Real Estate Legal Guidance in Costa Rica
About Abogado Malvado
Our Vision
We designed this site with the hope of helping others avoid the EVIL LAWYER "ABOGADO MALVADO" making some very costly and needless mistakes that we made. With over 15 years of experience in dealing with Costa Rica Realtors and Lawyers, assuming laws are similar throughout the World or that Realtors and Lawyers in Costa Rica are bound by similar ethical standards. . . WOULD BE A HUGE MISTAKE
Costa Rica is a beautiful and captivating Country and the local people are some of the most loving and generous people anywhere in the World. It can be a great place to purchase property for investment, vacation or retirement but it's imperative that you go into this with the right people on your team! In my experience those people are very few and far between in an industry that is virtually unregulated. Our hope is that we ALL WORK TOGETHER to inform one another of the GOOD GUYS and the BAD GUYS to make purchasing property in Costa Rica as wonderful as the Country! Please feel free to email us with any of your experiences so we can share with others on this website!
The "Realtor" in Costa Rica
Costa Rica does not legally require real estate agents to be licensed, trained, or regulated by the government, allowing anyone to act as a broker. While no national licensing exists, reputable agents often join private associations like CRGAR or CCCBR for professional standards. All commissions are subject to a 13% VAT, and a public notary is required for legal closing.
- No Mandatory Licensing: There is no government-mandated license for real estate agents in Costa Rica.
- No Official MLS: The market lacks a centralized Multiple Listing System (MLS), although some associations are working to develop one.
- Voluntary Associations: Groups like the Costa Rica Global Association of Realtors (CRGAR) and Cámara Costarricense de Corredores de Bienes Raíces (CCCBR) provide ethical guidelines, but membership is not mandatory.
- SUGEF Registration: To comply with anti-money laundering laws, agents/brokers operating in Costa Rica must register with SUGEF (Superintendencia General de Entidades Financieras).
- VAT on Commissions: Real estate agents must charge a 13% Value Added Tax (VAT/IVA) on their commissions.
- Role of Notary: A Costa Rican public notary (who is an attorney) is legally required to close the transaction, ensuring title transfer, but this is separate from the agent’s role.
The "Lawyer" in Costa Rica
Practicing law in Costa Rica requires a law degree (Licenciatura), registration with the Colegio de Abogados y Abogadas de Costa Rica, and passing a mandatory bar exam. Foreign-trained lawyers must have their degrees validated by a local university and pass ethics exams. The system is civil law-based, often requiring attorneys to also be authorized as Notaries Public to draft and authenticate documents. Key aspects of practicing law in Costa Rica include:
- Licensing and Requirements: To act as an attorney, one must be a citizen or legal permanent resident, or obtain a work visa, which can be challenging. The Bar Association (Colegio de Abogados) oversees licensing.
- Role of Notaries: In Costa Rica, the legal profession has a "duality" where most attorneys are also Notaries Public, allowing them to handle conveyances, wills, and public instruments.
- Legal System: The country follows a civil law system (European-Continental tradition) without a jury system; trials are presided over by judges.
- Market and Specialization: There are over 25,000 attorneys, with a sophisticated legal market. Common practice areas include corporate, real estate, labor, and immigration law, often supporting foreign clients.
- Ethics and Confidentiality: Attorneys must adhere to strict professional ethics and confidentiality standards.
- Compensation: The average gross salary for a lawyer in Costa Rica is approximately ₡34,805,660 per year, as of 2026.
Foreigners must go through a lengthy degree validation process with a Costa Rican university to practice.
