the same property ownership rights as citizens, which removes one of the biggest barriers people worry about. And the numbers currently favor buyers: Coco and Playa Hermosa are forecast to appreciate roughly 7–11% a year, backed by steady growth in airport traffic and tourism. If you know you want to be here for the long haul — three, five, ten years — buying sooner rather than later, while the market still leans buyer-friendly, can make a real difference in what you pay.
The Financing Reality
Foreigners can get mortgages in Costa Rica, but the terms are different from what you might be used to. Private banks typically require a down payment of 30–50% of the property's value, with interest rates generally ranging from 8.5–10%, though well-qualified buyers have seen rates closer to 7.6% as of early 2026. Owner or developer financing is increasingly common in Guanacaste and often comes with lower rates (roughly 6–9%), though usually still with a substantial down payment. Short-term private/bridge loans are also available but carry higher rates (10–15%) and shorter terms.
The Costs of Buying You Should Budget For
Beyond the purchase price, plan for a property transfer tax of about 1.5% of the sale price or fiscal value (whichever is higher), plus standard closing costs and legal fees. If the home's construction value is above roughly $270,000–$290,000, it will also be subject to Costa Rica's annual luxury home tax, which is filed every January and scales up with value. None of these are dealbreakers, but they should factor into your total cost comparison against renting.
How to Decide
As a rough rule of thumb: if your timeline in Guanacaste is under two or three years, or you're still deciding between areas, renting is usually the lower-risk move. If you're confident in the location and planning to stay five-plus years, buying — especially while the market still favors buyers — tends to make more financial sense given current price trends.
Every situation is different, and I'm happy to run the actual numbers with you — rent vs. buy, financing options, and what a realistic budget looks like for what you're after.