Free Trade Zone (FTZ) Regime in Costa Rica – Basic Aspects
The Free Trade Zone (FTZ) Regime is defined, in Costa Rica, as a set of incentives and benefits granted by the government to companies that comply with certain legal requirements and obligations, mainly related to operating in strategic sectors, investment and employment. FTZ beneficiaries can be located inside or outside the Greater Metropolitan Area (GMA) […]
Sustainable Condominium Developments and Communities in Costa Rica
Costa Rica, known for its biodiversity and strong commitment to environmental conservation, has emerged as a leading destination for sustainable development in Central America. Among its most notable initiatives is the growth of eco-friendly condominium developments and communities, which reflect the country’s dedication to preserving natural resources while accommodating a growing population and increasing investment […]
Estate Planning When Owning Assets in Costa Rica
Many foreign individuals who acquire property or other assets in Costa Rica do not initially consider the importance of proper estate planning in the country. However, planning for the transfer of assets located in Costa Rica can be as important—if not more so—than planning in one’s home jurisdiction, particularly due to the distance that often […]
Creation and Registration of Condominiums in Costa Rica
A condominium is a form of real property ownership in which each condo owner holds exclusive ownership over a specific unit within a larger property, such as an apartment, office, or lot (raw land), while simultaneously holding an undivided proportional ownership in the common elements and areas of the property shared with the other condo […]
Construction Contracts in Costa Rica: Key Considerations
A well-structured and comprehensive construction contract is essential to avoid many of the common problems that arise during building projects in Costa Rica. The level of detail and care given to the drafting of such an agreement directly impacts the likelihood that the final outcome will match the expectations of the parties and remain within […]
Why Buyers Should Avoid Signing Informal Commitments in Costa Rica Real Estate Transactions
In Costa Rica, it is common practice for sellers, developers or brokers to request prospective buyers to sign an offer, letter of intent, or reservation agreement, often accompanied by a deposit or reservation payment. However, signing preliminary documents or transferring funds before conducting proper due diligence can expose buyers to unnecessary legal and financial risks. […]
The Importance of a Sale and Purchase Agreement in Costa Rica Real Estate Transactions
Executing a properly drafted Sale and Purchase Agreement (SPA) is a fundamental step in the acquisition of real estate in Costa Rica. This document establishes the clear rules, terms, and conditions governing the transaction, providing legal certainty and protecting the interests of all parties involved. Beyond serving as a roadmap toward closing, the SPA defines […]
Acquiring Real Estate in Costa Rica: Legal Due Diligence
Conducting legal due diligence is a fundamental step when acquiring real estate in Costa Rica. This process is designed to verify the legal status of the property and to identify any risks or contingencies that could affect the buyer’s rights, future use, and/or investment. Proper due diligence goes beyond simply confirming ownership; it provides a […]
Important Real Estate Compliance Obligations in Costa Rica
All property owners in Costa Rica—whether individuals or legal entities—are subject to ongoing compliance obligations before the corresponding Municipality (local government). These obligations apply regardless of whether the property is actively used, rented, or simply held as an investment. Timely compliance is essential to maintain the property in good standing and to avoid legal and […]
Acquisition of a Commercial / Business Establishment in Costa Rica: Risk Mitigation and Key Considerations
When acquiring an already established and operational business in Costa Rica, it is essential to follow the legal structure and procedure set forth in the Costa Rican Commercial Code, known as the Compraventa de Establecimiento Mercantil (Sale and Purchase of a Mercantile Establishment). This procedure is specifically designed to regulate the transfer of ongoing businesses […]