Beachfront Property in the Maritime Zone

Terrestrial Zone (“Maritime Terrestrial Zone”) refers to the state-owned, 200 meter strip of land along the shore measured from the “average high tide” administered by the local Municipality and the ICT in Costa Rica. The Maritime Zone Law was established in 1977. It describes the Maritime Terrestrial Zone as having two parts. The first 50 meters is the “public zone” and cannot be built upon or claimed. The next 150 meters is the “restricted zone.” This area can be legally acquired by private citizens by applying for the rights before the Municipality through a “concession application.” Submission of this application gives you the right of occupation, called Permiso de Uso. This is an “interim right” of ownership, good until proper zoning and concessions come through down the road. You now have the right to occupy the land and build a temporary structure. But note that each Municipality applies these rules differently. In the past many pre-concession Maritime Terrestrial Zone occupants have paid a yearly “occupation tax” to the Municipalities in an effort to bolster their claims. But under the law, such “canones” are not due until after the concessions have been duly issued. Legally registered applicants should also renew their application with the Municipality without fail every six months or risk losing their entire claim to the property (Article 33).

If along the way they decide to sell, they can transfer their rights by way of a Cesión de Derechos. This allows the registered occupant to transfer all his or her rights to another person. The next step towards getting the concession is for the shoreline to qualify for a new zoning scheme, called the Plan Regulador. The Plan is implemented through a costly ($30k and up) and complex zoning proposal. This takes a couple of years to get approved. Typically neighbors collaborate on these. That’s because at least until recently you needed one kilometer of beachfront to do your own (but now apparently private plans are no longer being allowed and the Municipalities are being told to do the Plans themselves, as they are required to by law). The process requires getting the ICT, INVU and the Municipality to sign off on the plans.

Once approved, legal occupants inside the newly zoned area can “activate” their Solicitud de Concesión and transform their Permiso de Uso into a Concesión. This is a more permanent and specific form of ownership that can be inscribed in the National Registry. Concessions are as close to a title as you can get for beachfront property even though the land technically is still owned by the state. They are typically issued for terms of 5-20 years, and are automatically renewable, assuming applicable laws and regulations have been respected.

Even though certain areas have seen substantial development in the Maritime Terrestrial Zone, over 90% of the coast in Costa Rica still lacks approved zoning or concessions. It follows that over 90% of the development inside the Maritime Terrestrial Zone country-wide is illegal. That’s because any development at all is prohibited without the proper Maritime Terrestrial zoning under a duly approved Plan Regulador. In fact, the majority of occupants of the Maritime Terrestrial Zone in CR today probably don’t even have valid first-in-line applications for concessions on file and up to date with their respective Munis. If you are one of these folks, this means that your rights could be at risk. That’s because the Maritime Terrestrial Zone law doesn’t care what you may have paid for the beachfront land. Neither does the law care how long you may have lived there, since tecnically no one can ever acquire any legal rights to the Maritime Terrestrial Zone merely by possessing it over time. What the law does care about is very narrow and specific: who is first in line with a valid and current application for concession? First in line, first in rights. To the winner go the spoils. We know of some nearby beaches where five or more “owners” of the same parcel are all vying to sell the same dubious “right.” Pity the poor buyer who falls into their clutches while looking for a little peace and quiet on the beach. Costa Ricans or foreigners having five years of residency can register beach property in their own name. Costa Ricans or foreigners having 5 years of residency can register beach property in their own name. Foreign citizens must register the rights to their beach parcel through a Costa Rican corporation formed by an attorney. The corporation must have at least fifty percent of its shares held by a Costa Rican resident. This sounds weird, but can be set up safely in our experience.

In sum, a word of advice from us at Land Assurance: when considering beachfront, be very, very careful. If it comes with a valid concession, then that is as safe as it gets. Just be sure it is zoned for your intended use. But without the all-important concession in hand, it’s inherently risky. Then the name of the game is, caveat emptor times ten!