When you think about buying a house in the tropical Costa Rica, the first image that comes to everyones mind is a beachfront property.
Last week we talked about valuable information to have in mind when thinking about buying a property in Costa Rica, this week we share with you more details in case you have always picture yourself having the ocean as your backyard.
If this is your case, it is really important that you are familiar with the Costa Rican maritime-land zone legislation.
Our partners, GM Attorneys at Law, a knowledgeable Law Firm with years of experience in Real Estate practice share with us some general information about the concessions in Costa Rican maritime-land zone:
- Applicable legislation:
Concessions in the Maritime-Land Zone are regulated in accordance with the provisions of Law No. 6043 and its Regulations.
- Definition of the Maritime-Land Zone:
Pursuant to the legislation mentioned above, the term “Maritime-Land Zone” means a strip of two hundred meters wide along the Atlantic and Pacific coasts of the Costa Rican Republic. It also includes islands, islets and sea cliffs, as well as any land or natural formation that surpasses the level of the ocean within the territorial sea of the Republic.
The Maritime-Land Zone consists of two sections:
- Public Area: is the first fifty-meter-wide strip.
- Restricted Area: is the strip of the remaining one hundred fifty meters (and the other lands in case of an island).
- General information on concessions:
- Concessions can only be granted in the Restricted Area.
- Concessions shall be granted for a term of not less than five (5) years nor more than twenty (20) years.
- Municipalities are the governmental authorities in charge of granting the concessions in their respective jurisdictions. In the tourist areas, it is also required the approval of the Costa Rican Tourism Institute or the Institute of Land and Colonization in all other cases.
- Concessions may be extended successively, at the end of their expiration or the previous extension, whenever requested by the interested party.
- All concessionaires must pay a fee that replaces the payment of the Property Tax.
- Concessionaires may not vary the destination of their real estate nor the buildings or facilities that they build in it, without the approval of the governmental authorities.
- It is forbidden to assign, or in any other way transfer, totally or partially, the concessions or the rights derived from it, without the express authorization of the governmental authorities.
- No concessions will be granted to:
- Foreigners who have not resided in the country for at least five years;
- Public limited Companies with bearer shares;
- Companies domiciled abroad;
- Entities constituted in the country by foreigners; and
- Entities whose shares or quotas or capital, are own in more than fifty percent by foreigners.
- Entities that were granted with concessions may not assign or transfer their quotas or shares to foreigners.