When people first hear that they can earn income by lending money in Costa Rica against property, the natural next question is: is that actually legal? It is a sensible question, especially for anyone new to the country. The short answer is yes. Private loans secured by property are a normal, lawful part of Costa Rica’s economy. There are rules, though, and following them is what keeps you on the right side of the law.
Lending money is legal. How you do it matters.
Costa Rica does not stop private individuals from lending their own money to a borrower in exchange for interest, with the loan secured by property. What the law regulates is how lending is done: who is lending, how often, where the money comes from, and whether someone is taking in other people’s money to lend it out.
Our sister company GAP Investments has arranged private property-backed loans since 2008. Each loan is made by the lender, in the lender’s name, secured by titled property registered in the National Registry, with the lender in first position.
Rule one: SUGEF registration for regular lenders
Costa Rica’s anti-money-laundering law, Law 7786, lists activities outside the banking system whose providers must register with SUGEF, the financial supervisor. Article 15 bis covers people and companies that grant credit in an organized, habitual way. In plain terms, if you lend as a regular activity, expect to register with SUGEF. A small one-off loan may be treated differently.
Registration is not a banking licence. It is an anti-money-laundering registration: you identify yourself, explain the source of your funds and keep proper records. GAP Investments walks lenders through what is involved and can refer them to independent Costa Rican attorneys who prepare the filing. Start with the SUGEF guide for private lenders and the free checklist.
Rule two: lend your own money, not the public’s
Costa Rican law reserves financial intermediation to entities authorized by law and by SUGEF. Intermediation means habitually taking in money from the public to lend it out on your own account and at your own risk. That is why the structure matters. With GAP Investments, you lend your own funds directly to the borrower, the mortgage is in your name, and the borrower pays you. GAP arranges the loan. It does not take in your money to lend on its own account.
Rule three: report the income
Interest is income, and Costa Rica taxes income earned here. Keep records of every loan and payment, and speak with a Costa Rican accountant about how to report it.
Rule four: fit it to your residency
You do not need Costa Rican residency to lend through GAP. Lenders of any nationality are welcome. But if you live in Costa Rica as a resident, your category comes with its own conditions. Immigration law says temporary residents, including pensionados, rentistas and investors, may carry out only the paid or profit-making activities that the Dirección General de Migración y Extranjería (DGME) authorizes. Permanent residents may work in any paid activity.
Lending your savings is investing, not a job, but the law does not name this kind of income specifically. So have CRIE check how it fits your category before you rely on it. It takes one conversation and gives you peace of mind.
How to spot an offer that is not legitimate
Be wary of anyone who:
- promises a guaranteed or risk-free return;
- asks you to send money to a pooled account instead of funding a specific, documented loan;
- offers rewards for recruiting other investors;
- will not let you see the property, the title or the loan documents;
- pressures you to decide quickly.
A real loan has a real borrower, a real property and documents prepared by a Costa Rican attorney or notary.
Frequently asked questions
Can a foreigner lend money in Costa Rica?
Yes. GAP Investments works with lenders of any nationality, and residency is not required to lend.
Do I have to register with SUGEF for one loan?
The registration requirement is aimed at lending as an organized, habitual activity. Read the SUGEF guide and ask an attorney about your situation.
Who holds the mortgage?
You do. With GAP Investments, the loan and the first-position mortgage are in the lender’s name.
Next steps
For lending, WhatsApp GAP Investments at +506 4001 6413 or email info@gap.cr. For residency questions, WhatsApp CRIE at +506 8706 3888, call +1 305 906 6784 (USA) or +1 416 900 5773 (Canada), or email info@crie.cr.
This article is for general information only and is not legal, tax or financial advice. Laws and regulations can change; confirm current requirements with SUGEF, DGME, the Ministry of Finance or a Costa Rican attorney before acting. Lending involves risk, including loss of principal.