Costa Rica Blog

The advantages of buying property through a Costa Rican Corporation

Posted by Steve Linder on Thu, Apr, 29, 2010

The vast majority of investors opt to purchase property in Costa Rica through an Anonymous Corporation called a Sociedad Anonima (S.A.).   This protects you against loss in the case of being sued if someone hurts themselves on your property.  It also makes it easier to attain services like setting up a bank account, getting a phone line, etc.... Additionally, it makes it much easier and less expensive to sell your property if you choose to do so in the future.  In that case you are not subject to paying the transfer tax. The company shares are simply transferred. Costa Rican corporations also do not pay income tax. This is a major advantage if the corporation is going to retain profits (ie. rental income) for future investment. It can also make estate planning less complicated. You can transfer or will shares of your corporation to someone else.
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Tags: property purchase in Costa rica, Costa Rican Corporation