Countries › Costa Rica › Guide › 3. Investing › Restricted activities and ownership limits in Costa Rica: coastal concessions, private power, fuels, mining and assets the State cannot give up

Restricted activities and ownership limits in Costa Rica: coastal concessions, private power, fuels, mining and assets the State cannot give up

Last verified: 2026-10-29 · Status: Stable

Costa Rica screens no investment by nationality, but a handful of laws limit who may own or run certain assets. Coastal concessions in the maritime terrestrial zone cannot go to companies more than 50 percent foreign owned or to foreigners with under five years of residence; privately owned small power plants selling to ICE need 35 percent Costa Rican capital; fuel import, refining and wholesale is a RECOPE monopoly; open pit metal mining is banned; and water power, hydrocarbons, radioactive minerals and wireless services can only be exploited by law or time limited concession.

USD figures use the Banco Central de Costa Rica reference selling rate of ₡454.82 per US dollar published for 29 October 2026 (indicator 318 on bccr.fi.cr), rounded to the cent. Amounts set in salarios base use the 2026 salario base of ₡462,200 (Circular 246-2025 of the Consejo Superior del Poder Judicial, under Ley 7337 art. 2).

Key facts

Maximum foreign ownership of a company holding a maritime terrestrial zone concession	50 %Ley 6043 art. 47(d), as of 2026-10-29 · in force
Minimum residence for a foreign individual to hold a coastal concession	5 yearsLey 6043 art. 47(a), as of 2026-10-29 · in force
Width of the inalienable public zone from high tide	50 metresLey 6043 art. 10, as of 2026-10-29 · in force
Maximum term of a coastal concession (renewable)	20 yearsLey 6043 art. 48, as of 2026-10-29 · in force
Minimum Costa Rican share capital for private generators selling to ICE under Ley 7200	35 %Ley 7200 art. 3, as of 2026-10-29 · in force
Maximum size of a limited capacity private plant	20000 kWLey 7200 art. 2, as of 2026-10-29 · in force
Open pit metal mining banned	yes yes or noCódigo de Minería art. 8 bis, as of 2026-10-29 · in force
Fuel import, refining and wholesale reserved to RECOPE	yes yes or noLey 7356 art. 1, as of 2026-10-29 · in force

The rule

1. The forces obtainable from public waters, coal deposits, oil and other hydrocarbon sources, radioactive mineral deposits and wireless services may not leave State ownership for good; they may be exploited by the public administration or by private parties only under law or a special concession for a limited time on conditions set by the Legislative Assembly. National railways, docks and airports in service cannot be sold, leased or encumbered or leave State control.Constitución Política, art. 121(14), 1949-11-07 official text · verified 2026-10-29

2. The maritime terrestrial zone is the 200 metre strip along both coasts: the first 50 metres from ordinary high tide (plus land uncovered at low tide and all mangroves) are a public zone, and the remaining 150 metres are the restricted zone. Building, fencing or occupying any of it without legal authorisation is prohibited.Ley 6043 (Ley sobre la Zona Marítimo Terrestre), art. 10, 11 and 12, 1977-03-02 official text · verified 2026-10-29

3. Only municipalities grant concessions, and only in the restricted zone; concessions in tourist areas need approval from the Instituto Costarricense de Turismo. Concessions cannot be assigned, pledged or transferred, in whole or part, without express authorisation of the municipality and the relevant institute; acts in breach are void. Terms run from 5 to 20 years with a canon that replaces property tax, renewable on request.Ley 6043, art. 40, 42, 45, 48 and 50, 1977-03-02 official text · verified 2026-10-29

4. No concession may be granted to foreigners who have not resided in Costa Rica for at least five years, to companies with bearer shares, to companies domiciled abroad, to entities formed in Costa Rica by foreigners, or to entities whose shares, quotas or capital belong more than 50 percent to foreigners. Concession holders and their partners may not transfer shares or quotas to foreigners; transfers in breach are void.
Example: A beach hotel concession company with 49 percent foreign and 51 percent Costa Rican shareholders meets art. 47(d); if the foreign partner buys one more percent the transfer is void. / The cap applies whatever the price paid: a US$2,000,000 stake purchase that tips foreign ownership above 50 percent is void.Ley 6043, art. 47, 1977-03-02 official text · verified 2026-10-29

5. ICE may buy electricity from cooperatives and private companies with at least 35 percent of their share capital owned by Costa Ricans that build limited capacity plants (up to 20,000 kW) using small hydro or non conventional sources. Parallel generation may not exceed 15 percent of national system capacity, plus a further 15 percent for competitively tendered plants of up to 50,000 kW whose contracts last no more than 20 years and whose assets pass to ICE free of cost at the end. Foreign companies contracting under the law must set up a Costa Rican branch that meets the capital rule.Ley 7200 as amended by Ley 7508, art. 2, 3, 7, 20, 22 and 26, 1995-05-09 official text · verified 2026-10-29

6. Import, refining and wholesale distribution of crude oil and its derivatives (fuels, asphalts and naphthas) for domestic demand are a State monopoly administered by RECOPE while its shares belong entirely to the State; the State cannot sell or pledge RECOPE shares.Ley 7356, art. 1, 2 and 3, 1993-08-24 official text · verified 2026-10-29

7. No permits or concessions are granted for exploration or exploitation of open pit metal mining anywhere in the country, except exploration for scientific research. Any person, national or foreign, may otherwise hold mining permits or concessions, except foreign governments or states.Código de Minería (Ley 6797) as amended by Ley 8904, art. 8 bis and 9, 2010-12-01 official text · verified 2026-10-29

8. Railways, rail lines, docks and international airports, new or existing, and their services can be concessioned only under the public works concession law; at the Limón, Moín, Caldera and Puntarenas docks only new works or expansions can be concessioned. Telecommunications, electricity and health services are excluded from that law.Ley 7762 as amended by Ley 8643, art. 2, 2008-06-30 official text · verified 2026-10-29

Asset or activity	Limit	Source
Coastal restricted zone concession	Max 50% foreign capital; foreign individuals need 5 years residence; no transfers to foreigners	Ley 6043 art. 47
Private power sold to ICE (Ley 7200)	At least 35% Costa Rican capital; 20 MW plants; 15% plus 15% system caps	Ley 7200 art. 2, 3, 7, 20
Fuel import, refining, wholesale	RECOPE monopoly	Ley 7356 art. 1
Open pit metal mining	Banned	Código de Minería art. 8 bis
Water power, hydrocarbons, radioactive minerals, wireless services	Law or time limited concession only	Constitución art. 121(14)
Railways, docks, international airports	Concession under Ley 7762 only; no sale	Constitución art. 121(14); Ley 7762 art. 2

Where ownership or activity limits apply

Worked example

A foreign fund wants 70 percent of a Pacific coast hotel whose land is a municipal concession in the restricted zone. Under art. 47 it can hold at most 50 percent of the concession company; the fund can own the hotel operating company or titled land outside the 200 metre strip outright, but any structure touching the concession holder must respect the 50 percent cap, the municipal and ICT approval of transfers in art. 45 and the ban on transfers to foreigners.
A developer bidding a 15 MW wind farm into ICE under Ley 7200 needs at least 35 percent Costa Rican capital in the project company: on ₡4,548,200,000 (US$10,000,000) of equity, at least ₡1,591,870,000 (US$3,500,000) must be Costa Rican owned.

Step by step

Map every asset the target holds or needs: coastal land, water rights, spectrum, mining rights, energy contracts.
For coastal concessions, check the municipal register, the shareholder chain and every transfer for art. 47 compliance.
For energy, confirm under which Ley 7200 chapter the plant sells to ICE and the 35 percent capital test at every level.
For any concession, list the authorisations needed for a change of control and build them into the closing conditions.

Common traps

Coastal concession share transfers to foreigners are void, not merely sanctionable; due diligence must trace indirect ownership.
Do not assume a coastal plot is titled: check the National Registry and the municipality to see whether it lies in the maritime terrestrial zone and is held as a concession.
The 35 percent rule binds the branch of a foreign company contracting under Ley 7200 as well.
The constitutional list in art. 121(14) means water, hydrocarbon and spectrum rights always need a specific legal basis; there is no general private ownership route.

Sources

← Free zone regime in Costa Rica: who qualifies, the US$150,000 entry ticket, how PROCOMER and COMEX grant it, and how to lose itAcquiring a Costa Rican company: COPROCOM merger control, share transfer formalities and deal traps from free zones and concessions →

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