INCORPORATION

Creating a Company in Costa Rica

A foreigner can legally own real estate in Costa Rica, and has the same rights as a national of Costa Rica, except in the specific case of owning “concession” property.

In Costa Rica, companies are used as a holding vehicle for assets, especially real estate. This is done to protect assets from future liability exposure, and to protect the individual from future personal liability. Companies are also used to hold assets for ease of ownership transfer. When selling a real estate asset, the seller may sell 100% of the shares of the company that wholly owns the asset. If a seller sells the asset by selling the company that owns it, the transfer tax levied in Costa Rica, which is about 3% of the transaction value, is waived.

Types of Companies in Costa Rica

The type of company you form for your investment purposes in Costa Rica should be determined by you legal counsel. Your legal counsel will consider shareholder regulations, board of director positions, fiscal responsibilities, and other information before deciding which type of company is suitable for your situation. The different types of companies are listed below:

1)         Sociedad Anonima (S.A.)
2)         Sociedad de Responsabilidad Limitada (LTDA)  
3)         Sociedad en Comandita (Family Limited Partnership) (S en C)

Costs

Incorporation of any type: $600 USD
Incorporation tax and filing fee for a company: $100 USD
Register the legal domicile for the company: $100 USD if the attorney’s office is used