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I would like to share my experience and if possible get advice as to what I can do about something that has just happened…
Once upon a time, I finally realized my dream buying my peace of paradise on the beautiful beach of Palo Seco. Unfortunately, the land had no concession, so I had to apply, with all the delays, the paperwork it implies.
Finally, almost five years later, I was granted a 20 years concession and I should be happier than ever….except for one thing: I used to pay around 100$ in municipal taxes, for the garbage service, road maintenance etc, and that tax will continue, but now, I have been noticed that I will have a 2000$ annual fee added to my taxes, as a concession fee.
The Costa Rican government grants a concession through the local municipality after a private agreement established between the concessionaire and the municipality, which is later recorded in the National Registry. This agreement establishes a yearly concession fee that is determined by an appraisal carried out by the Tax Collection Office (Oficina de Tributacion Directa).
My question is to the others who have land with concession in the same area, how much do you pay for your concession annual fee? How is determined that fee, and is it the same for Ticos and Strangers?
I am not the first to have a concession in that area, so why haven’t I ever heard about that ridiculous price? … Or is it only me who see it too expensive???
We heard about crazy raises in fees in other areas and there were big protests, but I have never heard again about it. Is there anyway I can contest that charge? What are my options?
I would be grateful to hear the experience of people in Palo Seco or Parrita area, or anyone who knows about the subject
Thanx JoYou’re probably not going to find too many experts in a Discussion Forum on a topic as complicated as concessions. Even the expert real estate attorneys I know do NOT want anything to do with concessions because it’s so darned complicated and time consuming and the client does not wish to compensate them for their time in doing this …
Good luck though and if you do find out anything definitive, by all means shared with us…
On a side note, I tend to counsel our buyers and real estate investors to avoid – like the plague – getting involved with the government or any of it’s various entities wherever possible unless you have EXPERT legal counsel on board..
Scott Oliver – Founder
WeLoveCostaRica.comThank you Scott for your reply, and I know what a pain in the … all those paperwork are. and since I couldn’t thing of living very far from the beach, I had no choice but deal with concession stuff…But Gracias a Dios, it worked out well since I have the concession approved now….
I was not really looking for any legal advise. I have seen many people from Palo Seco, Esterillos, Bandera who are all part of Parrita municipality. Many of them have concession and I would like to know if they all pay as much for their annual fee, and if they bought with a concession already approved, maybe a few years ago, it was not so expensive, and maybe they will be surprised at the renewal.
I have Tico friends who have properties, houses on those beaches, and never heard they had such a big bill every years. I would also apreciate to know how it works in other municipality. Is it up to each or is there a standard regulation for those fees
I’m not the kind to fight the autorities without reason. I came here to be in peace, have fun and enjoy the Pura Vida…..If I cannot afford the price, I might just have to sell and leave, I just wish it could be otherwise…
Thanx JoJo
Scott is right. but Jo realize the value you have there in a concession. You can put in a 60 meter easement and put in Condos. I am in Bandera and am waiting and waiting for a zoning plan.
The only Lawyer here that I trust is Hugo Salizar. For $40.00 he will give you an opinion on your case. He is a top criminal attorney. He is also an accountant. Maybe he has some ideas on saving money on taxes.Hugo Salazar Email huggo132000@yahoo.es
tele: 8351 0345Stan
My point is that his land is more valuable with a concession. There are ways to give the concession back and then your taxes will go down. You like low taxes don’t you??
StanThanx Bandera for the lawyer refferal but what I needed was NUMBERS.
I must not be the only one who reads this forum and have a concession property. How much do you pay in yearly fees for the concession ? And does that price seem fair to you. If I am the only one to find it very expensive to pay 20 times what it used to be, I will just shut up and pay the bill !!!
Tnx JoThere’s going to be a lot of folks with waterfront concession properties in for a big wake up. I guess the CR government has figured out that the most attractive and “taxable” properties are those which they have the ability to take for none payment. The folks running things have just figured out what ocean front property is worth for those willing to pay the price. The cost in years gone by was far too low… but the increases are quite unreasonable.
minuit — I can not offer you the numbers help you are asking for. But I am happy to hear you did receive your concession at last. I’ve been waiting for three years for a concession in Palo Seco myself — I heard from Marvin Moira this past January that the Plan Regulador was submitted incorrectly (no zoning for the back road) and that it would likely be another year for concessions ….so that you got yours is a good sign. How long did you wait in total? Any tips for moving it along? I did hear in January that the reason so many properties in Palo Seco were for sale was the fear of the “big taxes” that were coming along with the concessions. There was an article in the Tico Times about Maltapalo beach town getting hit with huge increases last year when some folks got their concessions. Not sure if this is the situation too in Parrita. I did notice that very few places in Bujuco and Esterillos on the beaches (concession land) seemed for sale in comparison to Palo Seco, so I’m not sure what’s up there. Anyone have any insight or information? Has Tesoro all but come to a halt? I did hear the fiber optic cable that was going to be installed on the island was stolen — which is terrible. Who knows when it may be delivered again!? Again, congrats on getting your concession — you could probably write a “how-to” book and recoup the added annual cost for your taxes in sales to the rest of us still waiting in line. My ultimate hope is that the government changes the Martime Zone laws and converts this all to titled property down the road, at least the 250 meter zone where construction and “ownership” is allowed.
jo — I do have a question for YOU, sorry I can ‘t provide an answer to your question…but the $2000 tax seems very high. I’m wondering if you can tell me the size of the lot and location on Palo Seco. I am trying to anticipate what the tax on my lots might be …. I have one on the back road that’s about 1,000 square meters and have an interest in another on the ocean road that backs to the estuary that is about 1200 square meters. How do these lots compare in size and location to yours…my taxes are about $100 each a year right now….thanks for any insight you can provide…hope to meet you as a neighbor one day soon!
I have heard from a friend who lives in Parrita that many people who have applied for concesssions in Palo Seco who have lots on the front road are now receiving them, while others with lots on the back road are still waiting because of a mistake with the zoning plan that’s being corrected. Are there any members who can confirm this? Exciting news if this is the case …. progress in Palo Seco!!!
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