Owning Concession property is very simple and secure for foreigners. In fact Stewart Title is putting guarantees on concession land along the beaches. This is something that we will help you get done through the help of our staff and Attorneys. Essentially you will be buying Concession property under a corporation in your name. 51% ownership of this company will be a citizen of Costa Rica, you will then be given the 51% of the Costa Ricans physical stock shares in the company, thus giving you 100% shares and ownership of the company and control of your land. Please read below for exactly how the law works in Costa Rica regarding buying Concesión property.

  In Costa Rica, practically all "maritime littoral" on both coasts belongs to the State. This means that it is in the power, custody and management of the local municipality. The first two hundred meters of the high tide line are governed by a special law called Maritime Terrestrial Mile Act, which states that the first fifty meters of coast are public and inalienable. This means that they cannot be granted under concession, let alone be private property; they are intended for the use and enjoyment of all community and any person who wishes to use them.

  In regards to the remaining one hundred fifty meters of this maritime terrestrial zone, the law states that they may be granted under concession for individuals to use and enjoy them, as long as such use be authorized by the municipality and a payment of a tax determined by that same municipality be made.

 In the process of obtaining concessions, several requirements must be observed, which may vary from municipality to municipality; nevertheless, some must be common to all municipalities. The first one is that he who requests the concession shall be Costa Rican, no concession of the maritime terrestrial zone may be granted to foreigners.

  In like manner, it is possible to grant under concession a land to a Costa Rican corporation or artificial person, provided that the capital stock of said company be constituted in its majority by Costa Ricans; foreigners may not be owners of the majority of the capital stock of a company requesting a concession of the maritime terrestrial zone.

  Upon complying with these requirements, the interested party may request the local municipality to be granted the right to use the land in exchange of a payment to the municipality. In the concession process, the requestor must comply with several requirements; for instance, landmark setting of the zone, a cadastral plan of the land requested to be granted under concession, in some cases a zone regulating plan and, in others, the approval of an environmental impact study, etc.; as I indicated above, this depends on the local municipality.

  Whenever a concession is duly registered, this means that it is duly granted by the local municipality, approved by the Costa Rican Tourism Institute, and registered in the Public Concessions Registry; it may be assigned to an interested third party. Usually, there is a payment involved; nevertheless, such payment is not guaranteed, or binds the municipality or the concessions registry.

  The assignment implies to fill out a form requesting the municipality to accept the same.  We must not forget that the land belongs to the State and it is granted under concession, reason why, in principle, the State is empowered to deny a renewal of that concession once the term thereof has expired, although this is not very much likely to happen.

  It is also possible, within the commercialization process of beach properties, to acquire a right of possession, which means that the holder of that right is not yet a holder of the concession; therefore, he who acquires that right is not certain that the municipality shall grant him the concession of the land located within the maritime terrestrial zone. In this case, what usually exists is a file in the local municipality indicating the interest of an individual of acquiring the concession, and since in Costa Rica, he who is first in time is first in right, the municipality should, if he complies with all requirements, grant him the concession thereof. Notwithstanding the above, it is very important to have clear that, as we can see, this is an expectation of right.

  In theory, these rights of possession or maritime terrestrial concessions are not susceptible to sale, meaning that the municipality is not obliged to respect any agreements subscribed by and between individuals on this regard. Nevertheless, they have always been respected, because what the municipality seeks is that he who makes the request, complies with the requirements and pays the corresponding tax.

  In like manner, it is important to note that he who is granted the concession does not acquire the ownership of the land; the same continues to be property of the State.  This is why the land granted under concession or right of possession may not be mortgaged or granted under any kind of security.

  As a summary of the foregoing, we have that the lands granted under concession, or which concessions are being requested, are mere expectations of right and are commercialized by individuals due to their great tourist and scenic value. Nevertheless, the rules are set by each one of the municipalities and in default thereof, the State itself, and these are not obliged to respect any private agreements subscribed by individuals intended to sell or buy these lands.