D-140 Tax Obligation (One-Time)
All companies must have already registered their tax address and related information using Form D-140 with the Tax Administration (Ministerio de Hacienda) in accordance with tax regulations.
D-195
Declaration of Assets value. Due in April of every year. We recommend keeping good records of the purchase and improvements on the property to have current value to declare every year.
Municipality Property Taxes (Quarterly)
Local governments collect property taxes quarterly. The first quarter of each year is due by March 31st, the second quarter by June 30th, the third quarter by September 30th, and the fourth quarter by December 31st. You must also file a declaration of the value of the land and any buildings every 5 years.
Luxury Tax (Annual)
As in previous years, the Luxury Tax must be paid between January 1st and January 15th. This tax currently applies to properties exceeding the following value: $290,000.00 USD approximately.
Corporate Tax (Annual)
As in previous years, the Corporate Tax is due between January 1st and January 31st. The amount owed, as well as any pending periods, can be checked online through a Costa Rican bank.
UFO or Ultimate Beneficial Ownership Registry
Declaration of the owner of the corporation up to the physical person. The record is confidential, only accesible to authorize government personnel.
Deadline: April 2025.
Education and Culture’s Stamp Tax (Due on March 30th)
Costa Rican Corporations or foreign corporations registered in Costa Rica National Registry must pay a tax called “Timbre de Educación y Cultura” (Education and Culture stamp tax) and its amount is based on the registered social Capital of the company.
Property taxes
It is the tax on the real estate, and it is paid to the local municipality where the property is located. The tax rate is 0.25% of property value registered in the Municipality.
This value must be updated, every 5 years by the land owner, who must present a declaration of the value of the land and any constructions on it, to the Municipality. Such value, if accepted by the Municipality, will be used as tax base. This tax is due quarterly on March, June, September and December, but in some cases, you may get a discount if you pay the whole year in advance.
Capital Gains Tax
The capital gains tax, effective since July 2019, applies a 15% rate on profits. However, for properties acquired before that date, a special provision allows paying only 2.25% of the gross sale price instead of 15% on net profits.
Tax for Nontraditional Rentals
We understand you may buy a house, villa or condominium with the intention to use it during a season but rent it while you are away.
You must consider the obligation of collecting the added value tax “VAT” plus the payment of the income tax on rentals.
At LEGAL GROUNDS COSTA RICA, we take pride in offering comprehensive legal support tailored to the unique needs of the expat community and international investors, ensuring their journey in Costa Rica is smooth and worry-free. Our team of seasoned professionals is dedicated to helping you navigate the complexities of local regulations and legal requirements with ease and confidence.
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Contact us today to learn how we can assist you in achieving your goals in Costa Rica. At LEGAL GROUNDS COSTA RICA, we are committed to making your experience seamless and enjoyable.
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