COSTA RICA Law and Practice Contributed by: Germán Pochet Ballester, BioIuris
17.3 Key Issues in Environmental Due Diligence Land use and zoning conflicts are among the most significant environmental legal risks in Costa Rica, particularly in real estate acquisitions, development projects, and agricultural or tourism investments. Local governments are responsible for establishing zoning plans that define the permitted land uses within their jurisdictions. However, they either lack updated zoning plans or may be overlapping regulations with environmental authorities. During due diligence, it is common to find that properties intended for one use are located in areas not zoned for such activi- ties or where additional environmental approvals are required. Another frequent issue concerns alterations of pro- tected ecosystems. Under the Forestry Law, wetlands, forest cover and riparian zones are legally protected, and any intervention (such as tree cutting, drainage or construction) requires prior authorisation from the competent authorities. Unauthorised alterations may constitute environmental damage, triggering restora- tion obligations and potential sanctions. In coastal areas, transactions often involve additional com- plexities under the Maritime–Terrestrial Zone, which establishes a 200-metre public zone measured from the high-tide line. Within this zone, private ownership is restricted, and concessions granted by municipali- ties are subject to strict environmental and land-use conditions. Therefore, in property or asset transactions, it is essential to conduct a comprehensive review of zon- ing plans, land-use certificates, cadastral maps and environmental assessments to ensure that the prop- erty is not subject to restrictions or encroachments into protected ecosystems. Failing to identify such issues may expose the purchaser to significant legal, financial and reputational risks, including the obliga- tion to restore altered habitats or face revocation of environmental or municipal permits.
ronmental due diligence in Costa Rica includes the following. • Verification of environmental permits and licences, such as environmental viability, wastewater dis- charge permits and solid waste management plans. • Review of compliance records for the property at the National Registry to identify pending adminis- trative or judicial proceedings. • Site inspections to assess contamination risks, improper waste management or unauthorised land use. • Review of environmental management plans and monitoring reports to verify ongoing compliance with environmental obligations. • In real estate transactions, the due diligence often includes: (a) checking land-use compatibility under munici- pal zoning plans; (b) verification of protection areas (such as river- banks, wetlands or forested areas under the Forestry Law); and (c) confirmation that the property is not within a protected area or subject to environmental restrictions. 17.2 Disclosure of Environmental Information Under general principles of good faith and civil liability established in the Civil Code, a seller may be held liable if they fail to disclose relevant environmental information that materially affects the property or busi- ness being transferred. If a seller knowingly conceals contamination or non-compliance issues, they could face civil liability for damages and, in some cases, administrative sanctions for misleading or withhold- ing information relevant to environmental compliance.
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