Costa Rica continues to attract both domestic and international real estate investors thanks to its natural beauty, political stability, and growing economy. In response to increased interest and evolving market demands, the government has introduced new real estate regulations to ensure transparency, legal security, and sustainable development.
Key Updates to Be Aware Of
1. Stricter Due Diligence Requirements
Buyers, especially foreigners, must now meet more stringent legal requirements. This includes verifying property boundaries, checking for zoning compliance, and ensuring there are no existing liens or disputes. Legal professionals are also held to higher accountability in overseeing transactions.
2. Enhanced Transparency Through the Digital Property Registry
The National Registry has upgraded to a more user-friendly digital platform, improving access to accurate and up-to-date property data. This advancement reduces the risk of fraud and makes title verification much easier.
3. New Tax Reporting Obligations
Owners must now comply with updated tax regulations, particularly if they earn income through rentals. The Ministry of Finance requires proper reporting of all real estate income, and penalties for non-compliance have become stricter.
4. Environmental and Zoning Laws
Costa Rica’s environmental policies are now more deeply integrated into real estate law. Development in protected areas is more closely monitored, and zoning restrictions must be carefully reviewed before construction or purchase.
How This Impacts Investors
These updates benefit serious investors by providing a more secure and transparent process. While the initial legal and administrative steps may take more time, they ultimately protect property rights and help maintain the long-term value of your investment.