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Buying Property in Costa Rica: What’s the Difference Between a Lot, Land, and a Farm?

6/25/2025

Buying Property in Costa Rica: What’s the Difference Between a Lot, Land, and a Farm?

A practical guide to help you invest in the right type of property for your goals.

Thinking about buying property in Costa Rica? Great move, but before diving in, it's important to know exactly what kind of land you’re looking at. Terms like lot, land, and farm get tossed around all the time, and while they may sound similar, they’re not interchangeable. Each one comes with different possibilities, challenges, and legal considerations. At Neocasa Real Estate, we help buyers make smart, confident decisions by understanding these differences up front.

Let’s break it down: Lot vs. Land vs. Farm

What’s a lot?

A lot is typically a small, ready-to-build parcel of land. Think of it as a plug-and-play option: it’s already subdivided, zoned, and usually located in a residential community or gated development. It usually includes:

  • Utility access (water, power, sometimes internet)
  • Paved or well-maintained road access
  • Clear boundaries and legal registration
  • Zoning for residential or commercial use

Lots are perfect if you're planning to build a home soon and want a hassle-free experience close to services and amenities.

What do we mean by land?

Land refers to a larger, more flexible parcel. It may be inside or outside urban areas and might not have full infrastructure yet. With land, you get:

  • More space (quarter-acre and up)
  • Potential for subdivision, development, or resale
  • Options for residential, commercial, or even agricultural use
  • Fewer restrictions, but often more work

Land is ideal for people thinking long-term, whether it's to build multiple homes, develop a rental business, or just hold the property as the area grows.

So what’s considered a farm?

A farm (or finca, as it’s called locally) is a large, rural property. It's less about building a house right away and more about land use, agriculture, conservation, eco-tourism, or a private retreat. You’ll typically find:

  • Large acreage (from several acres to hundreds)
  • Natural features like rivers, forests, and mountain views
  • Lower construction density due to zoning
  • Ideal conditions for agriculture or nature-based projects

Farms attract investors with a vision, people who want space, self-sufficiency, or the chance to build something unique off the beaten path.

What should you check before buying?

No matter what type of property you’re considering, you need to cover your bases. Here’s what to ask for:

  • Title report: Clean ownership with no hidden issues
  • Survey/plat map: Legally registered and current
  • Zoning confirmation: Know exactly what you’re allowed to do
  • Municipal tax clearance: Up-to-date and paid
  • Utility availability: Water and electricity ready, or at least feasible
  • Access roads: Public or officially registered private roads
  • Environmental status: Especially for farms, check for protected areas or restrictions

Specific tips for each property type

For lots

  • Double-check water and power are connected, not just “available nearby”
  • Understand building codes, especially in gated communities
  • Confirm the road access is legal and registered

For land

  • Evaluate the topography and drainage (important in rainy season)
  • Look into subdivision potential and future resale value
  • Research the area, is development heading that way?

For farms

  • Make sure you have water rights (not always a given)
  • Confirm boundary lines and check for informal occupants
  • Consider seasonal access, can you get there year-round?
  • If planning agriculture: test soil quality and water supply

How Neocasa Real Estate helps you make the right move

We don’t just show properties, we help you strategically invest. At Neocasa Real Estate, our team walks you through every step:

  • We match you with the right kind of property based on your goals
  • We explain zoning, infrastructure, and red flags before you commit
  • We arrange on-site tours so you can see what you’re buying
  • We work with attorneys, surveyors, and engineers to protect your investment
  • We guide you through the closing process, clearly and efficiently

Whether you're buying remotely or already in Costa Rica, we’re on the ground doing the homework, so you don’t have to.

What’s trending in Costa Rica’s land market?

Lots
Still the most in-demand choice for homebuilders and families, especially in:

  • Gated communities near San José
  • Coastal areas with tourism potential
  • Planned communities with amenities and HOAs

Land
Gaining ground with:

  • Small developers
  • Expats wanting space and privacy
  • Investors betting on emerging zones

Farms
Sought-after by:

  • Eco-tourism projects
  • Sustainable farming ventures
  • People who want off-grid lifestyles or nature conservation

Real questions, real answers

Is a lot the cheapest way to get started?
Yes, especially in newer developments or towns outside the tourist hotspots.

Is buying a farm more complicated?
It can be. There’s more due diligence involved, but that’s where we come in.

Can I build right away after buying a lot?
Usually yes, if utilities are in place and zoning allows. We’ll help you confirm everything.

What paperwork do I need before I buy?
You’ll want:

  • Property title
  • Registered survey
  • Proof of taxes paid
  • Zoning certificate
  • Water letter
  • Utility access confirmation

Which one fits your goals?

Just want to build a home?
Go for a fully serviced lot.

Thinking of building something bigger?
Look at raw land with development potential.

Dreaming of an eco-retreat, organic farm, or off-grid life?
A finca is what you’re looking for.

Ready to explore the right property for your plans?

At Neocasa Real Estate, we offer handpicked listings, from small lots in master-planned communities to expansive farms with incredible views.

You don’t need to figure it all out on your own. Let us help you:

  • Schedule a strategy session with a local advisor
  • Tour the best properties in your price range
  • Review all legal and environmental factors
  • Make an informed, confident investment

Reach out today and discover why buyers from around the world trust Neocasa Real Estate when investing in Costa Rica.

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