After the Closing: The Crucial (and Often Forgotten) Legal Steps Foreign Buyers Must Take in Costa Rica

Closing Legal Steps in Costa Rica

Closing Legal Steps for Foreign Buyers

The Crucial (and Often Forgotten) Legal Steps Foreign Buyers Must Take in Costa Rica

The excitement of a real estate closing in Costa Rica can be intoxicating. Ownership is transferred, the deed is signed, keys are handed over, and all seems settled. However, the closing of a transaction does not mark the end of the legal process—especially when the buyer is a foreigner and the title is held through a Costa Rican corporation.

In this blog, we explore the most commonly forgotten post-closing steps, many of which are not included in standard legal quotes yet are critical for full legal compliance. Overlooking these obligations may leave owners vulnerable to penalties, limitations, and costly legal entanglements—often discovered too late.

Corporate Registration at Hacienda (Tax Office): The NITE Number

Upon incorporation, a Costa Rican Sociedad Anónima (S.A.) or Sociedad de Responsabilidad Limitada (S.R.L.) does not automatically receive a NITE number (Número de Identificación Tributaria Especial). This number is mandatory for tax identification and necessary to access the Dirección General de Tributación’s (DGT) online tax portal, known as the ATV system (Administración Tributaria Virtual).

What is it used for?

• Accessing and updating tax declarations.
• Receiving official communications from Hacienda.
• Filing forms such as D-195.
• Registering as a non-active company (to avoid being assumed as delinquent), Form D-140.

Why is it forgotten?
Because the closing process typically centers on title transfer and immediate compliance, many attorneys or notaries do not quote the cost of obtaining a NITE number or registering the company at Hacienda. However, failure to register the corporation can result in fines and complications when performing even simple procedures later on.

Declaration at the Municipality

After purchasing a property, new owners must declare the acquisition at the local municipal government (Municipalidad). This step is not optional and must be fulfilled whether the property is held in a personal name or in the name of a corporation.  Actually, it has to be updated each 5 years.

Consequences of non-compliance:

• Accrual of property tax under the name of the previous owner.
• Legal notices (such as construction permits or zoning changes) not reaching the new owner.
• Issues when reselling, refinancing, or insuring the property.
• Possible fines for late declarations.

Why is it missed?
Many foreign buyers assume this will be done automatically as part of the closing process. However, municipal declarations are typically outside the scope of legal quotes unless explicitly included, as the declaration requires direct filing at the local municipal office.

Registration of Final Beneficiaries (RTBF): Special Powers of Attorney (POAs)

All Costa Rican corporations must register their final beneficiaries annually in April. Foreigners who do not reside in Costa Rica and therefore lack a firma digital (digital signature) must appoint a local representative.

Key issue:
Many new owners assume the RTBF will be handled after closing, only to realize—months later—that they cannot fulfill the obligation without having already granted a Special Power of Attorney (POA) to a resident with a digital signature.

Why this matters:

• Without the RTBF filing, the corporation is blocked from registry services.
• Severe fines may apply.
• The POA must be specific and properly drafted, often requiring notarization or legalization if prepared outside Costa Rica.

Other Powers of Attorney for Property Management

Foreign owners frequently underestimate how often corporate decisions or legal formalities must be executed in person in Costa Rica. Examples include:

• Approving constructions, repairs, remodels, or permits.
• Submitting compliance filings to the Public Registry.
• Opening bank accounts, signing utility contracts, etc.

Without a general or special POA, even the smallest request from a bank or government office can paralyze operations or force the owner to travel back to Costa Rica.

Why Are These Services Often Omitted from Legal Quotes?

It is not uncommon for real estate legal fees in Costa Rica to be quoted narrowly, focusing only on the notarial work needed to execute and register the transfer deed. This may make a legal quote appear more affordable, but ultimately:

• Leaves foreign buyers uninformed of additional legal burdens.
• Exposes them to avoidable fines and service disruptions.
• Shifts the burden of legal compliance to the buyer post-closing—often when they are no longer in the country.

In the long term, skipping these services is not a cost-saving strategy; it is simply deferring legal risk and future expenses.

Final Thoughts

Legal ownership of property in Costa Rica is not secured simply by signing a deed. It requires additional legal steps for foreign buyers after closing, such as ongoing legal maintenance, particularly for those who are not physically present to navigate the country’s administrative systems. Many of the most critical compliance steps happen after closing, and yet they are too often left out of legal quotes, creating confusion and compliance failures later.

At LandCo, our priority is not just to help you close a transaction—it is to protect your investment after the closing, every day of the year. Contact us if you have inquiries.