Interest in using cryptocurrencies — particularly bitcoin — to acquire real estate in Costa Rica has grown significantly among foreign investors. The recurring question is direct: can I buy property in Costa Rica with bitcoin? The short answer is that there is no express legal prohibition, but the transaction involves complexities that must be handled correctly to avoid registry, tax and banking problems.
Current legal framework
Costa Rica has no specific legislation regulating cryptocurrencies as a means of payment. The only legislation enacted to date is Law 10961, which amends Law 7786 — the statute on narcotics, psychotropic substances, unauthorized drugs, related activities, money laundering and terrorism financing — to bring crypto assets under SUGEF oversight, going no further than establishing registration requirements for digital asset service providers. The Central Bank of Costa Rica has stated that cryptocurrencies are not legal tender in the country, meaning no seller is obligated to accept them as payment. However, they are not prohibited as a medium of exchange between parties who voluntarily agree to use them.
In practice, this means a real estate transaction where the parties agree to use cryptocurrencies is viable, but it requires careful legal structuring so that the transfer deed, the registration before the National Registry, and the tax obligations are handled correctly.
How it works in practice
The purchase deed executed before a notary must express the price in Costa Rican colones or US dollars — the only currencies the National Registry accepts as the reference of value in the deed. Even if the parties exchange cryptocurrencies as the form of payment, the recorded price is expressed in traditional currency.
This creates the need to document the conversion: how many units of cryptocurrency correspond to the agreed price, at what exchange rate, on what date, and how the transfer was verified. That documentation is essential for both registry and tax purposes.
Tax implications
The tax implications of using cryptocurrencies in real estate transactions are significant and frequently underestimated.
For the buyer, converting cryptocurrencies to fiat currency to pay for the property may generate a taxable capital gain on the difference between the acquisition value of the crypto and its value at the time of conversion. Tax authorities may also request documentation on the origin of the cryptocurrency funds.
For a seller who receives cryptocurrencies, the capital gain on the sale of the property is calculated as in any transaction: the difference between the sale price and the acquisition cost. However, receiving crypto adds volatility risk and the need to correctly declare the form of payment received.
Anti-money-laundering compliance
Costa Rica has international obligations regarding the prevention of money laundering and terrorism financing. High-value real estate transactions are already subject to scrutiny, and the use of cryptocurrencies can increase the verifications required.
Notaries public have due diligence obligations that include verifying the lawful origin of the funds used in the transaction. When funds originate in cryptocurrencies, the documentation required is more extensive: acquisition history of the crypto, platforms used, and transaction traceability.
Banking considerations
Banks in Costa Rica have their own policies regarding cryptocurrencies. Some may reject deposits originating from the conversion of digital assets or request additional documentation on the origin of funds. If the transaction requires bank financing, the use of cryptocurrencies can complicate the credit approval process.
It is advisable to coordinate with the bank before structuring the transaction to avoid rejections or frozen funds.
Practical recommendation
For investors who wish to use cryptocurrencies to acquire property in Costa Rica, the safest structure generally involves converting the crypto to fiat currency (colones or dollars) before the transaction, thoroughly documenting the origin and conversion of the funds, formalizing the purchase in a public deed with the price expressed in traditional currency, and complying with all tax obligations arising from both the conversion and the acquisition.
At Mora, Yglesias & Asociados, we advise investors who use digital assets in their Costa Rican operations, coordinating the tax, registry and compliance aspects so the transaction is viable and secure.
Frequently asked questions
Is it legal to buy property in Costa Rica with bitcoin?
There is no express legal prohibition. However, the transaction must be formalized in a public deed with the price expressed in traditional currency, and all applicable tax and due diligence obligations must be met.
Does the National Registry accept deeds that mention cryptocurrencies?
The price in the deed must be expressed in colones or dollars. The form of payment may be mentioned, but the registered value is established in legal tender.
Do I owe taxes for converting my cryptocurrencies?
Converting crypto to fiat may generate a taxable capital gain. The specific tax treatment depends on the circumstances of each case and must be evaluated individually.
Mora, Yglesias & Asociados
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Article written by Lic. Manuel Yglesias Mora, Bar No. 27673, Costa Rica Bar Association, with AI assistance. All content was personally reviewed, edited, and supervised by the author.
This article is for informational purposes only and does not constitute legal advice. For the execution of any action related to the topics discussed, please contact us.
