Rent Increases in Costa Rica

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.

Rent Increase Regulations

The rules on rent increases in residential properties in Costa Rica vary depending on the currency in which the rental price is fixed in the contract, according to the General Law of Urban and Suburban Leases.

Contracts in Foreign Currency (Primarily US Dollars)

For leases where the price is set in a foreign currency (e.g., US Dollars), the rule is extremely strict: The rent is unmodifiable for the entire term of the contract (which by law is a minimum of 3 years for housing). There can be no annual adjustments for inflation for residential contracts under this modality.

Contracts in Costa Rican Colones (Local Currency)

For rents agreed upon in colones, the price can be readjusted annually, but it is subject to the following limits linked to interannual inflation, according to the reform to Law No. 7527:

• If the interannual inflation (Consumer Price Index - CPI calculated by INEC) of the preceding 12 months is 10% or less, the landlord can apply a maximum increase equivalent to the CPI percentage in that period.
• If the interannual inflation is higher than 10%, the Ministry of Housing and Human Settlements (MIVAH) will set the additional applicable percentage, never exceeding the inflation rate.

Important: Any rent readjustment will take effect from the next rental payment after being duly notified to the tenant in advance.