Buying Property in Costa Rica as a Foreigner: Maritime Zone, Deeded Land, and Beach Investment

Costa Rica is one of the most popular Central American destinations for North American property buyers — and also one of the most misunderstood, specifically around what “beachfront property” actually means legally. The Maritime Zone Law governs the first 200 meters from any Costa Rican coastline, and most buyers don’t fully understand what they’re purchasing until they’ve already signed a letter of intent.

Get this distinction right before anything else, and the rest of the Costa Rica buying process is relatively straightforward.

The Maritime Zone: The Single Most Important Thing

Costa Rica’s Maritime Terrestrial Zone Law (Law 6043) divides the first 200 meters from the high-tide line into two zones:

• First 50 meters (Zona Pública): Absolutely public. No one can own this — not Costa Ricans, not foreigners. Building here is illegal. Walking here is a right for everyone.
• Next 150 meters (Zona Restringida): Not privately owned. Instead, it’s administered by the local municipality, which grants concessions — essentially long-term leases — for use. Foreigners who have not been residents for at least 5 years cannot hold a concession in their own name. They can hold it through a Costa Rican corporation (SA).

This means the “beachfront condo” that appears to have titled ownership is almost always on concession land, not fee-simple deeded property. Concessions are transferable, renewable, and generate genuine value — but they are fundamentally different from owning the land outright. They can be revoked in certain circumstances, and they require active management with the municipality.

Deeded (titled) property begins from approximately 200 meters inland from the coast. If you want true fee-simple ownership, you’re looking at properties set back from the beach. Many expat communities in Guanacaste are set back 300–500 meters from the coast and are fully titled — you can own these as a non-resident with equal rights to any Costa Rican.

Foreign Ownership Rights

On titled property (inland of the Maritime Zone), foreigners have equal ownership rights to Costa Ricans. No fideicomiso, no restrictions. For concession properties in the Maritime Zone, a Costa Rican SA (Sociedad Anónima) corporation is the standard holding vehicle — the company holds the concession, and you own the company. Forming an SA costs $1,000–$2,000 with a local attorney.

A cedula (Costa Rican ID) or residency is not required to purchase titled property or form an SA. Your passport is the primary document.

What Properties Cost

Guanacaste (Tamarindo, Nosara, Flamingo, Sámara): The primary foreign buyer beach market. Titled residential lots (200m+ from beach): $50,000–$300,000 depending on size and view. Concession condos with beach access: $150,000–$800,000. New construction resort developments: $250,000–$1.5M+. Tamarindo is the most developed; Nosara is more exclusive and surf-focused.

Central Valley (Escazú, Santa Ana, Heredia): The suburban residential market for expats who want city conveniences. Premium neighborhoods in Escazú: $1,500–$3,000/m². Strong domestic and expat rental demand. Proximity to San José’s Coco shopping, international schools, and the airport.

Manuel Antonio / Quepos (Pacific South): Boutique tourism market. Rainforest-meets-beach setting. Titled properties start further inland. Smaller market, higher premiums for views and jungle location.

Caribbean Coast (Puerto Viejo, Cahuita): Much cheaper, less developed, more surf-and-backpacker vibe. Significant title issues in some areas — land claims by indigenous communities, informal titles, and disputed boundaries. Extra caution required here.

The Buying Process

1. Establish a Costa Rican SA (if buying concession property).
2. Sign a purchase option or opción de compra — preliminary agreement, 10% deposit.
3. Title search — attorney checks the Registro Nacional. For concession properties, also checks the municipalidad’s concession registry and current status.
4. Sign the escritura pública before a notario público. Registered at the Registro Nacional.

Transfer tax: 1.5% of the registered value. Stamps and documentary fees: ~1%. Notary: 1–1.5%. Attorney: $500–$2,000. Total buyer costs: ~3–4%. Annual property tax (impuesto sobre bienes inmuebles): 0.25% of registered value — one of the lowest in the region.

Rental Yields

Guanacaste beach concession properties in managed programs: 8–15% gross in high season (December–April, Christmas and Easter week especially strong). Net of management (25–35% of gross), maintenance, and off-season vacancies: 5–10%. Properties in recognized surf or yoga tourism circuits (Nosara, Mal País) consistently outperform properties in less-branded areas.

The Surprising Insight

Costa Rica’s Annual Luxury Home Tax (IMPUESTO SOLIDARIO) applies to homes with a registered value above ₡133 million (approximately $240,000 USD) — a progressive surtax on top of the standard property tax. Rates range from 0.25% to 0.55% on the value above the threshold. Many foreign buyers with beach homes above this value are unaware of this additional annual obligation. Make sure your accountant factors it in when modeling carrying costs.

Frequently Asked Questions

Can I buy Costa Rica beachfront property as a non-resident foreigner?

You can hold concession rights in the Maritime Zone through a Costa Rican SA corporation (which foreigners can form and own). You cannot hold the concession directly in your name until you have 5 years of Costa Rican residency. For titled property outside the Maritime Zone, non-residents can buy directly with no restrictions.

What’s the difference between concession and titled property in Costa Rica?

Titled (fee-simple) property is owned outright and registered in the Registro Nacional — you own it like any other real estate in the world. Concession property is a long-term lease from the municipality over Maritime Zone land — you have use rights that are renewable and transferable, but you don’t own the underlying land, and the concession is subject to municipal oversight.

Is there capital gains tax in Costa Rica?

Yes — Costa Rica enacted a 15% capital gains tax on property and other assets effective 2019. The gain is calculated from the registered purchase price, so it’s important to register transactions at true market value (not undervalued, as was historically common). The tax applies to both residents and non-residents on Costa Rican-source gains.

What happens to my concession if I sell?

Concessions are transferable. When you sell, the concession rights transfer to the buyer through a share transfer of the SA or through a formal concession transfer registered with the municipalidad. The buyer assumes the existing concession terms. Your attorney handles this process — it’s more complex than a standard titled property transfer but routine for Costa Rica real estate attorneys.

Ready to take the next step? Book a consultation call — we’ll map out the right path for your situation.