The Buying Process
Common and Avoidable Problems
Expropriation
If the Costa Rican government can prove, in court, that public interest requires land to be taken from private hands, then upon payment of the assessed value of the property, the government can take your land. There have been cases where foreign owners have not been property compensated upon expropriation, but there are only a few such cases recorded. Many of these were before 1995 when there was no direct law pertaining to these circumstances. Today, it is uncommon for an issue like that to arise.
Ley de Expropriation was passed in 1995 which laid out the exact procedure and legal obligations of all parties involved with expropriation. This law enabled foreigners to have international arbitration rights, improved compensation and restricted the circumstances that allow for expropriation. Regardless, it is important to check the Registry for future zoning and planing to avoid dealing with these problems.
Expropriation is done by the Costa Rican government to create nature reserves and national parks. Infrastructure improvements like road building or power plants may cause expropriation as well.
Expropriation is deemed necessary by having a 2/3 vote in the Legislative Assembly where they agree that it is in public interest to take the land. Most recently, this has been done for the Liberia International Airport and hydro-electric power plants in Guanacaste.
For those buying rural plots it is important to make sure that you are not near a small airstrip that is being upgraded or land that is designated as reservoir land.
