In Costa Rica, individuals and corporations may legally appoint a third party to act on their behalf through a Power of Attorney (“POA”). Powers of Attorney are essential legal instruments widely used in real estate transactions, corporate operations, execution of contracts, application for permits, banking matters, immigration procedures, estate planning, investment structures, and international business operations. Properly drafted POAs provide flexibility, legal security, and operational efficiency for both local and foreign clients conducting business or managing assets in Costa Rica.
Costa Rican legislation establishes several types of Powers of Attorney, each granting different levels of authority depending on the intended purpose and scope of representation. Selecting the appropriate structure is critical to ensure legal validity, adequate protection of the principal’s interests, and compliance with local regulations.
Full and Broad Power of Attorney (“Poder GeneralĂsimo”)
Under Article 1253 of the Costa Rican Civil Code, the “Poder GeneralĂsimo” is the broadest form of representation available under Costa Rican law. It may be granted with or without limitation of amount (“con o sin lĂmite de suma”) and authorizes the holder of the POA to act on behalf of the principal in virtually all legal, commercial, administrative, and financial matters.
This authority may include the ability to buy, sell, mortgage, lease, or otherwise dispose of assets; execute contracts; conduct litigation; manage investments; accept or reject inheritances; and perform most legal actions that the principal could personally execute, except those that by law require personal action or a specific special authorization.
Due to its extensive scope, this type of Power of Attorney must be executed before a Costa Rican Notary Public and registered before the National Registry in order to be fully valid and enforceable against third parties.
Limited Full Power of Attorney (“Poder GeneralĂsimo Limitado”)
Article 1254 of the Costa Rican Civil Code allows for a more tailored version of the Full and Broad Power of Attorney, limiting the representative’s authority to one or several specifically defined transactions or matters. Although restricted in scope, the attorney-in-fact possesses broad authority regarding the particular matters expressly covered by the POA.
This structure is frequently used in corporate transactions, real estate closings, banking operations, investment management, development projects, and commercial negotiations where clients seek flexibility while maintaining greater control over the representative’s authority.
Like the unrestricted “Poder GeneralĂsimo,” this POA must also be registered before the National Registry to be legally effective.
General Power of Attorney (“Poder General”)
Regulated by Article 1255 of the Costa Rican Civil Code, the “Poder General” is primarily an administrative and management power. It authorizes the representative to carry out actions necessary for the administration, preservation, and ordinary management of assets or businesses.
Typical powers granted under this structure include:
- Managing and maintaining assets or business operations;
- Collecting payments and issuing receipts;
- Filing and defending certain legal claims;
- Leasing moveable property under limited conditions;
- Selling perishable or commercial goods;
- Performing legal acts necessary for the ordinary execution of the mandate.Â
This type of POA is commonly utilized for operational management, property administration, business supervision, and ongoing commercial activities where broader ownership powers are unnecessary.
To be fully valid against third parties, this POA must also be registered before the National Registry.
Special Power of Attorney (“Poder Especial”)
Under Article 1256 of the Costa Rican Civil Code, a Special Power of Attorney authorizes the representative to perform only the specific legal action or transaction expressly described in the document. Unlike broader powers, its authority does not extend to related or implied actions unless expressly included.
If the underlying action requires registration, the Special Power of Attorney must be executed through a public deed before a Costa Rican Notary Public. However, unlike broader POAs, registration before the National Registry is not required.
Important Legal and Practical Considerations
When granting a Power of Attorney in Costa Rica, proper legal drafting is essential to avoid unintended authority, operational limitations, or future disputes. International clients should also consider:
- Apostille and legalization requirements for foreign documents;
- Spanish translation requirements;
- Tax and regulatory implications;
- Corporate governance restrictions;
- Duration and revocation provisions; and
- Compliance with Costa Rican anti-money laundering regulations.Â
A carefully structured Power of Attorney can significantly simplify transactions, facilitate remote business operations, and provide legal certainty for individuals, investors, multinational companies, real estate owners, and technology-driven businesses operating in Costa Rica. Professional legal guidance ensures that the selected POA accurately reflects the client’s objectives while remaining fully compliant with Costa Rican law.