What you need to know about Beachfront Property in Costa Rica

You can find information regarding real estate in Costa Rica by using their Public Registry. The Public Registry uses a system called Folio Real. Anyone that is investing in any type of real estate property in Costa Rica would benefit from using this service. They would be able to find information on who holds the title to the property that you’re interested in.

There are people that are looking for a second home for retirement or vacation purposes. Out of those that are looking for a second home, there are some that prefer to reside close to the beach. However, for foreigners, the process for purchasing beachfront real estate property in Costa Rica is different. There are certain restrictions for those foreigners seeking to claim ownership to one.

With beachfront real estate property in Costa Rica, the majority of the property is controlled by the Maritime Zone Law. This law specifies that at the high tide line, the initial 200 meters is protected. For the first 50 meters, no one is allowed to purchase property in that area. It is for the public’s use.

After that, the remaining 150 meters is considered a restricted area. The real estate properties that are in this part are concession properties. The Costa Rican government is in control of any beachfront properties that are within the 150 meter range. They do lease them out, but it’s limited to Costa Rican nationals or companies based in Costa Rica.

Foreigners cannot purchase a stake in the property located within the Maritime Zone right away. They have to reside in Costa Rica for a period of five years ore more. Even then, the properties in that area are allowed to be leased out for a limited time. The owner also has the right to do what they want with the property in adherence to the lease agreement.

In addition to foreigners having restrictions on beachfront real estate properties in Costa Rica, there are other restrictions as well:

• Any company or corporation that is registered in another country is not allowed to invest in beachfront real estate property within the first 200 meters.

• Any company or corporation that has bearer shares cannot participate.

• Any company or corporation that is located in another country is not eligible.

• Any company in Costa Rica that has more than half of their stock in foreign ownership is not eligible.

• So if you’re a foreigner and you get excited about the prospect of beachfront property real estate in Costa Rica, you must keep in mind these rules before you think about purchasing one.