Understanding Costa Rica's Maritime Zone

A Guide for Beachfront Property Buyers

By Melissa Klassen, 

Blue Zone Realty International

Considering a beachfront property purchase in Costa Rica? Understanding the Maritime Zone and its regulations is essential. Approximately 95% of beachfront properties in Costa Rica fall under the Maritime Zone Law, classified as concession properties. The remaining 5% are titled properties, typically acquired long ago or during a specific exception period in the 1970s. This article provides a general overview of the Maritime Zone and its implications for potential buyers. For detailed guidance, consult an attorney specializing in Costa Rican real estate.

What is the Maritime Zone?

The Maritime Zone encompasses the first 200 meters measured horizontally from the high tide line, including islands, rock pinnacles, mangroves, estuaries, and any natural formations above sea level. This zone is divided into two distinct areas: the Public Area and the Restricted Area.

The Public Area

The Public Area spans the first 50 meters from the high tide mark. This zone is strictly public land, inaccessible for private ownership or development, except for government- approved construction. Any individual has the right to enjoy this area, ensuring that Costa Rica’s beaches remain accessible to all, with no fully private beaches.

The Restricted Area

The remaining 150 meters constitute the Restricted Area, where concession properties are located. These properties operate under a lease-like system granted for a specific period, typically 10 to 20 years, by the local municipality. Concession holders may build, subdivide, or modify the property, provided they obtain the necessary municipal permits.

What is a Concession Property?

A concession property is essentially a lease granted by the government for a set duration. Unlike titled properties, which incur a standard property tax of 0.25% based on the higher of the fiscal value or purchase price, concession properties are subject to an annual fee, known as a "canon," ranging from 1% to 5% of the property’s value, paid upfront.

Can Foreigners Own Concession Property?

Foreigners face different regulations than Costa Ricans when acquiring concession property in the Restricted Area. Permanent residents of Costa Rica for at least five years may hold majority ownership of a concession. Those with less than five years of residency are typically limited to minority ownership. To navigate these restrictions, many foreigners form a Costa Rican corporation, with at least 50% of the shares held by a Costa Rican citizen, or acquire an existing corporation holding the concession.

Are Concession Properties Registered?

Like fee-simple properties, concession properties should be registered in the Public Registry of Properties. However, concessions require renewal at least six months before their expiration, typically every 10 to 20 years. Purchasing a registered concession property minimizes delays and uncertainties. Your attorney can verify the property’s registration status and provide detailed insights into Maritime Zone ownership.

Final Considerations

Navigating the Maritime Zone’s regulations is critical for anyone considering beachfront property in Costa Rica. Engaging a knowledgeable attorney ensures clarity on legal requirements and property status. With proper guidance, you can confidently invest in Costa Rica’s stunning coastal real estate.

____________________________________

Melissa Klassen is an associate broker with Blue Zone Realty International, with over a decade of experience helping clients find their ideal home in Costa Rica. 

Contact her at melissa@bluezonerealty.com or 8882-0009 for expert assistance.