Annual Corporate Tax: There will be a fixed fee for inactive corporations and a progressive rate for active corporations depending on their gross income. The amounts range from USD $120 -for inactive corporations- up to USD $380 for active corporations (the amounts are adjusted each year). Law 9428: Tax over legal entities. The due date for this tax is January 31st of each year.
Obligations for Inactive Corporations: A new resolution (N° DGT-R-02-2021) was announced which requires inactive corporations to:
a. Register with the Tax Office in the Single Tax Registry (RUT) In the RUT, these corporations must be registered under code number '960113'.
b. Submit annual returns of their assets, liability and shared capital. In the past, only corporations, which were active or producing income, had a filing obligation with the Tax Office.
The definition of an inactive corporation is, '…those companies incorporated in the country that do not have lucrative, income producing, activity of a Costa Rican source.' This includes all commercial companies, branches of foreign companies and individual limited liability companies.
The first filing for the 'inactive corporations' will be within 2.5 months from the date that the Tax Office notifies that the new tax forms are available, sometime within the second or third quarter of 2021.
Mandatory Shareholders Registry with the Central Bank of Costa Rica: The Law 9416 and its regulations, states that each corporation must proceed with the mandatory disclosure of corporate ownership or final beneficiary, to the Central Bank of Costa Rica (BCCR). Starting 2021, the mandatory disclosure submission will be within the month of April, as well as, when it is any corporate ownership transfer that represents 15% or more of the capital stock.
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Costa Rica residency application and CR estate planning
Costa Rica Residency Application:
To apply for residency in Costa Rica, the Costa Rican government requires applicants, besides the general requirements, (birth certificate, police records and marriage certificate, if apply, duly apostilled) must provide proof of financial stability in one of three ways:
As a retiree with pension: Certification that applicant receives a lifetime pension of at least US$1,000 per month.
As an investor: Must demonstrate a real estate investment in Costa Rica with a value of at least US$ 200,000.00 dollars
As the holder of a fixed Annuity: Certification that applicant receives a guaranteed annuity of $2500 per month for at least 2 years.
CR Estate Planning:
Executing a testamentary disposition or a will, in Costa Rica called 'testamento', can be one of the most reliable alternatives in estate planning.
The 'testamento' is the legal instrument, executed in accordance to formalities established by CR Law, that allows a person, testator, to determine how his or her assets will be managed and distributed at the time of death as well as to appoint the executor of his estate.
The 'testamento' can be limited to disposition of assets within Costa Rica only and has no legal effects until the person's death. Before that moment, the 'testamento' can also be revoked or modified by the testor.