Real Estate Desk - Dedicated Buyer's Broker - Dominical

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concessions in the maritime zone
Beach front property is officially known as Concession property. In Costa Rica, 95% of beachfront property is considered concession property and is governed by the Maritime Zone Law and other specific regulations including but not limited to special dispositions stated by municipalities and the ICT (Costa Rican Institute of Tourism). These legal dispositions set forth the conditions under which foreigners and local residents can own concession property.

A concession in Costa Rica is defined as the right to use and enjoy a specific property located on the maritime zone for a pre-determined period of time.

The state, through its respective municipality, grants this right. Note that the first 200 meters (492 ft) measured horizontally from the mean high tide line defines the boundary of the maritime zone. This zone also includes islands, pinnacles of rock, mangroves, estuaries, small islands and any small natural formation that overcome the level of the ocean. This 200 meter zone is divided into two areas:

concession zones in costa rica

Public Area: The first 50 meters (165 ft) measured horizontally from the mean high tide line. This zone is not available for ownership of any kind. No kind of development is allowed except for constructions approved by governmental entities. Further, this area is deemed a public area and any individual wishing to utilize this area for enjoyment has the right to do so. In other words, there are no truly private beaches in the Maritime Zone.
Restricted/Concession Area: The next 150 meters (492 ft). This area is available for Concessions to be granted. A concession is in essence a "lease" on the property granted to the lessee for a specific period of time. Normally the concession period is granted for 20 years. An owner of a concession may build on that concession, subdivide the concession and perform other acts to the property. However, appropriate permits from the local municipality must be obtained.

Unlike Fee Simple property, there are ownership limitations and foreigners do not have the same rights as citizens when it comes to purchasing concession property. The law states that foreigners cannot be majority owners of a concession property. A foreigner can, however, enter into a partnership with a Costa Rican citizen where the ownership is divided 49% / 51% between the foreigner and Costa Rican respectively. One exception is if a foreigner has resided in Costa Rica for at least five years, then they may be majority owners of a concession.

Both foreigners and Costa Ricans are required to purchase all Maritime Zone property through concession.

The Real Estate Desk can help you setup a corporation, where the
minority ownership for a foreigner can be legally established.

properties in condominium....