This article explores the compelling reasons why wealthy individuals residing in New York might consider emigrating to the beautiful country of Costa Rica.
Escaping the High Cost of Living in New York
The cost of living in New York City is notoriously high. The median apartment price in Manhattan is $1.89 million, with the median sale price at $1.06 million.
Luxury apartments, representing the top 10% of transactions, are even more expensive, with prices ranging from $4,500 to $10,000 per square foot.
For example, if you search for the cheapest apartment in New York listed on Sotheby’s website, it costs around $5.5 million and has approximately 1,800 square feet. The most expensive one costs $49 million and has 6,512 square feet.
In contrast, Costa Rica offers a more affordable luxury housing market.
For example, in Santa Cruz, Guanacaste, you can find houses starting at $6.9 million with a built-up area of 9,122 square feet and an exterior lot of 9,500 square feet.
In Playa Carmen, Puntarenas, there are houses for $6.5 million with 5,800 square feet of construction and 79,700 square feet of exterior land.
In Tamarindo, Guanacaste, you can find houses for $5.9 million with 7,287 square feet of construction and 18,700 square feet of external land.
Embracing the Costa Rican Lifestyle
- Costa Rica offers a tranquil and luxurious lifestyle, particularly along its Pacific coast.
- Wealthy individuals are purchasing large, private properties with ocean views, often with amenities such as walk-in closets, spacious social areas, pools, and Jacuzzis.
- Some even have helipads to accommodate their private helicopters.
- You can enjoy a more relaxed pace of life while still having access to modern conveniences and amenities.
Favorable Tax Environment
Costa Rica has a territorial tax system, meaning that foreign income is generally not taxed. This could be a significant financial advantage for wealthy individuals considering a move. However, you should independently verify the tax implications with a qualified professional.
What do the experts say?
We have consulted with one of the most experienced real estate agencies in Costa Rica, specialized in high-value properties in the province of Guanacaste. The real estate agency is called Montecosta Real Estate, and we had the pleasure of interviewing the company’s director, Arturo J Rodriguez Rivas.
Below is the complete interview with Mr. Arturo:
Based on your experience, how do luxury property prices in Costa Rica compare to those in New York, considering factors like size, location, and amenities?
For high-profile investors, luxury properties in Costa Rica are generally considered to be in the mid-to-high price range. However, due to the real estate growth in the area, prices can be comparable [to New York]. For example, a house in a high-end gated community might have a similar price; however, investing in a residential house will always be more “accessible” in Costa Rica than in New York. In Costa Rica, you can acquire a luxury home with an ocean view starting from $800,000. Variations related to architecture, design, finishes, population density, area, and other factors will ultimately define the price.
What specific factors influence the valuation of luxury properties in the Guanacaste and Puntarenas areas?
Some specific factors influencing luxury property valuation include: Security, roads, common areas (in the case of condominiums), proximity to the beach, architecture, design, finishes, and even environmental sustainability, which has become an increasingly prominent topic today. The more sustainable the place (whether a condominium, residential area, or open location), the more a foreign luxury investor might be inclined to invest.
What trends have you observed in the demand for luxury properties from New York residents (or foreigners) in recent years?
The demand increased after the end of COVID-19.
Subsequently, in 2023, due to the national situation (“crisis”) in the US, high investment related to property purchases decreased in Costa Rica and gradually continued to decline.
In the current year, 2025, due to the so-called “trade war” between the US, CA, MX, and other countries, several foreign-profile clients have slowed down their decision-making process regarding property purchases.
What types of properties are most sought-after: beachfront houses, mountain villas, or properties with large plots of land?
In terms of the most sought-after properties, US clients primarily look for beach lots or extensive properties. Ideally, properties that combine both characteristics. Being a native of the Guanacaste area, I have witnessed the real estate growth in the province.
What amenities or features are most valued by buyers from New York (or foreigners)?
The amenities most sought after by foreign buyers are: Available and easily accessible basic services, outdoor activities (preferably nature-related), proximity to the beach or mountains, tranquility, security, and culture. Regarding clients from NY, in my experience, there are at least two profiles: those who like population density because they are accustomed to that pace of life, and those who prefer nature.
What important legal or tax considerations should buyers from New York keep in mind?
- Due Diligence
- Liens and Encumbrances:
- One of the main considerations buyers should take into account when acquiring a property is ensuring it is free of liens at the time of transfer (first-degree mortgages or others).
- If, for any reason, a buyer wishes to acquire agricultural property (over 5000m2), they should ensure the property is not affected by easements (rights of way) or forestry laws (Law 7575, Article 33, and others)
- Updated Permits and Taxes Paid:
- Ensure permits are up-to-date, such as land use permits for construction, electricity, and water permits.
- Other updated permits may be required from institutions like SETENA, MINAE, and others, depending on the type of investment/purchase.
- Regarding Contracts and Purchase Terms:
- Carefully read the purchase-sale agreements and ensure they include clauses regarding price, payment deadlines, warranties, and refund conditions.
- Verify the identity and legitimacy of the seller
- Property and Ownership Title:
- For real estate, ensure the seller is the legitimate owner or legal representative.
- Method of Acquisition. Buyers can acquire property in two ways:
- In their personal name
- Through a corporation/company
- Liens and Encumbrances:
- Tax Considerations (Ensure they are up-to-date):
- Real Estate Transfer Tax
- Property Tax
- Luxury Home Tax
What advice would you give to someone considering transitioning from New York to Costa Rica?
- Work with a local Costa Rican real estate agent.
- Be honest and informative with that selling agent to successfully find the desired property.
- Opt for residency. The process is long but worthwhile, as residency can provide more benefits and ease administrative procedures with public and private institutions.
- Understand the country’s laws, regulations, and other requirements.
- Learn about the country’s culture.
Montecosta Real Estate Costa Rica
(506) 8333-1752
https://www.montecostarealestate.com/
https://www.linkedin.com/in/arturo-jose-rodriguez-rivas
Overall, Costa Rica presents a compelling alternative for wealthy New Yorkers seeking a more relaxed, affordable, and luxurious lifestyle, with the added benefits of a thriving real estate market and stunning natural beauty.
If you would like any advice regarding buying property in Costa Rica safely, please do not hesitate to contact us.
