Frequently asked questions
What is envisaged under the master plan?
Tell me a little bit about the community…
What residential offerings are currently available?
Real estate opportunities include an exclusive collection of beachfront, oceanfront and oceanview estate homesites, Four Seasons Private Residences, Las Terrazas townhomes and custom homes. For more information on ownership opportunities at Peninsula Papagayo, email [email protected] or call +506 2696.2126.
We’d like to build. How much are construction costs and how long will the process take?
Construction costs will naturally fluctuate depending on site conditions and construction details. Most homeowners have been able to achieve the quality they desire for about $200 per square foot of total construction area, which is typically the air-conditioned area multiplied by a factor of two, more or less. The entire development process typically takes 24-30 months (10-12 months for design and approvals plus another 14-18 months for construction).
What services are provided by the Master Association? How much are common assessments?
Are rentals allowed?
Yes. A number of homeowners rent their properties when they’re not in residence. Please note: i) if a property is available for rent for more than 255 nights per year, it will be assessed as a Condominium Hotel Unit for the purposes of the Common Assessment; ii) a Civic Assessment of 3% is payable on gross rental income; and iii) homeowners desiring beach club access for their renters are required to purchase a Golf Membership.
Who is the developer?
The developer of Peninsula Papagayo is Ecodesarrollo Papagayo Limitada—a Costa Rica company controlled by affiliates of Gencom, a leading US-based international luxury hospitality and residential real estate investment and development firm. For more information about Gencom, please visit www.gencomgrp.com.
Are foreigners permitted to own real estate in Costa Rica?
Yes. In fact most Peninsula Papagayo owners are U.S., Canadian and European nationals. In Costa Rica, private property rights are protected at the constitutional level, and the country benefits from a secure and efficient property registry system.
Are there restrictions on ownership of beachfront or coastal land?
Yes. Throughout most of Costa Rica, the local municipality owns coastal land 200 meters inland from the average high tide, often referred to as the Maritime Zone. The 50 meters closest to the ocean are reserved for public use, while the next 150 meters (called the “concessionable” area) may be leased to private parties. Maritime Zone Concession Agreements are used by municipalities throughout the country to promote tourism development. A significant advantage of Peninsula Papagayo’s concession is that it’s held directly by the Costa Rican Tourism Institute (“ICT”).
Are foreigners permitted to own concessions on Peninsula Papagayo?
Yes. In 1979 and the early 1980’s Costa Rica established a special system of concessions that applies only to the Gulf of Papagayo. Many provisions of the Papagayo concessions are different from those of standard concessions. For example, (i) foreigners can own Papagayo concessions with no five year residency requirement; (ii) the term of the Papagayo concessions is substantially longer than that of standard concessions; and, (iii) title by concession applies to all land within the Gulf of Papagayo, not only the land within the Maritime Zone, with the exception of the 50-meter Public Area.
How long is the concession and can it be renewed?
Upon closing, your new residence or lot will be subject to the terms of a new concession agreement to be entered into between you as the new owner and the Costa Rican Tourism Institute (“ICT”).
The initial term of each concession agreement is 49 years commencing on January 15, 1993.
The fee for a subsequent 49-year renewal term was previously prepaid by the master developer. The 49-year renewal period will automatically commence on January 15, 2042, resulting in an effective remaining term of approximately 73 years.
Thereafter, commencing in 2091, additional 50-year renewal periods are available in perpetuity for renewal fees of $3.75 per square meter of concession property. All renewal fees, except when paid with the execution of the new concession agreement, are tied to an inflation index of the U.S. dollar.