MARITIME ZONE CONCESSION PROPERTIES

Among the many wonderful things guaranteed by Costa Rica’s democracy is the public’s right to the use of all beaches. Specifically, the first fifty meters above the median high tide line has always been off-limits to private ownership. Concession rights begin above that 50 meter line.

The Maritime Zone Law regulates the land within the 200 meter zone of the ocean. This belongs to the government. There are some exceptions where title was registered during a 17 month window under Law No. 4558 of April 1970 which granted title within the 200 meter zone up to the 50 meter point. The first 50 meters from the high tide mark are considered public zone areas with very restrictive uses. The next 150 meters are subject to either titled, concession or leasehold rights granted by the local government with terms and conditions.

If you choose to concession, you are paying the government for the right to use the land. If the land was previously concessioned, you will have to buy the concession from the owner for his price, and pay the yearly lease fee to the government.

1977 Maritime Terrestrial Zone Law 6043:

* Foreigners applying for concession rights must have lived in Costa Rica for five years prior to applying.

* If the concessionaire is a Corporation, at least 51% of its shares must be owned by Costa Rican citizens.

* The most extensive & expensive step in the process is the Plan Regulador or Regulating Plan, which covers every detail about the property under consideration. This can be undertaken by the government at a lower cost, but a slower pace than a private Regulating Plan contractor.

* The Regulating Plan will determine what your land can be used for: tourism, residential, commercial, agricultural or reserve. Each category has its own set of requirements.

* No matter what the property is used for, it will be inspected by a government agency every 5 years to confirm compliance with the contract made between you and the government. If you have broken the contract on any point, the lease can be revoked immediately.

* Expect the process to take at least one year, possibly longer.

* If you get sick of sun, sand and sea, you can sell your concession for the remaining balance of the 20 years and the price is set by you.

Once the concession is granted, the land is yours for the duration. You can rest assured that as long as you remain faithful to the contract, Costa Rica’s democratic government will keep its part of the bargain. So, relax and enjoy tropical paradise.

Member of Costa Rica
Chamber of Realtors
penny@pjlproperties.com
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