Costa Rica has had a clear maritime or coastal areas development law on the books since the 1970’s.  While Costa Rica’s law is not always adequately enforced and often is the subject of corrupt bribes, at least here in this country developers know where they stand in terms of being able to develop beachfront property.  In general, in Costa Rica, you cannot. The first 50 meters from the high tide mark is “public domain” and the next 150 meters can only be touched if you are able to extract a “concession” from the local municipality, which is something akin to a long-term lease.  In Nicaragua, until now, there has not been a clear regulatory scheme and that has been very frustrating for developers.  The new law will establish a clear set of rules for both property along the ocean shore and along the banks of rivers.  Specifically the law states that the first 50 meters from the high tide mark is public domain and cannot be developed upon.  However, properties that have already been developed and contain improvements within the restricted zone will be “grandfathered” and allowed to remain.  As for river banks, the law states that the area of public domain is that which extends 5 meters from lake, river or lagoon shoreline.  Developers had lobbied hard for the area of restriction to be placed at 30 meters, rather than 50, arguing that there is no clear reason, environmentally or otherwise, behind the 50 meter figure.  However, the law says 50 and it is better to have something on the books that nothing.  Many proposed developments had been put on hold recently awaiting the outcome of the law and also hoping for a recovering economy.  Now that the law has been passed and the economy seems to be improving, it is possible that many of these projects can move forward and this may be a boost to Nicaragua’s economic woes.  The law has yet to be ratified by Ortega, but that is expected to take place very soon.  Next will come the promulgation of regulations that will determine exactly how the law will be applied in practical terms.  Some questions remain, however. Chief among them is the impact of the coastal zoning law, or Ley de Ordenamiento Territorial, which basically specifies that development within the area that is 200 meters from the shoreline is considered “restricted use” and can only be developed according to the municipal zoning law.   Another question is the impact of the Law of Autonomy that is applicable along Nicaragua’s Caribbean shore.  But in general private property owners along Nicaragua’s coast are applauding the law as it gives them assurances that their private property rights will be respected.

Link to Article in The Nica TImes