The 5 Types of Property in Costa Rica

Costa Rica is a country with much to offer travelers. Nature enthusiasts can explore the country’s 27 national parks and hike one of the 60-plus dormant volcanoes. Animal lovers can encounter more than 500,000 species of animals and more than 50 species of hummingbirds. In addition, Costa Rica has more than 800 miles of shoreline for those who enjoy the ocean and the beach.

Many travelers return year after year, and some eventually purchase property in the Central American nation. Foreigners can buy property in Costa Rica, which offers many options that appeal to buyers' various needs and interests. Properties are categorized into five main types: fee simple properties, concession properties, condominiums, untitled properties, and time shares.

Fee simple ownership grants the property owner absolute right to the property. The owner can occupy the property, lease it, or improve it. Costa Rica citizens and foreigners are held to the same conditions when pursuing this type of real estate ownership.

Concession property is governed by the Maritime Zone Law and the Costa Rican Institute of Tourism. The maritime zone consists of the first 200 meters measured from the high tide line and includes islands. This zone is divided further into two areas: the public area comprises the first 50 meters from the high tide line and cannot be owned, while the restricted/concession area is available for purchase or concession, which essentially constitutes a lease on the property, typically granted for 20 years.

Owners of concession properties can build on and augment their property, though they must obtain permits from local governing boards. Foreigners are not allowed to be majority owners of a concession property unless they have lived in Costa Rica for at least five years.

Condominium ownership is similar to fee simple ownership. However, it is governed by the Condominium Law, which enables condo developers to add restrictions. When purchasing a condo, buyers should secure a copy of the by-laws from the property developers to learn more about ownership rights. Restrictions generally relate to architectural alterations, land use, and other elements that might change the aesthetics of a condo.

Untitled properties have never been recorded in Costa Rica’s Public Registry of Properties. Generally, this type of property has been occupied by the same family for generations or has never been occupied. Nevertheless, untitled properties may be sold. Buyers should avoid purchasing untitled property, since the sellers may have no legal right to sell it, and may not even know its parameters.

Well known in the United States, a time share is sold to many owners, who are then allowed to use the residence for certain weeks of the year. However, time shares are uncommon in Costa Rica.

Property in Costa Rica is mostly registered in the Folio Real, a computer system that operates out of the Public Registry office in San Jose. Before seriously considering buying property, visitors should conduct a title search in the Folio Real, which provides information about the property. Additionally, if possible, buyers should consider purchasing property in a corporation’s name, which vastly simplifies the process.