The country's Ministry of Public Security said in a statement that the aircraft went down in Guanacaste, a province in the country's northwestern corner popular with worldwide tourists.
The Costa Rican government says that a plane believed to be carrying 12 people has crashed in a wooded area.
A statement from the ministry said 10 foreign passengers and two Costa Rican crew members were aboard the plane belonging to Nature Air.
Authorities said that so far they had only a list of passengers provided by the airline and were awaiting official confirmation of their identities.
The plane crashed in Guanacaste Corozalito Costa Rica killing all 12 people onboard
"We can confirm the death of multiple U.S. citizens in an airplane crash in Costa Rica on December 31, 2017", a U.S. State Department spokesperson said.
It was not immediately clear what caused the crash, which occurred early Sunday afternoon in Nandayure, a region in Costa Rica's Guanacaste province. "We express our condolences to all those affected by this tragedy".
Enio Cubillo, the director of Costa Rica's civil aviation agency, told local news media that the aircraft was operated by the local company Nature Air. They said within minutes after takeoff the plane took a nose dive and crashed.
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