Building Your Dream Home in Costa Rica: Key Steps and Considerations

In this article, as part of our ongoing Quatro Legal Real Estate series, we’re going to talk about the ABCs of the building process in Costa Rica.

It’s common for expat investors and clients to search for the perfect lot in Costa Rica to bring their dream home or project to life. However, diving into the building process can feel different from what they are used to back home.

The Stages of Building in Costa Rica

Let’s break down in stages the building process in Costa Rica.

1. Preliminary Stage

The preliminary stage is made up of three important decisions.

Number one: Selecting the right Costa Rica property.

Selecting the right property is where every building process begins. That’s obvious, right? But we can’t stress enough to our clients that when buying property and investing in Costa Rica means ensuring the property is suitable for the development, type of construction and intended use.

This requires conducting a comprehensive legal and technical due diligence to assess zoning and building restrictions, zoning plans, general regulations in the absence of the zoning plan, and even condominium bylaws and covenants.

Number two: Selecting the right Costa Rica design and build team.

Many of the horror stories begin with choosing the wrong design and building teams. And to be fair, the same cautions apply to selecting the wrong lawyer. The most significant issues arise from hiring companies or professionals who lack the necessary knowledge, expertise, resources. and structure to handle the construction job effectively.

This can usually be avoided with some due diligence, research market, seeking reputable referrals, ensuring they are registered with the CFIA, that is the college that oversees architects and engineers, and thoroughly vets their experience and the quality of their work. Opting for the cheapest quotes in an effort to save money or failing to request the essential documents and safeguards for protection during this process is almost always a bad idea.

Number three: Selecting a project manager to build a house or project in Costa Rica.

For certain projects, especially those of significant size and complexity, the role of a project manager becomes indispensable. However, we will address this in an upcoming video.

2. Permitting Stage

This is all about gathering your documents to build a house in Costa Rica. The first line of documents are:

The preliminary studies and technical studies

Preliminary studies consist of essential documents that compile the initial information needed to build or develop a product, a project or house. These documents include soil use certificates, utility availability confirmations, topography reports, soil studies, soil stability analysis, environmental assessments, and more. The preparation of these studies involve lawyers, technical consultants, building teams to ensure the project is thoroughly researched and accounting T

The Project Draft or Anteproyeto

The Project Draft is crafted by the architectural or engineering professional, contractor, or building company. It outlines the elements that establish the project’s identity as well as the project’s geographical location to align with the owner’s interests and requirements.

The blueprints and technical specifications

Blueprints and technical specifications are comprehensive documents that encapsulate the architectural and technical design of a project. They detail every component of the project covering technical aspects and elements necessary for the construction.

The building permits

This is the most critical step in the construction process, involving securing the necessary licenses, authorizations, and approvals to legally proceed with the construction. This process is bureaucratic and relies heavily on the expertise of the consultants, architects, engineers hired by the property owner.

The basic permits that compose the building permits are the following.

1. SETENA

SETENA is the National Environmental Technical Secretary created in 1995 in an effort to create harmony between development and the environment. The most common permits filed with SETENA are D1 and D2 permits. D1 permit is for projects that have a moderate or high environmental impact, and the D2 permit is for projects that have very low environmental impact.

For house building projects, having to apply for a D1 or D2 will depend on the size and complexity of the build.

2. CFIA

CFIA is the architects and engineers federate college. It is the entity that oversees engineers, architects, and their companies. CFIA approves the blueprints and prepares the estimates of costs and value of projects according to their size, finishings, and fixtures.

3. Municipal Permit

The municipalities in Costa Rica are the entities that oversee the administration of a specific territory. Municipalities issue the so-called building permit or building license. The Municipality will receive the blueprint sealed by the CFIA and all complementary documents and upon compliance of regulations on the law, will issue the building permits.

Municipalities will charge 1 percent of the value of the project as a building tax before they issue the license.

3. The Construction Stage

This is the step to build a house in Costa Rica. Once the building permit has been issued by the Municipality and paid, you can actually start to build.

The most important part of the construction stage is choosing the right team for the job, the proper type of contract, confirming the inspection team, and depending on the scale of a project, retaining a project manager. Building your dream house in Costa is indeed a complex and dynamic process. Make sure you are duly counseled and have the right team for the job.

Looking for legal counsel you can trust to make your purchasing property in Costa Rica easier and more rewarding? Get in touch today.

Disclaimer: The information provided in this blog post is for general informational purposes only and is not intended to constitute legal advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change. For the most accurate and up-to-date information, please contact our office directly. Some images may be AI generated.