by ZEWSOwning a corporation in Costa Rica can offer numerous advantages, such as access to public utilities, remote-controlling your assets, opening a bank account without residency, and better inheritance possibilities.
However, maintaining a corporation in Costa Rica also entails a series of legal obligations that must be diligently fulfilled to avoid penalties or even dissolution of the corporation.
For that reason, we decided to outline the key obligations of Costa Rican corporations and explains how LandCo can assist you in managing these responsibilities seamlessly.
Corporation Tax (Impuesto a las Personas Jurídicas)
Under Law #9428, every corporation in Costa Rica is required to pay an annual Corporation Tax within the first 30 days of January. Failing to meet this deadline results in monthly penalties that can accumulate significantly over time. If a corporation defaults on this tax for three consecutive periods, it will be dissolved automatically, and its assets could be seized by the government. Ensuring timely payment of this tax is crucial to maintaining your corporation’s legal standing.
Informative declaration at the tax authority
Law #9428 and Decree #40417-H mandate that corporations must register with the Tax Authority within one month of their registration at the Public Registry. This declaration is for informational purposes and must also be updated within one month whenever there is a change in the Board of Directors or managing positions. Non-compliance results in sanctions and penalties as per Tax Code article #78. Staying on top of these declarations ensures your corporation remains in good standing with the tax authorities.
Transparency and beneficial ownership registration (RTBF)
In accordance with Law #9416, aimed at combating tax fraud, all corporate entities such as Sociedades Anónimas (SA) and Sociedades de Responsabilidad Limitada (SRL) must register with the Registro de Transparencia y Beneficiarios Finales (RTBF). This registry requires detailed information about the corporation’s shareholders and their ownership percentages. The registration must be completed annually during April.
The president of an SA or the manager of an SRL, who must possess a Digital Signature (FIRMA DIGITAL), is responsible for this registration. Only Costa Rican citizens or permanent residents can obtain a Digital Signature, creating a legal hurdle for foreign owners. These foreign owners must grant a Special Power of Attorney of Full Power of Attorney to a Costa Rican citizen or resident to fulfill this requirement. Non-compliance can result in fines ranging from 3 to 100 base salaries and other legal restrictions, such as the inability to obtain public certifications or register documents involving the corporation.
Declaration of assets for inactive corporations
Directive Resolution DGT-38-2020 requires all inactive corporations to declare their assets annually by filing Form D195 through the Digital Tax Authority System (ATV) between January 1st and March 15th. Failure to comply with this directive attracts significant penalties. Properly managing these declarations is essential to avoid legal and financial repercussions.
Other mandatory obligations
In addition to the aforementioned requirements, owning a property under a Costa Rican corporation entails several other mandatory obligations, including:
- Payment of Property Tax when owning a property.
- Payment of the “Timbre de Educación y Cultura” stamp.
- Full maintenance of the corporation’s records at the Tax Authority (ATV system).
- Maintaining a registered address for notifications and appointing a resident agent.
The solution: LandCo’s KeepUp service
Managing these obligations can be complex and time-consuming, especially for non-residents. LandCo offers a comprehensive solution with our KeepUp service, designed to handle all the legal and administrative tasks required to keep your corporation compliant and up-to-date.
With KeepUp, you can rest assured that your corporation is being managed efficiently, allowing you to focus on enjoying your valuable investment.
At LandCo, we understand the intricacies of Costa Rican corporate law and are committed to providing you with seamless support. Our expert team will ensure that all your corporate obligations are met promptly and accurately, safeguarding your investment and ensuring your peace of mind.
Contact us today to learn more about how KeepUp can make owning a Costa Rican corporation a hassle-free experience.