Approved in Second Debate Draft Law Named “Law for the Promotion of Tourist Marinas and Coastal Development”

Approved in Second Debate Draft Law Named “Law for the Promotion of Tourist Marinas and Coastal Development”

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The Congress approved in a second debate the bill 21,990 named “Law of Promotion of Tourist Marinas and Coastal Development”. This law partially reforms Law 7744 called “Law of Concession and Operation of Marinas and Tourist Berths”, among the most important aspects are:

a) Concession Term: The corresponding municipality or the Costa Rican Tourism Institute (ICT) may grant the concession of a tourist marina for up to a maximum period of forty years extendable for periods of twenty years and for a tourist berth a maximum of thirty and five years extendable for ten years. The law currently establishes 35 years as the maximum concession term for marinas and tourist berths, extendable for periods of 10 years each.
b) Possibility of requesting credits by giving concession and facilities as collateral: The concession, its buildings, improvements, and facilities may be pledged as collateral by the concessionaire, for the purposes of credit applications with banks of the national and international financial system.
c) Submission of marinas to the condominium property regime: The marinas may submit their facilities to the condominium property regime, that is, each space available to park boats can be individualized as a subsidiary property.
d) Charter License for Foreign Vessels: Foreign vessels with a length equal to or greater than twenty-four meters (24m), for commercial or entertainment use, may carry out water transport, diving, and recreational activities, under the charter modality. For this they must have an authorization issued by the ICT and have a contract with the tourist marina, in addition to complying with the other requirements that will be established by regulation.
e) Rate: The rate will correspond to two point five percent (2.5%) of the gross income of the service provided. This amount will be collected by the General Directorate of Migration and Foreigners. Currently, the corresponding Municipality will have the right to collect and receive an annual fee for the concession, of 0.25% on the value of the maritime and complementary works on land, built in the concession area.
f) Regime of Temporary Importation of Vessels: Vessels may remain under a temporary import regime for up to six months, extendable for equal periods continuously up to a maximum of two years. Once the maximum period has elapsed, they must remain outside national waters for at least ninety days, to opt again for the temporary import regime.
g) Foreign Crew: The Government must attend, within ten business days, requests for temporary work permits for the crew of foreign-flagged vessels, under the charter regime, when required.

During the legislative debate, some deputies expressed their concern regarding possible unfair competition or competitive advantages for foreign vessels against national ones; since they would have wished that the vessels subject to the benefit should have a length greater than the established minimum (24 meters). However, it was concluded that in the country there are not so many large vessels, and the responsibility is transferred to the marinas, that they are strict when supervising the charter activity.

This bill will undoubtedly change the national reality a lot, since it will encourage investment in said infrastructures because developers will be able to count on and have access to credit solutions for their financing, as well as the eventual owners of the farms. affiliates, who may provide them as collateral for financing.

Today the bill named “Law of Promotion of Tourist Marinas and Coastal Development” has been sent to the Executive Power for signature by the President of the Republic, so that it can later be published as the Law of the Republic. According to the environment created around it, we do not believe that there is a possibility of being vetoed, since it is even of government interest for the purpose of reactivating the national economy and especially the tourism sector, seriously affected by the pandemic. At ERP Lawyers we have a multidisciplinary team, which will be able to advise you on any of your needs. Contact us by email: jose@erplawyers.com

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