Costa Rica retirement information and the most recommended, reference-checked Realtors in Costa Rica.Costa Rica retirement information and the most recommended, reference-checked Realtors in Costa Rica.
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home | Lawyers, Laws & Taxes
 

Costa Rica Lawyers, Laws & Taxes - Advice from various attorneys and our Costa Rica tax expert.

Attorney Roger Petersen's book - 'The Legal Guide to Costa Rica' is without doubt a most valuable tool for those considering Costa Rica for either retirement or business.



There have been significant changes in Costa Rica during the past ten years as the country attempts to emulate the economic and regulatory systems of more developed nations to spur it's own development.

This policy has created significant changes and modifications of existing laws and practices making it more important than ever that those settling in Costa Rica understand the system.

Most of the articles below have been written by Attorney Petersen or reproduced from The Legal Guide to Costa Rica with the written permission of attorney Roger Petersen who has been an attorney since 1992 and is a member of both the Costa Rican and Florida Bar.

A few articles have been written by his Roger's associate Attorney Rick Philps and others by Attorney José Rafael Fernandez.


All tax articles have been written by Randall Zamora, our Recommended Costa Rica Tax professional.

Annual Tax on Costa Rica Corporations Passes
Attorney Roger Petersen
Annual Tax on Costa Rica Corporations Passes Once the grace period is over. The legal representatives of the corporations will be PERSONALLY liable for any outstanding annual tax. . . . Keep reading
Buying or Building Real Estate in Costa Rica? Here is What You Need To Know? Part I with FREE online video interview.
Attorney Roger Petersen
Buying or Building Real Estate in Costa Rica? Here is What You Need To Know? Part I with FREE online video interview. Buying property and constructing buildings or a home can be an intimidating process, even when you are at home in the culture and know what to expect and plan for. . . . Keep reading
Costa Rica Guns - Importing Q&A.
Attorney Roger Petersen
Will I pay duties on the guns when I bring them into Costa Rica? . . . Keep reading
Litigation In Costa Rica - Part I
Attorney Roger Petersen
When a lawsuit is filed in Costa Rica it can proceed under three different procedural tracks: ordinary, abbreviated and summary procedures. Which procedure applies depends on the subject matter of the controversy. . . . Keep reading
Costa Rica Real Estate - Foreigners OK To Buy with FREE online video interview with attorney Roger Petersen.
Attorney Roger Petersen
Costa Rica Real Estate - Foreigners OK To Buy with FREE online video interview with attorney Roger Petersen. A purchaser is well advised to retain the services of a qualified and reputable real estate agent, to advise on the purchase, and the services of a lawyer, specializing in real estate conveyancing, to complete any purchase transaction. . . . Keep reading
Buying or Building Real Estate in Costa Rica? What You Need To Know About Closing Costs. Part II with FREE online video with Attorney Roger Petersen
Attorney Roger Petersen
Buying or Building Real Estate in Costa Rica? What You Need To Know About Closing Costs. Part II with FREE online video with Attorney Roger Petersen The Notary that drafted the contract for sale and carried out the closing on the property transfer is entitled to a Statutory Fee. For many years that statutory fee has been 1.25% of the value of the transaction. However, in August 2005 ... . . . Keep reading
Christmas Employee's Bonus - 'Aguinaldo' is mandatory in Costa Rica
Costa Rica Tax Expert - Randall Zamora
Christmas Employee's Bonus - 'Aguinaldo' is mandatory in Costa Rica The aguinaldo is an extra salary, also known as the 13th month, which has to be paid to all the regular employees, regardless of the performance or quality of the job, since is based on the paid gross salary. . . . Keep reading
Security & Crime in Costa Rica
Attorney Roger Petersen
Security & Crime in Costa Rica The Costa Rican Criminal Code and Justice System rely heavily on rehabilitation and as such is light on punishment. There is no law that punishes repeat offenders and hence the public perception that the criminal justice system is just a revolving door. The current model dates back to the 1970's and Costa Rica needs to take a closer look at the current system. . . . Keep reading
Buying or Building Real Estate in Costa Rica? Here is What You Need To Know? Part three.
Attorney Roger Petersen
Buying or Building Real Estate in Costa Rica? Here is What You Need To Know? Part three. In most cases, beach front property is untitled property because in Costa Rica the ownership and possession of the shoreline is governed by the Maritime Zone Law (Ley Sobre la Zona Maritimo Terrestre) which restricts the possession and ownership of beach front property. . . . Keep reading
Why FATCA is Bad for U.S. Citizens Living in Costa Rica and America, Why it Should be Repealed and What You Can Do Now!
Why FATCA is Bad for U.S. Citizens Living in Costa Rica and America, Why it Should be Repealed and What You Can Do Now! Ever wondered why banking abroad is so tough for U.S. citizens? One of the reasons is that "FATCA has turned Americans into pariahs in the international financial world. FATCA has turned Americans into pariahs in the international financial world. Foreign financial institutions -- banks, insurance companies and pension funds - are already turning away American clients due to the costly IRS reporting requirements and the perceived significant legal and financial risks. " . . . Keep reading
Good Tax News - The accounting and legal books are gone and electronic invoices are here!
Costa Rica Tax Expert Randall Zamora
Good Tax News - The accounting and legal books are gone and electronic invoices are here! Don't get me wrong, these are two great and expected big steps in order to take the Tax Administration to a higher level, but as usual the Tax Administration hasn't clarified exactly how this will be accomplished. . . . Keep reading
Big Investors Considering Costa Rica - What problems are on the horizon?
Scott Oliver & Randall Zamora
Big Investors Considering Costa Rica - What problems are on the horizon? Most markets are cyclical, there are natural and manipulated booms and busts but, in comparison with the U.S. and most of Europe, Costa Rica continues to enjoy a fairly vibrant economy and has benefited tremendously from a variety of large multinationals companies - primarily from the U.S. - who have established their offshore operations in Costa Rica to lower their operational costs but, is this growth sustainable? . . . Keep reading
Costa Rica Law - Year End Legal House Cleaning.
Attorney Roger Petersen
It is that time of the year once again! The year is almost over and now would be a good time to check up on your Costa Rican legal matters and ensure that everything is up to date. . . . Keep reading
FATCA Is NOT For Fat Cats - The Foreign Account Tax Compliance Act for U.S. citizens.
Scott Oliver - September 2011
FATCA Is NOT For Fat Cats - The Foreign Account Tax Compliance Act for U.S. citizens. The Foreign Account Tax Compliance Act (FATCA), which goes into effect on January 1, 2013 - and you know it'll be here before you blink - was enacted by the U.S. government to minimize the estimated $345 billion of uncollected annual tax revenue stemming from tax evasion of U.S. customers with non-U.S. entities. . . . Keep reading
The Costa Rica Tax Man Gets Tougher On Working Professionals and Businesses!
Scott Oliver - September 2011
The Costa Rica Tax Man Gets Tougher On Working Professionals and Businesses! His message may be clear but how Francisco Villalobos plans to enforce this is certainly NOT clear because strangely enough, according to Alan Saborío, the former Director of Taxation: "In Costa Rica there is no legal provision requiring companies to have audited financial statements, so if you do not have audited financial statements you would not be obliged to present them." . . . Keep reading
The Brand New Corporation's Tax - Supreme Court says it's OK
Costa Rica Tax Expert Randall Zamora
The Brand New Corporation's Tax - Supreme Court says it's OK Actually, the Government is already counting on the forecasted ¢37,000 millions (around US$74 million) per year that they think they are going to collect and use to improve security in Costa Rica (Yeah Right!) thanks to this law which charges ¢158,000 (around $316) to active corporations and ¢79,000 ($158) to dormant corporations. . . . Keep reading
Costa Rica's Brand New Corporation Tax On Hold!
Costa Rica Tax Expert Randall Zamora
Costa Rica's Brand New Corporation Tax On Hold! But yesterday a group of 12 "thoughtful" lawmakers - of course no one of them is from the official party Partido Liberacion Nacional, the party of the President Laura Chinchilla who is trying to impose the new tax - decided to forward the bill to the Supreme Court which means that the law was put on hold for now. . . . Keep reading
Costa Rica's Brand New Corporation Tax - It's now official!
Costa Rica Tax Expert Randall Zamora
Costa Rica's Brand New Corporation Tax - It's now official! On 8th August 2011, 38 of Costa Rica's Law Makers voted for the Corporation's new Tax Bill to become a law, which means that starting in January 2012, all the corporations registered in Costa Rica will have to file and pay this new tax. The President Laura Chinchilla claims that they will use this money to fight the growing insecurity problem of Costa Rica. . . . Keep reading
Luxury Property Tax. The most recent change
Costa Rica Tax Expert Randall Zamora
Luxury Property Tax. The most recent change Having said that, if the owner of a so called luxury house valued, according to the official value guide, in more than ¢100,000,000 (around $200,000) fails to file the tax return the late filing fee will be ¢146,700 (around $293.40) instead of ten times the unpaid tax as it used to be on the original law. . . . Keep reading
WeLoveCostaRica.com's New MLS System - Protecting and empowering you, the real estate buyer.
Scott Oliver - July 2011
WeLoveCostaRica.com's New MLS System - Protecting and empowering you, the real estate buyer. After more than a year of looking at the different MLS systems and speaking with Realtors using them, the new real estate MLS search facility finally adopted by WeLoveCostaRica.com is the PropertyShelf system which we believe will make finding your new home or apartment in Costa Rica safer, simpler and a lot easier! . . . Keep reading
Costa Rica's New Tax On All Corporations - Update.
Costa Rica Tax Expert Randall Zamora
Costa Rica's New Tax On All Corporations - Update. Since most of the lawmakers in charge of deciding if this bill should be discussed have agreed to allow the bill to go to the Congress be voted on, there is now a good chance that this bill will become law. . . . Keep reading
Property Theft in Costa Rica. Help! They stole my property.
Attorney Roger Petersen
Property Theft in Costa Rica. Help! They stole my property. At first glance you may imagine that this article is about the theft of personal property after all you might expect to have a camera, laptop, or similar item stolen -- however can you even conceive of the notion of having your real estate property stolen from you. Most of us would not even think that this could happen. . . . Keep reading
Rental Properties and Sales Taxes In Costa Rica - When this tax should be collected?
Costa Rica Tax Expert Randall Zamora
Rental Properties and Sales Taxes In Costa Rica - When this tax should be collected? Any individual or company who generates revenue out of a property in Costa Rica in the form of rent must report this income and possibly pay income tax, which is the easy part... . . . Keep reading
US "Persons" in Costa Rica with Foreign Bank and Financial Accounts
Scott Oliver
US "Persons" in Costa Rica with Foreign Bank and Financial Accounts You know that any United States person who has a financial interest in or signature authority or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year must file an FBAR which is a Report of Foreign Bank and Financial Accounts? . . . Keep reading
Property Taxes in Costa Rica. One less step?
Costa Rica Tax Expert Randall Zamora
Property Taxes in Costa Rica. One less step? This means that those 61 Municipalities will be able to have access in real time to information about every single property registered in terms of owners, reported values, measurements, etc. The Records Office will also have access to the Municipalities' information so, theoretically, it is going to be a handy tool when it comes to cross referencing. . . . Keep reading
Attorney José's Three Golden Costa Rica Real Estate Rules - FREE online video interview included.
José Rafael Fernández Quesada
Attorney José's Three Golden Costa Rica Real Estate Rules - FREE online video interview included. When considering the purchase of Costa Rica real estate, my good friend and Costa Rican attorney José Rafael Fernandez who wrote the 'Top Ten Gringo Legal Mistakes' likes to advise his clients about his 'Three Golden Rules' . . . Keep reading
Do Retired Persons Pay Taxes On Social Security Or Pension Income In Costa Rica? Telephone interview with Costa Rica Tax Expert Randall Zamora
Telephone Interview With Randall Zamora
Do Retired Persons Pay Taxes On Social Security Or Pension Income In Costa Rica? Telephone interview with Costa Rica Tax Expert Randall Zamora We had a huge response to my request for questions about taxes in Costa Rica so you'll have to forgive us for not being able to get through the hundreds of questions that you sent me but we tried hard to cover as much as possible in this 40 minute telephone call ... . . . Keep reading
Costa Rica Law, Lawyers & Attorneys - 10 Tips to help protect yourself!
Rudy Matthews - March 2011
Costa Rica Law, Lawyers & Attorneys - 10 Tips to help protect yourself! Yes, there are lawyers here that have not represented their profession well by being dishonest, corrupt and criminal. The majority of complaints, however, concerning Costa Rica attorneys are in areas of efficiency, attention to detail, follow through, client communication, and consistency. . . . Keep reading
Do I Really Need to Hire a Lawyer in Costa Rica?
Attorney Roger Petersen
Do I Really Need to Hire a Lawyer in Costa Rica? I generally find that people who come into Costa Rica with their legal relationship established early on have a smooth transition settling into Costa Rica. . . . Keep reading
Costa Rica Real Estate Fraud - Help! They stole my property
Attorney Roger Petersen - March 2011
Costa Rica Real Estate Fraud - Help! They stole my property At first glance you may imagine that this article is about the theft of personal property after all you might expect to have a camera, laptop, or similar item stolen -- however can you even conceive of the notion of having your real estate property stolen from you. Most of us would not even think that this could happen. . . . Keep reading
Who Pays the Attorney in a Costa Rica Real Estate Transaction? Watch out for the sharks!
Attorney José Rafael Fernandez
Who Pays the Attorney in a Costa Rica Real Estate Transaction?  Watch out for the sharks! I have mentioned in previous collaborations with WeLoveCostaRica, that a buyer should never use the seller's attorney, just for the sake of saving some bucks. And I stand by my words. . . . Keep reading
US Taxpayers Hiding Assets Offshore in Costa Rica Face 31st August 2011 Deadline
Scott Oliver - February 2010
US Taxpayers Hiding Assets Offshore in Costa Rica Face 31st August 2011 Deadline "The Internal Revenue Service announced today a special voluntary disclosure initiative designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes. The new voluntary disclosure initiative will be available through Aug. 31, 2011. . . . Keep reading
Costa Rica Residency Categories Explained - New Immigration Law update.
Attorney Rick Philps - Updated February 2011
Costa Rica Residency Categories Explained - New Immigration Law update. The two most prevalent Temporary Categories of Residency applied for by foreigners being "Pensionado" and "Rentista", remain very "mechanical" in the Application process, with each category requiring minimal supporting documentation, including an certified original Birth Certificate, a Criminal Records Search by a Police Force in your country of origin, (a certified Certificate of Marriage, if applicable), a certified complete copy of your Passport, and a Financial Responsibility Letter from a recognized financial institution, or pension authority. . . . Keep reading
Costa Rica Investor Residency Category is Clarified with New Immigration Regulations
Attorney Roger Petersen
Costa Rica Investor Residency Category is Clarified with New Immigration Regulations The Costa Rican Immigration Law which was passed in March of 2010 created the immigration category of Investor. However the law lacked any guidance or direction regarding the type of investment required to qualify for this residency category. . . . Keep reading
New Costa Rica Tax Bill Update: The Value Added Tax, government's big hope.
Costa Rica Tax Expert Randall Zamora
New Costa Rica Tax Bill Update: The Value Added Tax, government's big hope. Once again, the Government claims to be on the poor people's side, and they also claim that this tax is going to be more of a "luxury tax", to tax the services and items bought by the upper class in Costa Rica, so in order to accomplish this the want to: . . . Keep reading
A Canadian Perspective on Buying Costa Rica Real Estate by Canadian/Costa Rican Attorney Rick Philps
Attorney Rick Philps
A Canadian Perspective on Buying Costa Rica Real Estate by Canadian/Costa Rican Attorney Rick Philps Canadians have a distinct tax advantage over their American cousins, in not having to declare their world income to Canada Customs and Revenue and pay taxes based on it, if they enjoy "non-resident tax status". . . . Keep reading
New Tax Proposed For Every Single Corporation Is Going To The Congress
Costa Rica Tax Expert Randall Zamora - Dec 2010
New Tax Proposed For Every Single Corporation Is Going To The Congress You don't have to have to my tax experience to figure this out but, unfortunately this is the price we have to pay for having persons appointed by President Laura Chinchilla like former Ministry of Treasury and current Congressman Guillermo Zuñiga, and the current Ministry of the Treasury Fernando Herrero - who have absolutely no clue what they are doing - making these types of decisions in Costa Rica... once again. . . . Keep reading
Costa Rica Luxury Property Taxes - What to do in the second year?
Costa Rica Tax Expert Randall Zamora
Costa Rica Luxury Property Taxes - What to do in the second year? The target of this tax are all the owners, individuals or corporations, of houses, apartments, condominiums and every building used for housing purposes even if they are within the Maritime Zone which worth more than US$197,238 based on the Official Value Guideline used by the ... . . . Keep reading
Costa Rica Real Estate Sales - Capital Gains Taxes
Costa Rica Tax Expert - Randall Zamora
Costa Rica Real Estate Sales - Capital Gains Taxes It is important to point out that this person has an habitual and public commercial activity such is house renting, for which he should pay taxes only for the profits generated by renting the house... . . . Keep reading
Costa Rica Tax Season - Time to file
Costa Rica Tax Expert - Randall Zamora
Costa Rica Tax Season - Time to file Fiscal year 2010 in Costa Rica ends on September 30th 2010, which means that we currently are in the fast lane to file all the tax returns and other forms required by the Tax office. Let's review one by one the forms that would, typically, need to be filed ... . . . Keep reading
Smart Canadians Buying Costa Rica Real Estate With Their RRSP
Canadian/Costa Rica Attorney Rick Philps
Smart Canadians Buying Costa Rica Real Estate With Their RRSP Much has been written about the use by our American cousins of their IRA funds to purchase foreign real estate investments in Costa Rica and elsewhere. As it turns-out, Canadians have an equal, if not more envious option, using their RRSP (Registered Retirement Savings Plan) portfolio. . . . Keep reading
Your Costa Rica Corporation - The legal books you must have.
Costa Rica Tax Expert Randall Zamora
Your Costa Rica Corporation - The legal books you must have. We do not blame them! Many attorneys interpret the law in such a way that they believe that inactive corporations do not require legal books, but some do, and please notice that I said "interpret" since the law is not clear about this issue. . . . Keep reading
Costa Rica Gold Mine Controversy - An exercise in democracy.
Costa Rica Attorney Rick Philps
Costa Rica Gold Mine Controversy - An exercise in democracy. Clearly, the current Costa Rican Administration, based on current open-pit mining policy, would have liked nothing better than to have the Courts discover an impediment in the permitting process that would have lead to a cancellation of the Crucitas project and the avoidance of ... . . . Keep reading
Costa Rica Attorneys Black-List
Costa Rica Attorney Rick Philps
Costa Rica Attorneys Black-List Do you know if there have been any major complaints filed against the Costa Rican attorney that you are dealing with? Would you prefer to be sure? It's easy with the information that you'll find here ... . . . Keep reading
The Development of Costa Rican Law
Attorney Roger Petersen
Costa Rica acquired its independence from Spain in 1821 and ratified its first Constitution in 1825. Despite its independence from Spain and the creation of a Supreme Court of Justice, the Costa Rican legal system was dependent on Spanish law to administer justice. . . . Keep reading
Costa Rica Laws - Using a Shelf Corporation in Costa Rica
Attorney Roger Petersen
In Costa Rica purchasing property in the name of a corporation has become very common practice. As a result many law firms offer corporations that have already been formed and are commonly referred to as a "shelf company". Since this type of corporation is already formed ... . . . Keep reading
Costa Rica Property Tax - New tools may help catch tax evaders
Costa Rica Tax Expert Randall Zamora
Costa Rica Property Tax - New tools may help catch tax evaders This tool is basically a sophisticated software platform which contains updated information on all the registered properties in Costa Rica, including aerial pictures, plot plans and the geological, social and economic characteristic of the properties. . . . Keep reading
Costa Rica Lawyers & Laws - What is the Civil Law system?
Attorney Roger A. Petersen
Costa Rica Lawyers & Laws - What is the Civil Law system? The civil law system derives from the system of jurisprudence held and administered in the Roman Empire, which developed the idea of compiling its written laws into codes. . . . Keep reading
Costa Rica Informative Tax Returns - What is that?
Costa Rica Tax Expert Randall Zamora
Costa Rica Informative Tax Returns - What is that? One of the most efficient tools that Costa Rican Tax Authorities have are the so called Informative Tax Returns, these tax returns numbered from D-150 to D-161 are used by the Tax Administration to cross reference information in terms of who has paid how much to whom and under what category. . . . Keep reading
Only The Little People Pay Taxes.
Scott Oliver
Only The Little People Pay Taxes. Dog lovers may remember her because when she died she left her four legged friend a $12,000,000 trust fund, a move which Fortune magazine called one of the "101 Dumbest Moments in Business." She was also famous for saying: "We don't pay taxes. Only the little people pay taxes." . . . Keep reading
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