Costa Rica Tenancy Laws: Complete Landlord Guide
Learn key Costa Rican regulations on residential leases, security deposits, minimum terms, and the General Law of Urban and Suburban Leases (Law 7527).
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.
Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Landlord-tenant laws change frequently. Always consult with a qualified attorney in Costa Rica for advice specific to your situation. Last verified: March 2026.
The rental market in Costa Rica is primarily regulated by the General Law of Urban and Suburban Leases (Law No. 7527), which governs most residential and commercial leases in the country.
Key Aspects of Costa Rican Tenancy Law
| Topic | Primary Rule | Statute |
|---|---|---|
| Minimum Term | Residential contracts have a legal minimum term of 3 years. | Law 7527 |
| Security Deposit | Not limited by law; the common practice is the equivalent of one month's rent. | Law 7527 |
| Rent Increases | In colones, increases are tied to inflation. In US Dollars, increases are not permitted during the term. | Law 7527 |
| Grace Period | Tenants have a 7-day grace period after the due date to pay without penalty. | Law 7527 |
| Eviction | Summary judicial process ("Proceso Sumario de Desahucio"). | Civil Procedural Code / Law 7527 |
Residential Lease Duration
One of the most distinctive elements of Costa Rican law is that the minimum term for residential rentals is three (3) years. If a contract specifies a shorter term (for example, one year), the law automatically extends it to three years for the tenant's benefit.
If the tenant does not give notice of their intention to leave at least 3 months before the end of the three-year term, the contract is automatically renewed for an equal period (another three years).
Contract Currency
It is very common in Costa Rica to set the rent in US dollars (USD) or other foreign currencies; however, Law 7527 has strict rules:
- Rentals in foreign currency: The agreed-upon amount must remain fixed for the entire term of the contract (usually 3 years). Inflation-based increases are not allowed for dollar-denominated residential leases.
- Rentals in colones (local currency): The rent can be adjusted annually based on the official inflation rate of Costa Rica.
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Sources & Official References
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