Best Real Estate Lawyers in Costa Rica

About Real Estate Law in Costa Rica

Costa Rica has become a popular destination for both foreign residents and investors interested in real estate. The country offers stunning beaches, lush mountains, and tropical rainforests, which has contributed to growing demand for property ownership and development. Real estate law in Costa Rica is governed by a civil law system, and while the process is open to both locals and foreigners, it is vital to follow certain legal procedures to ensure a secure transaction. Most properties in Costa Rica are registered with the National Public Registry (Registro Nacional), which provides detailed information about property ownership and liens. This transparent system makes it possible to verify a property's status before purchasing or selling. However, the legal landscape can still be complex for those unfamiliar with local practices, especially when dealing with issues such as concession land, zoning regulations, and inheritance rights.

Why You May Need a Lawyer

Many individuals and businesses seek legal assistance for real estate matters in Costa Rica. Here are some common situations where a lawyer's expertise is essential:

• Purchasing or selling property to ensure the transaction is legally valid and all documents are in order
• Conducting due diligence to verify clear title, existing liens, and compliance with zoning laws
• Drafting and reviewing real estate contracts, lease agreements, or powers of attorney
• Handling inheritance or transfer of property through wills or succession processes
• Dealing with disputes over property boundaries, ownership, or adverse possession
• Navigating the complexities of concession property, particularly in maritime zones
• Assisting with permits for construction, renovation, or land development
• Advising on tax implications and fiscal responsibilities related to real estate

Local Laws Overview

Some of the most important aspects of real estate law in Costa Rica include:

• Public Registry System: Nearly all properties must be registered at the National Public Registry. The registry records ownership, mortgages, liens, and other property rights. A property lawyer can help you obtain a current title search (certificación literal).
• Concession Land: Properties located within 200 meters of the high tide mark on the coast are considered concession land and are not titled in the same way as private property. Foreigners may face restrictions on acquiring this type of land.
• Property Ownership: Both foreigners and nationals can own titled property in Costa Rica. Ownership is typically in fee simple, which grants full rights to the property.
• Transfer Process: All property transfers must be executed before a Costa Rican notary public, who is the only professional authorized to register real estate transactions. Notaries prepare the deed (escritura pública) and file it with the registry.
• Due Diligence: This process includes a title search, review of municipal and national land use, checking for liens or encumbrances, and ensuring the property is not affected by special restrictions.
• Real Estate Taxes and Fees: Property owners must pay yearly property taxes (0.25 percent of the registered value) and sometimes a luxury home tax. There are also fees for registration and legal services during transactions.
• Zoning and Building Permits: Municipalities issue land use permits (uso de suelo) that specify allowed activities. Construction requires additional permits and compliance with environmental regulations.
• Rental Laws: Costa Rica has laws protecting tenants and establishing the rules for rental agreements, whether commercial or residential.

Frequently Asked Questions

Can foreigners own property in Costa Rica?

Yes, foreigners have the same rights as Costa Rican nationals to own titled property, except for certain limitations on concession land in the maritime zone.

What is the National Public Registry?

The National Public Registry is the official government office where property titles, liens, and other interests are recorded and verified. It is essential to confirm property information through this registry before any transaction.

What is concession land, and how is it different from titled property?

Concession land is typically found within 200 meters of the mean high tide line along the coast. Unlike titled land, it is leased from the government for a defined period and comes with additional restrictions, especially for foreigners.

What are the steps to purchasing property in Costa Rica?

The main steps include identifying the property, conducting a title search, drafting and signing a purchase-sale agreement, executing the transfer in front of a notary public, and registering the new ownership at the National Public Registry.

How do I verify if a property has a clear title?

A property lawyer can obtain a literal certification (certificación literal) from the National Public Registry that shows all ownership, mortgages, liens, and encumbrances on the property.

Are there annual property taxes in Costa Rica?

Yes, property owners are required to pay a yearly property tax (impuesto sobre bienes inmuebles) equal to 0.25 percent of the registered value, payable to the local municipality.

How are real estate contracts formalized in Costa Rica?

Contracts, including purchase-sale agreements and leases, should be prepared or reviewed by a lawyer. Property transfers must be signed before a notary public, who registers the transaction on the public record.

Do I need a corporation to buy property?

While individuals can own property directly, some buyers opt to purchase property through a Costa Rican company for liability protection or estate planning purposes. A lawyer can advise if this is suitable for your situation.

What protections exist for tenants?

Tenant rights are protected under Costa Rican rental laws. Contracts typically define the length and terms, but the law establishes minimum guarantees and procedures for evictions or rent increases.

What should I do if a property has an existing mortgage or lien?

Any existing mortgage or lien must be settled and released before the property changes ownership. Your lawyer will coordinate with the seller and lenders to ensure all encumbrances are addressed before closing.

Additional Resources

Several organizations and governmental bodies provide helpful information and support for real estate matters in Costa Rica:

• National Public Registry (Registro Nacional): Maintains property records and public information on property titles and liens
• Ministry of Housing and Human Settlements (MIVAH): Oversees housing policy, development, and some zoning issues
• Municipal Governments: Responsible for land use permits, property tax collection, and local requirements
• Costa Rican Bar Association (Colegio de Abogados): Directory of licensed attorneys and information about legal professionals
• Real Estate Boards and Associations: Sector resources for licensed real estate brokers and agents
• Embassies and Consular Services: Many embassies provide guides or references for foreigners interested in real estate

Next Steps

If you need legal assistance with a real estate matter in Costa Rica, consider the following actions:

• Identify your specific needs, such as buying, selling, leasing, or resolving disputes
• Gather all available property documents, including title information and permits
• Consult a qualified Costa Rican lawyer who specializes in real estate for guidance
• Request a detailed explanation of the legal process, fees, and potential risks
• Do not sign or commit to any agreement before a legal review by your attorney
• Ensure all transactions are completed through the proper legal channels with appropriate registration at the National Public Registry

Taking these steps will help protect your interests and ensure a smoother experience when dealing with real estate in Costa Rica.