Technical article

Panama and Costa Rica: Titled Land, Right of Possession and the Coastal Concession

In Panama you could ask whether the land is titled or a right of possession.

By Neil Solomon · 4 min read

Picture a couple from Canada who like two houses. One is in Panama and the other is near the sea in Costa Rica. They have a son in Spain. The couple want to know what they would hold, and what their son would receive.

Panama: titled land or a right to use it

The sources say foreigners may own and occupy real estate in Panama. Two kinds of land are set aside: island land, which goes by government concession for tourism projects, and land within 10 km of any border. This is from a guide by a Panama law firm in Multilaw's network (tier B, July 2025).

Titled property is recorded in the Public Registry and gives the clearest ownership. A right of possession is different. It is a claim to use land that is not fully titled, and it is not recorded the same way. That description comes from one law firm's marketing article (tier C). The same article says possession rights need checks on the ground. It adds that some may be titled later through a government process.

Title checks in Panama look at the owner of record, the chain of title, mortgages, liens, attachments, court orders and restrictions.

Costa Rica: registry land and the first 200 metres

Outside the Maritime Zone, one law firm's question-and-answer page says foreigners have the same ownership rights as citizens, with no residency or nationality requirement. Title sits in the National Registry, and the checks there usually take two to four weeks.

The Maritime Zone is the first 200 m from the high-tide line. The first 50 m are public. The next 150 m are municipal concession land. The Costa Rican Tourism Institute quotes the law (tier A). Concessions are barred to foreigners with under five years of residence. They are also barred to foreign-domiciled entities, to entities formed in Costa Rica by foreigners, and to entities more than 50% foreign-owned. Concession holders may not transfer shares to foreigners, and a transfer that breaks this is void. One law firm puts the company cap at 49% foreign, so the sources differ by one point.

Company ownership is lawful outside the zone, and the transfer tax also applies when control of the company changes hands.

Side by side

The Panama costs come from the law-firm guide (B). A tax-firm page puts the top Panama property tax rate at 2.10%, so the sources differ. The Costa Rica sale figures are one law firm's statement (C). It adds that property bought before 1 July 2019 may pay 2.25% of the sale price instead.

What the son receives

In Panama, a tax-firm page says there is no inheritance, estate, gift or net wealth tax. A law firm adds that gifts of real estate to a spouse or first-degree relatives are exempt from donation tax. Heirs go to court for an adjudication decree, which is notarised and registered in the Public Registry. A foreign will is valid if it is valid where it was made.

The same law firm says Panama has no forced share as such. It describes support rights for descendants, parents and disabled children that rank ahead of the will, and a spouse's share of up to one fifth. Another source says there is no forced heirship at all, so these two differ.

In Costa Rica, one law firm says the owner has broad freedom to make a will. There is a duty to support children until 18, or for life if disabled, and a spouse or parents in need. The tax-firm page lists no inheritance or gift tax.