Are you picturing a front-row home steps from the surf in Santa Teresa, but not sure what “concession” vs. “titled” really means in Costa Rica? You’re not alone. Coastal property law here is different, and understanding it early protects your lifestyle goals and your investment. In this guide, you’ll learn the essentials of Costa Rica’s maritime‑terrestrial zone, how concessions differ from titled land, what to expect in Santa Teresa, and the due diligence that keeps deals smooth. Let’s dive in.
Understand the coastal zone (ZMT)
Costa Rica’s maritime‑terrestrial zone, known locally as the Zona Marítimo Terrestre (ZMT), is the coastal strip measured inland from the high‑tide line, commonly described as the first 200 meters. This area is public domain and is regulated to protect access, ecosystems and navigation. Private ownership does not override the public status of the ZMT.
In practice, parcels within the ZMT are not sold as private fee-simple real estate. They are typically managed through administrative instruments such as concessions that define who can use the land, for what purpose, and under what conditions. Various public institutions are involved in oversight and approvals, including the Registro Nacional, the Dirección de Bienes Nacionales, the Ministerio de Ambiente y Energía (MINAE) and its conservation system, SINAC, along with the local Municipalidad and its Plan Regulador.
Concession vs. titled property
What a concession is
A concession is an administrative grant of use rights over public coastal land. You receive defined rights for a fixed period, along with obligations such as maintaining public access and complying with environmental rules. Concessions do not convert public land into private title.
Key points:
- Use is defined and limited by the concession contract.
- Terms are fixed and may be renewable, but never assume automatic or perpetual renewal.
- Transfers typically require prior government approval and can take time.
- You pay an annual fee known as a canon and remain responsible for applicable municipal taxes and compliance.
What titled property means
Titled property is fee-simple ownership recorded at the Registro Nacional. These parcels are usually outside the ZMT and offer broad ownership rights. You can typically sell, mortgage, and improve the property, subject to standard laws and local permitting.
Key points:
- Stronger tenure certainty and usually easier to finance.
- Governed by civil property law with clear remedies for disputes.
- Still requires normal diligence on surveys, boundaries, liens and permits.
Financing and resale realities
Banks are generally more comfortable lending against titled property. Some lenders accept concessions as collateral if the concession is properly registered and has a sufficient remaining term, but lending is more limited and requirements are stricter. On resale, titled properties are typically more marketable, while concessions may face longer timelines due to required approvals.
Development and permitting
Building on concession land usually involves multiple approvals. You will coordinate concession compliance, environmental permits and municipal building permits. Existing structures in the ZMT may need regularization. For titled parcels, you follow standard municipal and environmental procedures, but coastal overlays and environmental rules can still apply.
Where each is common in Santa Teresa
In Santa Teresa, Malpaís and Montezuma, the immediate beachfront is often within the ZMT. That first row is frequently concessioned or subject to other public rules. Second-row parcels and farther inland are more likely to be titled, though coastal dynamics can shift where the ZMT line falls over time. Always verify the current high‑tide line and official maps during due diligence.
Your due diligence checklist
Use this localized checklist before you commit to a beachfront or near‑beach purchase.
Legal and registry
- Registro Nacional search: order the folio real extract for the parcel and adjacent parcels. Look for concessions, servitudes, mortgages, liens and litigation.
- Concession documents: if the land is within the ZMT, obtain the original concession contract, confirm registration status and payment history, and verify the granting authority and use conditions.
- Survey and boundaries: get a current coordinate‑based survey that clearly marks the high‑tide line and ZMT limit. Hire a surveyor experienced with coastal demarcation.
- Title chain: review the chain of title for missing links, unauthorized transfers or court actions. Watch for possession claims from neighbors or long‑term occupants.
- Transferability rules: for any concession purchase, confirm the approval process, specific obligations and renewal history with qualified counsel.
Environmental and coastal
- Protected areas and mangroves: check for SINAC and MINAE restrictions or sensitive ecosystems. Construction near mangroves is tightly controlled.
- Environmental permits: verify that any past works had required assessments and permits, and map out permits needed for your intended use.
- Shoreline behavior: review historical imagery and, for high‑value beachfront, consider a coastal engineer to assess erosion, accretion and setbacks.
- Drainage and flood: understand rainy‑season runoff, estuaries and drainage paths that impact access and buildability.
Municipal and planning
- Zoning and density: confirm land use, setbacks and density in the Plan Regulador at the Municipalidad.
- Building permits and occupancy: request copies of building permits and occupancy certificates for any existing structures.
- Access and roads: confirm legal access, easements and maintenance responsibilities. Road conditions can affect utilities and resale.
Practical and market
- Utilities and services: verify electricity, potable water, septic or wastewater permits, internet and trash service. Many properties in Santa Teresa rely on wells, septic systems and variable grid reliability.
- Rentals and tourism: if you plan short‑term rentals, confirm applicable municipal or national rules for tourist operations.
- Local context: speak with neighbors and local leaders about common access paths and community expectations for beach access.
Other document checks
- Tax and canon payments: request proof of municipal tax payments and, if applicable, concession canon payments.
- Insurance history: ask about prior claims related to storms, flooding or coastal events.
Timelines to expect
Real timelines vary by deal, paperwork quality and agency backlogs. Typical windows:
- Title and document review: about 1 to 3 weeks if records are clear.
- Survey and ZMT demarcation: about 2 to 6 weeks, depending on surveyor availability and whether tide observations are required.
- Municipal confirmations for a clean titled purchase: about 2 to 6 weeks.
- Concession transfer or new application: several months to over a year, since administrative approvals and environmental clearances are required.
- Fixing defects or irregular works: months to years, depending on legal and technical complexity.
Common pitfalls and fixes
- Assuming beachfront means private title: verify the ZMT line early through registry checks and a coastal survey.
- Overlooking environmental overlays: consult MINAE and SINAC resources and an environmental consultant before finalizing plans.
- Relying only on seller statements: independently confirm concession status, payments and renewals with original documents and administrative confirmations.
- Financing surprises: if you need a loan, speak with lenders early to confirm whether they finance concessions and on what terms.
- Shoreline change risks: commission a coastal stability assessment and design with conservative setbacks.
- Informal or unclear parcels: in parts of the Nicoya Peninsula, informal subdivisions and unrecorded transfers exist. Have a lawyer review the full title chain and survey.
Risk levels at a glance
- Highest certainty and bankability: clean titled property outside the ZMT with clear registry records and up‑to‑date taxes and permits.
- Medium risk: titled property with boundary inconsistencies or past unpermitted works that are fixable with time and cost.
- Higher risk: concessions with short remaining terms, unregistered transfers, outstanding obligations, irregular beachfront structures, or overlap with protected areas.
Smart next steps
- Engage bilingual local counsel with coastal concession experience as your first legal step.
- Order a certified folio real extract and copies of all recorded instruments for the parcel and neighboring parcels.
- Hire a licensed coastal surveyor to map the high‑tide line and ZMT relative to your boundaries.
- Request original concession documents and payment records, plus written status confirmations from the granting authority when possible.
- Commission an environmental screening for mangroves, estuaries and protected species to scope permit needs.
- Speak with the Municipalidad about zoning, permitted uses and any planned public works that could affect the parcel.
- Confirm utility availability, timelines and costs for connections or upgrades.
- If you plan to finance, pre‑clear loanability and collateral terms with potential lenders.
- For first‑row or near‑shore parcels, consider a coastal engineer report on erosion and flood exposure.
- Budget time and funds for regularization if buying concession land or properties with unpermitted structures.
A clear plan and the right team help you focus on what matters most, whether that is a private surf haven or a boutique hospitality project. With proper due diligence, you can balance lifestyle and investment goals in Santa Teresa with confidence.
Ready to explore options tailored to your goals in Santa Teresa, Malpaís or Montezuma? Connect with a trusted local advisor who understands concessions, titles and how to navigate the process end to end. Reach out to Dawn Wolfe for white‑glove guidance and curated opportunities.
FAQs
What is Costa Rica’s ZMT and why it matters
- The ZMT is the coastal strip commonly described as the first 200 meters from the high‑tide line, where land is public domain and private use is governed by concessions and environmental rules.
How is a concession different from private title
- A concession grants time‑limited use rights with conditions and approvals, while titled property is fee‑simple ownership recorded at the Registro Nacional with broader rights.
Can I finance a concession property in Santa Teresa
- Some lenders may finance registered concessions with sufficient remaining term, but financing is more limited and requirements are stricter than for titled land.
How long does a concession transfer typically take
- Expect several months to over a year, since transfers require administrative approvals and often environmental and municipal clearances.
Where is title vs. concession most common locally
- The immediate beachfront is often within the ZMT and under concession, while second row and inland areas are more likely to be titled, subject to verification with current surveys and official maps.
What permits do I need to build on concession land
- You will typically need concession compliance, environmental clearance and municipal building permits, and you should confirm all requirements with the relevant agencies and qualified professionals.
