Concession Properties

If you’re planning to sell a beachfront property in Costa Rica, chances are you’re dealing with what’s known as a concession property. And if that term has you scratching your head, you’re not alone. Concession properties operate under a different set of rules than titled land, and understanding those rules is key to a successful (and legal) sale.

So, let’s break it down—plain and simple—so you know exactly what to expect as a seller.

First Off: What Is a Concession Property?

In Costa Rica, most beachfront real estate falls under what’s called the Maritime Zone, a 200-meter stretch of land along the coast that is regulated by the Maritime Zone Law. Of that, the first 50 meters from the high tide line are public and completely off-limits for private development. The next 150 meters can be developed, but not owned in the traditional sense. That’s where concessions come in.

A concession is essentially a lease granted by the local municipality, allowing you to use and develop the land for a specific period (usually 20 years, with renewal options). So while you don’t “own” the land, you do own the right to use it, and those rights can be transferred—under strict conditions.

Key Things Sellers Need to Know

If you're thinking about selling your concession property, here are a few critical points to keep in mind:

1. You’re Not Selling the Land Itself

The land technically belongs to the government. What you’re selling is the shares of the corporation that holds the concession.

2. Must-Have: A Costa Rican Majority Owner

By law, at least 51% of that corporation must be owned by a Costa Rican national. This isn’t a loophole—it’s a non-negotiable requirement.

3. The Sale Requires Municipal Approval

You can’t just sell the property like you would with titled land. The transfer of concession rights must be approved by the municipality. That means following a specific legal process and submitting all the required documentation.

4. Legal Help Isn’t Optional

Due to the legal and bureaucratic complexity, working with an experienced attorney who understands municipal laws and concession transfers is absolutely essential. Not only will they guide the paperwork, but they’ll also ensure your buyer can legally assume the concession rights.

Why It Matters

While concession properties—especially those along Costa Rica’s stunning beaches—can be incredibly valuable, they come with a few more hoops to jump through. These properties are often under tighter government and municipal scrutiny, so trying to bypass the rules or “wing it” can cost you time, money, and possibly the deal itself.

This is not the time for guesswork or Google research. Proper legal guidance and a strategic approach are your best friends when it comes to a smooth, successful sale.

Final Thoughts

Selling a concession property in Costa Rica isn't complicated if you know what you're doing. With the right team on your side, the process can be just as seamless and profitable as selling any other high-end property.

At Luxury Homes Costa Rica, we do more than just connect buyers and sellers—we also guide our clients through every step of the transaction and connect them with trusted legal professionals to make the process transparent and stress-free.

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