Costa Rica used to be rife with ‘cowboy real estate’ practices. Property prices were much lower, corporations made it easy to own property as a foreigner, and taxes were extremely low. This is much less the case now as personal and corporate declarations are increasing. That’s not to say that Costa Rica is making it difficult for foreigners to purchase properties, nor is it expensive when compared to many other tropical expat destinations. But there are many more things to know now when buying real estate in Costa Rica than just the property price. A lawyer or good local realtor is one of your best sources for free advice on this and other subjects pertaining to real estate. It is our job to know and to share that information with our clients.
Property value declarations are due November 30 and Osa Municipality is beginning to enforce penalties for not filing. Filing can be done any time between September 1, 2022 and November 30, 2022. See below for when and how to file this and other private and corporate declarations throughout the year.
Corporate Tax Declaration
Corporation taxes are due annually each January. This is the Ministerio de Hacienda (tax authority) administrative fee (around ₡80,000). This can be paid through your accountant, an escrow company, a lawyer, or with your corporate identification at any bank in Costa Rica.
*If your corporate taxes are not paid you run the risk of having your corporation dissolved, which can delay the sale of your property by months. To resolve this costs thousands in lawyers’ fees to fix so we recommend always staying on top of your taxes.
D-101/Asset Declaration For Inactive Corporations
Inactive corporations that do not develop a commercial business or activity must still declare their assets, liabilities, and equity in Costa Rica. A public accountant is required to carry out this process. This obligation applies to all corporations in Costa Rica and can be filed through your Costa Rica lawyer. The annual deadline is March 15 to file this declaration.
The objective of this annual declaration is for all corporations to provide updated information on the current shareholders and beneficial owners. The annual due date is April 30. This can be filed through your accountant, an escrow company, a lawyer, or with your corporate ID at any Costa Rican bank.
Property taxes are municipal taxes to be paid quarterly or annually. This can be accomplished in person at any bank in Costa Rica or through an online payment. It can be done through an accountant, an escrow company, a lawyer, or at the local municipal office.
The luxury home tax applies for all houses with a value equal to or greater than ₡138,000,000 (around $250,000 USD). Consult with your accountant to find out if this applies to your property.
Property Value Declaration
Property value declarations are due every 5 years or after a property is sold. This declaration is due on November 30, 2022 and applies to properties that were last declared in 2017 or before, as well as properties that have never declared their value. You can check the status of your last declaration and it can be paid in the Osa Municipality office or online at https://www.gobiernolocalosa.go.cr/declara_ibi_index.htm
If you have any questions about these declarations and how to file them, reach out to us for guidance or to put you in touch with accountants, escrow companies, or lawyers we recommend: [email protected]