What is FOMO? According to the popular website Wikipedia, Fear of missing out is the feeling of apprehension that one is either not in the know or missing out on information, experiences, or life decisions that could make one's life better. FOMO is also associated with a fear of regret, which may lead to concerns that one might miss an opportunity for a memorable event, or a profitable investment....

This article is based on a personal experience. In Costa Rica there is an Expropriation Law, designed for when the Government needs to use all or part of private property for public purposes. As examples we have when a new highway or road is built or expanded, when it is necessary to install high power lines structures and when bridges are built. In these cases, it is usual to require the taking o...

On December 13th, 2021, Law number 10,071 came into effect, called LAW OF ATTRACTION OF FILM INVESTMENTS IN COSTA RICA. In this way, Congress declares of Public Interest the attraction of investments from the international film industry, its promotion and the generation of productive chains. What is really strange is that there were no advertising campaigns or generalized information on the approv...

This article discloses the existence of three very little-used and little-known legal tools, but which can constitute very valuable tools in certain cases, all in order to protect, guarantee rights in favor of third parties and avoid possible garnishments or unwanted transfers, all in relation to real estate property. These tools are called Voluntary Limitations, Limitations in favor of third part...

Many foreigners who decide to live in Costa Rica, or come to visit seasonally, find that it is necessary for them to acquire a vehicle to get around. In this way, the high costs of renting a vehicle are avoided, since it is not an occasional visit. However, some have encountered bad experiences when acquiring a vehicle that has been salvage, total lost, suffered odometer alterations, and the like....

The current pandemic affecting the world generated an unexpected effect on the real estate market in Costa Rica. Despite travel restrictions and new requirements for tourists such as negative Covid-19 test or insurance with sufficient coverage in case of requiring extended stay due to illness; the truth is that the sale of properties has increased in recent months, especially in the areas near the...

During the next weeks, all those Expats who have a corporation in Costa Rica will have to fulfill some obligations that are relatively recent, making important to take them into account in order to avoid problems and headaches. Certainly, having a corporation is no longer as simple as it was a few years ago, but it still offers advantages, and it is a matter of organizing yourself with the fulfill...

It has been a common practice for expatriates to buy real estate property and vehicles in Costa Rica and proceed by placing the title on a corporation created with the sole purpose of protecting said assets from possible liabilities, liens by creditors and other contingencies. Then these corporations do not generate any type of income and therefore maintain the status of inactive for tax purposes....

Many expats coming to live or invest in Costa Rica decide or receive advice that creating a corporation is the best way to operate and protect their investment here. There are numerous reasons why they decide to proceed with that, but establishing a business, opening a bank account, or obtaining asset protection seem to be the most common ones. The initial process of a creating a new corporation i...

All owners of real estate property with a size greater than 900 square meters (almost 10,000 square feet) who want to segregate lots, could find themselves with an unpleasant surprise as of  September 13th 2020. This is because the National Institute of Housing and Urbanism or INVU made an amendment to the Regulation of Fractions and Urbanizations, with which to carry out said segregations of lots...

Covid 19 seems to be the most popular phrase of 2020 in Costa Rica and the entire world. This virus appeared as an unwanted host, destroying plans for education, health, jobs, and economic growth around the world. In Costa Rica, the impact has been very severe. Even before receiving this "new guest" the economy was showing signs of "pneumonia." aswell as taking into consideration that during 2019 ...

Coronavirus has created a true health crisis around the world. Most governments do not seem to be clear about the best way to tackle this problem; and the imposition of different types of restrictions on free transit, commerce, and tourism,  has been the general rule adopted. These restrictions have a negative effect on the economy, causing the loss of jobs, the disappearance of companies, the clo...

The current health crisis has brought many changes in the life, economy, and routine of people, both in Costa Rica and around the world. It has also brought legal changes ranging from driving restrictions on certain days and hours of the week to the banning/limiting operation for bars, hotels, theaters and event centers, among many others. The Government and Congress have taken actions, some where...

In Costa Rica, the main asset for most people is still real estate (Property). Productive farms, raw land suitable for development, lots, houses, buildings, tourist buildings and similar are negotiated, developed, transferred, mortgaged, and given in trust on a daily basis. This in turn generates legal conflicts of all kinds: claims for breach of contracts, boundaries, access, unmatching cadaster ...

The current times are unprecedented. The Coronavirus has impacted all areas of society, forcing new measures of social behavior such as isolation and distancing. Governments around the planet try to establish different measures to contain the disease, having to improvise in many cases. In all cases, the effect has been the same: the economy is suffering massive damage, causing a domino effect. In ...

The infamous COVID-19 has caused not only a global health emergency but has also had a severe and negative impact on the economy. To mitigate the impact on the finances of employers, two regulations were approved over the recent days that are unprecedented in our country. The first regulation is called Temporary Suspension of the Employment Contract and is issued by the Ministry of Labor. The seco...

In 2012 law #9024 named 'Impuesto a las Personas Juridicas" or "Tax on Corporations" came into effect. It was an annual tax on all corporations registered at National Registry based on the Code of Commerce such as SAs and LLCs plus all of those branches of foreigner corporations that obtained a corporate ID number for their Costa Rican divisions. It was in effect until 2015. It contained provision...

In a previous article we published on July 5th, 2019 we explained about the creation of a "Registry of Transparency and Final Beneficiaries", which made becoming necessary to report to the Central Bank of Costa Rica who the stockholders on every corporation existing in Costa Rica are. A calendar was established depending on the last number of Corporate ID number, between September 2019 and January...

When a person acquires property in Costa Rica, he or she usually performs due diligence through different advisors such as lawyers, engineers, surveyors or a home inspector. The goal is to discover the existence of possible problems related to the plot map, the title, the adjacent properties or the house itself. However, problems can always arise despite this due diligence and the possibility of e...

Since 1996 in Costa Rica there has been a Law Against Domestic Violence (Law #7586), which has many aspects that are important to understand in detail. When writing this article we had the collaboration of Melissa Salazar, an attorney specializing in Family Law. According to Mrs Salazar, there are various types of violence: physical, psychological, sexual and also over the assets of a person, comm...

In a previous article we wrote about a new regulation that took effect during September 2019. Basically, every type of corporation in Costa Rica is enforced to disclose who are the stockholders to Central Bank of Costa Rica. This will take place between September 2019 and January 2020, depending on the last ID number on the “cedula juridica”. If the owner of the stock on a corporation are other co...

In a previous article which can be read here, we spoke about the new coming regulations taking effect starting September 1st, 2019. Basically, every type of corporation in Costa Rica must proceed informing to Central Bank of Costa Rica who their stockholders are, in order to report who the final Beneficiaries are of the said business. This obligation is to be fulfilled by the President on SA co...

In December 2016, a law called the "Law to Improve the Fight against Tax Fraud" was published, which in turn created a Registry of Transparency and Final Beneficiaries, under the responsibility of the Central Bank of Costa Rica. The concept of "anonymous" corporations disappeared, because although the Registry is not publicly accessible, it will be accessible tax, judicial, public security and oth...

The term eviction can be defined as the action of expelling a person from land, a building, a house, etc., by legal process as well as the action of recovering a property by virtue of superior legal title. This word immediately brings to mind the necessity of a legal process in Court to get a decree permitting the eviction. The most common examples of evictions in Costa Rica are for tenants who ge...

It's no surprise that Costa Rica isn't in the best financial shape. Costa Rican Congress approved a new tax package called "Law of Strengthening of Public Finances number 9635". Guess what this means......more taxes. Within the new taxes commencing July 2019 Hacienda will expand the number of products and services that will be taxed with IVA or "Value Added Tax", which is essentially a sales tax o...

All expats living in Costa Rica part or full time that have investments in the country should take in consideration what will happen in case they die. Making plans regarding this difficult topic could avoid leaving legal swamps fo your loved ones. People always expect to live as long as possible, but certainly an accident or unexpected disease could suddenly change everything. The legal document t...

In Costa Rica there is a law governing the relationships between the Landlord and Tenant for two specific situations: 1) When renting houses, apartments or condos 2) When renting a property for commercial, industrial or professional purposes. This Rental Law has been in effect since 1995, with only a few amendments since then. It has a number of different rules for similar situations, so kno...

A notary at your home: For years the National Registry has offered to the public information from all Public Registries such as Property, Vehicles, Boats, Corporations and Lot Plans on the website www.rnpdigital.com . This information is exclusively for consultation purposes since only certifications obtained from Registry offices or issued by a Notary can be used as valid documents to submit t...

By law #8683 was a created to implement a Luxury Home Tax for all houses in Costa Rica where the construction has a value higher than one hundred million colons (approximate USD $200,000.00). All owners with a luxury home were enforced to submit a value statement in 2010 that would be valid for three years. The tax Ministry created a value database with the parameters to calculate the proper value...

Validation of a Foreign Driver’s License in Costa Rica.  Those foreigners staying in the country for more than 3 months and wanting to drive a car are required by law to obtain a Costa Rican driver’s license. They can validate the license of their country of origin by fulfilling the following requirements: Must be over the age of 18. Proof of legal residency, through residency card, work p...

Costa Rica has more than twenty-nine thousand lawyers and approximate eight thousand six hundred notaries authorized to practice in the country. To become a Notary it is required to be a lawyer, but certainly, the two designations have separate duties in the eyes of the law. Lawyers represent their clients in Court cases - collections, criminal prosecutions, lawsuits, or procedures handled by gove...

On September 1st, 2017 law number 9428 named Ley de Impuesto a las Personas Jurídicas or Tax on Corporations took effect, imposing an annual tax on all corporations registered at National Registry based on the Code of Commerce such as SAs and LLCs plus all of those branches of foreigner corporations that obtained a corporate ID number for their Costa Rican divisions. This tax is due again for 2019...

As explained in a previous article, December is time for all owners of motorcycles, automobiles, SUVs, Pick-ups and trucks in Costa Rica to pay the MARCHAMO, which is collected by INS (National Insurance Company). We mentioned that the largest amount to pay on the marchamo is a government tax created in 1987, when law #7088 took effect creating a property tax against all vehicles, airplanes and bo...

All owners of motorcycles, automobiles, SUVs, Pick ups, Trucks and similar in Costa Rica are obligated to pay the MARCHAMO before the end of December. The amount can be checked at http://portal.ins-cr.com/marchamo/marchamo/frmconsultamarchamo.aspx As of January 1st, 2019 all cars without proof of payment are exposed to a fine and license plate removal from Traffic Police officers (Transito). Fo...

Although the real estate market is at a low to medium level due to different factors, such as the the current fiscal crisis in CR, the fact is that land remains (in my opinion) the most valuable asset available. Viewed from another standpoint, right now there are excellent investment opportunities in the real estate market due to lower prices. In addition, many sellers now offer the ability to fin...

It is very common for people to believe that selling a business in Costa Rica is the same as selling a piece of real estate. This is not necessarily true as there might be many different situations to consider which could change the scenario. The Business may or may be not part of the real estate transaction, meaning sometimes the owner also owns the business operating at that property. Sometim...

Costa Rica has 81 Municipalities plus three District Councils functioning as Municipalities located in the districts of Cobano, Paquera and Lepanto. They usually provide different services for their jurisdiction such as potable water or garbage collection. They are also in charge to collect the Impuesto Territorial or Property Tax, which constitutes as one of their main sources of income along wit...

Contrary to popular belief, alimony and/or child support payments are not "written in stone" once a judgment has been rendered. Costa Rican law foresees the possibility of the need for change when the financial possibilities of either the obligor or beneficiary necessitates a need for an increase or reduction of those benefits. This can be accomplished when the interested party files for a proceed...

Construction developers all over the country have changed the legal structure of their projects, migrating from the traditional individual property to a condominium system based on the regulations contained in Law # 7933 named "Ley Reguladora de la Propiedad en Condominio" or Law to Regulate Condominium Property, which applies to both residential and commercial developments. This tendency started ...

In 1977 a Law took effect named Ley Sobre la Zona Marítimo Terrestre or Law about the Maritime Terrestrial Zone, with the purpose of regulating all those areas located in front of the beach all over the country as well as other relevant areas such as islands, mangroves and estuaries. The beach areas of Costa Rica have gained a high value in recent years, due in large part to the attraction they ha...