Property Ownership

The most comprehensive form of property ownership in Costa Rica is fee simple ownership. The conditions for this type of ownership are the same for Costa Ricans as they are for foreigners and guaranteed by the Costa Rican Constitution. The concept of fee simple ownership is the same in Costa Rica as in the US. Basically, it gives the owner of the property the absolute right to materially own the property, use it, enjoy it, sell it, lease it, and improve it subject only to conditions outlined in the Costa Rican Laws. Fee simple also means that if the owner is obstructed from enjoying any of his/her rights to the property, he/she has the right to be made whole,or in other words, have the property restored to its original condition. Buyers who purchase fee simple title have the most rights under the law to enjoy and use the property as they see fit.

Concession / Beach Front Property

In most cases, beach front property is untitled property in Costa Rica with the ownership and possession of the shoreline governed by the Maritime Zone Law (Ley Sobre la Zona Maritimo) which restricts the possession and ownership of beach front property. A concession in Costa Rica is defined as the right to use and enjoy a specific property located in the maritime zone for a pre-determined period of time. In Costa Rica, 95% of beachfront property is considered Concession Property. By law, this is the first 200 meters of beach front, measured from the high tide markers. This zone also includes islands, pinnacles of rock, mangroves, estuaries, small islands and any small natural formation that overcome the level of the ocean. Of the total 200 meters, the first 50 are deemed public zones and nobody may possess, control, or build on that area. Of the remaining, 150 meters, the government, through the local Municipal government, will lease by way of concessions of the land to private individuals. Concession leases are granted for a period of 5-99 years. Unlike fee simple property, foreigners do not have the same rights as citizens when it comes to purchasing concession property. The law establishes that foreigners cannot be majority owners. 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 alike are required to purchase all Maritime Zone property through concession.