How to Develop a Costa Rica Condo Project

The initial focus of any successful condo project in Costa Rica should be placed on site selection. There are many sub elements that are involved in this task for example, proximity to desirable geographic features (ocean, lake, river, volcano, etc.), and proximity to an international airport, availability of basic infrastructure such as roads, water, power, grocery stores and restaurants.

However, one of the most important concepts that can make or break a condominium project in Costa Rica and is perhaps the least understood, has to do with the presence or absence of a particular type of road.

Specifically, the presence or absence of a “calle publica” or public road. Under Costa Rica law, land can only be subdivided and developed (all or in part) into a condominium project ifthe original parcel of land touches a public road.

This means that should you purchase a parcel of land that is accessed only through an agricultural road (servidumbre) you will not be able to subdivide the land into condominium lots or otherwise develop a condominium project. In fact, the smallest subdivision of land allowed in this instance is 5,000 m2 of 1.24 acres.

Costa Rica is struggling somewhat with this concept, at least in my view as a foreigner coming from the U.S. where this is a very well defined form of real estate ownership. The primary issue in my opinion is their attempt to regulate land use zoning, subdivision infrastructure requirements and condominium association management regulations all within the framework of a single law.