In Costa Rica, property ownership can be categorized into two main types: titled and concession. Here’s how they differ and their respective advantages and disadvantages:
Titled Property
- Ownership: Titled property grants full ownership rights to the buyer, similar to property ownership in many other countries.
- Pros:
- Security: Offers the most secure form of ownership.
- Flexibility: Owners have more autonomy over the property, including development rights.
- Resale Value: Typically easier to sell and tends to appreciate more reliably.
- Cons:
- Cost: Initial purchase costs can be higher due to full ownership rights.
- Regulations: Must comply with all national and local regulations without special concessions.
Concession Property
- Ownership: Concession property is essentially a long-term lease granted by the government, often for land close to the coast or in protected areas.
- Pros:
- Access: Allows access to desirable locations that may be restricted for titled ownership.
- Lower Initial Cost: Generally cheaper upfront costs compared to titled property.
- Renewal: Lease renewals are possible, providing continuity of use.
- Cons:
- Vulnerability: Lease terms can change over time, subject to government policies.
- Development Restrictions: Can face more restrictions on development and usage.
- Resale Challenges: May be less attractive to buyers due to lease terms and restrictions.
