BEACHFRONT Property / MARITIME ZONE

Understanding the difference between beachfront property and maritime zone property

To begin with, not all beach property is maritime zone property. Yous can purchase fully titled land in front of the beach or overlooking the beach or within walking distance to the beach and never have to worry virtually the Maritime Zone. Nonetheless, if you want to purchase land ON the embankment, it volition not exist titled (as a rule). Every bit in nearly every country in the earth, Costa rica's beaches are public belongings. So, if you would similar build or buy a beach front dwelling house or business, you should familiarize yourself with the special rules regarding beach forepart holding in Costa rica.

The Maritime Zoning Police force for beachfront property

The 1977 Maritime Zoning Law (Ley sobre la Zona Marítimo-Terrestre – Ley Numero 6043) regulates the buying and usage of beach forepart property in Costa Rica. The law creates ii zones along Costa Rica'south Pacific and Atlantic coasts. Islands are likewise subject to this constabulary. The national authorities owns this "Maritime/Terrestrial" restricted zone and local governments (municipalities) administer it. You lot measure from the loftier tide marker inland. The two zones full a width of 200 meters along the beach front: 1. The Public Zone (Zone Publica): a l meter wide strip of beach between the high tide line and the outer line of the "Restricted Zone" (Zona Restringida).

This beach front zone is open to the public. Private possession or occupation of this area is strictly prohibited. All the same, no one may trespass private property or the restricted zone in gild to achieve the public zone. 2. The Restricted Zone (Zone Restringida): a 150 meter broad strip of beach from the limit of the Public Zone inland. The law allows the authorities to grant leases called concessions for the occupation and use of this beach forepart area for terms that range from v to twenty years. This is the land that homes or business along the embankment front may use for personal or monetary gain. Certain buildings are allowed in this zone, but these will revert to the municipalities (local Governments) at the termination of the lease, unless the lease is extended.

How the Concessions work for maritime zone embankment holding

The National Geographic Establish (Instituto Geográfico Nacional) marks Republic of costa rica's maritime zone. If the zone is non marked and a evolution plan has not been drafted and approved, the Costa Rican authorities are unable to grant building permits for development of embankment front end belongings in the area. The Instituto Costarricense de Turismo (ICT) authorizes leases on the Restricted Zone, but the local Municipal regime grants and administers the government concession for possession of country in the maritime zone. The Registry of Concessions in the Public Registry in San José records all concessions.

Before a concession tin can be granted, the particular beach front where the holding is located must have an approved Zoning Plan (Plan Regulador) in identify. Only the actual Concession will clearly ascertain the rights and terms of ownership that the occupant has to the holding. These concessions or leases are granted for 5 to 20 year terms. Once the concession (lease) has been approved, it is registered in a special Concession Registry in the National Registry. A yearly fee must be paid to the municipality for the duration of the lease to keep it current. Failure to pay may cease the lease and issue in the loss of any buildings on it. The lessee applies for an extension of the lease concession at the Municipality. Extensions are unremarkably granted with the previous approval of the ICT.

Precautions for Beachfront Homes and Belongings

Although local governments will collect a state use taxation known as a canon from occupants of land located in the maritime zone it does not mean that a concession has been granted. Every bit such, the payment of a canon is simply recognition of the correct to possession. Here are other points of law you must abide by in order to safeguard your concession. Concessions for maritime zone beach holding cannot be granted to:

  • Foreigners who have not been residents for 5 years
  • Companies with bearer shares
  • Foreign companies based abroad
  • A visitor set upward in Costa Rica exclusively for foreigners
  • A company with more than fifty percent foreign majuscule (ZM Art. 47)

Concessions on maritime zone beach property can be forfeited for the post-obit reasons:

  • Failure to apply for an extension of a concession in a timely mode
  • The forfeiture of rights past the interested parties
  • The decease or legal absence of the concession holder with no heir
  • Non abiding past the established obligations of Article 51
  • Counterfoil of the concession (ZM Art. 52)

The ICT tin cancel a concession on maritime zone beach property for:

  • Non-payment of the yearly canon or royalty
  • Breach of contract (due east.g. utilize of the land for purposes other than those expressly stated by ICT)
  • Violation of the ordinances of the police force that grants the concession
  • Impediment of the use of the public correct of way
  • Other causes that this law establishes (ZM Fine art. 53)

All in all, an investment in beach front property regulated past the Maritime Zoning Law requires extra caution and thorough investigation. The reality is that ambiguities exist within the written law, so that every bit regulations are created and amended, rights to belongings may besides change. At that place are no guarantees and in that location is no foolproof way around the law. Even if you go a concession, there are no guarantees that the concessions will be renewed or that the price of the concession or the yearly catechism will exist within reason. The fact remains that you are not purchasing beach front property, you are leasing it and y'all must be willing to accept that risk.

Also, encounter information about squatters in Costa rica, because in sure cases a foreigner has made it through the concession process only to lose all or a portion of the belongings later on to squatters. Make sure your attorney examines the Municipality Records, verifies the seller's ownership status, and also verifies general taxation and leasing records. Keep in mind that if you are opening a concern on the beach, it may be worthwhile for you lot to accept a concession. But if yous are looking to purchase a beach home or recreational property, then yous would probably be better brash to buy titled land exterior of the Maritime Zone.

Beachfront holding restrictions

There are certain restrictions for concessions held past foreigners. If personally held, the foreigner must get-go take five years of legal residence in Costa Rica. For this reason, many foreigners purchase the rights to embankment property by first forming a Costa Rican corporation, a simple process that takes about 30 days and can cost from $150 to $500. The cost depends upon your attorney and the characteristics of the corporation registered. Your Costa Rican corporation must have at least fifty pct of its shares held by a Costa Rican resident. Well-nigh people are non comfortable with this and then at the time of closing the sale, the "token" Costa Rican shareholder, just signs over their shares to the foreigner and then that the greenhorn is holding 100% of the shares. This is common practice, simply consult your chaser on the specific details including risks associated with this exercise.

Exceptions for beachfront property

The Maritime Zoning Law was not applied retroactively. Any beach front property previously titled tin be freely transferred. Of class this titled property is very rare. These cases are those involving rights registered in colonial times, and certain urban property on the beach. In areas where the 150 meters of restricted zone does not have an canonical zoning programme (plan regulador), you may discover an "arriendo". You may occupy and develop the zone after you lot buy the rights from the legal occupant. These rights are registered at the corresponding local government or municipality. There is no fourth dimension limit for arriendos. Not until the country is holding zoned (which may never happen!). Many beach lands have an arriendo. The arriendo allows transfer of ownership and depression impact evolution. Edifice a house or small tourist projection is no problem just larger projects must go through a zoning approval with the government.

**Article from the archives of the American-European Real Estate Group**

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