When Paradise Attracts Crime: How Foreigners Are Testing Costa Rica’s Laws

Costa Rica is world-renowned for its natural beauty, peaceful culture, and relaxed way of life. With its rich biodiversity, stable democracy, and friendly population, it has long been considered a sanctuary for those seeking a slower, more meaningful existence. Unfortunately, the country’s reputation as a safe haven has attracted not only retirees, digital nomads, and entrepreneurs—but also a growing number of foreign criminals who mistakenly believe Costa Rica is a soft target for illegal activity.

Drawn by the same factors that appeal to law-abiding expats—minimal visa restrictions, relatively lax oversight in remote areas, and a legal system that can often be slow and overwhelmed—these individuals see an opportunity to exploit the system. They assume that Costa Rica’s peaceful reputation equates to weak enforcement. In reality, while Costa Rica enjoys a lower crime rate compared to its neighbors, it faces persistent challenges in safeguarding its borders, protecting its natural resources, and keeping up with the complexities of transnational crime.

Over the past several years, Costa Rican law enforcement has uncovered a troubling rise in serious crimes committed by foreigners. As much as 10% of annual crime in Costa Rica is being committed by foreign nationals. What once may have been isolated incidents have evolved into full-scale operations involving:

Recent Cases: Foreign Crimes in Costa Rica

• November 2024 – Canadian and U.S. Nationals Arrested for Drug Trafficking
  Two foreigners were arrested in a large drug trafficking operation, suspected of violating Law 8204, which targets narcotics, psychotropics, and money laundering. (AM Costa Rica)

• March 2023 – Canadian Citizens Busted for Marijuana Cultivation
  A pair of Canadian nationals were detained for operating a clandestine cannabis grow operation, directly violating Costa Rica's strict anti-narcotics laws. (AM Costa Rica)

• 2023 – Credit Card Fraud in Guanacaste
  Two Canadian citizens were arrested in Playas del Coco for running a credit card cloning scheme, facing charges under Article 217 of the Penal Code, which covers financial fraud. (The Costa Rica News)

• January 2024 – Belgian National Arrested for Femicide
  In a shocking case, a Belgian citizen was arrested on suspicion of femicide following the death of a woman in Santa Teresa, a popular beach town. Femicide is a particularly serious charge under Law 8589, which enhances penalties for gender-based killings. (AM Costa Rica)

• December 2024 – German Citizen Accused of Environmental Crimes
  Authorities arrested a German man accused of committing crimes against Costa Rica's protected ecosystems, including unauthorized development in restricted zones, in violation of Law 7554 (the Organic Environmental Law) and wildlife protection statutes. (AM Costa Rica)

• February 2025-Luxembourgian Citizen Accused of Fraud

  Authorities are investigating a couple in Guanacaste for violating Articles 216–221 of the Penal Code. Accused of falsifying records, documents, money laundering, and bribery.

Why Do These Criminals Target Costa Rica?

Many foreign criminals see Costa Rica as an easy mark, due to:

• Perceived weak enforcement of laws.

• Corruption loopholes in local governance.

• Slow judicial processes that can delay trials for years.

• High volumes of transient tourists that provide cover for illegal operations.

Laws Commonly Violated by Foreign Offenders:

• Law 8204 – Narcotics, Psychotropics, and Money Laundering.

• Law 8589 – Criminalization of Femicide and Gender Violence.

• Law 7554 – Environmental Protection and Land Use.

• Articles 216–221 of the Penal Code – Financial fraud, identity theft, and cybercrimes.

• Immigration Law 8764 – Illegal residency and visa abuses.

Time to Strengthen the System

The pattern of criminal activity by foreigners in Costa Rica has become impossible to ignore. What may have once been dismissed as isolated incidents are now part of a clear, disturbing trend. From high-level drug trafficking operations and large-scale financial fraud to environmental destruction and violent crimes, foreign nationals are increasingly appearing at the center of some of Costa Rica’s most serious criminal cases.

While Costa Rica remains an overwhelmingly peaceful nation—treasured worldwide for its commitment to democracy and social stability—these high-profile cases are sounding an alarm. They make it clear that the government can no longer rely on its historic reputation alone to safeguard the nation. Instead, proactive steps are needed to protect the country from those who seek to exploit its hospitality and relative legal flexibility. To address this growing threat, Costa Rica must consider the following urgent reforms:

1️⃣ Tighten Residency and Visa Vetting Procedures

Costa Rica's generous residency programs have long been a draw for retirees, remote workers, and investors, but they have also unintentionally opened the door for individuals seeking to use legal status as a cover for illicit activity. Stricter background checks on applicants, especially those from countries with high incidences of organized crime, are essential. This includes deeper collaboration with international law enforcement databases such as Interpol and Europol to flag those with criminal histories before they gain legal status in Costa Rica. Increased scrutiny of business investments, shell companies, and unusually large financial transactions tied to visa applications can also help prevent the abuse of the residency system.

2️⃣ Increase Resources for Environmental Protection Enforcement

Costa Rica’s greatest asset—its natural beauty and biodiversity—is under constant threat, not just from corporate interests but increasingly from foreign individuals engaging in illegal development, poaching, and land exploitation. Crimes like unauthorized construction in protected areas, illegal logging, and destruction of wildlife habitats are often carried out quietly in remote regions, making enforcement difficult. More funding for agencies like SINAC (National System of Conservation Areas) and MINAE (Ministry of Environment and Energy) is critical. These agencies need personnel, technology (like drones and satellite monitoring), and legal backing to detect, stop, and prosecute environmental crimes, no matter the nationality of the offender.

3️⃣ Accelerate Judicial Processes for Serious Crimes

One of Costa Rica’s most persistent challenges is its slow-moving judicial system. Major criminal cases, especially those involving property fraud, environmental crimes, and organized crime, can take years to resolve. In the meantime, accused individuals—many of whom are foreigners—have the time and resources to flee the country, tamper with evidence, or continue their operations. Establishing specialized fast-track courts for high-stakes criminal cases involving foreigners, along with expanding prosecutorial teams focused on transnational crime, would significantly reduce delays and prevent manipulation of the legal process.

4️⃣ Enhance International Cooperation to Track Repeat Offenders

Many of the foreign nationals arrested in Costa Rica are not first-time offenders. Some are part of broader criminal networks that operate across borders, shifting from country to country to evade law enforcement. Costa Rica must prioritize bilateral agreements and real-time intelligence sharing with partner nations, particularly those with high numbers of expat residents in Costa Rica, like Canada, United States, Germany, France, Spain, and Belgium. Strengthening extradition treaties, enhancing joint investigations, and creating blacklists of individuals barred from re-entering Costa Rica after deportation are crucial next steps to stop career criminals from using Costa Rica as their next safe haven.

Preserving the True Pura Vida

Costa Rica's identity is built on peace, sustainability, and community. But allowing it to become a playground for international criminals risks that legacy. By holding foreign offenders accountable and reinforcing its legal frameworks, Costa Rica sends a clear message: No one is above the law—local or foreign. If Costa Rica fails to act decisively, it risks becoming known not only as a paradise for tourists and retirees but also as a loophole destination for organized crime. Protecting the nation’s peace and ecological treasures requires modern, aggressive reforms that show the world—and those seeking to exploit it—that Costa Rica is not for sale, and it is not to be played.

Tenant Protections in Costa Rica

Like in other countries, tenants have rights and are protected in Costa Rica. Tenant rights are primarily governed by the General Law of Urban and Suburban Leases (Ley General de Arrendamientos Urbanos y Suburbanos), which outlines the responsibilities and protections for both landlords and tenants. There are some interesting challenges to note regarding the unique protections afforded to tenants.

1/ Protection for low-income housing. If your property value is under $100,000, it is considered by law to be low-income housing. There are greater safeguards to protect tenants in a property designated as low-income housing. During an eviction, the courts require an appraisal of your property from the municipality registrar to determine its designation and what set of lease laws apply.

2/ Protection for seniors. Cuidadano de Oro “Golden Citizen” is a program that provides free or supported service, front-of-the-line service, and discounted, and expedited service in government institutions to the elderly registered in this program. All seniors, including non-Costa Ricans who have lived in Costa Rica for 3 years can be eligible for this program. As long as their residency is in good standing, expats are eligible.

3/Tenants have a right to a 3-year lease minimum under the General Law of Urban and Suburban Leases. If a landlord wishes to terminate the lease they must give at least 3 months notice prior to the end of the lease or the lease automatically renews. This is important to note that if the lease you are drawing up is shorter term, your property must be registered with the ICT (tourism board) as a holiday rental. As well, the lease must state that it is a holiday rental.

These details are important to note before you agree to a lease with a potential tenant. You need to know if your property or the tenant fall under any special protections by the courts. As well, you need to cover your bases when determining the type of lease that you draw up, particularly if it is a short term lease, have a lawyer look over the agreement and make sure your property is designated for tourism. This will offer you greater protection if you find yourself in the unfortunate position to evict a tenant. If you property is not designated for tourism, then you are subject to the General Law of Urban and Suburban Leases (Ley General de Arrendamientos Urbanos y Suburbanos).

The Psychology of System Abusers: Why Some People Exploit Rental Agreements

In the rental market, most tenants and landlords engage in honest, mutually beneficial relationships. The landlord has a property they would like to generate income to maintain and the renter needs housing. However, a small subset of individuals deliberately exploit rental agreements, choosing not to pay rent or honor contracts. Understanding the psychology behind these behaviors can help landlords and property managers recognize red flags and take proactive measures.

Why Some People Choose to Exploit Rental Agreements

Several psychological and situational factors contribute to why some individuals refuse to respect rental contracts or pay their rent:

1. Entitlement Mentality. Some individuals possess a deep-seated sense of entitlement, believing they deserve free housing without reciprocating the agreed-upon terms. They may rationalize their actions by blaming landlords for charging "unfair" rent or convincing themselves they are owed something by society.

2. Opportunism and Moral Flexibility. Certain individuals actively look for loopholes in rental agreements and take advantage of landlords who may be inexperienced, overly trusting, or lenient. They justify their actions by exploiting ambiguities in contracts and local tenant protections.

3. Financial Hardship and Rationalization. Economic difficulties can lead tenants to deprioritize rent payments in favor of other necessities. While some individuals communicate their struggles, others choose to avoid payment entirely, rationalizing it as a temporary necessity that they may never address.

4. Pathological Lying and Manipulation. Individuals with narcissistic or antisocial tendencies often manipulate situations to their advantage. They might fabricate hardships, manipulate sympathy, or present themselves as victims to avoid fulfilling their obligations.

5. Cultural and Legal Exploitation. In regions with strong tenant protection laws, such as Costa Rica, some tenants become well-versed in legal loopholes and procedures that allow them to extend their stay indefinitely without paying. They exploit delays in the eviction process and use bureaucracy to their advantage.

The Avatar of a Rent Scammer in Costa Rica

A typical individual who engages in rental scams in Costa Rica often exhibits the following characteristics:

Background: Frequently an expatriate or a well-traveled individual who understands local legal systems and uses them to their advantage.

Personality Traits: Charming, persuasive, and adept at building trust quickly to secure rental agreements.

Behavioral Patterns: Moves frequently, leaving behind unpaid rent, damages, or disputes with previous landlords.

Financial Habits: Presents a facade of wealth but lacks verifiable sources of income.

Excuses: Cites unexpected personal or financial issues to delay payments indefinitely.

Profile of Someone Who Would Attempt to Take Over a Property

A person attempting to seize another's property often fits the following psychological and behavioral profile:

Personality Type: Highly manipulative, with narcissistic or sociopathic tendencies that enable them to exploit trust and authority.

Knowledge Base: Well-versed in local property laws, squatter's rights, and legal loopholes that can delay or prevent eviction.

Strategy: Gradually assumes control by offering to "help" manage the property, taking over responsibilities, and creating dependency on their presence.

Communication Style: Overly assertive, employing intimidation tactics, or subtly undermining the property owner's authority.

Warning Signs: Resistance to signing formal agreements, reluctance to leave when asked, and persistent excuses to avoid accountability.

How Landlords Can Protect Themselves

To prevent rental scams and property takeovers, landlords should:

Conduct Thorough Background Checks: Verify financial stability, employment, and rental history.

Require Legal Contracts: Use legally binding agreements with clear terms and consequences. Get a good lawyer to draft your contract.

Limit Leniency: Avoid verbal agreements or excessive grace periods for non-payment.

Monitor the Property: Regular check-ins and communication with tenants can help identify early signs of potential issues.

Know the Law: Understanding local tenancy laws and consulting with legal professionals can provide a solid defense against exploitation.

By understanding the psychology of those who exploit rental agreements and being proactive in their approach, landlords can safeguard their properties and investments effectively.

Unfortunate Corruption

Costa Rica is a breathtaking country, renowned for its stunning landscapes, warm and friendly people, and an exceptional lifestyle. It’s no wonder that few visitors leave without dreaming of how they might return—or even relocate—before their flight home.

My first trip to Costa Rica in 2001 was nothing short of mind-blowing and eye-opening. I vividly remember that first morning: sitting in smooth, sturdy Guanacaste wooden chairs, the gentle Pacific breeze brushing against my face as a symphony of birds filled the air. Breakfast was an unforgettable experience—fresh starfruit, melon, and the sweetest papaya I had ever tasted, all enjoyed from a shaded table overlooking a volcanic rock beach. This felt like paradise, a version of life I hadn’t imagined possible.

From that moment on, the dream of returning to Costa Rica was born. The thought of spending every day surrounded by this climate, sunshine, and vibrant energy became an intoxicating vision. Years of persistent dreaming and countless return trips eventually culminated in building a life in Costa Rica—a true testament to what dreams are made of.

Living the dream is exactly that—a dream—but it doesn’t always account for the realities of life. Reality has a way of reminding you that you’re not just dreaming; you’re living in a world filled with other people, each with their own agendas and perspectives, often different from your own.

In my experience, most people I’ve encountered in Costa Rica are incredible—fun, friendly, talented, hospitable, and generous. However, as with anywhere in the world, you’re bound to come across individuals who are less than honorable—morally bankrupt opportunists who challenge the idyllic vision.

You may encounter individuals in Costa Rica who are on the run from the law in their home countries or even hardened criminals. Some locals, known as Ticos, might resent foreigners and wish them ill, while others may see expats as easy targets—a cash cow or a naïve "gringo" to exploit. Likewise, you might come across other expats taking advantage of loopholes in Costa Rica’s legal system, disregarding the country's laws or acting as though those laws don’t apply to them.

Costa Rica is a country on a rapid growth trajectory, perhaps growing faster than the government can effectively manage. This rapid expansion creates opportunities for individuals with bad intentions to exploit the system. At the same time, a widening wealth gap has left many people vulnerable to exploitation or influence, which can, unfortunately, breed corruption and bribery.

I say this with reluctance, as the vast majority of people in Costa Rica are wonderful—kind, generous, and welcoming. However, my personal experiences have shown me that corruption and bribery do exist, often driven by these societal challenges.

Let’s consider, for example, the traffic stops enforced by police in Costa Rica. While they may appear to be routine speed traps or passport checks for illegal migrants, my personal experience has shown a different side. On multiple occasions, I’ve encountered police officers who openly demanded cash or goods to let me pass or avoid a speeding ticket. This isn’t an isolated incident; locals and expats in the know often advise keeping $10 in cash visible in your car. This small sum can be taken discreetly, potentially preventing the police from asking you to open your wallet or belongings for more.

Similarly, corruption extends to utility companies. It's not uncommon for employees to accept off-the-books payments to set up accounts, change ownership details, or bypass the account holder entirely. The theft of utility meters is a frequent issue, particularly in operations like illegal grow houses or informal settlements (shantytowns). In these cases, utility workers may be bribed to overlook infractions or tamper with accounts. Border and airport security are also susceptible, and given the drug trafficking routes running through Costa Rica from Colombia, money often speaks louder than regulations.

Another concern lies with notaries and certain unscrupulous lawyers who exploit the system for financial gain. For instance, some notaries have been known to file false paperwork with the national registry to facilitate the theft of property titles. One notable case involved a couple living in San José, who discovered upon returning from vacation that someone they trusted had conspired with a shady notary to transfer the title of their home. They are now embroiled in a legal battle to reclaim their property.

Additionally, corrupt lawyers can manipulate the judicial process by paying off judges or court staff to misplace documents, delay cases, or obstruct justice. Civil lawsuits are particularly vulnerable, with legitimate cases often tied up in procedural delays or dismissed altogether. It’s not uncommon for cases to drag on for years, sometimes over a decade, before reaching a conclusion.

Real estate transactions in Costa Rica also require extra caution. There is no formal licensing system for realtors and no professional body to regulate them. This lack of oversight makes it essential to conduct thorough research and work with a competent, trustworthy lawyer. A good lawyer can ensure that your title, deed, and contracts are properly registered and in order, safeguarding your investment from potential fraud or mismanagement.

Link to read about issues of corruption in Costa Rica.

Why Courtroom Corruption Has Costa Rica Concerned

Costa Rica Struggles to Curb Perceived Corruption Levels

Costa Rica Real Estate Fraud - Help! They stole my property

The 3 year lease!!!

Costa Rica has a unique minimum lease term of 3 years! That’s right, you read that correctly. If you sign a lease with a tenant for 1 year, 6 months, or 2 weeks it is not considered valid based on the General Law of Urban and Suburban Leases, Law No. 7527. The term minimum is 3 years for housing (art. 70). Although the contract indicates a shorter period, as it is a provision of public policy, it is considered not established and the 3 years will apply. Unless your property is registered with the ICT (Costa Rican Tourism Board) and your property is known as a holiday rental or short-term tourism accommodation. Otherwise, your lease no matter the terms is only recognized as a 3-year lease term by the courts in Costa Rica. When drawing up any lease, have an experienced lawyer look at it before signing anything. Make sure for any short-term lease you have the wording “vacation rental” written in your lease and make sure your property is registered with the ICT. This is the only way to protect you from a tenant outstaying their lease.

Basically, if you have a tenant who agrees to stay 3 months but then they decide not to leave, you cannot get them out. Particularly if the tenants continue to pay their rent every month, you will not have much legal ground to evict them. If you have a three-year lease term, you must notify the tenants in writing in advance of the lease expiration that you do not wish to renew the lease. Otherwise, the lease just self renews and you might be stuck with them for another 3 years.