Costa Rica Travel: June 2006

Costa Rica Foreign Rights and Residency

Under certain conditions, Costa Rica allows foreigners to gain residency status. Residency is not to be confused with citizenship. Being a Costa Rican resident allows certain benefits while residing here, but still allows for citizenship in your home country. As a tourist, a visa must be renewed every 90 days (depending on the country of origin) by checking out of the country for 72 hours. Aside from not having to renew a tourist visa, benefits of residency include access and discounts on some public services like health care, insurance, and education.

In years past, Costa Rica was a haven for retirees, offering foreign residents certain incentives like importation of household goods and a vehicle exempt from import duties. These incentives were discontinued several years ago. Today, benefits are few unless you qualify through an investment scenario.

It is possible to own property in Costa Rica as a foreigner and to live here on a tourist visa.

One of the confusing issues is gaining residency and the right to work. Working status is not part of gaining residency and is given only under special circumstances, like an investment scenario. This process can be lengthy and bureaucratic.

Concession Land in Costa Rica

Both concession agreements and management plans are entered between private parties and the Government for a limited period of time that ranges between 5 and 20 years, at the Government's discretion; however, most concessions and management plans are granted for 20 years.

During such period, the concessionaire pays a fee for the use and occupation of such Government land. Renewal for equal and consecutive periods is negotiated between private parties and the corresponding government authority and, such renewal is usually based on the concessionaire's ability to comply with its commitments and obligations during the previous agreement. Such obligations include having assumed the commitment to build on that concession land, subdivide it or perform other acts of development or improvement on the land, in which case, the concessionaire will be required to obtain all appropriate permits from the local municipality.

Foreigners do not have the same rights as citizens when it comes to leasing shoreline zone concession land. The law establishes that foreigners cannot be majority owners of concession land. A foreigner can, however, enter into a partnership with a Costa Rican citizen where the Costa Rican national appears as the majority holder of the concession land. An exception to this prohibition applies to foreigners who have resided in Costa Rica for at least five years, who can also appear as majority holders of a concession.

Costa Rica Concession Land

Beachfront property around the world is more commonly know as "concession property." In Costa Rica, 95% of beachfront property is concession property and is governed by the Shoreline Zone Law (Law No. 6043) and other specific regulations. These legal dispositions set forth the conditions under which foreigners and local residents can lease concession property.

In Costa Rica, a concession is defined as the right to use and enjoy a specific portion of land located on the shoreline zone for a pre-determined period of time and based on a predetermined use of soil (zoning or master plan, known as "Plan Regulador"). The Government, through its corresponding municipality, grants this right by means of a private agreement between concessionaire and municipality that is further recorded in a Public Registry. This agreement also establishes a yearly concession fee that is paid based on an appraisal performed by government financial authorities.

Costa Rica's shoreline zone is comprised of 200 meters starting at the mean hightide mark and heading inland. This zone is government owned and no individual or company can own it. The shoreline zone is divided into two strips of land:

i. The first strip is 50 meters (approximately 150 feet) is known as the "public zone". This zone is not available for ownership of any kind. No development is allowed, except for constructions approved by government entities (i.e. marinas). As this area is deemed public, it is available for use of any individual.

ii. The following 150 meters (approximately 450 feet) can be subject to occupation or lease by individuals or companies, either through a concession with the respective municipality (in case of residential and commercially exploitable portions or land) or a management Plan with the Ministry of Environment and Energy (MINAE), as in the case of environmentally sensitive, low density, portions of land. In both cases, the property can be used, although not owned (same as with a lease).

Costa Rica Travel

Friday

Costa Rica Foreign Rights and Residency

Thursday

Concession Land in Costa Rica

Monday

Costa Rica Concession Land

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