Costa Rica has one of the best legal structures in Central America. There are rules to protect the rights of the people in almost all areas. However, these laws, because of their comprehensiveness, end up protecting the crooks, too.
One subject of special interest to investors and purchasers of property is the Maritime-Terrestrial Zone. In the last five years, land close to the ocean has increased in value astronomically, giving those in the fraud business more bait for their hooks.
The law of the Maritime-Terrestrial Zone was published in 1977, and the zone is composed of the first 200 meters, starting from the high tide line. The zone is divided into two areas:
1.) The first 50 meters is the Public Zone. All the people of Costa Rica have rights to this land. The Costa Rican government has complete sovereignty to protect the area for the people. With only a few exceptions, no person can argue rights of any kind in this area or eliminate public access to it.
Possession rights, as outlined in a previous story in this series, cannot be acquired in this area under any circumstances. This means private beaches just do not exist in Costa Rica.
2.) The next 150 meters is the Restricted Zone. This area can be leased or given in concession by the municipality that regulates it. Most municipalities have a Plan Regulador which outlines the rules, regulations and procedures to follow governing all land in the municipality, including the restricted area of Maritime-Terrestrial Zone.
In this area, persons can acquire the right to use, but NEVER OWN, the land. They can build houses or commercial structures, and even transfer the acquired rights to other persons or corporations. However, the property can never be registered in one’s name.
If the municipality or national government wants the area back, they can get it back by paying an indemnity for the value of the improvements made. This means they do not have to pay for any increase in value due to appreciation, as some people believe. They only have to pay for improvements, and the value of those improvements are accessed by a third party designated by the courts.
There are some exceptions:
The Papagayo Gulf project, located in Liberia and Carillo, is administrated by the Instituto Costarricense de Turismo, Costa Rica’s tourism institute, and it has full control of the area, not any municipality.
Activists and some who live nearby have repeatedly protested being excluded from camping on the beach, which is in front of a luxury hotel.
Some properties in areas like Jacó, Parrita and other beaches inside the Maritime-Terrestrial Zone were registered to a person or in a company name many years ago by virtue of a special law, and those properties in the Restricted Zone can be sold or mortgaged in some cases.
A few municipalities still do not have a regulator plan, so in those areas the rules, regulations and procedures still do not exist to control Restricted Zones. In those areas, one needs to work with the municipality to create a regulator plan, which takes years.
Some beaches are not administered by municipalities but by the Ministerio de Ambiente, the environment ministry, and this body sets the rules.
A few, very few, people still own land where the titles were signed by the Spanish Crown hundreds of years ago, and these documents are still recognized as valid by the Costa Rican government.
The nature and all the exceptions surrounding the rights and use of Maritime-Terrestrial land are confusing, and even honest people make mistakes when negotiating this kind of property. Tricksters use the lack of clearly defined laws as a ruse to hoodwink the innocent.
It is possible to go to any beach area in Costa Rica and see FOR SALE signs on Public Zone and Restricted Zone property.
Are you interested in buying land close to or in front of the beach? Be careful. Do not accept anyone’s word that you can do it outright. Get someone to do the research you need to see if the property falls into one of the few exceptions listed above.
Costa Rica has many opportunities and good investments in real estate, but when it comes to the Maritime-Terrestrial Zone, dig deep when researching a project to avoid your dream turning into a nightmare.
