Costa Rican real estate law. ☎️ What are your property ownership rights?
Buying property in Costa Rica is not only a financial decision — it is also the acquisition of a legally protected right under the Civil Code and the Constitution.
Costa Rica’s legal system guarantees private ownership as one of the most fundamental individual rights. Property ownership — known in legal terms as “dominio” — includes a complete set of powers that the law grants to the owner over a thing.
These powers are not abstract. They determine how you can use, enjoy, modify, defend, and recover your property. Understanding them helps every homeowner and investor appreciate the solid protection that Costa Rican law provides for land and real estate.
The Legal Concept of Ownership (Dominium)
In Costa Rica, the concept of ownership originates from Article 264 of the Civil Code, which defines it as the absolute right a person has over a thing. This right includes five essential faculties:
The right of possession
The right of usufruct (use and enjoyment)
The right of transformation and disposition
The right of defense and exclusion
The right of restitution and indemnification
Together, these powers form what lawyers call the “bundle of rights” that make up full ownership.
Imperfect or limited property
If any of these rights are missing or restricted, the ownership is considered imperfect or limited, as stated in Article 265 of the Civil Code. For example, in a condominium regime, each owner holds exclusive rights over their unit but shares common areas with others. In such cases, ownership is legally limited yet fully recognized by law.
The Costa Rican Constitution complements this framework by protecting private property as a social right. The State may only limit or expropriate ownership for reasons of public utility and with fair compensation, as detailed in specific laws.
In practice, this means that private property in Costa Rica is deeply respected and safeguarded, provided that the owner complies with registration and legal obligations.
Classification of Property Under Costa Rican Civil Law
Before analyzing each ownership right, it is essential to understand how Costa Rican law classifies property. Articles 254 through 259 of the Civil Code distinguish between real property (inmuebles) and personal property (muebles).
Real property includes land, buildings, and all permanent constructions attached to the soil.
Personal property refers to movable items and rights not permanently affixed to land, such as vehicles, furniture, and receivables.
The law also recognizes real rights (derechos reales), which are rights exercised directly over a thing — such as ownership, usufruct, mortgage, and easements.
For ownership of real estate to produce all its legal effects, Article 267 requires that the property be duly registered in the Public Registry of Costa Rica. Registration makes ownership enforceable against third parties and provides public notice of any encumbrances or limitations.
This registry principle is one of the main reasons why property investment in Costa Rica is considered safe. The system’s transparency allows buyers and owners to verify every title, mortgage, and annotation recorded on a given property.
The Bundle of Rights that Compose Ownership
The right of ownership in Costa Rica — known as dominium — is not a single right, but a collection of several legal powers granted to the property owner.
These powers are listed in Article 264 of the Civil Code and form what is known as the bundle of property rights. Each one allows the owner to control, enjoy, modify, defend, or recover their property within the limits established by law.
1. The Right of Possession
Possession gives a person the power to physically hold and control a property. It represents the material aspect of ownership — the ability to live on, use, or maintain the land.
However, Costa Rican law makes a clear distinction between possession and ownership: a person may possess property without being its legal owner. For example, a tenant or a borrower may have possession, but not title.
For a complete explanation of this subject, including adverse possession (usucapión) and how it can create ownership through continuous occupation, please visit our article: Adverse Possession in Costa Rica (usucapión)
2. The Right of Use and Enjoyment (Usufruct)
The right of usufruct allows a person to use and enjoy another person’s property, and to benefit from its fruits, such as rent, crops, or income.
It may exist for a fixed term or for the lifetime of the beneficiary.
According to Articles 287 to 289 of the Civil Code, usufruct can include:
Natural fruits: the products of the land or animals.
Industrial fruits: the results of work and cultivation.
Civil fruits: the rents or financial returns generated by the property.
A usufruct can be granted by a notary public and must be registered in the Public Registry to be valid against third parties. This legal figure is widely used in estate planning, as it allows an owner to transfer property to an heir while keeping the right to live there for life.
3. The Right of Transformation and Diposition
Ownership includes the power to modify, alter, or even destroy property, as well as the right to dispose of it by sale, donation, or mortgage. Articles 290 to 292 of the Civil Code define this as the right of transformation and disposition.
In other words, the owner may freely improve or transfer their property, except where limited by law or public policy.
These rights also support Costa Rica’s system of free private ownership, which can only be limited in cases of expropriation for public utility — and always with fair compensation, as stated in Article 293.
4. The Right of Exclusion and Defense
The right of exclusion gives the owner the power to enjoy their property and to prevent others from interfering with it. This includes the right to demarcate boundaries, build fences or walls, and defend possession through legal means.
Articles 295 to 315 of the Civil Code provide for judicial protection against unlawful interference. For instance, an owner may request injunctions or court orders to stop new construction that threatens their land, or to prevent encroachment.
If necessary, criminal actions can also be pursued when property fraud or usurpation occurs.
5. The Right of Restitution and Indemnification
Finally, the right of restitution and indemnification allows owners to reclaim possession of their property and to recover damages when it has been unlawfully taken or harmed.
Articles 316 to 334 establish that anyone who violates, usurps, or damages another person’s property must return the asset or pay full compensation.
Costa Rican law distinguishes between good-faith and bad-faith possessors:
A good-faith possessor must return the property but is not liable for past rents or deterioration.
A bad-faith possessor must compensate the owner for all damages, lost income, and improvements.
These restitution rights reinforce the broader protection of ownership guaranteed by both the Civil Code and the Costa Rican Constitution.
Legal Protection and Registration of Ownership in Costa Rica
Under Costa Rican law, ownership is not merely a factual possession — it is a legally protected right that acquires full effect through registration in the Public Registry (Registro Nacional). This registry system gives public notice of all property rights and ensures that ownership can be defended against third parties.
The Civil Code establishes that ownership (dominio) is the broadest right over a thing. It includes the powers to use, enjoy, and dispose of it, as long as those acts respect the law and the rights of others. To make those rights effective before the public, any acquisition or transfer of real estate must be registered. Registration confirms title, prevents conflicts, and protects both owners and future buyers.
Costa Rica’s Constitution strengthens this protection. Article 45 declares that property is inviolable, and that no one can be deprived of it except for legally verified public interest and with prior compensation. This constitutional safeguard ensures that any limitation or expropriation must follow due process and preserve the owner’s economic rights.
Through this combination of civil and constitutional norms, ownership in Costa Rica becomes both a private right and a public guarantee of legal certainty. Registration acts as the link between the private domain and the public order — securing transactions, encouraging investment, and maintaining trust in the property system.
For a detailed explanation of how ownership rights are verified during real estate transactions, see our page on Property Due Diligence in Costa Rica.
Ownership Limitations and Encumbrances in Costa Rica
While property ownership in Costa Rica is broad and protected, it is not absolute. Every property right has legal and voluntary limits. These limits exist to balance private ownership with the rights of others and with the public interest.
Under Article 266 of the Civil Code, ownership and its related rights have only two types of limits: those accepted by the owner and those imposed by law.
This means that a property owner may voluntarily grant a mortgage, an easement, or a lease, but also must respect restrictions created by zoning, environmental rules, or registered encumbrances.
Legal Limitations:
Certain restrictions are established directly by law. For example:
Easements (servidumbres): rights that allow neighboring properties to use part of your land, such as for access or drainage.
Zoning and environmental regulations: public law restrictions that define how the property can be used.
Expropriation: the government may acquire private property for public purposes, but only with prior compensation, as required by the Constitution.
These limitations apply automatically and remain valid even when the property changes ownership, as long as they are properly recorded in the Public Registry.
Voluntary Limitations:
Owners may also limit their rights by their own will. Common examples include:
Mortgages: used as collateral for loans.
Usufructs: granting another person the right to use and enjoy the property.
Leases or long-term occupancy agreements.
Registration of Encumbrances:
To protect both owners and third parties, all encumbrances and limitations must be registered in the Public Registry of Property. Once recorded, they become public and can be verified by any potential buyer or lender. This principle of publicity (publicidad ante terceros) ensures legal security in Costa Rican real estate transactions.
For more information about how mortgages and annotations appear in property records, visit our page on Mortgages in Costa Rica.
The Value of Legal Certainty in Costa Rican Property Law
One of the strongest aspects of Costa Rican property law is its legal certainty. The country’s Civil Code and Constitution provide a reliable framework that protects ownership, recognizes registered rights, and gives full transparency through the Public Registry.
When a property is registered, all its rights and encumbrances become public. This allows anyone — owner, buyer, or lender — to confirm the legal status of the land. Such transparency prevents disputes and promotes safe investments.
At the same time, property rights are backed by constitutional protection. No one can be deprived of ownership without due process and fair compensation. This safeguard reinforces trust in the Costa Rican legal system and guarantees that both nationals and foreigners enjoy the same level of protection.
Still, maintaining clear title often requires professional guidance. Before buying, selling, or transferring real estate, it is essential to conduct due diligence and verify all encumbrances through a qualified attorney and notary public.
Proper legal review ensures that your rights remain protected and that your property stays free of hidden limitations or claims. To learn how our firm can help secure your real estate transactions, visit our page on Real Estate Closings in Costa Rica or Escrow Services.
Dr. Christopher Pirie Gil.