Countries › Costa Rica › Guide › 16. What is normal abroad but not here › Leases run at least three years, renew automatically and dollar home rents cannot be raised

Leases run at least three years, renew automatically and dollar home rents cannot be raised

Last verified: 2026-10-30 · Status: Stable

Abroad, landlords and tenants usually agree any lease length and indexation they like. In Costa Rica urban and suburban leases last at least three years, a shorter or open term is read as three years, and the lease renews for another three years unless the landlord gives notice three months before expiry. Housing rents in colones may rise yearly only up to inflation (up to 10%), and housing rents in a foreign currency stay fixed for the whole term.

USD figures use the Banco Central de Costa Rica reference selling rate of ₡454.82 per US dollar published for 29 October 2026 (indicator 318 on bccr.fi.cr), rounded to the cent; conversions are for orientation only.

Key facts

Minimum lease term	3 yearsLey 7527 art. 70, as of 2026-10-30 · in force
Landlord notice to avoid tacit three year renewal	3 monthsLey 7527 art. 71, as of 2026-10-30 · in force
Annual housing rent increase cap (colones)	Up to 12 month CPI inflation when it is 10% or less textLey 7527 art. 67, as of 2026-10-30 · in force

The rule

1. A lease may not last less than three years; leases with a shorter or no stated term are deemed agreed for three years, counted from the day the tenant receives the property.Ley 7527, Ley General de Arrendamientos Urbanos y Suburbanos, art. 70, 1995-07-10 official text · verified 2026-10-30

2. The lease is tacitly extended when the landlord has not notified the tenant at least three months before expiry of its wish not to renew; each tacit extension is a new three year period whatever the initial term or use of the property, on the same terms.Ley 7527, art. 71, 1995-07-10 official text · verified 2026-10-30

3. Housing rent is updated at the end of each contract year: if 12 month CPI inflation is 10% or less the landlord may raise it by up to that inflation; above 10% the housing ministry sets the additional increase within limits. Any higher increase is void, and lower agreed increases are valid. Increases apply from the next payment period after notice with the INEC certification.
Example: Rent ₡800,000; if 12 month inflation were 3%, the maximum new rent is ₡824,000. / About US$1,811.71.Ley 7527, art. 67, 1995-07-10 official text · verified 2026-10-30

4. When housing rent is set in a foreign currency, the agreed amount stays the same for the whole term of the contract, with no right to increase.
Example: US$2,000 a month fixed for three years: US$72,000 over the term. / US$72,000, about ₡32,747,040 at the reference rate.Ley 7527, art. 67, 1995-07-10 official text · verified 2026-10-30

Topic	Rule
Minimum term	3 years
Renewal	Automatic for 3 more years unless notice 3 months before expiry
Housing rent in colones	Yearly increase up to CPI (if 10% or less)
Housing rent in foreign currency	Fixed for the whole term

Lease rules that surprise foreign landlords and tenants (Ley 7527).

Worked example

An investor leases a flat for one year in dollars at US$2,000 a month. The lease is legally three years, the rent cannot be raised during it, and if no notice is given three months before the end it rolls over for another three years at the same terms.

Step by step

Plan holding periods and exits on a three year lease cycle.
Diary the three month non renewal notice for every lease.
For housing in dollars, price the three years upfront because no increase is allowed during the term.

Common traps

A one year lease clause does not shorten the legal minimum.
The tacit renewal is for three years whatever the original term.
Short stays through digital platforms follow Ley 9742, see the real estate section.

Sources

Ley 7527, Ley General de Arrendamientos Urbanos y Suburbanos (SINALEVI)

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