Countries › Costa Rica › Guide › 11. Real estate and land › Border strip and inalienable state land in Costa Rica

Border strip and inalienable state land in Costa Rica

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

Besides the coast, the Ley de Tierras y Colonización reserves several kinds of land to the State unless already privately titled: a 2,000 m strip along the Nicaraguan and Panamanian borders, river and spring margins in water supply watersheds, and areas around volcanoes. These lands cannot be acquired by occupation or possession. Occupants of the border strip pay property tax on their buildings and a municipal canon for the land.

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.

Key facts

Inalienable state strip along land borders	2000 mLey 2825 art. 7(f), as of 2026-10-30 · in force

The rule

1. Until the State decides which land it will keep, the following are inalienable and cannot be acquired by claim or possession, except where held privately with legitimate title: the 200 m coastal strip (now ruled by Ley 6043), river and spring margins feeding populations, zones around listed volcanoes, a 2,000 m strip along the borders with Nicaragua and Panama, land needed for hydropower and seasonal wetlands used as watering holes.Ley 2825, Ley de Tierras y Colonización, art. 7, 1961-10-14 official text · verified 2026-10-30

2. Concessionaires, permit holders and occupants of the border strip pay property tax on their buildings; for the land a municipal canon applies.Ley 7509, Impuesto sobre Bienes Inmuebles, art. 6(c), 1995-05-09 official text · verified 2026-10-30

3. Concessionaires and occupants of the border strip are also taxpayers of the solidarity tax on luxury homes.Ley 8683, Impuesto Solidario para el Fortalecimiento de Programas de Vivienda, art. 3, 2008-11-19 official text · verified 2026-10-30

Worked example

A foreign investor finds an attractive farm near the Panama border. The title search shows part of the land falls inside the 2,000 m border strip and is not covered by a legitimate private title, so that portion cannot be bought; any use would be through state permission, and buildings there pay property tax.

Step by step

Plot the property against the border, rivers and watershed maps.
Confirm the title predates or is otherwise legitimately outside the reservation.
Ask the municipality and the competent state agency what permit regime applies to occupied state land.

Common traps

Possession for years does not create ownership of inalienable state land.
Old titles near borders and rivers should be checked carefully for legitimacy.

Sources

← Forests, rivers and water rights on Costa Rican land: protection strips and concessionsIndigenous territories in Costa Rica: land that non indigenous buyers cannot acquire →

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