Summary
Owning property in Costa Rica is feasible but costly. Although Costa Rica is an established democracy, one must not lose sight of the fact that it is still a developing country and is endowed with certain intrinsic hazards of private land ownership. While there are limited precautions that one may exercise in order to avoid the hazards of the Zona Marítimo Terrestre, squatters, or expropriation, there is no foolproof method of maintaining a legal title to property. A thorough title search at the central depository (Registro Publico) is necessary in order to venify, and if needed, resolve any discrepancies between, the escritura and the catastro. Also, if one plans to reside in Costa Rica, it is necessary to establish legal residency by one of several means available. In Costa Rica, one may possess a legal title to a property. However, maintaining that right is an active process that requires constant attention and supervision. Also, unlike the United States, where the rules governing the purchase of property and zoning restrictions are well-established, Costa Rica, especially in the Zona Maritimo Terrestre, has regulations and restrictions that may evolve over time and may be contrary to the established "rights of occupation" of a given Municipality. If the uncertainties and the vigilance required of property ownership in Costa Rica are not disagreeable to a foreign investor, he/she must still be prepared for the costs associated with maintaining legal ownership of the property. One must also be aware that as an investor in Costa Rica he/she is dealing with a foreign government and therefore foreign laws, all of which are outside of the jurisdiction of the United States goveniment. The United States Embassy continues to be a reliable source of information for U.S. citizens regarding investment practices in Costa Rica and attempts to provide advice and assistance to potential investors, but it cannot guarantee a trouble-free investment experience. We hope that these pointers, along with realistic expectations and goals, can help the prospective investor avoid the hazards inherent in investing in real property in Costa Rica.

Introduction
Costa Rica previously granted generous incentives to foreign nationals wishing to become residents. The lure of its beautiful coasts and the warmth of the people, together with numerous scams, has unfortunately led many Americans to make unwise and ill-investigated real estate investments. The following is a brief synopsis designed to provide a prospective investor with the necessary information for a more thorough investigation of property rights in Costa Rica.

by Marie C. Wold
Revised January 1998 by Steve Olson and Jose M. Quiros