Don't Let Your Dream Slip Away: 5 Critical Mistakes to Avoid When Choosing a Building Lot in Guanacaste, Costa Rica

Building a custom home in Guanacaste can be one of the most rewarding ways to create exactly the Costa Rica lifestyle you want. The key is choosing a lot that works not only for the view, but also for your home design, budget, access, utilities and long-term plans.

We work with buyers in Playas del Coco, Playa Hermosa, Ocotal, Papagayo and surrounding Guanacaste communities, and Tony's 30+ years of luxury-home construction experience in Canada and Costa Rica gives our clients an additional practical perspective when evaluating land. These five checks can help you move forward with confidence.

Mistake #1: Choosing the View Before Checking Buildability

A beautiful ocean or valley view matters, but the best lot is one where the view and the practical building conditions work together.

• Slope and site preparation: Steeper lots can require more engineering, retaining walls, drainage work and specialized access. That does not make them bad lots; it simply means those costs should be understood before purchase.
• Road access: Consider construction access as well as everyday driving. In hillside areas, it is useful to understand how the road performs during Guanacaste's rainy season.
• Utilities: Confirm the actual process and approximate cost for electricity, water and internet rather than assuming nearby infrastructure guarantees an easy connection.
• Home design: Before committing, consider whether the buildable area comfortably accommodates the home, pool, parking and outdoor space you want.

Our approach: We help buyers look beyond the view and consider how the land will actually function. Tony's construction background is particularly useful for identifying questions to take to the buyer's architect, engineer, contractor and attorney.

Mistake #2: Budgeting Only for the Lot Price

The purchase price is only one part of a land-and-build budget. A realistic plan also allows for closing, professional due diligence, infrastructure and site preparation.

• Transfer and closing costs: Costa Rica's real-estate transfer tax is currently 1.5%, and a purchase can also involve legal/notarial, registry and stamp costs. The final closing estimate should come from the closing attorney for the specific transaction.
• Due diligence: Depending on the property, buyers may want a survey or boundary confirmation, title review, soil or geotechnical work, and consultation with an architect, engineer or contractor.
• Infrastructure: Water, electricity, internet, drainage, septic solutions and road work can vary significantly from one lot to another.
• Site preparation: Clearing, grading, retaining walls and rock work should be considered before finalizing a construction budget.
• Contingency: In our area, we have often advised clients to plan an approximate 15–25% construction contingency depending on the site and project. This is a practical planning range, not a fixed Costa Rica rule; your builder should confirm an appropriate contingency for your plans.
• Ongoing costs: Consider municipal property tax, applicable HOA or community fees, maintenance and any other property-specific charges.

Mistake #3: Not Confirming the Property's Key Due-Diligence Items

Good due diligence in Costa Rica is manageable when the right professionals check the important items before closing. For a building lot, we focus on making sure buyers understand what they are buying and what they can realistically build.

• Water availability: Water documentation is an important part of Costa Rica's construction-permitting process. Depending on the location and provider, this may involve a water-availability certification, a capacity document, an ASADA document, or another applicable approval. Confirm the current document, provider, validity and project requirements for the specific lot rather than relying only on a visible water line or an old letter.
• Title and Registry: Have a qualified Costa Rican attorney review the registered property, ownership, liens, encumbrances, easements and other relevant Registry information.
• Cadastral plan and boundaries: Compare the registered property information and cadastral plan with the land on the ground. A licensed surveyor can help when boundary confirmation is appropriate.
• Legal access: Confirm that the property has appropriate legal access and understand any registered easements.
• Land use and building rules: Verify the applicable Uso de Suelo, setbacks, height or density restrictions, environmental requirements and, when relevant, HOA or condominium rules.
• Coastal property: If land is within or near the Maritime-Terrestrial Zone, have the attorney confirm whether it is titled property or subject to the concession regime and what rules apply.

The goal is not to make land buying complicated. It is to answer the important questions early so you can design and build with fewer surprises.

Mistake #4: Evaluating the Lot Only in the Dry Season

Guanacaste's seasons are part of what makes the region special, and they also affect how a homesite functions. When possible, consider the property through both dry- and rainy-season conditions.

• Drainage: Understand where heavy rain flows and whether the lot or access road needs additional drainage planning.
• Wind: Some exposed areas experience strong seasonal Papagayo winds. Good architects and builders can account for this in orientation, landscaping and outdoor-living design.
• Sun and orientation: The home's position can affect shade, indoor temperature, views, solar exposure and the comfort of terraces and pool areas.
• Coastal environment: Near the ocean, salt air and humidity influence material and finish choices. This is normal coastal construction planning and is best addressed at the design stage.

Mistake #5: Choosing a Lot Without Considering Your Lifestyle

A great building site should fit the way you actually want to live in Costa Rica.

• Gated or independent: Gated communities can offer amenities, maintained infrastructure and community rules; independent properties can offer different types of flexibility. Compare the trade-offs that matter to you.
• Daily convenience: Think about your preferred distance to beaches, supermarkets, restaurants, healthcare, the airport and activities.
• Community feel: Playas del Coco, Playa Hermosa, Ocotal, Papagayo and other Guanacaste communities each offer a different atmosphere. Spend enough time in the area to know which one feels right.
• Long-term fit: Consider access, stairs or slopes, maintenance, healthcare proximity and resale or rental appeal based on your own plans.

A Simple Guanacaste Building-Lot Checklist

Before your due-diligence period ends, aim to have clear answers on title and ownership, cadastral plan and boundaries, legal access, land use, water documentation, electricity, drainage, site preparation, HOA rules where applicable, and whether your intended home can reasonably fit the property and budget.

Not every lot needs every study. Your attorney, surveyor, architect, engineer and builder can help determine what is appropriate for the particular property.

Build Your Costa Rica Dream on the Right Foundation

Buying land in Guanacaste does not need to feel intimidating. With a good property, sensible due diligence and an experienced local team, the process can be exciting and straightforward.

Tony and Anna Velez combine local real-estate knowledge with Tony's decades of construction experience to help buyers evaluate lots in Playas del Coco, Playa Hermosa, Ocotal, Papagayo and surrounding Guanacaste communities.

Contact Tony and Anna to discuss the type of lot, home and lifestyle you are looking for. We can help you narrow the options and identify the practical questions to ask before you buy.

Last reviewed September 2026. Real-estate, construction, water and permitting requirements can vary by property and can change. Buyers should confirm property-specific legal and technical requirements with the appropriate Costa Rican professionals and authorities.