The cost of setting up a corporation for our clients to hold ownership of their land in our developments is rising from $700 to $850. Actual costs of registering a corporation have required the need to increase, the Costa Rican government has increased the fees and tax stamps and the cost of labor to handle the task has also risen. Keep in mind that we pay all closing costs, deed transfer taxes and tax stamps when selling home sites in our developments in Costa Rica, the buyer only pays to have the corporation set up, a one time fee.
Xinia Arias, our lawyer in charge of registering new corporations, new owners and land to corporations, has advised of a price increase for this whole process, this due to increases in stamps, processes and labor in San Jose. Therefore, we have to increase our cost for corporations to $850 as of today.
This increase is minimal when compared to current prices charged by any other professionals and totally understandable once you understand that she is not making more money out of this service, the increase is due to higher fees and duties charged by the National Registry.
Most foreign owners of real estate in Costa Rica, be it homes, land or other assets typically hold ownership in a corporate form. The advantages are a shield in liability, no capital gains tax on corporate gains in Costa Rica and the ease of transfer whether for resale or to avoid probate, to name just a few. To resell a property in our development held in a corporation simply requires selling the corporation (transferring the shares and ownership) with no closing costs, tax stamps or other property transfer fees.
