Investing in the Coast: Updated Guide to Maritime Zone Concessions (ZMT)
Investing in Costa Rica’s coastline continues to be one of the most attractive opportunities for both domestic and international investors. However, the Maritime Terrestrial Zone Law (Law No. 6043) establishes a particular regulatory framework that requires sophisticated legal guidance to ensure the legal security of invested capital.
For investors seeking to develop tourism or real estate projects in Costa Rica, having specialized legal support in Real Estate Law is essential to properly structure the investment and avoid regulatory risks.
Property Regime on the Coast
Unlike traditional fee-simple titled properties, the Maritime Terrestrial Zone (ZMT) includes the first 200 meters measured inland from the high tide line along the coastline.
This coastal strip is divided into two sections:
Public Zone (50 meters)
- Inalienable
- Public access guaranteed
- Cannot be privately owned or granted as a concession
Restricted Zone (150 meters)
Within this area, concessions may be granted, which represent:
- Rights of use and enjoyment
- Granted for a limited period (usually 20 years)
- Issued by the local Municipality
- Approved by the Costa Rican Tourism Board (ICT)
Restrictions for Foreign Investors and Municipal Interpretations
Law 6043, specifically Article 47, imposes important restrictions for foreigners interested in obtaining concessions within the Maritime Zone.
Key limitations include:
- Foreign individuals must have at least five years of legal residency in Costa Rica to obtain a concession.
- In the case of corporate entities, at least 50% of the company’s capital must be owned by Costa Rican nationals.
Warning About Municipal Interpretations
It is important to note that some municipalities apply stricter interpretations of the law.
For example:
- Municipalities such as Parrita require that 50% of the company’s capital be owned strictly by Costa Rican citizens by birth or naturalization.
- Under this interpretation, even foreigners who have lived in Costa Rica for more than five years cannot directly own more than 50% of the shares.
This discrepancy between the legal framework and local administrative interpretation makes proper legal structuring essential in order to avoid:
- Concession invalidation
- Renewal rejections
- Municipal legal disputes
Transparency and Ultimate Beneficial Ownership (RTBF)
Previously, verification of a company’s ownership structure was largely declarative.
Today, through the Ultimate Beneficial Ownership Transparency Registry (RTBF):
- Municipalities
- The Costa Rican Tourism Institute (ICT)
have full access to the traceability of shareholders and beneficial owners.
At GLC Legal, we specialize in designing compliant investment structures that meet transparency requirements without compromising investor security.
The Importance of the Local Regulatory Plan
The validity of a concession depends directly on the local Regulatory Plan (Plan Regulador).
This plan determines whether land use is designated as:
- Tourism
- Residential
- Commercial
Additionally, annual concession fees must be paid to maintain the concession.
These fees are based on property valuations issued by Costa Rica’s Ministry of Finance.
Failure to pay these fees is considered grounds for immediate cancellation of the concession.
Challenges in Transfers and Financial Guarantees
Maritime Zone concessions are not perpetual rights, which creates certain limitations within the financial market.
Guarantees
Concessions can only be used as collateral in favor of:
- Institutions within Costa Rica’s National Banking System
Succession Issues
The death of a foreign concession holder can create legal conflicts if heirs:
- Do not meet the nationality requirements
- Or the residency requirements established by the municipality
Legal certainty on Costa Rica’s coast is not assumed—it must be carefully built through proper legal due diligence.
This process must consider:
- The legal framework
- Local municipal interpretations
- The correct structuring of the investment
At GLC Legal, we assist international and regional investors in protecting their coastal investments and navigating the complexities of the Maritime Terrestrial Zone legal regime.
If you are considering investing in Costa Rica’s coastal areas, contact our legal team for specialized guidance.
Author: Manuel Porras – GLC Legal partner
