Concession Properties in Costa Rica

Concession properties in Costa Rica:

Properties located within the 150 meters farther inland from the low tide line, and are not titled are called “concesiones”, these kind of properties can not be owned, but “leased” with the Government of Costa Rica, represented by the Municipalities. The law, allows the government to grant these “leases” for the occupation and use of this area for a term of 20 years (in average). As a very “business-killer-issue”, the law restricts foreign ownership of land under concessions. The following may not acquire a concession: (a) A foreigner, without at least the past 5 years of residency in Costa Rica; (b) Corporations domiciled outside of Costa Rica; (c) Costa Rican corporations incorporated by foreigners; (d) Corporations with 50% or more ownership by foreigners. Important note: any transfer which is carried out in violation of the law shall deemed void. However, there is always some possibility of having the investors to control the assets of the corporation for example by submitting the shares in a trust with the 51% tico shareholder. Concessions SHALL be duly recorded at the Municipality and at the Public Registry to be ready for a “sell”. Always be sure of this before dealing with these properties.