Costa Rica-Types of Available Land

Types of Land
Just like in the United States, Canada, and Europe, there are different types of property available to buyers. Understanding the various types that are available for purchase is critical in the evaluation process. Below are the property types that can be purchased in Costa Rica and the implications of each type of ownership for the buyer.

Concession Land
Beachfront property around the world is more commonly know as "concession property." In Costa Rica, 95% of beachfront property is concession property and is governed by the Shoreline Zone Law (Law No. 6043) and other specific regulations. These legal dispositions set forth the conditions under which foreigners and local residents can lease concession property.


In Costa Rica, a concession is defined as the right to use and enjoy a specific portion of land located on the shoreline zone for a pre-determined period of time and based on a predetermined use of soil (zoning or master plan, known as "Plan Regulator"). The Government, through its corresponding municipality, grants this right by means of a private agreement between concessionaire and municipality that is further recorded in a Public Registry. This agreement also establishes a yearly concession fee that is paid based on an appraisal performed by government financial authorities.

Costa Rica's Maritime Terrestrial Zone Law is comprised of 200 meters starting at the mean high tide mark and heading inland. This zone is government owned and no individual or company can own it. The shoreline zone is divided into two strips of land:

  1. The first strip is 50 meters (approximately 150 feet) is known as the "public zone". This zone is not available for ownership of any kind. No development is allowed, except for constructions approved by government entities (i.e. marinas). As this area is deemed public, it is available for use of any individual.
  2. The following 150 meters (approximately 450 feet) can be subject to occupation or lease by individuals or companies, either through a concession with the respective municipality (in case of residential and commercially exploitable portions or land) or a management Plan with the Ministry of Environment and Energy (MINAE), as in the case of environmentally sensitive, low density, portions of land. In both cases, the property can be used, although not owned (same as with a lease).

Both concession agreements and management plans are entered between private parties and the Government for a limited period of time that ranges between 5 and 20 years, at the Government's discretion; however, most concessions and management plans are granted for 20 years. During such period, the concessionaire pays a fee for the use and occupation of such Government land. Renewal for equal and consecutive periods is negotiated between private parties and the corresponding government authority and, such renewal is usually based on the concessionaire's ability to comply with its commitments and obligations during the previous agreement. Such obligations include having assumed the commitment to build on that concession land, subdivide it or perform other acts of development or improvement on the land, in which case, the concessionaire will be required to obtain all appropriate permits from the local municipality.

Foreigners do not have the same rights as citizens when it comes to leasing shoreline zone concession land. The law establishes that foreigners cannot be majority owners of concession land. A foreigner can, however, enter into a partnership with a Costa Rican citizen where the Costa Rican national appears as the majority holder of the concession land. An exception to this prohibition applies to foreigners who have resided in Costa Rica for at least five years, who can also appear as majority holders of a concession.

To own something built on concession property is a different story. For more information about buying condos, houses, villas, etc. built on concession property; please see our section Homes/Condos/Villas Below.