Countries › Costa Rica › Guide › 11. Real estate and land › Residential and commercial leases in Costa Rica: three year minimum, rent increases and eviction

Residential and commercial leases in Costa Rica: three year minimum, rent increases and eviction

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

Ley 7527 governs every lease of urban and suburban real estate for housing or business; its tenant protections are public order and cannot be waived. All leases last at least three years and roll over for another three unless the landlord gives three months' notice, while tenants can leave on three months' notice. Housing rent in colones can rise yearly by inflation up to 10%; rent agreed in dollars stays 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.

Key facts

Minimum lease term	3 yearsLey 7527 art. 70, as of 2026-10-30 · in force
Annual cap on colón housing rent increases (inflation at or below 10%)	CPI of prior 12 months textLey 7527 art. 67, as of 2026-10-30 · in force
Indexation of housing rent agreed in US dollars	None during the term textLey 7527 art. 67, as of 2026-10-30 · in force
Tenant notice to end lease	3 monthsLey 7527 art. 72, as of 2026-10-30 · in force

The rule

1. The law covers all written or oral leases of real estate used for housing or business; it is public order and tenant rights cannot be waived.Ley 7527, Ley General de Arrendamientos Urbanos y Suburbanos, art. 2, 3 and 4, 1995-07-10 official text · verified 2026-10-30

2. Excluded: hotels and guest houses, tourist homes and premises in ICT designated tourist zones rented by season, market stalls, parking, advertising space and gratuitous loans.Ley 7527, Ley General de Arrendamientos Urbanos y Suburbanos, art. 7, 1995-07-10 official text · verified 2026-10-30

3. No lease can be shorter than three years; shorter or open ended leases are deemed to be for three years from delivery.Ley 7527, Ley General de Arrendamientos Urbanos y Suburbanos, art. 70, 1995-07-10 official text · verified 2026-10-30

4. Unless the landlord gives notice at least three months before expiry, the lease renews tacitly for three more years; the tenant can end the lease on three months' notice unless agreed otherwise in writing.Ley 7527, Ley General de Arrendamientos Urbanos y Suburbanos, art. 71 and 72, 1995-07-10 official text · verified 2026-10-30

5. Rent is freely agreed and paid monthly with a seven day grace period; rent agreed in foreign currency can be paid in colones at the BCCR selling rate on the payment date; for housing the landlord cannot demand more than one month in advance.Ley 7527, Ley General de Arrendamientos Urbanos y Suburbanos, art. 57 and 58, 1995-07-10 official text · verified 2026-10-30

6. Housing rent is adjusted at each contract anniversary by up to the past 12 months' CPI when inflation is 10% or less; above 10% MIVAH sets the extra increase; higher increases are void; rent in foreign currency stays fixed for the whole term.Ley 7527, Ley General de Arrendamientos Urbanos y Suburbanos, art. 67 and 68, 2016-04-04 official text · verified 2026-10-30 · changed: Ley 9354 of 4 April 2016 froze foreign currency housing rents for the full term.

7. For non housing leases the parties agree how and when rent is adjusted; failing agreement a court or arbitrators can set it each year.Ley 7527, Ley General de Arrendamientos Urbanos y Suburbanos, art. 69, 1995-07-10 official text · verified 2026-10-30

8. The landlord can terminate for non payment, damage, change of use or condominium breaches, and recovers possession through the desahucio eviction process under the Código Procesal Civil.Ley 7527, Ley General de Arrendamientos Urbanos y Suburbanos, art. 114 and 121, 1995-07-10 official text · verified 2026-10-30

9. Leases can be registered against the finca at a registry fee of 0.1% of the value.Ley 4564, Aranceles del Registro Nacional, art. 2(c)(1), 1970-04-29 official text · verified 2026-10-30

Worked example

An office is leased in October 2026 for one year at US$3,000 a month. By law the term is three years. If the landlord does not give notice by July 2029 it renews for three more years. The tenant may pay each month in colones at the BCCR selling rate (₡1,364,460 at ₡454.82). Had the space been a dollar rent home, the rent could not rise during the term.

Step by step

Write the lease, state use, rent currency, adjustment formula and who pays services.
Diary the three month notice before each expiry.
Take a guarantee; it covers rent and all lease obligations unless agreed otherwise.
For tourist rentals check whether the property is in an ICT tourist zone exclusion or under Ley 9742.

Common traps

A one year lease is legally a three year lease.
Missed non renewal notice locks the landlord in for another three years.
Dollar rent for housing cannot be indexed.
Waivers of tenant rights are void.

Sources

← Condominiums in Costa Rica: Ley 7933 regime, common areas, dues and assembliesShort term rentals in Costa Rica: Ley 9742 registration with ICT and Hacienda →

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