Costa Rica offers attractive opportunities for investors and businesses, particularly in real estate and coastal development. However, understanding the country’s legal framework is key to making safe, strategic decisions. At ILA Legal, we provide guidance through every stage — from ZMT concessions and real estate transactions to property tax, collateral structures, and custody trusts. Below, we outline the main aspects investors should know before moving forward.
TERRESTRIAL-MARITIME ZONE
Per Law N* 6043, the Terrestrial-Maritime Zone (or ZMT, by its initials in Spanish) is defined as the 200 meters-wide stripes, on the Atlantic and Pacific coasts; between the water body itself and the terrain left exposed by low tides. These terrains, belong to the Costa Rican Government; and the right of use private individuals and entities can acquire for them is a type of concession. ZMT Concessions can be a prime location for complex developments, such as Marinas and hotel business, or for individual restaurants and beachfront homes.
Each local government (Municipality) oversees administration and handling of the concession-granting procedure, each with a different Regulation Plan and other restrictions and requirements. Our team has handled the development of residential and commercial structures located in ZMT terrains, as well as high-end private villas; and is ready to provide concrete, custom-made advisory for your very own ZMT Project.
REAL ESTATE TRANSACTIONS
The purchase of Real Estate assets necessarily implies additional expenses to the purchase price itself, such as transfer taxes or Notary fees. However, it is always possible for further, unexpected costs to arise throughout the process. Our Real Estate team, deeply knowledgeable in the Due Diligence procedure, will ensure any potential liabilities, non-public liens and any further contingencies are fully covered and advised on, to guarantee your decision is made with all aspects taken into account and you can give a final, clear-headed “YES”.
GUARANTEE/COLLATERAL STRUCTURES
As simple as the acquisition of an asset in Costa Rica can be, the initial investment has to be properly structured to ensure ownership itself is secured; and if the need for a financed purchase arises, to guarantee the use of the legal figure best suited for your needs. From a standard Mortgage structure to a more complex Guarantee Trust, ILA´s team has ample knowledge of the legal, registral and fiscal aspects of these structures, to provide the best possible counsel for your financed purchase.
CUSTODY TRUSTS
Costa Rica counts with simple, flexible and yet secure regulation when it comes to the Trust figure. Among these, the Custody Trust structure simplifies asset management, with the same parties as the standard Trust Fund figure from the US, the Trustor transfers their assets to the trust, to be handled by the Trustee, all in favor of the Beneficiary.
Other than the familiar structure of the Custody Trust, the processing in case of passing of Trustor will save Beneficiaries time and money, as a judicial Succession Process or even a notary Succession Process could take years and months respectively, whereas the execution of the Custody Trust could be completed within weeks.
👉 Final Note At ILA Legal, our expertise in Costa Rican real estate and trust law ensures your investments are secure and compliant. Contact us for tailored legal advice on your next project.
