A lot of beachfront property in Costa Rica is not owned in the usual sense. It is held under a municipal concession in the maritime-terrestrial zone. If you are looking for concession property loans, the most useful thing to know first is this: GAP Equity Loans lends only against titled property registered in the National Registry, not against concessions. This guide explains how concessions work under Costa Rican law, why they are a different kind of collateral, and what options you have.
What the maritime-terrestrial zone is
Law 6043, the Maritime-Terrestrial Zone Law, defines the zone as the 200-metre strip along the Atlantic and Pacific coasts, measured horizontally from the ordinary high-tide line (article 9). The zone is part of the national heritage, belongs to the State, and cannot be sold or acquired by possession (article 1).
The public zone is the first 50 metres from the ordinary high-tide line, plus the areas uncovered at low tide (article 10). Mangroves are also public zone, whatever their size (article 11).
The restricted zone is the remaining 150 metres (article 10). Concessions can be granted only in the restricted zone (article 39).
Who can hold a concession
Article 47 of Law 6043 says concessions will not be granted to:
foreigners who have not lived in Costa Rica for at least five years;
corporations with bearer shares;
companies or entities domiciled abroad;
entities formed in Costa Rica by foreigners;
entities whose shares or capital belong more than 50% to foreigners.
The same article says entities holding concessions cannot transfer shares or quotas to foreigners, and transfers made against that rule have no validity.
Why concession property loans are different
With titled property, the borrower owns the land and a first-lien mortgage can be registered against it. A concession is a right to use State land in the restricted zone under the conditions of the law and the municipality, and the rules on who may hold or receive it are strict. That is a different kind of security from titled property, and it is why GAP’s private lending works only with titled property.
The law does give banks a route: it authorizes the banks of the National Banking System and State institutions to lend to restricted-zone concessionaires, secured by the concession and its buildings, improvements and installations (article 67). Banks set their own requirements for those loans.
Your options if you hold concession property
Borrow against titled property you own. A house inland, a titled lot or a commercial building can serve as collateral for a GAP loan, even if your beach property is a concession.
Ask a bank. Article 67 allows banks of the National Banking System to lend against restricted-zone concessions, on their own terms.
Get the property checked. Before assuming a coastal property is titled or a concession, have a Costa Rican attorney review its National Registry record and its location relative to the 200-metre zone.
How GAP loans work on titled property
GAP reviews borrowers of any nationality; Costa Rican residency and a credit score are not required. Loans start at US$50,000, with terms from six months to three years and monthly interest-only payments. Lenders hold a first-lien position, with around 30% loan-to-value or less preferred and 50% as the maximum. Borrowers pay the loan fees, deducted from the proceeds at closing, with no costs before closing. GAP closes loans within 10 business days once the required documents are complete, while banks can take many months, if not longer.
Can I use a beachfront concession as collateral with GAP?
No. GAP lends only against titled property registered in the National Registry.
Can a foreigner hold a concession in Costa Rica?
Article 47 of Law 6043 bars concessions to foreigners who have not lived in the country for at least five years, and to entities formed by foreigners or more than 50% foreign-owned, among others.
Can I borrow against my other property instead?
Yes, if it is titled. Many owners of concession property also own titled property that can be reviewed as collateral.
Can a bank lend against a concession?
Article 67 authorizes banks of the National Banking System and State institutions to lend to restricted-zone concessionaires against the concession. Each bank sets its own requirements.
This article is general information only and is not legal, financial, or tax advice. Legal references are summaries of Law 6043 as published in SCIJ; confirm how they apply to a specific property with a Costa Rican attorney. Every loan depends on property review, documentation, and lender approval.
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Article by Glenn Tellier (Founder of CRIE and Grupo Gap)
