Types of Properties
in Costa Rica
Titled, Maritime, Concession? Here's what it all means.
Buying property in Costa Rica is safe, but it's important to distinguish between the types of property you acquire.
Concession Property
(Beach / Maritime Zone)
The land (the first 200 meters from the coast) is owned by the State. You acquire a right of use/lease for a specific period. The "sale" is a transfer of that right of possession. These properties are not registered in the Property Registry nor are they titled; they belong to the State and are administered by the municipalities.
It's important to understand that this is a safe investment as long the regulations are followed, and the property is maintained and not abandoned.
Property information is available in files (expediente) at the municipality.
To transfer ownership, your lawyer will facilitate changing the board of directors if the property is owned by a corporation, or if it is owned by an individual(s), the old file must be closed and a new one opened.
Uso de Suelo (Zoning)
This is the permit from the Municipality that defines what the land can be used for (residential, commercial, etc.). Your lawyer should verify that this permit aligns with your investment plans.
Quick Tip about Corporations
Many investors use a corporation (sociedad anónima or S.A.) or S.R.L. for purchase.
If the property is an absolute title, a foreigner can own 100% of the company.
If the property is a concession (beach), the law requires that 51% of the shares belong to a Costa Rican citizen or a resident with more than 5 years. Our lawyers are accustomed to this type of transaction with foreigners and can assist with the proper ownership.
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Absolute Title (Simple Fee)
This is the standard. You obtain full ownership of the land, and it is registered in your name in the National Registry, without nationality restrictions.
Property information is much more easily obtained for properties that are registered or have a title deed because all the information is in the public National Registry in the Property Registry. If you want to conduct a property search, everything is documented, and you can also check if there are any liens, encumbrances, or annotations.
To transfer ownership, you simply go to the notary, the transfer of ownership (traspaso) is carried out and registered in the National Registry, and you pay the registration fees, transfer tax, and VAT, plus the lawyer's fees.