Fraud in Costa Rica and other Defraudations.
Fraud in Costa Rica (fraude, estafa, estelionato) is a group of property offenses regulated by the Costa Rican Criminal Code (Articles 216–224). These crimes protect assets and the security of legal transactions. They punish deception, simulated acts, and unlawful dealings with another’s property or rights.
CPG Legal provides bilingual representation for victims and defendants. This page explains the legal elements of common fraud (estafa) and estelionato. It also lists related offenses and links to dedicated pages for deeper guidance.
Common Fraud in Costa Rica (Estafa):
Under Article 216 of the Costa Rican Criminal Code, estafa is a form of fraud (fraud in Costa Rica). It occurs when a person induces another to act under error through deceit or concealment of truth. The offender seeks to obtain an unlawful financial benefit (beneficio patrimonial antijurídico) for themselves or for a third party. This crime protects the right of every person to decide freely about their property without being tricked by false representations.
Legal nature and protected interest:
Estafa is a crime against property and the security of economic transactions. According to Costa Rican doctrine, the core interest protected is the victim’s patrimony and the trust placed in lawful dealings. The law punishes both active deception and intentional silence that induces a false belief.
Objective elements of the Common Scam:
The objective elements of estafa are clear and cumulative:
Deception (engaño) – the offender creates a false appearance through simulation, distortion, or omission of truth.
Error of the victim (error) – the deception causes a mistaken belief about a fact or situation.
Voluntary disposition (disposición patrimonial) – the victim acts because of that error, transferring money or property.
Patrimonial damage (perjuicio) – the victim or a third party suffers economic loss.
Courts require a direct causal link between the deception and the loss. If the victim acted for other reasons, there is no fraud.
Subjective Element (Criminal Intent - dolo):
The mental element in fraud in Costa Rica (estafa) is intent (dolo). Intent combines both knowledge and will. The offender must know that their actions are deceitful. They must also want to use that deception to obtain an unlawful financial gain (beneficio patrimonial antijurídico). This means the person acts with full awareness that their conduct will induce the victim into error and cause patrimonial harm.
Therefore, dolo requires conscious deception and voluntary participation in the fraudulent act. Negligent behavior or good-faith mistakes do not constitute estafa. The prosecution must always prove that the defendant acted knowingly and intentionally to deceive and cause damage.
Criminal Penalty:
The penalty depends on the amount involved. When the defrauded sum does not exceed ten base salaries, imprisonment ranges from two months to three years. If the sum exceeds that limit, the sentence may reach ten years. The law also increases the penalty by one-third when the offense is committed by a manager or agent of an entity that handles public savings.
The Felony of "Estelionato" (Fraud through Misuse of Property)
Estelionato is a specific criminal offense regulated under Article 217 of the Costa Rican Criminal Code. It punishes a person who, having received payment or any form of benefit, sells or encumbers litigious, seized, or encumbered property, concealing or failing to disclose such circumstance.
It also applies to anyone who, through certain acts, makes another person’s right impossible, uncertain, or litigious, or frustrates the legitimate enjoyment or guarantee of that right. This offense is a form of fraud in Costa Rica that focuses on the abuse of trust and concealment of legal truth in property or contractual relations.
Legal Nature:
Unlike estafa, which centers on active deception to induce a person to transfer assets or property, estelionato punishes fraudulent concealment or misuse of property that is already subject to a legal situation.
It typically arises in civil or commercial contexts — for instance, when a person acts dishonestly knowing that an asset is seized, pledged, or under litigation, yet conceals that fact to obtain a benefit. The protected legal interest is the integrity of patrimonial rights and the security of legal transactions.
Types of Estelionato:
The same penalty established in the previous article (Article 216) shall be imposed, according to the amount of the defrauded property, in the following cases:
1️⃣ A person who, after receiving a payment or benefit, sells or encumbers litigious property, or property that is seized or encumbered, concealing or failing to disclose such circumstance.
2️⃣ A person who makes the right over an asset, or the fulfillment of an obligation related to it, impossible, uncertain, or litigious, when such right or obligation was granted to another person for a price or as security, either through any legal act concerning that asset, even if it does not involve its transfer, or by removing, hiding, or damaging it.
3️⃣ The owner of a movable thing who deprives of it the person who legitimately has it in their possession, or who damages or renders it useless, thereby frustrating, in whole or in part, another person’s right.
The same penalty shall apply to any third party who acts with the owner’s consent and for the owner’s benefit.
4️⃣ A debtor, depositary, or owner of a seized or pledged asset who abandons, damages, or destroys it with the intent to harm the creditor or person who levied the seizure, or who, after being ordered to do so, fails to present it before the judge.
Examples of Estelionato:
Some examples of this type of fraud in Costa Rica, are the following:
1️⃣ Selling or mortgaging property that is under litigation or seizure (Article 217.1)
A person sells a house knowing that it is under a judicial claim, or that it has a mortgage or seizure registered in the Public Registry, and hides that fact from the buyer.
Example: A seller receives payment for a property already seized in a pending case but fails to disclose the judicial annotation.
2️⃣ Making another person’s right over an asset impossible, uncertain, or litigious (Article 217.2)
A debtor pledges the same property twice as collateral to different people.
- An owner sells the property twice. (The initial sale is not filed at the Public Registry, and the owner rushes to sell it agaion to a third party.)
A person removes or damages machinery or a vehicle that was given as security in a contract, making its recovery uncertain.
Example: Someone sells a car that was pledged as collateral and later hides or destroys it to prevent the creditor from enforcing the right.
3️⃣ Depriving the lawful possessor of a movable asset (Article 217.3)
The owner of equipment lent to another person takes it back by force or damages it, despite the borrower having a legitimate right to possess it for a period.
Example: An art collector lends a sculpture for an exhibition, then damages it intentionally to prevent the gallery from completing its contractual right.
4️⃣ Abandoning, damaging, or destroying seized or pledged assets (Article 217.4)
A debtor abandons or hides vehicles that were seized as part of a civil enforcement process, to prevent recovery.
A depositary neglects or destroys property in custody, harming the creditor or seizing authority.
Example: A person under a court order to present pledged machinery deliberately allows it to deteriorate to harm the creditor.
Subjective Element (Criminal Intent - dolo):
As in all forms of fraud, estelionato requires intent (dolo), which implies both knowledge and will. The offender must know that the property is under a legal restriction (litigation, seizure, pledge, or encumbrance) and voluntarily decide to conceal or act against that condition, thereby causing harm to another. Negligence, error, or ignorance of the asset’s legal situation excludes criminal liability.
Other Types of Fraud in Costa Rica:
Costa Rican criminal law regulates several additional offenses that also qualify as defraudaciones or fraud-related crimes. While estafa and estelionato are the most frequent, the Criminal Code also includes other variations designed to protect public trust, contractual integrity, and patrimonial security.
Below are the main types of fraud offenses recognized in Costa Rica:
Insurance Fraud (Estafa mediante Seguro)
This crime occurs when a person damages, destroys, or makes disappear an insured item with the purpose of obtaining an illegal insurance payment or other benefit.
If the person succeeds in obtaining the money, the penalty is aggravated.
Fraud by Check (Estafa mediante Cheque)
This offense applies when someone issues a check without funds, or intentionally frustrates its payment to obtain goods or services. It is treated as a form of defraudation since it involves deception and economic harm.
Fraudulent Administration (Administración Fraudulenta)
A person responsible for managing or caring for another’s assets commits this crime by altering accounts, concealing values, inflating expenses, or misusing funds. This is the Costa Rican equivalent of corporate or managerial fraud (white-collar crime).
Unlawful Appropriation or Retention (Apropiación o Retención Indebida)
This occurs when someone retains or appropriates property or money entrusted to them under a legal duty to return it, such as a deposit, mandate, or loan.
From Traditional Fraud to Cyber Fraud in Costa Rica
While traditional fraud (estafa, estelionato and related offenses) rely on deceit or concealment in personal or commercial relations, modern criminal behavior increasingly uses digital tools to commit the same kinds of economic deception online.
The Costa Rican Criminal Code now recognizes specific computer-related crimes, such as computer fraud (fraude informático, Article 217 bis), data manipulation, and identity impersonation, which form part of the broader category of cybercrime (ciberdelincuencia).
These offenses involve manipulating computer systems, stealing digital credentials, or using malware and phishing to obtain unlawful financial gain — methods that have made Costa Rica one of the most affected countries in Latin America by phishing attacks.
Property Title Theft and Real Estate Fraud in Costa Rica:
A growing form of fraud in Costa Rica involves property title theft — when criminals falsify signatures, identity documents, or public deeds (escrituras públicas) to transfer real estate without the owner’s consent.
These cases often rely on forged documents presented before a notary public or the Public Registry, sometimes involving impersonation of the rightful owner. Foreign and absentee owners are particularly at risk, as fraudsters take advantage of their absence to record false transfers or mortgages.
For a detailed explanation on how to detect and prevent these schemes, visit our page on Real Estate Fraud and Property Title Theft in Costa Rica.
Why Legal Representation Matters
Whether you are a victim or wrongly accused of fraud in Costa Rica, CPG Legal offers bilingual representation in both criminal litigation and civil proceedings.
Our firm assists clients in filing criminal complaints, defending their rights before the Ministerio Público, and recovering assets affected by fraudulent acts..
Dr. Christopher Pirie.