A guide to Costa Rica's Maritime-Terrestrial Zone, what a concession really means under Costa Rican law, and why legal due diligence is critical before acquiring coastal property.
Coastal real estate in Costa Rica operates under rules most foreign buyers have never encountered. Here's what you need to know.
Buying near the beach in Costa Rica is a goal for many international buyers, but it is important to understand that there are unique restrictions around private ownership of coastal property. Land closest to the shoreline is governed by a special legal regime that operates very differently from traditional ownership—including a public zone that can never be held by any individual or company.
The following article explains how Costa Rica’s Maritime–Terrestrial Zone (ZMT) functions, what a concession truly represents under Costa Rican law, and why proper legal due diligence is critical before acquiring coastal property.
This article was written by ECIJA Costa Rica, legal counsel to Second Street, and reflects Costa Rican law as it applies to coastal real estate.
In Costa Rica, the coastal strip is primarily regulated by the Maritime–Terrestrial Zone Law No. 6043, which establishes a special legal regime applicable to the two hundred (200) meters measured from the ordinary high-tide line. This zone is divided into two clearly differentiated areas: the Public Zone and the Restricted Zone.
This is one of the most common surprises for foreign buyers exploring Costa Rica real estate—the legal structure near the beach is not like what they’re used to at home.
The first fifty (50) meters from the ordinary high-tide line constitute the Public Zone, an area of common use that belongs to the Costa Rican State and may not be sold, leased, transferred, or acquired under any circumstances. Consequently, no private rights may be exercised over this strip.
After the Public Zone, the next one hundred and fifty (150) meters inland comprise the so-called Restricted Zone. Private ownership is also prohibited in this area; however, the law allows for the granting of administrative concessions.
What is a concession? A concession is a temporary, conditional, and revocable administrative right that authorizes the use and exploitation of land, subject to strict legal requirements.
In other words, holding a concession is not equivalent to owning real estate. This distinction is one of the most important things for foreign buyers financing a home in Costa Rica to understand early in the process.
The concessionaire does not own the land, nor does it hold a perpetual right. Instead, the concession is subject to: periodic renewals, the payment of fees, and full compliance with the terms and conditions established in the concession agreement. Failure to comply with these obligations may result in the cancellation of the concession, without any right to compensation.
It is also essential to understand that a concession does not arise from a private contractual relationship, but rather from an administrative act. This explains its limited and regulated nature, as well as the broad powers of supervision, control, and potential revocation retained by the public authorities.
Concessions are generally granted by the corresponding municipality.
For example, if there is land within the Restricted Zone in Tamarindo, a concession would be granted by the Municipality of Santa Cruz.
In certain cases, depending on the location—most notably in the Papagayo area—the Costa Rican Tourism Board (ICT) may also grant concessions. There are limited statutory exceptions to this legal regime under which private property may exist adjacent to the shoreline.
A common mistake among buyers is acquiring so-called “beachfront property” without properly verifying whether the asset is private property or land subject to a concession within the Maritime–Terrestrial Zone. In many cases, the documentation, marketing materials, or even the physical appearance of the property may be misleading.
Therefore, prior to executing any purchase agreement and/or transferring funds, it is essential to conduct thorough legal due diligence. It’s important to determine the legal nature of the property, the type of right being acquired, and the applicable restrictions. With coastal properties, understanding the distinction between a concession right and ownership is not a mere technicality; it is the difference between a sound investment and a significant legal risk.
Guillermo Zúñiga is a Partner at ECIJA Costa Rica and heads the firm’s Real Estate and Tourism Law practices, advising clients on Costa Rican real estate transactions, including properties subject to the Maritime–Terrestrial Zone regime.
For questions related to coastal property, concessions, or real estate due diligence in Costa Rica, he may be contacted directly by email.
If financing is an important consideration, understanding the legal nature of a property—particularly whether it is privately owned or subject to a concession regime—can be a key part of the decision-making process.
Second Street works with experienced and reputable Costa Rican legal counsel like ECIJA Costa Rica, to help buyers evaluate whether a property may align with their financing goals and to support a smooth transaction process. Early clarity around legal structure can help buyers focus on properties that are well-suited to their overall purchase strategy.
If you are considering a property purchase in Costa Rica and would like to explore financing options, Second Street can help you assess eligibility and outline next steps as you move forward.
At Second Street, we provide U.S.-style mortgage financing to foreigners purchasing property in Costa Rica. We’re the country’s premier international mortgage lender, offering long-term, 30-year fixed-rate loans to foreign buyers.
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