Dealing with Construction Permits in
Costa Rica
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.
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Building a warehouse
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Estimated Warehouse Value:
CRC 448,788,127
- City: San José
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Request and obtain zoning authorization (uso de suelo) from the Municipal Government
This request can also include a request for property line setbacks to be indicated by the municipal government. New land use policies were approved in April 2006. The greater San Jose metropolitan area includes 31 municipalities. The zoning authorization will be valid for 6 months, or up to 12 months. Many municipal authorities, such as the Belen municipality, do not respect their own land-use regulations when granting the final construction permit.
Agency: Municipal Government
|
10 days
|
no charge
|
| * 2 |
Request and obtain approval from National Environment Technical Secretary
The first step is to obtain approval from the National Environment Technical Secretary (Secretaría Técnica Nacional del Ambiente, SETENA), using two forms (in Spanish) available on SETENA’s Web site (www.minae.go.cr /setena.html). BuildCo would use Form D-1 which costs anywhere between CRC 1- 1,5 Million. The response generally takes 60–90 days. This procedure and the next can be completed simultaneously.
Preparation of EIS is around CRC 8-12,000. But that is done internally by BuildCo.
Agency: National Environment Technical Secretary
|
60 days
|
CRC 1,000,000
|
| 3 |
Request and obtain approval of blue prints by College of Architects and Engineers
BuildCo should submit the property survey map and a contract, signed by two members of the College of Architects and Engineers: an electrical engineer and either a civil engineer or an architect. It is preferred to submit at least four blueprint copies. The college has implemented the new American Power Conversion Corporation (APC) system (via the Internet). If the APC submits the approval, the time line is 1 day, if not, it is about 5–8 days. In 2007, the college encouraged a complete change to digital approval. The approval fee is 0.265% of the project value, plus a fixed fee of CRC 1,500 for two construction log books.
Agency: College of Architects and Engineers
|
1 day
|
CRC 1,058,848
|
| 4 |
Request and obtain approval by the Health Department
The health department approval requires that BuildCo complete the approval request form and present two copies of the blueprints. These must have been pre-approved by the College of Architects and Engineers.
Agency: Health Department
|
30 days
|
no charge
|
| 5 |
Request and obtain approval by the Water Department (Acueductos y Alcantarillados)
BuildCo must complete and submit an approval form to the water department. In turn, the department must verify that the construction project site has a water source.
Agency: Water Department
|
5 days
|
no charge
|
| 6 |
Request and obtain approval from Fire Department (Departamento de Ingenieria)
BuildCo must complete and submit an approval form to the fire department. The department must verify that the construction project site has a fire facility in place.
Agency: Fire Department
|
20 days
|
no charge
|
| * 7 |
Request and obtain workers compensation insurance proof from National Insurance Institute
The National Insurance Institute requires proof that worker compensation insurance has been paid before issuing a building permit. This proof is required to start each new project. In the past, developers were allowed a blanket insurance policy that did not require purchase of insurance for every new project. In 2007, the institute’s policies have been revised; it now allows a blanket insurance that the developer adjusts, paying the differences annually. But the complexity of the process discourages its use. Most construction companies purchase individual insurance on a case-by-base basis for projects instead of globally for yearly activities. This system will likely change because of private sector complaints.
Insurance premiums are based on the amount of coverage. The cost can be from 4.23% to 5.53% of the coverage amount. The completed form must be presented with copies of the workers’ identification cards or (for underage employees) working permits.
Agency: National Insurance Institute
|
7 days
|
no charge
|
| 8 |
Request and obtain construction permit from Municipal Government
According to Law 8220, the relevant authorities must respond to a construction permit request in 30 days. However, on average, it should take 15 days. The construction permit fee is 1% of project value.
Agency: Municipal Government
|
25 days
|
CRC 3,989,995
|
| 9 |
Receive on-site inspection-I
During construction, inspections occur monthly, though not according to a specific schedule. The inspector may show up randomly to view it and review the construction log book (Bitacora de construccion), which the engineer/architect uses to register entries for each stage of construction. Under Costa Rican law, the engineer is responsible for complying with construction laws and regulations. There is no need to request inspections.
Agency: Municipal Government
|
1 day
|
no charge
|
| 10 |
Receive on-site inspection-II
Agency: Municipal Government
|
1 day
|
no charge
|
| 11 |
Receive on-site inspection-III
Agency: Municipal Government
|
1 day
|
no charge
|
| 12 |
Receive on-site inspection-IV
Agency: Municipal Government
|
1 day
|
no charge
|
| 13 |
Receive on-site inspection-V
Agency: Municipal Government
|
1 day
|
no charge
|
| 14 |
Receive on-site inspection-VI
Agency: Municipal Government
|
1 day
|
no charge
|
| 15 |
Receive on-site inspection-VII
Agency: Municipal Government
|
1 day
|
no charge
|
| 16 |
Request and obtain telephone connection
To request a telephone connect, BuildCo must complete an application form and present all the required documents, including a copy of the company’s identification card and person area.
Agency: Instituto Costarricense de Electricidad (ICE)
|
14 days
|
CRC 25,000
|
| * 17 |
Request water connection
After the connection is requested, an inspector from the water department visits the construction site, determines connection requirements, and, on this basis, estimates costs. Sewage connection is not included. With few centralized sewage connections, most connections are done with an independent septic system or treatment plant.
BuildCo must complete an application form and present all the required documents, including a copy of the company's identification card.
Agency: Water Department
|
1 day
|
no charge
|
| * 18 |
Receive water department inspection and pay connection cost
Agency: Water Department
|
1 day
|
CRC 79,520
|
| * 19 |
Connect to water services
After the connection is requested, an inspector from the water department goes to the construction site and determines what is required for the connection. Obtaining sewage connection is not included because most connections are done with independent septic system or treatment plants, because there are very few centralized sewage connections.
BuildCo must complete an application form and present all the required documents, including a copy of the company's identification card and person area.
Agency: Water Department
|
28 days
|
no charge
|
| * 20 |
Obtain occupancy permit from Municipal Government
The occupancy permit indicates that the municipal government has approved the construction and authorizes its occupancy.
Agency: Municipal Government
|
35 days
|
no charge
|
* Takes place simultaneously with another procedure.