In Costa Rica, the ownership of shoreline property is regulated by the Maritime Zoning Law ( Ley Sobre La Zona Maritimo Terrestre ). The Maritime Zone encompasses 200 meters of beach frontage witch is owned by the Costa Rican Government. Of the 200 meters regulated by the maritime law, the first 50 meters of tideland are zoned as the “public zone” ( Zona Publica). These zones are open to the general public, and private possession or occupation of this area is prohibited. The remaining 150 meters father inland are zoned as a “restricted zone” ( Zona Restringida). The law allows the Government to grant leases called Concessions for the occupation and use of this area for terms that range from five to 20 years.
The first determination that must be made is if there is an existing concession already granted for the property or if it will be necessary to apply for a concession for the first time. If a valid concession exists then the holder of the concession may assign his rights to that concession to a purchaser. The assignment of rights must be ratified by the Municipal government with jurisdiction over the property. If a prior concession exists, there should be a file open in the Municipal government and it would be wise to obtain and review a copy of the entire file before you purchase an assignment of rights.
In order to apply for a concession for possession of land in the maritime zone for the first time, the applicant must prove that they have had actual and open possession on the particular property. The property must also have a duly recorded property survey map (plano catastrado ) which has been approved by the Municipal government where the beach property is located. This generally requires an inspection by the Municipal government to verify the information on the survey map.
The concession request is filed with the Municipal government where the property is located. The concession department of the Municipality where the property is located will review the application and if it is in agreement it will submit the application to the Municipal Council who must vote on the application and then issue a written resolution in response to the application. The Municipal resolution is the document that confers the concession and will state the terms and conditions of the concession. Once approved the concession is submitted to the Concession Department of the Costa Rican Tourism Institute ( I.C.T. ) who will ratify the Municipal resolution and enter the Concession into there database and which will subsequently be recorded in the Registry of Concessions in the National Registry of San Jose.
Before a concession can be granted, the particular beach where the property is located must have an approved Costal Zoning Plan ( Plan Regulador Costero ) in place. Prior to this the National Geographic Institute ( Instituto Geografico Nacional ) must place the high tide markers called mojones on the shoreline property that is to be zoned. The zoning plans are approved by the Costa Rican Institute of Tourism ( Instiuto Costarricense de Turismo). Only the actual concession will clearly define the rights and terms of ownership which the occupant has to the property. In theory, the Costa Rican government should carry out these tasks on its own initiative. In practice, it rarely does so and it is quite common for private parties that have an interest in the area to cover the expenses of having the necessary work done.
Although local governments will collect a land use tax known as a canon from occupants of the land located in the maritime zone it does not mean that a concession has been granted. As such, the payment of a canon is simply recognition of the right to possession. On many occasions, people purchase a right of possession believing that they automatically have a concession from the government. This is not the case. The granting of a government concession is a separate procedure and a zoning plan for the area must be approved by the Costa Rican Tourism Institute before a concession will be authorized.
Also, in the past Municipal governments have granted concessions to individuals without complying with the legal pre-requisites established in the law. Although this practice has been common for many years it is risky to rely on a concession that has not complied with each and every aspect of the law. As the values of beach properties increase so does the scrutiny by administrative agencies to ensure compliance with the applicable laws. In 2004 the Office of the Comptroller Genera ( Contraloria General de la Republica) completed an audit of the actions of the Municipal governments to enforce the Maritime Zoning Law and issue a strong reprimand to those governments for there failure to properly regulate development on the maritime zone and lack of enforcement of existing laws. ( Informe No. DFOW-AM-11/2004 ). Interestingly the last time an evaluation of the maritime zone was done was in 1993 when the Tourism Institute ( I.C.T.) commissioned a study to determine the amount of illegal constructions on the public area of the maritime zone. At that time the Municipality of Santa Cruz alone it was determined that there were sixty-four illegal constructions. The new report by the Office of the Comptroller General determined that those illegal constructions were still there.
The law also restricts foreign ownership of land under concession. Pursuant to the law, the following may not acquire a concession:
(1) Foreigners, unless they have been residents of Costa Rica for at least five years:
(2) Corporations with bearer shares;
(3) Corporations domiciled outside of Costa Rica;
(4) Costa Rican corporations incorporated by foreigners;
(5) Corporations with 50% or more ownership by foreigners. Any transfer which is carried out in violation of the law shall be deemed void.
Since the Maritime Zoning Law did not come into affect until 1977 it cannot be applied retroactively. As such any shoreline property previously titled can be freely transferred. In conclusion, an investment in shoreline
Property which is regulated by the Maritime Zoning Law requires extra caution and thorough investigation. |