Ownership and Corporations
In Costa Rica, foreigners enjoy the same ownership rights as citizens and that ownership is fully protected by the constitution. Nonetheless, those who purchase in Costa Rica should get professional advice from both a professional realtor and a qualified real estate attorney For legal and economical reasons, it is recommended that the purchase of real estate be performed through a Costa Rican anonymous corporation. Advantages of having land registered under an anonymous corporation rather than in an individual´s name are as follows. An anonymous corporation, as the name indicates, provides a measure of privacy to its owner(s), making it difficult for other to obtain information about who owns the shares of the Corporation and, thus, the land. This provides anonymity which many foreign investors desire. Also, by having your assets registered under individual Costa Rican corporations protects you from personal liability. A common practice has been to transfer the shares of an existing company that owns the land to be purchase, instead of transferring the actual property to a third party. This is a faster way to achieve the goal of transferring control of the property to the buyer and saves money through the notary fees and transfer taxes since it is the shares of the corporation that change hands. Also, no capital gain tax is paid in Costa Rica when you sell a corporation that owns property, since the sale is a private transaction. When you acquire the shares of a corporation in Costa Rica you do not only get the company´s assets (in this case, mainly, the land) but also its liabilities. For this reason, it is essential to perform a corporate search in addition to the performance of a title search. This step will verify that the entity being transferred with the property is in good standing.
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