The idea of owning a beachfront property in the tropics is a dream of many people – who hasn’t thought about that? However, many become perplexed once they start hearing about “concession” vs “titled” on Costa Rica beachfront properties.
While a concession beachfront property can be a secure investment for a beachfront property in Costa Rica, many shy away from this type of investment. The most common property type is “titled” where the buyer actually receives a deed to the property in their name or a corporation name. In Costa Rica over 95% of beachfront property is concession, so when you find beachfront property that is not a concession, you found gold! There is a short video below highlighting one of the few beaches where you can find ‘titled’ beachfront properties.
Concession properties are subject to specific legal rules and regulation which can be confusing as they can vary in different municipalities. In Costa Rica, beach properties are in the Maritime Zone, which is a 200 meter strip starting from the median tide line. The Maritime Zone consists of a 50 meters strip closest to the ocean known as the “public zone”, while the remaining 150 meters can be concessioned according to and applied by the local Municipality.
A concession means the owner or “Buyer” has a lease with the government of Costa Rica for a specified time period. Lease periods are usually 20 years but vary in different municipalities and can range from 7 to 40 years. Provided the owner keeps the annual dues paid on the concession and there has been no violation the terms of the concession, such as green zones and building regulations, the property concession will be renewed by the government.
There are a large number of downsides to concession properties, here are a few:
• Taxes are much higher
• More Restrictions on what building that vary according to each municipality
• Title insurance is not possible
• Concession land cannot be used as loan collateral
• Land laws and regulation are much more strictly enforced making more difficult to develop concession land
• Foreign owners must be a residents for five years
• A company that is set up in Costa Rica exclusively for foreigners is not eligible
For more detailed information on requirements and restrictions you can visit this page on Costa Rica Real Estate.
If you want a beachfront property you will most likely have to enter into to a concession property; however there are a few places where you can find “titled” beachfront properties. One such area is Playa Hermosa on Costa Rica’s Central Pacific. The Central Pacific is one of the primary destinations in Costa Rica’s real estate market because of its proximity to San Jose, great tropical weather and endless miles of beautiful, pristine beaches.
Located only five minutes south of Jaco Beach is Playa Hermosa, a tropical paradise that boasts one of the country’s most well-known surfing and sunbathing beaches. Watch this four minute video featuring title beachfront property with bungalows for under $190,000 in Playa Hermosa.
This video was produced by one of the leading realtors on the Central Pacific, for more information click here > Playa Hermosa – Jaco Real Estate
If you are interested in a Costa Rica beachfront property make sure you have a qualified realtor and good legal representation to ensure the security of your investment, especially if the piece of paradise you are trying to buy is a concession property.
The Costa Rica News (TCRN)