Travel Costa Rica, fall in love with its green landscapes, warm people, and relaxed lifestyle—but do not buy property without understanding one very important issue: squatters.
Foreigners purchasing land or homes in Costa Rica are often unaware of how serious and complex the squatter problem can be. Many buyers assume that property laws work the same way they do in North America or Europe. Unfortunately, that assumption can lead to expensive, stressful, and long-lasting legal problems.
The best advice is simple but critical:
Never buy property in Costa Rica and leave it unattended.
Let’s explore what squatters are, why they exist, how Costa Rican law treats them, and—most importantly—how to protect your investment.
What Is a Squatter in Costa Rica?
In Costa Rica, a squatter is commonly referred to as a “precario” or “precarista.” A squatter is someone who occupies land or a structure without legal title, but under certain circumstances may still acquire legal rights to that property over time.
This is where many foreign buyers are shocked.
In Costa Rica, squatters have rights. These rights are rooted in long-standing laws designed to protect low-income families and encourage productive use of land. While these laws were created with good intentions, they can create serious problems for absentee landowners—especially foreigners unfamiliar with the system.
Why Squatter Issues Are Common
Squatter problems occur most often on agricultural land, rural property, or undeveloped lots. However, they can also occur in residential areas, particularly when a house or property is left vacant.
Costa Rica has a strong cultural and legal emphasis on land use. If land appears abandoned, unused, or unattended, it may attract people looking for a place to live or farm. Once someone occupies the land, removes brush, plants crops, builds a structure, or installs utilities, the situation becomes much more complicated.
Foreign owners who live outside Costa Rica or visit only occasionally are especially vulnerable.
The Biggest Mistake Foreign Buyers Make
The most common and costly mistake is this:
Buying land or a home and leaving it unattended for long periods of time.
An empty property is an invitation. Even a fenced property can be invaded if it appears unused. Once someone is living on your land, removing them is not simple, fast, or cheap.
Costa Rican law generally does not allow forceful eviction. Everything must go through the courts, and legal cases can take years.
Buying Property with People Already Living On It
One of the most dangerous scenarios occurs when foreigners purchase property that already has a Tico house on it with a family living there.
Before you sign anything, you must do the following:
- Ask the seller for written documentation proving that the people living on the property are legally employed by him.
- Confirm there is a written employment contract stating:
- Their role (caretakers, farm workers, guards, etc.)
- That housing is provided as part of employment
- Have your Costa Rican attorney review this contract carefully.
This step is absolutely critical.
If there is no written contract, or if payments were informal, the occupants may later claim they were not employees but long-term residents—opening the door to squatter claims.
Before You Sign the Purchase Agreement
Before you finalize the purchase:
- Make sure the seller has paid all legally required compensation (severance, benefits, social security) to any workers living on the property.
- Your attorney should verify this before you assume any employment relationship.
- Do not inherit someone else’s labor problem.
Once you purchase the property, unresolved labor or occupancy claims can become your problem, not the seller’s.
If You Keep the Workers After Purchase
If you decide to keep the people living on the property as employees:
- Have your lawyer draft a new employment contract
- Clearly state:
- That housing is provided only as part of employment
- That occupancy ends when employment ends
- Keep written receipts showing:
- How much you pay
- When you pay
- How payments are made
- Register employees properly if required by law
Documentation is your protection.
Why Prevention Is Everything
The golden rule of Costa Rican property ownership is:
Prevention is far easier and cheaper than legal action.
Once squatters establish a presence, they may claim rights based on:
- Length of occupation
- Improvements made to the land
- Agricultural use
- Lack of owner presence
- Utility installation
- Community recognition
In some cases, squatters may eventually seek legal title through possession laws, depending on circumstances and time.
Never Leave Property Unattended
If you must leave Costa Rica for an extended period, never leave your property empty.
Your options include:
- Hiring a caretaker to live on the property
- Renting the property legally
- Having a trusted local person reside there
- Regular physical inspections
Whatever you choose, it must be done under a written contract, reviewed by your attorney.
A simple handshake agreement is not enough.
Why Fences and Signs Are Not Enough
Many foreign owners believe that fencing land or posting “No Trespassing” signs is sufficient. Unfortunately, that is not always true.
If a property looks unused and no one responds to intrusion, squatters may move in regardless of fences. Once inside, the legal process favors occupation over abandonment.
Physical presence is more powerful than signs.
The Legal Reality: Squatters Have Rights
This is the part many buyers struggle to accept:
Squatters have legal protections in Costa Rica.
This does not mean they automatically own your land—but it does mean:
- Evictions must follow due process
- Police cannot simply remove occupants
- Courts may take years to resolve cases
- Legal costs can be substantial
This is why every foreign buyer must work with a qualified Costa Rican attorney, not a real estate agent, not a friend, and not advice from online forums.
Your Attorney Is Essential
Before buying property in Costa Rica, your attorney should:
- Verify clear title
- Check property boundaries
- Investigate occupancy history
- Confirm no informal residents or workers
- Review all contracts
- Explain squatter laws clearly
Do not assume anything. Ask direct questions.
Agricultural Land: Higher Risk
Agricultural land is particularly vulnerable because:
- Cultivation strengthens squatter claims
- Remote locations reduce owner oversight
- Fencing large areas is difficult
- Local communities may support occupants
If you buy agricultural land, active use and supervision are mandatory.
Final Advice to Foreign Buyers
Costa Rica is a wonderful country to live in, retire in, and invest in—but it is not a place to buy property casually.
To protect yourself:
- Never buy property and leave it unattended
- Never rely on verbal agreements
- Always use written contracts
- Work with a reputable Costa Rican attorney
- Understand that squatter laws exist—and are enforced
Buying property in Costa Rica can be safe and rewarding if you are informed and cautious.
Travel Costa Rica, enjoy its beauty, and invest wisely—but remember:
An empty property is a vulnerable property.
A little preparation today can save you years of legal trouble tomorrow.
Pura Vida—but protect your land.