Building a custom home is an exciting process. Make your dream a reality by building smart and educating yourself about Costa Rican laws and regulations. Follow our tips to avoid common pitfalls, and remember to always ask plenty of questions. Professional architects and construction companies will welcome your comments and answer any questions with knowledge and respect.

Housing Regulations and Restrictions:

• • Along both the Caribbean and Pacific coasts, the first 200 meters (656 ft.) above mean high tide is owned by the government. No building is permitted within the first 50 meters (164 ft.) above this mark. Note: This regulation is very important when purchasing oceanfront property. Be sure to purchase legal land only.

• • 50-200 meters (164-656 feet) above mean high tide may be leased from the local municipality pending approval from the Costa Rican Tourism Board (Instituto de Turismo). Per Costa Rican law, foreigners cannot legally lease this area.

• • You cannot build a house within 50 to 100 meters (164 ft. to 328 ft.) of a river.

• • Most municipalities require new properties to leave space for sidewalks. Check with local authorities for your area’s specifics.

• • The ICT discourages the construction of any building over three stories high in beach areas.

• • Housing developers should keep in mind that Costa Rican law allows only 60-70% of your land to be used for building lots. 20-25% must used for roads and 5-20% for parks.

Building Tips:

• • Contractors get a discount on materials. They may be tempted to purchase materials with the best discounts. Double check to be sure that they're using the materials you agreed upon and paid for.

• • If you have a nice view from your property, play it smart. Purchase the land around it to preserve that view.

• • Get a bilingual Costa Rican friend to talk to sellers about property and prices. Foreign accents can raise prices. • Many homes in Costa Rica have only 120-volt service to the home.  Often, even the 120-volt service is low capacity, perhaps as low as 15 amps for the whole home. If you plan to use heavy duty appliances (such as a dryer) or need more amperage, talk with your construction foreman in advance.

• • Costa Rican law does not require electric wires to be earth grounded. If you plan to use expensive appliances – televisions, computers, etc. – you should arrange for your electrical system to be earth grounded

• • Water faucets are often reversed here: in Spanish, caliente means hot, so many contractors confuse the C-labeled faucet knob (“cold”) for hot.

• • Insist on higher-quality, wider plumbing. Often, narrow pipes are utilized for their affordability, but this can cause plumbing problems in the future.

• • If you rehire people who worked for the previous owner, make sure s/he paid them properly. You, as the new owner, could be liable for a previous owner’s debts.

• • If a telephone line comes with the property, hang on to it. New telephone lines may take months to arrive to a new home.

• • If you are a landlord, you can evict tenants only if you can prove that you need the property for personal use. You cannot evict tenants as long as they pay their rent on time. By law, rent in colones can be increased only by 15% annually, unless stated otherwise in the lease. Rent in dollars may only be increased every three years.