In the Santa Teresa area it is necessary to understand what it takes to sell a property on the beach, and especially knowing the difference between beachfront properties and properties in the maritime zone. You can be the owner of a property a few steps from the beach, with a path to the beach, or with views of the sea, but this does not necessarily mean that it is part of a maritime zone. If your property belongs to a maritime zone, you cannot be the legal owner because the beaches of Costa Rica are public property.
Law on the Maritime-Terrestrial Zone
The Law on the Maritime-Terrestrial Zone (Law Number 6043) regulates the registration and use of properties facing the sea in Costa Rica. The law creates two zones along Costa Rica’s Pacific and Atlantic coasts. Islands are also subject to this law. The national government owns the land within this “Maritime-Terrestrial” restricted zone.
This zone is measured from the high tide line inland, and is comprised of two zones with a total width of 200 meters from the sea:
- Public Zone: This is the part of the beach measured 50 meters from the high tide line, and ends at the boundary of the Restricted Zone (see below). This beachfront area is open to the public, and private possession or occupation of this area is strictly prohibited. It is, however, illegal to trespass on private property or even concessions in the Restricted Zone in order to reach the Public Zone.
- Restricted Zone: this measures 150 meters from the boundary of the Public Zone towards the interior. The law allows the government to grant leases called concessions for the occupation and use of this beachfront area for terms ranging from 5 to 20 years. This area is the land that homes or businesses along the beach can use for personal or monetary benefit. Some buildings are permitted in this zone.
Concessions for properties within the Maritime Zone
The ‘Instituto Geográfico Nacional’ marks the Maritime Zone of Costa Rica. If the area is not marked and does not have an approved development plan, the Costa Rican authorities cannot grant construction permits for the development of beachfront properties in that area. The Costa Rican Tourism Institute (ICT) authorizes leases in the Restricted Zone, but the municipalities grant and manage those concessions.
Before a concession can be granted, the Restricted Zone where the property will be located must have an approved Regulatory Plan. Legally sound concession will define the rights and conditions that the occupant of the property will have. As stated above, these concessions or leases are granted for a term of five to twenty years, and once the concession (lease) has been
approved, it will be registered in a special subregistry in the National Registry. An annual fee must be paid to the municipality to keep the concession current. Lack of payment may terminate the contract, resulting in the loss of all buildings on the concession. Extensions of the lease can be requested at the municipality, and are normally granted with the prior approval of the ICT.
Precautions for Beach Homes
Although municipalities charge a tax on the use of the land known as the ‘canon’ tax on the occupants of land located in the maritime zone, this does not mean that the concession has been granted. As such, the payment of ‘canon’ is simply the recognition of the right to possession. Below are other points of the law related to concession land that must be respected in order to safeguard your investment.
Concession grants are restricted in the following cases:
- Foreigners who have not been residents for five years in Costa Rica
- Companies with bearer shares
- Foreign companies established abroad
- A corporation established in Costa Rica exclusively for foreigners.
- A joint-stock company with more than fifty percent ownership by foreigners (ZM article 47)
Concessions can be forfeited for the following reasons:
- Not requesting an extension of the concession in a timely manner
- The expiration of the rights of the interested parties
- Legal absence or death of the holder of the concession without an heir
- Failure to comply with the obligations established in Article 51
- The cancellation of the concession (ZM Article 52; see below)
The ICT can cancel a concession for:
- – Failure to pay annual fees and taxes
- Breach of contract (for example, use of the land for purposes other than those expressly authorized by ICT)
- Violation of ordinances of the law that grants the concession
- Impediment of the use of public roads
- Other causes established by law (see ZM Article 53)