Challenging Land Release Rule

As of March 12, a regulation will come into effect in Costa Rica that forces landowners with a surface area of more than 900 square meters to cede 10% of the area of their properties to local governments when they segregate them.

Monday, February 10, 2020

The new rule, which is included in the regulations issued by the National Institute of Housing and Urbanism (INVU), will apply to land located in cantons without a regulatory plan.

Learn more about CentralAmericaData's "Feasibility Studies of Real Estate Projects".

Article 10 of the Fractioning and Urbanization Regulations explains that "... when 10% of the area to be transferred is between 90 m2 and 250 m2, the transfer can be made on site, or the municipality can request the transfer of the area in another property that it determines according to its needs. If the area to be assigned is May to 250 m2, the assignment of the area must be done on site."

There are opinions that criticize these measures adopted. Marco Zuñiga, executive director of the College of Surveyors, told that "... The wording of the norm is confusing and from our analysis it is abusive. With this it makes a new definition of 'segregation for urban purposes', so if I segregate a 1,000 m2 lot I have to give 100 m2 to the municipality, if my neighbor segregates another 1,000 m2 lot he has to give another 100 m2 to the municipality... in one street there could be up to seven playgrounds."

The article adds that "... These rules will not apply equally to all cantons, as they are applicable to those territories that do not have a regulatory plan, a situation in which 42 of the country's 82 municipalities are located."

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Guatemala: Progress in Road Works

September 2018

Congress has approved a land expropriation law to conclude construction of 15 kilometers of road on the main route to Chimaltenango.

The project in question, which is being run by the Ministry of Communications (CIV), consists of the construction of a new road section that will connect from kilometer 48 to 61 of the road that leads to the west of the country, in order to free up traffic in the municipalities of El Tejar and Chimaltenango.

Land Prices in the Colon Free Zone

July 2012

The valuation of the lots has produced values described by businessmen as "very high".

An article in reports “the most expensive lots are concentrated in the old part of the free zone, with valuations of between $400 and $925 thousand. Te cheaper lots are in France Field, Coco Solito, Coco Solo and the future development area. These areas were built on filled-in sea and mangrove swamps. "

Panama: Incentives for Updating Property Value

July 2009

Property tax would decrease from 2% to 1% for those who willingly update the value of their properties in the civil registry.

With these modifications to property taxes, the government of Panama is looking for taxpayers to update the value of their lots and properties, in order to increase collection. With the modifications, an estimated $250 million could be collected, up from the $80 million being collected now.

Squatters in Costa Rica

April 2008

Costa Rica is all too familiar with the problem of squatters – in fact, they are perfectly legal.

Throughout many countries of the world, they occur primarily in urban areas where urban decay exists or in rural areas where vast amounts of land can be owned, but not fully occupied.

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