Understanding Property Ownership in Costa Rica

Costa Rica real estate

Understanding property ownership before you buy

Not all properties in Costa Rica are the same. Your rights, risks, and legal protections depend entirely on the type of land you're purchasing.

How the coastline is divided by law

Ocean
Public water
0 – 50 m
Public zone — no building
50 – 200 m
Concession zone — government lease
200 m+
Titled land possible
Strongest rights
Titled property (fee simple)
You own the land outright, permanently, with full legal protection in the National Registry.
Ownership
Full
Mortgage
Yes
Foreign buyer
100%

You hold a registered title in the Registro Nacional — Costa Rica's national property registry. The land is yours to sell, inherit, mortgage, or develop freely. No third-party approvals are needed. Foreigners have identical rights to Costa Rican citizens for titled land — it is the most straightforward and secure purchase available.

Titled beachfront land is extremely rare — only around 5% of Costa Rica's beachfront carries a full title, so it commands a significant price premium
Survey errors or boundary disputes can occur — always commission an independent survey before purchase
Verify no unpaid taxes, mortgages, or liens are attached to the title at the Registro Nacional
Squatter risk is very low on registered, fenced, and actively maintained titled land
Government lease
Concession property
The most common form of beachfront ownership. You hold a renewable lease from the government — you use the land, the state owns it.
Ownership
Leasehold
Lease term
Up to 20 yr
Foreign max
49%

The 50–200 m strip from the high-tide line is governed by the Zona Marítimo Terrestre law (Law 6043, 1977). The government leases this land in 5–20 year renewable terms called concessions, administered by the local municipality and the Costa Rican Tourism Board (ICT). Most foreigners purchase via a Costa Rican corporation where a local holds at least 51%. The Four Seasons, Ritz-Carlton Reserve, and Waldorf Astoria are all built on concession land.

An approved municipal zoning plan (Plan Regulador) must exist for the area — without it, building permits cannot be issued
Annual municipal dues must be paid on time every year to keep the concession valid
Foreigners without 5+ years of residency can own a maximum of 49% through a corporation
Renewal must be filed before expiry — a lapsed concession can be difficult to recover
Failing to pay annual dues on time
Building in the 0–50 m public zone — structures can be demolished without compensation
Violating the terms of the concession agreement

In rare cases, yes. Properties privately titled before 1977 may retain title status. Once a municipality's Plan Regulador is approved and an area receives tourism designation, a formal pathway opens toward stronger ownership rights. For properties where approval is pending, this is a meaningful value proposition worth discussing with your lawyer.

Unregistered rights
Possession property
You hold documented rights to use the land, but there is no title in the National Registry. Common inland and in rural areas.
Ownership
Possession
Mortgage
No
Foreign buyer
100%

Possession rights (derechos posesorios) are documented through private contracts rather than a registered title. When you buy, you receive a Cesión de Derechos — a transfer of rights document. These rights are legally valid and fully transferable, but carry meaningful risks until converted to a full title. Possession land cannot be mortgaged, which limits financing options.

If someone occupies unattended possession land for just 1 year, they gain legally defensible possession rights under the Civil Code
After 10 years of open occupation, a squatter can file for full legal ownership through the courts
After 3 months, removing an occupant requires formal legal proceedings — after 1 year they may be owed compensation for improvements
Buying from a seller whose possession history has gaps means you may be purchasing an unresolved dispute
1.10 or more years of uncontested, publicly recognised possession required
2.A registered land survey is completed
3.Notarised statements obtained from neighbouring landowners
4.Judge inspection and document review — typically 6 to 12 months
5.Registration in the National Registry — estimated cost $1,500–$3,000
Cannot be purchased
The public zone (0–50 metres)
This strip cannot be owned, built on, or privately claimed — under any circumstances.

The first 50 metres measured from the average high-tide line — including mangroves, estuaries, cliffs, and any land exposed at low tide — is designated Zona Pública under Maritime Zone Law 6043 (1977). No concession, no title, and no private structure of any kind is permitted here, regardless of how long something has existed on the land.

Any structure inside the 50 m line — even partially — has no legal standing and can be demolished without any compensation to the owner
A structure built over the boundary line does not grant rights over the land beneath it
The high-tide mark shifts seasonally — always commission an official survey to confirm the current boundary before purchasing any beachfront property

This zone is permanently reserved for public use — walking, beach access, and free transit. Private landowners adjacent to the zone cannot legally block public access to the beach. A right of way to the public zone must always exist.

Before you sign
Due diligence checklist
Steps every buyer should complete before committing to any property purchase in Costa Rica.
Verify the finca number at the Registro Nacional before paying any deposit
Hire an independent Costa Rican attorney — not the seller's lawyer
Confirm no unpaid property taxes, municipal liens, or mortgages are attached
Commission an independent land survey to verify physical boundaries
Consider title insurance — typically around 1% of the purchase price and provides strong protection
Check for environmental restrictions — proximity to national parks, wetlands, or protected reserves
Confirm an approved Plan Regulador (zoning plan) exists for the municipality
Verify all annual municipal dues are fully paid and the concession is current
Audit the corporate ownership structure if buying via share transfer
Confirm no structure sits inside the 50 m public zone boundary
Review the concession renewal history and confirm the remaining term
Research the full documented possession chain — ensure there are no gaps in history
Physically visit and assess whether anyone else is currently occupying or using the land
Consider making title conversion a condition of sale or place funds in escrow until complete
Plan to fence and actively maintain the land immediately after purchase to prevent squatter risk