Countries › Costa Rica › Guide › 11. Real estate and land › Expropriation in Costa Rica: public interest declaration, administrative appraisal and court set fair price

Expropriation in Costa Rica: public interest declaration, administrative appraisal and court set fair price

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

The Constitution allows expropriation only for legally proven public interest with prior compensation. The process starts with a published declaration of public interest, followed by an administrative appraisal the owner can accept within five business days or challenge. If challenged, the State deposits the appraisal in the contentious administrative court, can take possession, and the court sets the final fair price.

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

Prior compensation required	Yes textConstitución art. 45, as of 2026-10-30 · in force
Time to accept administrative appraisal	5 business daysLey 7495 art. 25, as of 2026-10-30 · in force

The rule

1. No one may be deprived of property except for legally proven public interest and with prior compensation.Constitución Política, art. 45, 1949-11-07 official text · verified 2026-10-30

2. Expropriation covers any deprivation of property or legitimate economic rights, with prior payment of compensation representing the fair price.Ley 7495, Ley de Expropiaciones, art. 1, 1995-05-03 official text · verified 2026-10-30

3. A reasoned declaration of public interest is notified to the owner, published in La Gaceta and provisionally annotated in the Registro; later transfers or rights do not bind the expropriating body; the annotation lapses after one year without the court's definitive order.Ley 7495, Ley de Expropiaciones, art. 18 and 20, 2017-07-11 official text · verified 2026-10-30 · changed: Ley 9462 of 11 July 2017 restated the declaration and notice rules.

4. The administration requests an appraisal, due within one month, valuing land, buildings, uses, tenants' rights and business activity at the date of the report.Ley 7495, Ley de Expropiaciones, art. 21, 22 and 24, 1995-05-03 official text · verified 2026-10-30

5. The owner has five business days from notice of the appraisal to accept; silence counts as acceptance and the State Notary then drafts the transfer deed.Ley 7495, Ley de Expropiaciones, art. 25, 2017-07-11 official text · verified 2026-10-30

6. Parties may go to arbitration at any stage; if the dispute is only about price under Costa Rican procedure it is an expert arbitration paid by the expropriating body, and possession is not stopped.Ley 7495, Ley de Expropiaciones, art. 26, 1995-05-03 official text · verified 2026-10-30

7. If not accepted, the administration files the special expropriation process with the Juzgado Contencioso Administrativo y Civil de Hacienda and deposits the appraisal; the court orders definitive annotation, appoints an expert, possession follows, and the owner can withdraw the deposit while challenging the price.Ley 7495, Ley de Expropiaciones, art. 28 to 33, 1995-05-03 official text · verified 2026-10-30

8. The fair price is paid in cash unless the owner accepts securities; once the judgment is final any difference is paid immediately.Ley 7495, Ley de Expropiaciones, art. 47, 1995-05-03 official text · verified 2026-10-30

Worked example

A road project declares part of a warehouse lot of public interest. The appraisal arrives within a month; the owner disputes it within five business days. The State deposits the appraised amount with the court and takes possession; the owner withdraws the deposit and continues to litigate the price with court expert evidence, and any higher amount is paid in cash once the judgment is final.

Step by step

Respond within five business days of the appraisal notice or it is deemed accepted.
Collect evidence of land value, business losses and tenant rights.
Withdraw the deposited amount while challenging the price if cash is needed.
Consider expert arbitration on price.

Common traps

Silence is acceptance of the administrative appraisal.
Improvements made after the public interest declaration are only counted if necessary.
Deals registered after the provisional annotation do not bind the State.

Sources

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