2019 TAX REFORM FAQ
Part I:
On July 1, 2019, Costa Rica a major Tax Reform went into effect nationwide. The government did not provide enough information before July 1.
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CAPITAL GAINS IN REAL ESTATE
The Law #9635 creates a Capital Gains Tax of 15% which will apply to all investment income and real estate.
For real estate transactions the law provides a one-time exemption for property owners that owned property before the law came into effect on July 1st 2019.
WHAT IS THE VALUE ADDED TAX (VAT)
The Value Added Tax (VAT) is an indirect tax that taxes the consumption, which means that when a person (customer) makes a purchase of a good or service, is paying this tax at a general rate of 13% or in any of the reduced rates of 4%, 2% or 1%.
NEW STARTING DATE FOR THE MANDATORY SHAREHOLDERS REGISTRY WITH THE CENTRAL BANK OF COSTA RICA.
With the objective of facilitating the fulfillment of the obligation that the corporations must provide, regarding the composition of their social capital, as well as the identification of the final beneficiaries, as mandatory in the Law to Improve the Fight against Tax Fraud
NEW CAPITAL GAINS TAX IN COSTA RICA
With the approval of the Law #9635, among the taxes and changes that brought, it was created a Capital Tax Gains of 15% which applies to investment income and real estate.
ANNUAL CORPORATION TAX: DON’T FALL BEHIND
Do you own property or a business in Costa Rica?
Most expats form a corporation (SA or SRL )to purchase investment real estate or open a business.
NEW STARTING DATE FOR THE MANDATORY SHAREHOLDERS REGISTRY WITH THE CENTRAL BANK OF COSTA RICA.
With the objective of facilitating the fulfillment of the obligation that the corporations must provide, regarding the composition of their social capital
TAX UPDATES
Pursuant to Executive Decree No. 41040-H dated April 5th, 2018, the Tax Administration establishes the mechanisms
NEW REGULATORY CHANGES FOR SUGEF REGISTRATION
On October 8, 2018, CONASSIF (National Council for Financial System Supervision) approved a new regulation, SUGEF Agreement 11-18, related to the registration
2019 ANNUAL CORPORATE TAX
As of September1st, 2017 all corporations, subsidiaries, and limited liability companies that are currently registered before the National Registry
2019 ANNUAL CORPORATE AND REAL PROPERTY TAXES
As a real property and/or CR corporation owner, you should be aware of taxes that need to be paid annually. Those who do not pay may be subject to fines and judicial collection procedures
LUXURY HOME TAX
The so called ´Solidarity Tax´ for the Strengthening of Housing Programmes (Impuesto Solidario para el Fortalecimiento de Programas de Vivienda), Law # 8683, commonly referred to as the 'Luxury Home Tax'applies to houses, condos and apartments of which construction/building value exceeds a certain amount.
REAL ESTATE RENTALS WILL SOON BE SUBJECT TO THE SAME LEGAL REQUIREMENT FOR ELECTRONIC INVOICING (FACTURA ELECTRONICA) AS ALL OTHER TAXPAYERS IN COSTA RICA.
The transition to a mandatory electronic invoicing system for taxpayers got underway earlier this year, as an outcome of 2016 legislation 'to improve the fight against tax fraud' in Costa Rica. Under a 2018 schedule of phased-in compliance deadlines, Resolution No. DGT-R-51-2016
HOME OWNER’S ASSOCIATION MEETINGS
Each condominium complex has a set of bylaws or Covenants, Conditions, and Restrictions (CC&Rs) that outline all the rules, regulations, dues, rights and obligations of the condo owners.
WE’RE GROWING!
We are pleased to present our new attorneys. This year we seek to strengthen our team with women leaders in their area by empowering them in the legal profession while we cultivate an equitable ...
ANNUAL CORPORATE AND REAL PROPERTY TAXES
As a real property and/or CR corporation owner in Costa Rica, you should be aware about taxes that need to be paid yearly. Failure to pay them would generate penalties and lead to a collection process.
D-140 FORM
The new corporation tax law, 9428, imposes a D-140 registration requirement on any and all CR corporations.
RELEVANT INFORMATION ABOUT REAL ESTATE IN COSTA RICA
Unlike some other countries, it is not required to have CR citizenship, CR residence, nor even have permanent presence in the country to own land in Costa Rica.
ANNUAL TAX OVER CR CORPORATIONS
The Costa Rican government recently published Law 9428: “Tax over legal entities” to be enacted on September1st, 2017.
REAL ESTATE RENTALS
Real estate rentals will soon be subject to the same legal requirement for electronic invoicing (factura electronica) as all other taxpayers in Costa Rica.
ACQ5 LAW AWARDS 2015
The ACQ Global Awards are the single largest program of their kind in the market.
ACQ5 LAW AWARDS 2014
Since 2008, the ACQ LAW Awards have been…
Digital Nomads Welcomed in Costa Rica (Part I)
The Government of Costa Rica has signed into law #10008 “Law to Attract Workers and Remote Providers of International Services", known as the Digital Nomads Law...