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Foreigners can purchase beachfront property in Costa Rica, but they must navigate strict Maritime Zone regulations and ownership structures that differ significantly from traditional real estate purchases.
Costa Rica's beachfront property market operates under the Maritime Zone Law, which divides coastal land into public and restricted zones, with the restricted zone requiring government concessions rather than traditional ownership. As of September 2025, foreign buyers can hold up to 49% of concession rights without residency requirements, while those with five years of legal Costa Rican residency can hold majority interests.
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Beachfront property purchases in Costa Rica require government concessions rather than traditional ownership, with foreign buyers limited to 49% unless they have five years of residency.
The Maritime Zone Law divides coastal areas into a public zone (first 50 meters, no private ownership) and restricted zone (next 150 meters, concession-only), requiring specialized legal guidance for navigation.
| Zone Type | Distance from High Tide | Ownership Rules |
|---|---|---|
| Public Zone | 0-50 meters | No private ownership allowed |
| Restricted Zone | 50-200 meters | Government concession required |
| Foreign Ownership | Restricted Zone Only | Maximum 49% without residency |
| Resident Foreigners | Restricted Zone Only | Majority ownership after 5 years |
| Legal Structure | Restricted Zone Only | Concession rights, not freehold |
| Required Documentation | All Zones | Municipal permits, zoning compliance |
| Professional Guidance | All Purchases | Costa Rican attorney mandatory |
Can foreigners buy beachfront property in Costa Rica?
Yes, foreigners can acquire beachfront property in Costa Rica, but only through government concession rights rather than traditional ownership.
The Costa Rican Maritime Zone Law governs all coastal property within 200 meters of the high tide line. Foreign buyers can hold up to 49% of concession rights without residency requirements. Those who have maintained legal residency in Costa Rica for five consecutive years can hold majority ownership stakes.
Beachfront properties in Costa Rica operate under a concession system, meaning you receive long-term usage rights from the government rather than owning the land outright. These concessions typically last 20 years and can be renewed. The process requires working with Costa Rican citizens or corporations as partners unless you qualify for majority ownership through residency.
It's something we develop in our Costa Rica property pack.
What restrictions exist for foreign ownership of beachfront property?
Foreign ownership of Costa Rican beachfront property faces significant restrictions under the Maritime Zone Law and residency requirements.
The primary restriction limits foreign ownership to 49% of concession rights unless the buyer has five years of legal Costa Rican residency. This means most foreign investors must partner with Costa Rican citizens or corporations holding the majority stake. Additionally, the first 50 meters from the high tide line remains completely off-limits to private ownership, designated as public domain.
Concession properties also face strict zoning restrictions under local Plan Regulador regulations. These limit building density, height, use, and environmental impact. Some coastal areas near national parks, indigenous territories, or international borders are completely prohibited from private development. The restricted zone extends from 50 to 200 meters from the high tide line, and only this area allows concession rights.
Foreign buyers must also comply with specific documentation requirements, including tourist or development declarations, municipal approvals, and registration through the National Registry with a licensed Costa Rican attorney.
What legal requirements must be met to purchase beachfront property?
Purchasing beachfront property in Costa Rica requires obtaining government concession rights, municipal permits, and compliance with zoning regulations.
The buyer must first secure a concession from the Costa Rican government through the local municipality. This process requires submitting a detailed development plan, environmental impact assessment, and proof of financial capacity. The property must be located within the restricted zone (50-200 meters from high tide) and comply with local Plan Regulador zoning laws.
Legal documentation includes registering the concession with the National Registry, obtaining municipal construction permits if development is planned, and ensuring all property taxes and concession fees are current. Foreign buyers must also establish the appropriate ownership structure, either through partnership with Costa Rican citizens or through a Costa Rican corporation.
Environmental compliance is crucial, as coastal properties must meet strict environmental protection standards. This includes proper waste management systems, adherence to setback requirements, and protection of local ecosystems. All documentation must be processed through a licensed Costa Rican attorney or notary.
Do I need a Costa Rican lawyer for beachfront property purchases?
Yes, hiring a qualified Costa Rican attorney is essential for navigating the complex legal requirements of beachfront property purchases.
Costa Rican law requires that all real estate transactions be processed through a licensed local attorney or notary. For beachfront properties, this requirement becomes even more critical due to the complexity of Maritime Zone regulations, concession agreements, and zoning compliance. Attorneys handle title searches, verify concession validity, ensure proper registration, and structure ownership arrangements.
The legal complexity of beachfront purchases includes verifying that the property lies within the permissible restricted zone, confirming all municipal permits are valid, checking environmental compliance, and ensuring proper payment of taxes and concession fees. Attorneys also help foreign buyers understand the limitations of concession ownership versus traditional freehold ownership.
Attempting to purchase beachfront property without proper legal representation often results in costly mistakes, invalid purchases, or legal disputes. The attorney fees typically range from 1-2% of the property value, which is a reasonable investment for the protection and expertise provided.
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How do zoning laws affect beachfront property ownership?
Zoning laws significantly impact beachfront property ownership through strict Plan Regulador regulations that control development density, building height, and land use.
Each coastal municipality in Costa Rica maintains specific zoning regulations called Plan Regulador that dictate what can be built on beachfront concession properties. These regulations typically limit building coverage to 30-50% of the lot, restrict building heights to 2-3 stories, and require specific setbacks from the water. Commercial use may be restricted in residential zones, and some areas allow only tourist-related developments.
Environmental zoning adds another layer of complexity, with many coastal areas requiring environmental impact studies for development. Properties near protected areas, wetlands, or turtle nesting sites face additional restrictions. Some zones prohibit any construction, while others allow only eco-friendly or low-impact developments.
Zoning violations can result in construction halts, fines, or even loss of concession rights. Before purchasing, buyers must verify the current zoning classification and understand all restrictions that apply to their intended use of the property.
What is the minimum size requirement for beachfront property purchases?
Costa Rica does not establish official minimum size requirements for beachfront concession properties, but practical limitations exist based on municipal regulations and zoning requirements.
While no national law sets minimum lot sizes for concession properties, individual municipalities may establish their own requirements through local Plan Regulador regulations. Most coastal municipalities require lots to be large enough to accommodate proper setbacks, waste management systems, and parking requirements, which typically means minimum sizes of 300-500 square meters for residential properties.
Practical considerations also influence minimum sizes, as smaller lots may not provide sufficient space for septic systems, required green areas, and building setbacks from the water. Additionally, the cost of obtaining and maintaining concession rights makes very small properties economically impractical for most buyers.
Maximum size limitations are more commonly encountered, as municipalities may restrict the total area that can be held under a single concession to prevent monopolization of coastal resources. These limits vary by location and are typically specified in local zoning regulations.
Are there specific coastal areas where property cannot be purchased?
Yes, several types of coastal areas in Costa Rica are completely off-limits to private ownership or concession rights.
- The public zone (first 50 meters from high tide line) - always public domain
- National parks and protected reserves - including Manuel Antonio, Corcovado, and marine protected areas
- Indigenous territories - such as coastal areas in Talamanca
- International border zones - particularly near Panama and Nicaragua
- Designated turtle nesting beaches - during nesting seasons or permanently protected areas
- Wetlands and mangrove areas - protected under environmental legislation
- Military zones - areas designated for national security purposes
Additionally, some municipalities have temporarily suspended new concession applications while updating their coastal development plans. Popular areas like certain sections of Guanacaste Province and the Osa Peninsula have specific restrictions based on environmental protection requirements.
It's something we develop in our Costa Rica property pack.
Is there a limit on how much beachfront property one person can own?
While Costa Rica doesn't set specific limits on the total amount of beachfront property individuals can own, practical restrictions exist through municipal regulations and concession availability.
Most coastal municipalities limit the size of individual concessions to prevent monopolization of waterfront resources. These limits typically range from 1-5 hectares per concession, depending on the municipality and intended use. Some areas restrict individuals or companies from holding multiple concurrent concessions in the same zone.
The 49% foreign ownership restriction effectively limits individual foreign buyers unless they have established residency. For non-resident foreigners, each purchase requires Costa Rican partners or corporations, creating practical limitations on portfolio expansion. The complexity and cost of maintaining multiple concession agreements also serve as natural limiting factors.
Municipal authorities may also consider the cumulative impact of multiple property holdings when reviewing new concession applications, particularly in environmentally sensitive areas. Some municipalities prioritize applications from first-time concession holders over those seeking to expand existing holdings.
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What permits are required to buy beachfront property?
Beachfront property purchases in Costa Rica require multiple permits and approvals from different government levels.
| Permit Type | Issuing Authority | Purpose |
|---|---|---|
| Concession Application | Local Municipality | Primary authorization for restricted zone use |
| Environmental Viability | SETENA | Environmental impact assessment approval |
| Zoning Compliance | Municipal Planning Office | Verification of Plan Regulador adherence |
| Water Use Permit | AyA or SENARA | Authorization for water supply and sewage |
| Construction Permit | Local Municipality | Authorization for any building development |
| Tourist Declaration | ICT (Tourism Board) | Required for tourism-related developments |
| Registry Inscription | National Registry | Legal registration of concession rights |
What taxes and fees apply to beachfront property purchases?
Beachfront property purchases in Costa Rica involve multiple taxes and fees that vary by location and property value.
Transfer taxes amount to 3% of the registered property value, split between stamp tax (1.5%) and registry fees (1.5%). Legal fees typically range from 1-2% of the purchase price for attorney services. Concession application fees vary by municipality but generally range from $500-2,000 depending on property size and intended use.
Annual ongoing costs include property taxes calculated on municipal assessed values, typically 0.25% of assessed value for properties valued under $200,000 and 0.55% for higher values. Concession holders must also pay annual concession fees to municipalities, which range from $2-10 per square meter depending on location and zoning classification.
Additional fees may include environmental impact studies ($1,000-5,000), surveying costs ($500-1,500), and utility connection fees. Foreign buyers should budget approximately 5-7% of the purchase price for all taxes, fees, and closing costs. These costs must be paid in Costa Rican colones or US dollars, depending on the specific authority collecting the fee.
How does Costa Rica legally define beachfront property?
Costa Rica legally defines beachfront property as any land located within 200 meters of the average high tide line along all oceanic and large lake coastlines.
The Maritime Zone Law establishes this 200-meter zone and divides it into two distinct areas. The public zone encompasses the first 50 meters from the high tide line and remains permanently in public domain with no private ownership allowed. The restricted zone covers the next 150 meters and allows private use only through government concessions.
High tide lines are officially determined by the National Geographic Institute using scientific measurements and historical data. These boundaries are legally surveyed and recorded, creating definitive property lines that cannot be disputed. Properties beyond the 200-meter zone fall under regular real estate law and can be purchased with traditional freehold ownership.
The definition applies to both Pacific and Caribbean coastlines, as well as large lakes like Lake Arenal. Seasonal variations in water levels do not affect the legal boundaries, which are based on average conditions over extended periods.
It's something we develop in our Costa Rica property pack.
What steps should I take to verify the legality of a beachfront property?
Verifying the legality of Costa Rican beachfront property requires a comprehensive due diligence process involving multiple verification steps.
- Conduct a complete title search at the National Registry to verify concession validity and ownership history
- Obtain a professional survey to confirm property boundaries fall within the legal restricted zone
- Verify all municipal permits and concession payments are current and valid
- Check environmental compliance and any outstanding environmental obligations
- Review local Plan Regulador zoning regulations to confirm intended use is permitted
- Examine all tax records to ensure property taxes and concession fees are current
- Verify that previous constructions have proper permits and comply with setback requirements
- Check for any liens, encumbrances, or legal disputes affecting the property
Professional verification should include hiring a qualified Costa Rican attorney specializing in coastal real estate, obtaining an independent appraisal, and conducting environmental due diligence. The attorney should provide a written legal opinion confirming the property's legal status and the validity of the concession rights.
This verification process typically takes 30-60 days and costs 2-3% of the property value, but it's essential for avoiding costly legal problems after purchase. Never rely solely on seller representations or incomplete documentation when making these significant investments.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Purchasing beachfront property in Costa Rica requires careful navigation of the Maritime Zone Law and concession system, with foreign ownership limited to 49% unless residency requirements are met.
Success in the Costa Rican beachfront market depends on thorough due diligence, qualified legal representation, and understanding the long-term implications of concession-based ownership rather than traditional freehold property rights.
Sources
- C21 Ballena Properties - Foreign Beachfront Ownership
- The Latinvestor - Costa Rica Property Ownership Guide
- LX Costa Rica - Beachfront Property Regulations
- Quatro Legal - Beachfront Property Special Regime
- International Living - Costa Rica Beachfront Guide
- RE/MAX Ocean Surf - Maritime Zone Concessions
- Properties in Costa Rica - Maritime Zone Information
- Osa Property Management - Costa Rica Property Laws