Important Steps After Purchasing Property in Costa Rica

Congratulations on purchasing property in the beautiful country of Costa Rica! Whether you’ve bought a vacation home, an investment property, or a permanent residence, there are several important steps to take to ensure that everything is in order and that your ownership is properly recognized by the relevant governmental institutions. This guide will walk you through the essential tasks you need to complete as a new property owner in Costa Rica.

1. Register Your Property with the Local Municipality

After your property has been officially registered under your name or your corporation’s name, your first stop should be the local Municipality. It’s crucial to make sure that the property records are updated to reflect the new ownership. This will involve submitting several key documents, including:

• A copy of your ID (passport or residency card).
• The official property title registration document.
• Any other documents related to the purchase.

If you’re unsure about which documents are required, it’s always a good idea to consult with your attorney. They can provide a checklist of necessary paperwork and ensure that everything is in order before you visit the Municipality. Once your documents are in place, the Municipality will update their records to reflect you as the new owner, which is a critical step in ensuring that all future communications and tax obligations are directed to you.

2. Declare Your Property’s Value and Set Up Property Tax Payments

In Costa Rica, property taxes are calculated based on the declared value of your property. After registering your ownership, you’ll need to fill out a declaration form at the local Municipality. This form will inform the Municipality of the purchase price of your property, which they will use to calculate your annual property taxes. It’s essential to provide accurate information, as this will determine your tax obligations moving forward.

Additionally, garbage collection fees are typically included with your property taxes. By completing this declaration, you ensure that you’ll receive accurate billing for both property taxes and waste management services.

3. Update Utilities and Service Providers

Next, it’s important to visit the local utility companies to transfer the services to your name. This includes the energy company, water company, and your internet provider. When visiting these companies, you’ll need to provide the following:

• A copy of your ID.
• Ownership documents proving that you are the new owner of the property.
• Your new email address and phone number for future correspondence.

By updating this information, you’ll ensure that all utility bills are sent directly to you, preventing any potential service disruptions. This is also a good time to review your service contracts and ensure that you’re receiving the services that best meet your needs.

4. Pay Annual Corporation Taxes

 ⁠If you opened a Corporation in Costa Rica, you must remember to pay the annual corporation taxes. In Costa Rica, corporations are required to pay a tax each year, typically at the beginning of the year. Failure to pay these taxes can result in penalties and fines, so it’s important to mark this on your calendar and ensure that the payment is made on time.

Your attorney can assist you with this process, ensuring that you’re aware of the deadlines and the correct amount to pay. Paying these taxes promptly is crucial to maintaining your corporation’s good standing in Costa Rica.

5. Declare Shareholders with the Central Bank

Another critical step is to declare the shareholders with the Central Bank of Costa Rica. This declaration is required once a year and can be completed online. Failing to declare your shareholders can result in fines and legal complications.

Your attorney should guide you through the steps necessary to complete this declaration. They can also assist in setting up reminders to ensure that this annual obligation is met without issue.

Final Thoughts

Owning property in Costa Rica is a rewarding experience, but it comes with certain responsibilities. By following these steps and staying on top of your legal and financial obligations, you’ll ensure that your ownership is secure and that you can fully enjoy your investment in this tropical paradise.

If you have any doubts or need further assistance, don’t hesitate to reach out to a local attorney who is well-versed in Costa Rican property laws. Their guidance will be invaluable in navigating the local legal landscape and ensuring that all aspects of your property ownership are handled correctly.

Welcome to your new property in Costa Rica – may it bring you many years of enjoyment and prosperity!