FAQ's On Costa Rican Real Estate

Costa Rica’s unspoiled beaches and protected coastlines are a major draw for investors, developers, and retirees alike. However, it’s important to understand that beachfront property in Costa Rica is subject to strict government regulations, primarily governed by the Maritime Zone Law (Ley sobre la Zona Marítimo Terrestre).

Understanding the Maritime Zone (Zona Marítimo Terrestre or ZMT)

The Maritime Zone consists of the first 200 meters of land from the high tide line along the coast, measured horizontally inland. It is divided into two sections:

1. The Public Zone (First 50 meters from the high tide line)

   • Absolutely no private ownership, development, or concessions are allowed.

   • This area is public domain  open to everyone for public use, including walking, recreation, and access.

   • No one can legally build on or claim ownership of this section.

2. The Concession Zone (Next 150 meters inland)

   • This land remains property of the state but may be developed under a “concession” granted by the local Municipality, and regulated under a Zoning Plan (Plan Regulador) approved by the ICT (Costa Rican Tourism Board).

   • These concessions are similar to long-term leases and can last up to 20 years, renewable if the terms of use are met.

   • Properties within this zone are often referred to as “concession properties” and cannot be titled in the same way as other real estate.

Key Facts for Investors and Buyers

• Foreigners can hold concessions, but not as majority shareholders unless they have legal residency in Costa Rica. In practice, foreigners often acquire concession properties through Costa Rican corporations.

• Concession rights include the ability to build structures, operate businesses, or rent out the property, but all of this must be approved within the specific zoning regulations.

• Due diligence is critical. A thorough legal review is necessary before purchasing any beachfront property to confirm:

  • It has a valid and current concession.

  • It complies with the applicable Plan Regulador.

  • No environmental or legal restrictions exist.

• Grandfathered titled beachfront property: Some beachfront parcels were titled before the 1977 Maritime Zone Law came into effect. These are extremely rare but do exist, and are exempt from the concession rules under Article 6 of the law.

Applicable Law & Authority

• Law: Ley sobre la Zona Marítimo Terrestre

• Governing Bodies:

  • Municipalities (granting concessions)

  • ICT (Instituto Costarricense de Turismo) (approves zoning plans)

  • MINAE (environmental approval where required)

Legal & Real Estate Guidance Is Essential

Due to the complexity of concession property and the strict enforcement of maritime regulations, it’s essential to work with experienced real estate professionals and legal counsel who understand the nuances of beachfront property.

Invest in Costa Rica Beachfront Property with Confidence

Whether you’re interested in a vacation home, an eco-lodge, or a beachfront development project, our team will help you navigate the complexities of the Maritime Zone and ensure your investment is legally secure.

Summer Coast Realty
Serving Tamarindo, Flamingo, Potrero, Playa Grande, and the North Pacific Coast.
www.summercoastrealty.com
info@summercoastrealty.com

Yes, Costa Rica has zoning laws  known as “Planes Reguladores” (Regulatory Plans)  which regulate land use across the country. These plans are created and approved by local Municipalities in coordination with national agencies like INVU (Instituto Nacional de Vivienda y Urbanismo) and the ICT (Costa Rican Tourism Board).

While zoning in the San José metropolitan area tends to be more developed and strictly enforced, many coastal and rural areas  including Guanacaste  have their own zoning plans, particularly in zones affected by tourism, environmental conservation, and coastal development.

Zoning Plans in Coastal and Beachfront Areas

In coastal regions  especially in Guanacaste, where tourism and real estate investment are booming  zoning plays a critical role in determining what you can build, and where.

Properties located within the Maritime Zone (Zona Marítimo Terrestre or ZMT)  which is the first 200 meters from the high tide line  are subject to special zoning restrictions. This area is divided into two parts:

1. Public Zone (First 50 meters)

   • Completely public.

   • No development or concessions allowed.

   • It is protected, unbuildable land for public access and conservation.

2. Concession Zone (Next 150 meters)

   • May be eligible for development only with a concession (lease) granted by the local Municipality.

   • Must follow an approved Zoning Plan (Plan Regulador Costero).

   • Each zoning plan outlines the permitted land uses  e.g., residential, commercial, tourism, low-impact eco-lodges, or conservation.

   • Concessions are typically granted for 20-year terms, renewable.

Without a zoning plan in place, no development can legally occur in the concession zone. Areas without an approved zoning plan are in a state of legal freeze, and you cannot obtain construction permits there.

 Zoning Outside the Maritime Zone

Outside of the ZMT, properties may still be subject to local zoning regulations depending on the area. These zoning laws regulate:

• Minimum and maximum construction density

• Land use (residential, commercial, mixed-use, conservation, etc.)

• Minimum lot sizes

• Height and footprint restrictions

• Green areas and easements

• Road access and public infrastructure requirements

In rural areas, zoning may be more flexible  especially if the property is designated as “Uso de Suelo Agrícola” (agricultural use)  but legal advice is essential to ensure compliance with local and national regulations.

Zoning in Guanacaste

In high-demand coastal areas such as Tamarindo, Playa Grande, Flamingo, Potrero, and Las Catalinas, zoning laws vary greatly between each municipality and development area.

Some communities, such as:

• Las Catalinas

• Mar Vista

• Hacienda Pinilla

• Reserva Conchal

have internal master plans and strict architectural guidelines that go beyond municipal zoning, offering clear legal pathways for construction and investment.

 Legal & Municipal Coordination

Before purchasing land or planning construction, a full legal and zoning due diligence review is highly recommended.

At Summer Coast Realty, we:

• Work with top legal professionals and urban planners

• Conduct land use verifications and zoning certifications (uso de suelo)

• Coordinate with municipalities to confirm buildability

• Help you understand what type of development is permitted, and under what conditions

Zoning Summary: 

Need Help Understanding Zoning Laws in Your Target Area?

Whether you’re buying beachfront land, developing a commercial property, or planning a private residence, zoning laws can determine your project’s success.

Summer Coast Realty has local insight, legal partnerships, and experience in Guanacaste to guide your real estate investment with full legal compliance.

Contact us: info@summercoastrealty.com
www.summercoastrealty.com

Let us help you verify zoning and land use regulations  before you buy or build.

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 high tide mark and heading inland. The 200 meter zone is government owned. No individual or company can own the 200 meter zone. The shoreline zone is is divided into two strips of land:

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

ii) The following 150 meters 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), 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). Both concession agreements and managements plans are entered into between private parties and the Government for a limited period of time that ranges between 5 and 20 years, at Government’s discretion; however, most concessions and management plans are granted for 20 years. During such period, the concessionaire pays a fee to 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 compromise 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 require to obtain with all appropriate permits from the local municipality.

Yes  most rural areas in Costa Rica, especially in Guanacaste, have access to electricity and potable water, although availability and connection timelines may vary depending on the location and stage of development.

Electricity in Rural Areas

Electricity in Costa Rica is reliable and widely available  even in many remote locations. The country’s electricity coverage reaches approximately 98% of the national territory.

• In Guanacaste, rural and coastal areas are serviced primarily by Coopeguanacaste R.L., a well managed cooperative utility company.

• In other areas, service is provided by ICE (Instituto Costarricense de Electricidad) the national electric company.

• Electricity is typically available up to the property line. The property owner is responsible for:

  • Applying for a new service meter

  • Covering the cost of internal wiring

  • Coordinating any necessary installation inspections

Rates:
Electricity is billed based on usage and time of day demand, with rates starting at around $0.10–$0.13 USD per kWh.
For a modest home, this may equate to $30–$80 USD/month, depending on:

• Use of A/C units or electric water heaters

• Number of appliances

• Time-of-day usage

Many homes, particularly in beach areas like Tamarindo, Playa Grande, or Potrero, use:

• On-demand water heaters

• Solar systems or batteries

• Energy-efficient appliances

 Water Access in Rural Areas

Water service is usually available in rural areas but you must verify the source and connection before purchasing land or property.

The three most common sources are:

1. Public Municipal Water (A&A or Local ASADA)

   • The A&A (Acueductos y Alcantarillados) is the national water authority.

   • In Guanacaste and rural towns, ASADAs (community-run water boards) provide potable water.

   • Bills are modest: approximately $0.25 USD per cubic meter, or $5–10 USD/month for regular usage.

   • Water is generally potable, but testing is always recommended, especially in rural zones.

2. Private Wells

   • Some rural properties have legal wells (“pozos perforados legales”) to supplement or replace public water.

   • Well permits must be registered with MINAE and may require inspections.

3. Concessions or Tanks

   • In off-grid areas, water is sometimes trucked in or stored in rainwater collection tanks or cisterns.

Before closing on a rural property, your real estate team should:

• Verify the legal water letter (carta de disponibilidad de agua)

• Check for existing water meter installation

• Clarify whether water is public, private, or concession-based

Sewage and Septic Systems

In rural and semi-rural Costa Rica, homes are rarely connected to a centralized sewer system. Instead:

• Septic tanks are the norm, and are efficient when properly maintained.

• Local septic service companies handle cleaning and repairs.

• Newer homes may use biodigesters or eco-friendly treatment tanks.

Other Utilities: Internet, Cell & Phones

• Cellular and mobile internet are widely available even in many rural and mountainous areas.

• ICE and private companies (like Kolbi, Movistar, Liberty, or Claro) offer both pre-paid and post-paid mobile and internet services.

• Fiber optic internet is expanding fast in Guanacaste, with good coverage near major towns and gated communities.

• Landlines can be registered under a corporation or a resident’s name, but most people rely on mobile service.

Final Considerations for Buyers

At Summer Coast Realty, we assist our clients in:

• Verifying utility availability before making an offer

• Coordinating with Coopeguanacaste, ICE, or ASADAs to ensure smooth connections

• Reviewing all service documents during due diligence

• Recommending licensed professionals for electrical and water installations

Summary Table

Need help verifying utilities for a rural property in Costa Rica?

Contact us: info@summercoastrealty.com
www.summercoastrealty.com
We’re here to make sure your dream property is ready to live in with water, power, and peace of mind.

If you’re planning a move or investment in Costa Rica, one of the most common questions that comes up is: Should I buy an existing home or purchase land and build? There’s no one-size-fits-all answer ultimately, it depends on your lifestyle, goals, and vision for the future.

Buying vs. Building: What’s Right for You?

If you find a move in ready home that checks all your boxes, you might be able to negotiate a favorable deal and avoid the time and effort that come with building. On the other hand, buying a lot and building your dream home gives you the chance to personalize every detail, which can be incredibly rewarding and surprisingly cost-effective.

For those planning to retire or relocate permanently to Costa Rica, owning property brings peace of mind and long-term stability. If you’ve fallen in love with the area whether it’s Guanacaste’s Gold Coast, the mountains, or the Central Valley it may be time to consider making Costa Rica your full time home.

Thinking About Building?

If building is your preferred route, keep in mind that construction in Costa Rica is regulated and must follow local guidelines. You’ll need to hire a licensed architect or engineer to submit your construction plans for approval through the local Municipality. Costa Rica enforces strict construction standards to ensure safety and environmental responsibility.

In terms of cost, you can expect to pay between $110 to $150 per square foot, depending on design, finishes, and the region.

My Advice?

Come experience Costa Rica firsthand. Explore the real estate options, talk to local professionals, and take your time evaluating whether buying or building is best suited to your needs. Whether you’re investing, retiring, or relocating, it’s a personal decision that deserves thoughtful planning.

At Summer Coast Realty, we’re here to help you navigate every step of the process. From discovering the perfect beachfront condo to building your dream home with mountain views, we’ll make sure you have the local expertise and guidance you need.

lindsey@summercoastrealty.com
+506 8917 3144
www.summercoastrealty.com

Yes, it is absolutely possible to build a home in Costa Rica to North American standards. In fact, there are several reputable Canadian and American architects and builders operating locally who specialize in this type of construction. Many of them have adapted their expertise to incorporate Costa Rican materials, climate conditions, and local labor—while still delivering high-quality, modern homes.

North American Quality with a Costa Rican Touch

Building a home here can be a rewarding and exciting experience, but it also requires detailed planning, clear communication, and professional oversight. From family input to construction crews, each phase of the project must be carefully coordinated.

While many local construction companies follow traditional Costa Rican methods, there are also firms that offer North American-style project management. These companies bring together teams of architects, engineers, builders, and skilled tradespeople who work under unified supervision to create luxury homes designed for tropical living.

Selecting the Right Builder

Choosing the right builder is just as important as choosing the right property. When building in Costa Rica, your builder must not only meet your expectations in design and quality but also understand and navigate the country’s legal and regulatory requirements, which differ significantly from those in Canada or the United States.

For clients who are not in Costa Rica during construction, a reliable builder will provide regular updates through progress photos, videos, and detailed email reports. Professional builders in Costa Rica should also offer:

• Valid work site insurance

• Certified pro-forma invoices

• Construction warranties

• Compliance with Costa Rican architectural and engineering codes

• Oversight by a licensed architect or engineer for municipal permitting

At Summer Coast Realty, we work with trusted builders and professionals who are experienced in delivering North American-style homes that meet the highest quality standards. Whether you’re considering a custom build or selecting a pre-designed model, we’re here to guide you every step of the way.

To learn more about building a home in Costa Rica or to get connected with reliable professionals, contact us today:

Lindsey Cantillo
Broker, Summer Coast Realty
lindsey@summercoastrealty.com | +506 8917 3144
www.summercoastrealty.com

Finding a trustworthy and experienced builder in Costa Rica is one of the most important steps in the home building process. Unlike in some countries, personal recommendations and proven references are essential here. Word of mouth carries a lot of weight so it’s wise to speak with friends, neighbors, expats, or other professionals already living in Costa Rica. Online forums, real estate networks, and even your local embassy may also be valuable resources for referrals.

Three Common Options for Building Your Home

When it comes to construction, you generally have three choices, depending on your level of involvement and how much time you’ll spend in the country during the build:

1. Hire a Local Builder with a Good Reputation
   This is often the most convenient option. Work with a local builder who has a strong track record for quality, service, and timely delivery. Always check references and visit previous projects, if possible.

2. Use One of Our Construction Crews with Professional Supervision
   At Summer Coast Realty, we can connect you with reliable crews and licensed professionals. In this model, your project will be overseen by a Costa Rican architect or engineer who ensures the build follows regulations, stays on budget, and meets your quality expectations.

3. Manage the Construction Yourself
   If you plan to be in the area full-time during construction, you may choose to manage a crew directly. This gives you full control over the process, including sourcing materials and supervising labor. Some clients also work with an architect to handle the design and then hire individual contractors for labor. This approach can help reduce costs, but it requires a strong understanding of local systems, building codes, and project management.

Important Considerations

• Earthquake-Resistant Construction: Costa Rica is a seismic country. While strong earthquakes are infrequent, they do occur. Your builder must be knowledgeable about earthquake resistant design and local building codes that help minimize risk.

• Material Costs and Builder Markups: If you purchase your own materials, you can often avoid builder markups typically around 30% and benefit from wholesale pricing. However, this requires your active oversight to ensure quality and accuracy.

At Summer Coast Realty, we’ve spent years building strong relationships with reputable builders, engineers, and architects throughout Guanacaste and beyond. Whether you’re looking for a turnkey service or a custom building experience with hands-on involvement, we’re here to guide you and connect you with trusted professionals.

Contact us today for guidance and referrals you can trust.

Lindsey Cantillo
Broker | Summer Coast Realty
lindsey@summercoastrealty.com
+506 8917 3144
www.summercoastrealty.com

The issue of squatters known locally as precaristas is something property owners in Costa Rica should understand and take steps to prevent. While it’s not a widespread problem in all areas, squatter rights are protected under Costa Rican law, and if not handled properly, they can lead to significant legal complications.

Understanding Squatter Rights in Costa Rica

Under Costa Rican law, individuals who take possession of a property and remain undisturbed for a certain period of time may begin to acquire legal rights to that land. Here’s how it works:

• After 3 months: A squatter begins to receive limited rights to the property.

• After 1 year: If they remain undisturbed, they may apply for expropriation through the Agricultural Development Institute (IDA). If approved, ownership could be transferred to the squatter, especially if the land is considered idle or undeveloped.

This process is particularly risky for properties that are left unattended for long periods, especially in rural or beachfront areas. The law was originally designed to support agricultural land redistribution, but in practice, it can affect unoccupied residential or investment land as well.

The Maritime Zone

Special attention should be given to oceanfront property within the Maritime Zone the first 200 meters from the high-tide line. This land is not privately owned; it can only be leased with a concession from the government. Because of its desirability and legal complexity, beachfront land can sometimes attract squatters, and removing them if not done quickly can be both lengthy and expensive.

How to Protect Your Property

To avoid squatter issues, it’s essential to take proactive steps:

• Hire a caretaker (guarda or encargado) to live on or regularly inspect the property.

• Work with a local realtor or property manager someone you trust who can keep an eye on the land in your absence.

• Fence and mark your property boundaries clearly to establish ownership presence.

• Document any signs of unauthorized occupation early, and act promptly through legal channels if needed.

At Summer Coast Realty, we not only help clients find and purchase property in Costa Rica we also guide them on how to maintain and protect their investment. Whether you’re living in Costa Rica full-time or managing a vacation property from abroad, we’re here to help you safeguard what’s yours.

For more advice on owning property in Costa Rica, or to connect with local caretakers, attorneys, or property managers, reach out to us today.

Lindsey Cantillo
Broker | Summer Coast Realty
lindsey@summercoastrealty.com | +506 8917 3144
www.summercoastrealty.com

If you’re purchasing property in Costa Rica especially as a second home or investment hiring a property manager can be one of the smartest decisions you make. Whether you’re here full-time or living abroad, a reliable property manager ensures your investment is protected, well maintained, and income-generating if you decide to rent it out.

Caretakers vs. Professional Property Managers

There are generally two options when it comes to managing your property:

1. Caretakers (Encargados)

Caretakers are often live-in employees who keep an eye on your property year-round. They can handle basic upkeep, security, gardening, and even pool maintenance. Wages are generally affordable around $600 per month, plus lodging and mandatory enrollment in the Costa Rican Social Security system (Caja Costarricense de Seguro Social). A trustworthy caretaker offers valuable peace of mind, especially for rural or unattended properties.

2. Professional Property Management Companies

For owners who want a more hands off experience particularly those renting short or long term a professional property management company is the better choice. These firms typically offer comprehensive services that include:

• Marketing and booking vacation or long-term rentals

• Screening tenants

• Coordinating check-ins and check-outs

• Handling emergency repairs and routine maintenance

• Managing accounting, monthly reports, and bill payments

• Ensuring compliance with local rental laws and regulations

While this service comes at a cost, the convenience and professionalism it brings often outweigh the expense especially if you’re looking to maximize rental income and free up your time for other investment opportunities.

Our Recommendation

At Summer Coast Realty, we work closely with a network of reliable, experienced property managers and caretakers throughout Guanacaste. Whether you’re looking for someone to simply keep an eye on your home or a full service management team to oversee rentals and operations, we can help connect you with the right solution.

If you’re purchasing a property or considering investing in Costa Rica, contact us for guidance on trustworthy property management services tailored to your needs.

Lindsey Cantillo
Broker | Summer Coast Realty
lindsey@summercoastrealty.com | +506 8917 3144
www.summercoastrealty.com

Let me know if you’d like to offer a downloadable “Property Management Checklist” or create a landing page for owners considering rental income.

Hiring household help in Costa Rica is common and affordable. Domestic workers such as housekeepers, gardeners, and handymen typically earn around $5 per hour, with full time staff earning about $800 per month plus lodging and benefits. Many housekeepers also serve as cooks or nannies.

However, Costa Rica’s labor laws are strict and fully protect all workers, including those employed in private homes. As a foreign resident and employer, understanding these laws is essential to maintaining a fair, legal relationship with your staff and avoiding legal or financial issues.

Key Points to Know:

1. Trial Period and Employment Terms

• The first 30 days of employment is considered a trial period.

• During this time, either party may terminate the agreement without notice.

• If the employee works more than 20 days during this period, they are entitled to vacation pay, a Christmas bonus (Aguinaldo), and must be registered for social security (Caja).

2. Working Hours and Holidays

• Household employees generally work up to 8 hours per day, 6 days a week.

• Workers are entitled to paid time off on national holidays. If they work on those days, they must be paid double wages.

• Vacation time is earned at one day per month, totaling about two weeks per year.

3. Social Security (Caja)

• Registration with CCSS (Caja Costarricense de Seguro Social) is mandatory within the first 8 days of employment.

• Caja provides coverage for healthcare, maternity leave, and sick leave.

• Employers are responsible for a portion of the salary during leave periods and can face penalties if employees are not registered.

4. Wages

• While the legal minimum wage is set by the government and varies by job type, it is common and advisable to pay a higher local market rate to attract reliable help.

• Paying a fair wage fosters loyalty and professionalism.

5. Christmas Bonus (Aguinaldo)

• All employees are entitled to a mandatory bonus equal to one-twelfth of their annual earnings.

• This must be paid between December 1st and 20th.

6. Termination, Notice, and Severance

• After 90 days, employees are entitled to a notice period (2 weeks up to 1 month, depending on the length of employment).

• Severance pay is based on time worked, up to a maximum of 8 months’ salary.

• Dismissals must be documented and properly processed, including payment of any unused vacation, prorated Aguinaldo, and outstanding wages.

7. Protections for Employers

• Employers can dismiss workers without severance in cases of serious misconduct, but must provide clear evidence and documentation. Legal support is strongly recommended in such cases.

At Summer Coast Realty, we guide our clients not only through purchasing property but also through understanding the responsibilities that come with owning and managing a home in Costa Rica. From hiring staff to working with trusted property managers, we’re here to support every step of your journey.

Contact us today for trusted advice and professional referrals.

Lindsey Cantillo
Broker | Summer Coast Realty
lindsey@summercoastrealty.com | +506 8917 3144
www.summercoastrealty.com

Let me know if you’d like to include a downloadable checklist or quick guide for new homeowners hiring staff.