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.

Corruption in the Courts

Uncovering Property and Title Fraud in Costa Rica: How Corrupt Networks Target Foreign Owners

Costa Rica has long been a popular destination for foreign investors and expatriates seeking to own a piece of paradise. However, beneath the country’s lush landscapes and tranquil beaches lies a serious issue that threatens property owners—title fraud. Corrupt rings of lawyers, notaries, and even judges have been exploiting legal loopholes and weak enforcement to unlawfully transfer ownership of properties, often preying on absent foreign investors. In recent years Costa Rican nationals, some Europeans, and other unscrupulous scammers have been circling the opportunities for property theft in Costa Rica.

The Rise of Property Fraud in Costa Rica

Title fraud is a growing concern in Costa Rica, particularly among foreign property owners who are often unaware of the legal risks associated with their assets. Organized crime networks have infiltrated the legal and judicial systems, using fraudulent documentation and corrupt officials to seize ownership of valuable land. The process typically involves:

1. Identification of Vulnerable Properties – Fraudsters target properties owned by absentee landlords, foreign investors, or deceased individuals whose heirs may not be aware of the property’s status.

2. Collusion with Notaries and Lawyers – Corrupt notaries create fraudulent property transfer documents, while unethical lawyers ensure that these documents appear legitimate.

3. Judicial Manipulation – With connections inside the judicial system, these criminal networks can fast-track fraudulent ownership claims or delay legal challenges from rightful property owners.

4. Property Resale and Laundering – Once ownership is fraudulently obtained, the criminals often sell the property to unsuspecting buyers, sometimes laundering the proceeds through multiple transactions.

Notable Cases of Title Fraud and Judicial Corruption

The "Madre Patria" Mega-Case

One of the most significant property fraud cases in Costa Rica, known as "Madre Patria," came to light in June 2024. Authorities arrested 35 individuals, including a Spanish national believed to be the ringleader, along with several lawyers, notaries, and even a judge. The scheme involved fraudulent registrations, money laundering, and corruption in property transactions. (Read more on The Tico Times). In the recent "Madre Patria" case, Costa Rican authorities arrested 35 individuals involved in a property fraud and money laundering scheme. Among those detained were several legal professionals, including notaries and lawyers. The alleged ringleaders are two Spanish nationals with the surnames Gómez González and León Muñoz. The legal team reportedly included a lawyer named Martínez Parada, who collaborated closely with the organization. Other legal professionals involved were Fernández, Berrocal, Seeman, Rojas, and Leiva. Additionally, notaries González Jiménez, Mora Bonilla, González Pinto, Garita Quirós, Prendas Matarrita, and Castro Segura were implicated in the fraudulent activities. A judge from Desamparados was also arrested for allegedly providing legal advice to the criminal network. These individuals are accused of orchestrating the illegal acquisition of approximately 300 properties, primarily targeting absentee foreign owners. QCOSTARICA.COM

This case highlights the importance of vigilance and due diligence for property owners in Costa Rica, especially those residing abroad. Regularly monitoring property records and collaborating with reputable legal professionals can help safeguard against such fraudulent schemes. 

Surge in Title Fraud During the COVID-19 Pandemic

With travel restrictions in place during the COVID-19 pandemic, many foreign property owners were unable to visit Costa Rica, leaving their properties vulnerable to fraud. Criminal networks took advantage of the situation by impersonating owners and executing unauthorized transfers. Reports indicate that these frauds intensified in recent years, causing financial losses and legal disputes. (Read more on Garro Law)

Government and Judicial Responses

In an effort to address judicial corruption and prevent further fraud, Costa Rica's Supreme Court passed the Judicial Sanctions Regime Law in December 2024. The law strengthens disciplinary measures for judicial misconduct, extends investigation timelines, and allows criminal evidence to be used in disciplinary proceedings. These reforms aim to curb corruption within the judicial system and restore trust in property transactions. (Read more on Costa Rica Law)

Despite these measures, tensions between the executive and judicial branches have escalated, with President Rodrigo Chaves publicly criticizing judicial authorities over ongoing corruption investigations. (Read more on El País)

How to Protect Yourself from Title Fraud in Costa Rica

For property owners and investors in Costa Rica, safeguarding real estate assets requires vigilance and proactive legal measures:

• Regularly Monitor Your Property Records – Check the National Registry (Registro Nacional) to ensure your property remains in your name.

• Hire a Trusted Local Attorney – Work with a reputable, independent legal expert to oversee transactions and legal filings.

• Secure Your Title with Additional Protections – Some legal services offer title insurance and monitoring services to alert you to any unauthorized changes.

• Be Wary of Unsolicited Offers or Legal Notices – Fraudsters often initiate contact with property owners under false pretenses to manipulate transactions.

Conclusion

While Costa Rica remains an attractive destination for property investment, the risks associated with title fraud and judicial corruption cannot be ignored. Foreign investors and property owners must stay informed and take proactive legal measures to protect their assets. With ongoing judicial reforms, the government is making efforts to combat corruption, but vigilance remains the best defense against fraudulent schemes.

Have you experienced property fraud in Costa Rica? Share your thoughts and experiences in the comments below.

Common Mistakes that Landlords Make

As unbiased as we think we are…we still are subject to our subconscious biases. This is a scientific fact that we hold biases about people whether we believe we do or not. When landlords look over prospective applicants for their rental properties, they are bound by those same biases. Often a landlord will choose a tenant based on how like they are to themselves, or how they can see themselves in that prospective tenant. For example, if the landlord was a young professional who had worked hard to acquire their assets, they may look favorably at an applicant who presents as a young professional. Or if the landlord has a family, they may look at an applicant who is raising a family in a more favorable light. When in fact these characteristics say nothing about whether this potential renter will be responsible, ethical, or reliable. Rather, a landlord will project their own values on someone who seems to have similar attributes to themselves. This is called implicit bias in psychology and this applies to everyone, it is a mental shortcut and is prone to errors. This bias develops in all of us as our brain seeks out patterns in an overwhelming world, and unfortunately, we feel like we just “know” things about a person when we really don’t at all. We all are subject to implicit attitudes and stereotypes and this affects all aspects of our lives.

It is for this reason that perhaps when interviewing potential tenants it is wise to hand that over to a property manager or at least get a second or third set of eyes on the applicants. That way you reduce the odds of your personal biases clouding or informing your decisions about something as important as who you will let live on your property. As we have discovered, making a poor choice in tenants can be time-consuming and costly. Unlike when you hire the wrong person for a job, you cannot just fire your tenant. Tenants have rights and the law in Costa Rica tends to favor tenants due to their inherent perceived (legitimate or not) vulnerability.

We often attribute certain characteristics to someone based on their gender, age, nationality, or cultural/religious orientation. When in actuality those details do not pertain to a person’s character or integrity at all. Perhaps you assume that an older person would tend to be more responsible than a younger person, when in reality age does not account for character. I will give the case of a landlord who lowered their rent to accommodate a single senior man under the assumption that a single tenant of advanced age would likely be more reliable and do less damage than say for example a large family of 5 with pets. It turns out that this senior gentleman not only damaged the property significantly but was extremely difficult to rehome. Those implicit biases were at play when the landlord had made the choice to rent to them. They had projected what their experience was with the elderly in their own family. They may have projected that this senior would take early bedtime, be routine or fastidious, reliable, harmless, or similar elder stereotypes based on the patterns they had seen. Perhaps if they had based their decision solely on credit history, references, and the ability to pay the full rent asked, they likely would have chosen differently.

Another trap landlords fall into the trusted information bias trap. This is the phenomenon where if a stranger tells you a piece of information you receive it with reasonable skepticism but if a friend or “trusted source” tells you the same piece of information you are far more likely to take it as a fact. When it comes to potential renters, we have seen endless scenarios where tenants were vouched for by a landlord’s friends or family, only to find out that those opinions were incorrect or unfounded. Often a landlord won’t even do their diligence about a potential tenant if they are vouched for by a trusted source. Nothing gets ugly faster than when you trust the judgment of someone close to you simply on their word and it turns out they misled you or were misinformed themselves about a tenant’s character.

Do yourself a favor, and hire a property management company to process potential rental applicants. They act as a more unbiased filter for your business and they are more accountable for the results as that is their job to audit potential renters and protect their clients. If you are reading this and saying, “Ahh, I wish I had done this before I was in the position I am now with these bad tenants!” remember this is all a learning experience and there are laws to protect you and your property too.

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

Rent Scams

You manage to buy your dream house in Costa Rica and you hope to spend your winters or retirement there or perhaps you want to move the whole family down. You are not alone! Costa Rica draws dreamers, surfers, celebrities, and retirees alike to its equatorial beauty. Known for its green living, longevity, permanent sunshine, and pura vida (pure life). There are over 140,000 expats living in a country with a population of 5.1 million people. That’s almost 3% of the country comprising mostly people from the USA, Canada, and Europe seeking the sun and laid-back lifestyle of Costa Rica. There are 3 million visitors each year and so many of those that visit get the bug and start to dream of moving to Costa Rica one day.

Not only does Costa Rica attract dreamers, artists, body worshippers, nature lovers, surfers, and thrill seekers, it also attracts schemers, cons, and escape artists. Not to be harsh, but a good friend told me years ago when I first moved to Costa Rica, “Don’t Google the gringos!”. At the time it seemed like a funny aside or maybe a bit of xenophobia or resentment of the gringo invasion. Fair enough I thought. But time has proven it was more of a proverb to live by than a quippy comment. Do not Google the gringos because 5 out of 10 times you will find that your new neighbor has a past they are trying to forget.

Places like Costa Rica are dreamy and otherworldly and hold the promise of reinvention or escape. Most of us are wanderers, seekers, and explorers at the very least or we wouldn’t find ourselves far from home learning a new language and navigating torrential tropical downpours and outrageously potholed moonlike roads with no guardrails. Even the beaches, the world’s finest in my humble opinion belie the power and dangers of the rip. Costa Rica draws seekers who shirk the status quo and you are guaranteed to meet some awesome like-minded people. That being said it is also a haven for crooks and cons due to the anonymity of easy LLC forming here, a complete lack of addresses, and lax laws. One can disappear here or use it as an opportunity to take advantage of a whole new pool of victims.

When deciding to rent to anyone, do your research. Get references, run their background online, use a PI service, or even check with your local bounty hunter to find out if your potential tenants are legit. Rent scams are rampant, particularly in Guanacaste province which attracts the most expats (illegal immigrants depending on your politics).

Here are a few examples of popular rent scams;

1/Pay first and last month’s rent, then don’t pay again knowing that it may take months or even a year to evict a tenant. This is exactly why the new monetario arrendamiento law was created and allows for expedited eviction for non-payment of rent.

2/Provide fake rent deposit receipts. If you are a foreign owner meaning you do not have your residency, then you cannot send or receive SINPE which is an electronic transfer using your cell phone. Only residents of Costa Rica have this banking privilege and it is the most common form of money transfer there. So a tenant may scam you by showing that a deposit was made knowing full well that you cannot receive the funds. Insist that tenants send you a copy of the bank transfer via email each month and that it is not verbal, via text, and that it is not SINPE.

3/There are shady lawyers who will accept payment to bog down the eviction process for clients to get “free” rent. This means that if your rent is $3000/month some shifty unethical lawyers will take 50% on the terms that they will bog down the courts with useless paperwork and defenses buying the tenant time to stay rent-free at your property. That being said, the tenant still has to pay the lawyer the 50% (1500/month in this case) to buy them time. Either way, it’s a bargain for the renter while you do not earn any income for your property.

4/ Exorbitant or fraudulent repair bills can act as a shield or be deducted from paying rent. One horror story I heard was a tenant who claimed the pool wasn’t working properly and offered to call a repair person for the landlord. This seemed like a proactive helpful thing to do. But then the tenant showed up with a pool repair invoice for $15,000, essentially saying they have a $15,000 rent credit. This landlord could not prove the receipt was a forgery and was stuck with these tenants living rent-free while they litigated. For your knowledge, all repairs need be approved by the landlord and no permission should be given to the tenant to undertake and invoice for any repairs to protect you from this scam. If repairs are needed you have 10 business days to attend to them except in the cases of natural disaster.

5/Tenants might accept or agree to a short-term lease such as a “green season” lease at a reduced rate and then claim that your short-term lease is invalid and they are entitled to stay for 3 years under Costa Rican law. Thus getting a real rent bargain and prohibiting you from using your property as you see fit.

My best advice is to definitely Google the gringos and if that doesn’t turn up anything, dig a bit deeper. Check with their references, and go to their former landlords or employers. This can be tricky because many potential renters you will encounter are retired, self-employed, or independently wealthy. But you have to do your research. If they are from the USA or Canada it can be easier to find out people’s info, but if they are from another non-English speaking country consider using a VPN or searching in other languages to optimize your search. It may seem like a hassle or a bit too nosey but it will save you a headache in the long run.