Costa Rica is divided into seven provinces San José, Alajuela, Cartago, Heredia, Guanacaste, Puntarenas, and Limon.  Each of the provinces is in turn divided into Cantons. The Costa Rican legislature appropriates all laws for each of the provinces. They can be viewed in print publication or online at http://imprenal.go.cr.

Each province has different laws and customs so a local lawyer with a solid reputation is essential. When buying or selling property in Costa Rica having a lawyer to ensure a clear title is an absolute must. Unlike some other countries foreigner property owners in Costa Rica do not need to purchase property with a partner or through a trust. There are no restrictions on land ownership in Costa Rica except for beachfront property and some protected forest areas.

Each registered property is a Plano Catastrado, or survey plan that shows measurements, size and location, as well as other details, such as whether or not the land is situated in an area with restrictions (ie near a National Park or in Private Development). The Plano Catastrado must be recorded in the National Registry in order for a property to be transferred, mortgaged, or purchased.

Costa Rica is a country that offers squatters rights, although it usually is not a large problem. Having a hands-on approach or building trusted relationships with locals can be essential to maintaining a squatter-free property. Squatters are called “precaristas” in Spanish and can acquire and improve property by right of possession. Many large property holders employ a watchman to report squatters before a property is settled. Most American investors report having few problems with squatters in Costa Rica, but it is still a risk associated with investing in Costa Rica.

Costa Rican land within 150 meters of a municipality is subject to a law in which a Costa Rican citizen must be at least a 50% owner. This land can only be leased. Often this is accomplished by setting up a company in which a Costa Rican citizen is a 50% shareholder. This is a complicated transaction and should only be considered with the counsel of a local attorney.

Beachfront property in Costa Rica cannot be owned and is subject to Maritime Law, or in Spanish, Ley Sobre la Zona Maritimo Terrestre. The Maritime zone is the first 200 meters measured horizontally of the coastline. The first 50 meters are all a “pubic area.” In essence, all beaches are public beaches. The next 150 meters are called a “restricted area” where land can be leased on a temporary basis in a manner similar to the municipal lease rules. Again, this type of transaction will require a specialized local attorney to ensure the investor is protected.

Costa Rica welcomes most foreign investors and even offers financing in some cases, although the majority investors in Costa Rica do not obtain financing. The government is very accommodating to the needs of real estate developers and the laws are designed to facilitate growth while protecting the beauty of the country. However, that doesn’t change the fact that Costa Rica’s laws are very different from those of the United States. Protect yourself by hiring a good attorney.