Buying property near the ocean in Costa Rica can be an excellent investment and a dream for many people. However, before handing over money or signing a purchase agreement, it is essential to understand an important legal framework that can completely change the conditions surrounding a property: the Maritime-Terrestrial Zone (Zona Marítimo Terrestre, or ZMT).
The ZMT is primarily regulated by Costa Rica’s Maritime-Terrestrial Zone Law and covers a 200-meter-wide strip along the country’s coastlines, measured from the ordinary high-tide line.
However, these 200 meters are not all subject to the same rules.
The first 50 meters from the ordinary high-tide line constitute the public zone.
This area forms part of the State’s public domain and, as a general rule, cannot be sold as private property. It is also intended for public use.
For this reason, a person cannot simply purchase land located within this strip because someone offers it for sale or because the land has been occupied for many years.
The age of a building or the length of time someone has occupied the property does not automatically turn that land into private property.
After the first 50 meters comes the restricted zone, which covers the remaining 150 meters.
The legal situation here is different. Under certain circumstances, concessions may be legally granted, and there are also specific cases involving private properties whose rights are recognized under certain conditions.
Therefore, finding a property within this zone does not automatically mean that it is illegal to acquire it. The important question is to determine exactly what type of legal right exists over the property.
In some cases, what is appropriate is not a traditional sale and purchase, but rather a concession or another specific legal procedure with the relevant authorities.
One of the most expensive mistakes a buyer can make is assuming that because a property is advertised for sale, has a deed, or someone claims to be the owner, it can automatically be purchased without further investigation.
Before making a significant investment, it is advisable to conduct thorough legal and technical due diligence.
Among other things, the buyer should verify:
This is a particularly important point.
A house may have existed for many years. It may have water, electricity, vehicle access, and may have been used by different people for decades.
But none of these circumstances, by themselves, guarantee that the property can be freely sold or that a new owner can carry out any type of construction or modification.
Therefore, when purchasing property for construction, remodeling, or a tourism or residential development project, the question should not simply be:
“Does the property exist?”
The question should also be:
“What can I legally do with it?”
If, after a purchase, it is determined that the property could not legally be sold as private property, significant consequences may arise.
Depending on the circumstances, the buyer may have legal grounds to seek the annulment or termination of the transaction, recover money paid, and, where there is sufficient legal basis, seek compensation for damages.
However, every situation is different, and the available legal actions and applicable deadlines depend on the specific circumstances.
That is why waiting until a problem appears before consulting a lawyer can be far more costly than conducting proper due diligence before purchasing.
In a real estate transaction, particularly when purchasing property near the ocean, the buyer should have an independent attorney and notary conduct a thorough review.
The purpose should not simply be to prepare the purchase deed.
The real objective is to determine whether what is being purchased is actually what the buyer believes they are purchasing.
A proper legal review can identify problems before the buyer transfers the full purchase price.
Costa Rica offers some of the most attractive coastal areas for living, investing, and developing tourism projects.
But precisely because these properties can be extremely valuable, their legal status can also be complex.
Before purchasing property near the ocean, it is wise to stop, investigate, and obtain documentary confirmation of the property’s legal status.
The price, ocean view, access, public utilities, and existing buildings may make a property appear to be an excellent opportunity.
But the most important question should always be:
What legal right am I actually buying, and what can I legally do with it?
A well-informed real estate investment begins long before signing the deed. It begins with thorough, independent, and documented due diligence.
Conclusions:
Costa Rica’s Maritime-Terrestrial Zone (ZMT) extends 200 meters inland from the ordinary high-tide line.
The first 50 meters are the public zone. This is public property and, as a general rule, cannot be privately owned or sold.
The following 150 meters are the restricted zone. In this area, properties may be subject to a concession. The State retains ownership of the land, while the concession holder receives a right to use the property, rather than full ownership.
A concession is not the same as titled private property. A titled property generally provides broader rights to sell, inherit, mortgage, and use the property. A concession is subject to specific conditions and a defined term.
Concessions have a fixed duration and may be renewable, but renewal should not be assumed to be automatic. It depends on compliance with the applicable requirements, payments, permitted use, and regulations.
The local Regulatory Plan (Plan Regulador) is extremely important. Before purchasing, you should determine exactly what the plan allows: construction, density, residential or commercial use, tourism activities, and other restrictions.
Foreign buyers need to pay particular attention to the rules governing concessions. The legal structure of the transaction may be subject to specific restrictions, so this should be reviewed before committing funds.
Financing and resale can be more complicated than with titled property. Banks may view concessions differently, and the pool of potential buyers may be smaller.
The concession must be carefully verified. Before purchasing, confirm that it is valid, properly registered, current, and that all obligations and payments are up to date.
The Key Takeaway
With a concession property, you are not necessarily buying the land itself; you are acquiring a conditional right to use it.
For any buyer—especially a foreign buyer—the important questions are not only:
“How much does this property cost?”
but also:
“What legal right am I actually buying, how long does it last, what can I legally do with it, and under what conditions can I keep or renew that right?”
