Buying Beachfront Property in Costa Rica

What International Investors Should Know About Concession Land

Costa Rica’s spectacular coastline is protected by a special legal framework regulating the first 200 meters from the ocean. While this system may initially seem complex to foreign buyers, investing in beachfront concession property is both common and perfectly feasible when handled with the right professional guidance.

In fact, many of Costa Rica’s most successful beachfront hotels, luxury residences, and tourism developments are located on concession land.

The key is simply understanding the legal structure and working with experienced professionals who know how the system works.

1. The 200-Meter Maritime Zone

All coastal land in Costa Rica falls under the Maritime Terrestrial Zone (ZMT), which extends 200 meters inland from the high-tide line.

This zone is divided into two sections.

Public Zone (0–50 meters)

The first 50 meters are public land and must remain accessible to everyone.

• No private ownership is allowed
  • Construction is prohibited
  • The beach must remain open to the public

This regulation protects Costa Rica’s coastline and natural beauty.

Restricted Zone (50–200 meters)

The area between 50 and 200 meters from the ocean may be granted as concession land.

Here individuals or companies can obtain the legal right to use and develop the property, while the government retains technical ownership of the land.

Most beachfront hotels, restaurants, and residential developments in Costa Rica are located within this zone.

2. What a Concession Actually Means

A concession is essentially a government-granted right to use and develop coastal land.

Typical characteristics include:

• Concession terms usually range from 10 to 20 years
  • Concessions are renewable when conditions are respected
  • Approval is required from the municipality and the Costa Rican Tourism Institute (ICT)
  • The concession is registered in the National Registry

The concession holder pays an annual municipal fee known as the “canon”

While the land itself remains government property, the usage rights are legally protected and transferable with approval.

3. Foreign Buyers and Concession Land

There is often confusion regarding foreign ownership.

Foreign investors can absolutely invest in concession properties, but the legal structure must comply with Costa Rican regulations.

Typical solutions include:

• holding the concession through a corporate structure
  • partnering with qualified Costa Rican shareholders
  • obtaining legal residency

Every year, many international investors successfully purchase and develop beachfront concession properties using these structures.

With proper legal guidance, the process is straightforward and secure.

4. Zoning and Development Regulations

Construction within the maritime zone is carefully regulated in order to protect Costa Rica’s coastline.

Before building, the following approvals are typically required:

• an approved zoning plan (Plan Regulador)
  • municipal approval
  • environmental permits
  • official construction permits

When properly prepared and professionally managed, these approvals are routinely obtained for residential and tourism developments.

5. Understanding the Risks

Like any regulated property market, concession land requires careful due diligence.

Important considerations include:

• concessions must be renewed periodically
  • transfers require municipal approval
  • zoning regulations must be respected

These procedures are standard practice within Costa Rica’s coastal real estate market and are handled regularly by experienced professionals.

6. Rare Exception: Titled Beachfront Property

In rare cases, some beachfront properties located outside the maritime zone or granted before 1977 are fully titled private land.

These properties are:

• privately owned
  • freely transferable
  • open to 100% foreign ownership

Because of their rarity, such properties are typically very limited and significantly more expensive.

7. Professional Due Diligence for Buyers

Before purchasing any beachfront property, qualified professionals should verify:

• whether the property is titled land or concession land
  • concession expiration and renewal status
  • municipal zoning regulations
  • approvals from the Tourism Institute (ICT)
  • concession payment history
  • building permits and development rights

Proper verification ensures that buyers fully understand the legal structure of the property.

A Simple Overview

Professional Insight

Many experienced investors choose properties located 200–400 meters above the beach.

These locations often offer:

• spectacular ocean views
  • easy beach access
  • full private ownership
  • fewer regulatory restrictions

while still providing the lifestyle benefits of living close to the ocean.

Professional Experience and Local Expertise

Investing in beachfront property in Costa Rica – particularly concession land – requires experience, local knowledge, and the right professional network.

With more than 40 years of international real estate experience, we assist clients in navigating the Costa Rican property market safely and efficiently.

Our expertise is not only theoretical. Over the years we have personally owned beachfront properties in Costa Rica, developed projects directly on the coast, and successfully sold them again.

This firsthand experience provides us with a deep understanding of how the concession system works in practice.

Through decades of activity in international real estate, we have also established long-term relationships with highly experienced Costa Rican attorneys who have specialized in concession properties for more than 20 years.

These professionals handle the legal verification, structuring, and long-term administration of concession properties, ensuring that all transactions comply with Costa Rican law.

The most important factor when dealing with concession land is know-how and the right professional guidance.

With the correct legal structure, thorough due diligence, and experienced advisors, investing in concession beachfront property can be both safe and highly rewarding.

Our goal is to ensure that clients can enjoy the unique lifestyle of Costa Rica’s beaches while making well-informed and secure real estate investments.

5  Common Mistakes Foreign Buyers Make When Purchasing Beachfront Property

Buying beachfront property in Costa Rica can be an excellent investment and lifestyle opportunity. However, foreign buyers should be aware of a few common pitfalls that can easily be avoided with the right guidance.

1. Confusing Concession Land with Titled Property

One of the most common mistakes is assuming that all beachfront property can be privately owned. In Costa Rica, the first 200 meters from the high-tide line fall within the Maritime Terrestrial Zone.

The first 50 meters are public land and cannot be owned or developed.
The next 150 meters are concession land, meaning the government retains ownership and only grants usage rights through a municipal concession.

Many buyers mistakenly believe they are purchasing full ownership when they are actually acquiring a concession right with specific conditions and renewal periods.

2. Not Verifying the Concession Status and Expiration Date

If the property is located within the concession zone, buyers must carefully review:

the validity of the concession

the expiration date

the current concession holder

the payment history of concession fees

A concession must be renewed periodically and must remain in good standing with the local municipality. If the concession expires or requirements are not met, the rights to the property could be affected.

3. Buying Without Proper Legal Due Diligence

Some buyers rely only on real estate agents or informal agreements instead of hiring an independent real estate attorney.

A qualified lawyer should always verify:

ownership and title history

existing liens or mortgages

zoning regulations

building permits and land use restrictions

registration status in the National Registry

Proper legal due diligence protects the buyer and ensures that the property can legally be transferred and developed.

4. Not Checking Zoning and Building Regulations

Even if a property is legally transferable, development may still be restricted depending on local zoning plans and environmental regulations.

In many coastal areas, building regulations control:

construction density

building height

distance from the shoreline

environmental protection zones

If the municipality has not yet approved a regulatory zoning plan (Plan Regulador), building permits may be limited or delayed.

5. Underestimating the Importance of Professional Guidance

While purchasing property in Costa Rica is generally straightforward, it is important to work with experienced professionals.

Foreign buyers should ideally work with:

a reputable real estate agent

an experienced bilingual real estate attorney

a licensed Notary Public

Professional guidance helps ensure that the process is transparent, legally secure, and smooth from the first negotiation to the final registration of the property.

Final Advice

With the right legal advice and proper due diligence, buying beachfront property in Costa Rica can be a safe and rewarding investment. Many international buyers successfully purchase property each year and enjoy both the financial benefits and the exceptional lifestyle that Costa Rica offers.

If you have any questions about beachfront property, concession land, or titled ocean-view properties, we would be happy to assist you and provide further guidance.

Final Thought

“Beachfront property in Costa Rica is not about avoiding concession land — it is about understanding it and working with the right experts.”