First of all, we want to wish you a happy new year!
We hope your 2021 is going great and that all the amazing plans and dreams you have for this year all manifest in abundance.

This is a super friendly reminder of all the duties you as a business, property owner, or corporation have in this first trimester.

CORPORATION & PROPERTY CHECKLIST FOR 2021

Pay yearly Corporate Taxes
Due in January

In case you have a corporation this is a yearly payment that can be easily completed through your BCR account. We at LAW Xperts can also assist you in this matter.

Declaration of the corporation’s shareholders
Due by April

This new regulation requires you to present the Declaration of the Shareholders before the RBTF (Registry of Shareholders). This requirement is for all corporations.

For more information regarding this regulation click on this link and visit our blog post.

Pay your Property’s Tax
Due once a year or by trimester

If you, on the other hand, own a property in Costa Rica, you need to pay this tax once every year or every 3 months depending on what works best for you.

Declaration of the Global Value of the Company
Due by March 15th

If your corporation holds any assets such as property, the Declaration of the Global Value of the Company (D-135) needs to be presented by March 15th in order to avoid monthly fines.

Visit our blog post on Tax Regulations and get all the information you need.

If you need any assistance in these processes we will be more than glad to help you.

We’re just an email away! Contact us at nicole.quesada@lawxpertscr.com

Important announcement for corporations.

As of November 11th, 2020 the Costa Rican Tax Authorities confirmed that all corporations (active or inactive) need to submit the D-101 form and declare their global value, if any, before March 15th, 2021.

Due dates: 
By December 31st, 2020
It’s important that your corporation’s books and capital stock match all the essential information that will be submitted in the D-101 form. 

Before March 15th, 2021
Submit the D-101 form and declare the global value of your corporation according to the information in your corporate books. 

Please be advised that the fine for any active/inactive corporation that does not meet this requirement is US$400 per month of delay after March 15th, 2021, so it’s very important to prepare all of this paperwork and present it on time.

*This process is completely aside and independent from the Declaration of Shareholders and Final Beneficiaries of the Corporations. 

Contacts us ASAP to put your corporate books in order and start this process.
If you have doubts don’t hesitate to contact us at nicole.quesada@lawxpertscr.com
 

FAQS

WHAT IS AN INACTIVE CORPORATION?
An inactive corporation can be described as a corporation that does not perform a commercial activity in the country. Typically they are created ONLY to hold assets such as properties/vehicles, etc. If you have an inactive company please get in touch with us.

DO YOU HAVE TO PAY A TAX?
No. This is not a new tax, it’s just a new regulation issued by the TAX AUTHORITIES and its purpose is that all corporations register as INACTIVE companies before Tax Authorities and eventually declare the company’s assets.

WHERE DO YOU SUBMIT THESE DECLARATIONS?
Before the Tax Authorities on their ATV online platform. To be able to use their online platform you have to have a NITE number (it’s a TAX ID number) and a password to enter the system. If you are a foreigner living in CR and don’t have residency yet, you will have to go personally to the Tax Authorities to get your NITE number and password first and comply with certain documentation to obtain it.

DO YOU HAVE TO SUBMIT THESE DECLARATIONS YEARLY?
The D-101 (which is the declaration of the global value of the company) has to be submitted yearly, within the 2 months and 15 natural days at the end of the fiscal period.

IS THIS THE SAME REGULATION AS THE DECLARATION OF SHAREHOLDERS?
No, this is a completely different declaration than the Declaration for the Registry of Shareholders that has to be submitted yearly in April before the CENTRAL BANK, which purpose is solely to declare who are the shareholders and/or final beneficiaries of the company.

On march 1^st, on Immigrations website a new administrative resolution was published Indicating literally the following: 

“The General Direction of Immigration authorizes through an administrative resolution an extension for a last time to the legal permanence of all foreigners that have entered the national territory after December 17^th, 2019 and that keep a valid insurance until June 2^nd 2021, being this date the maximum term to stay in the  national territory; this extension has been authorized through a request made by the Costarrican Tourism Institute (ICT) and has the approval of the Ministry of Health, as long as foreigners comply with the insurance during the period of their stay.

To be able to stay until such date, the tourists need to have an insurance that covers at least lodging and expenses in case of contracting  COVID-19 and its an obligation to send the proof of the insurance policy to seguros@ict.go.CR, so  that that ICT can proceed to validate the insurance. The insurance can be any of the ones offered by the insurance companies that are authorized and duly registered before  the General Insurance Superintendent or a travel insurance with international coverage”

From the previous resolution,  we want to highlight and summarize some important points to avoid any confusions: 

1. The resolution is firm, is official and its already being enforced. We want to clarify this as we have been reading in other articles or news that “its pending to be published, that it has not been made via decree and/or that its waiting to be official”  and as of March 1^st the resolution is official, firm and in application. 
2. The resolution does not make any differences or exceptions between tourists and therefore it should not be analyzed in a restrictive way. According to what the resolution literally says, the extension applies to ALL foreigners that have entered the country after December 17^th, 2019. 
3. The tourist visa will be automatically extended until June 2^nd, as long as the tourist has the insurance that will cover during his/her stay.
4. An email to the above address should be sent with the proof of the insurance for the extension to apply. 

Despite the resolution is clear enough, there is still a lot of confusion into if this extension applies only for the tourists that have entered the country after December 17^th 2019 and until November 30^th, 2020. Many non official sources have even been affirming that it does not apply for tourists that have entered the country after November 30^th 2020 and that those tourists should go to the normal process of requesting a tourist visa extension. 

However, one of our main jobs as attorneys is doing a correct interpretation of the laws, rulings, resolutions, etc.  and therefore we cannot interpret a resolution in a restrictive way, when the resolution its not restrictive itself. Therefore we cannot affirm based on the resolution that the extension applies only to those who entered between December 17^th 2019 and November 30^th 2021; and we definitely  don’t believe that Immigration would be entitled to start a deportation process to a tourist that entered the country after November 30^th 2019 and that stays until June 2^nd 2020.  

As we are always working on providing you with the latest updated information we are  coordinating  an appointment with the Chief of the Legal Department at Immigration to clarify these points and we will be back with news clarifying this matter, BUT for the moment, our criteria is that it applies to ANY tourist that entered after December 17^th 2019. 

FOREIGNER’S DRIVERS LICENSE VALIDITY 

MOPT is the Institution in charge of determining if the foreigners drivers license validity will be extended until June 2^nd, 2021, however they have not pronounced regarding this matter. This means that even if you can legally stay in the country until June 2^nd 2021, is still unknown if you will be able to legally drive during this period. 

FAQS 

1. If I have an appointment set to start a residency application do I need to buy the insurance until June 2^nd 2021? No, you are not forced to. From the moment you obtain an appointment to start your residency application you are not a ‘regular’ tourist, you are in process of starting your residency application soon and therefore you can stay in the country without the insurance. 
2. What happens during the period that my tourist visa is expired until my appointment date to start my residency application, am I  legal to stay in the country? You are allowed to legally stay in the country ONCE your residency process has been submitted before Immigration and you have a file number. However, its said that because of the exceptional circumstances that we are going through, the fact of just having the appointment will allow you to stay without a problem, however this is not written in any law so we couldn’t say you are 100%  legal or 100% illegal,  you would be in what we call a ‘grey zone’ 
3. What happens with my drivers license and how can I obtain a C.R. Drivers license ? Your foreigner drivers license is valid for the period that your tourist visa is valid for. We will have to wait to see if MOPT extends the validity of the drivers license to those tourists that have extended their insurance until June 2^nd 2021.  You can obtain a C.R. Driver’s license once you are a resident. 
4. Is it true that I can make an appointment in Immigration to start my residency application just  be able to stay longer in C.R. And buy some time here? Many lawyers, sources and people without knowledge have been wrongfully recommending to make appointments to start a residency application at Immigration even if the intention is not to start the residency application, just so that they can prolong their stay in C.R. Some are even charging US$25-US$50 to “help” make the appointment  and are guaranteeing  people that with this appointment they can stay in C.R and decide later on if they want to actually submit a residency application. 

Please people DON’T DO THIS!  We DON’T recommend it as this is hindering our public system. 

We as immigration attorneys really care that Immigration has the capacity to function in a diligent way so that our client’s cases get resolved faster and so that out potential clients really seeking to start their residency application can start it soon. 

However, this behavior and bad advise is collapsing the system, and very soon  a  foreign will have to wait  MONTHS to be able to start their residency process. 

We can assure and tell you that just two weeks ago there were appointments available in March and April and now, just two weeks later, appointments are available until end July-start of August. What does this tell you? 

SO…please if you don’t qualify for residency yet, seek the legal route to have a valid tourist visa and let this space for others that are truly wanting residency. 

Finally, as we always try to do our best, in benefit of our clients and immigrations laws, we are  in conversations with Immigration Direction letting them know about this “appointment situation” so that they can apply sanctions to those making appointments in vane without having the intention to even appear to the appointment Or actually start a residency file. 

It’s a pleasure to update you with the #latestimmigrationnews and remember if you are interesting in applying for residency or want to know more about it, go ahead and download our residency guide: www.lawxpertscr.com/residency-in-costa-rica   Or feel free to send us an email at info@lawxpertscr.com 

Written by: Lic. Nicole Quesada G. 

With border controls getting tighter in many parts of the world, should perpetual tourists in Costa Rica worry about their legal status?

In 2015, the exacerbation of the European refugee crisis prompted some countries to implement strict border controls that had not been enacted in decades. Later, terror attacks in Europe and the United States prompted airports and seaports around the world to tighten their vigilance.

Costa Rica saw its own share of situations that prompted concerns at the border. From Syrians entering the country with fake passports to Cuban migrants being denied passage by Nicaragua, Costa Rica was forced to increase vigilance at the border crossing points in Peñas Blancas and Paso Canoas, which happen to be frequently used for visa runs by North American and European tourists who wish to extend their vacations in our country.

Now that the entry points in Costa Rica are subject to greater scrutiny due to security concerns, it is a good time for perpetual tourists to think about their long-term plans in our country. Immigration rules are more likely to change whenever situations such as the ones described above occur. This is when legislators who do not have a friendly opinion about perpetual tourism begin to suggest amendments to the status quo.

Most foreigners who engage in long-term perpetual tourism in Costa Rica are not aware that residency options extend well beyond marriage to a citizen or have a Costa Rican child. Once a foreigner starts his or her residency process in Costa Rica, he or she does not have to leave the country every 90 days, therefore saving time and money by not having to endure visa runs.  

When a request for legal residency is submitted to the Immigration Direction  in Costa Rica, applicants are given a file number that identifies them as going through the process. This means no longer having to exit the country every three months on visa runs. Requests are approved approximately after 15 months, as long as all the requirements are complete; the only snags in the process come from extensive criminal backgrounds.

Residency applicants should take into consideration that their driver´s license will only be valid for the period that their tourist visa is valid for, therefore, if they want to drive while they wait for their residency to be approved, they will have to continue to do border runs or not drive. Once they become residents, they can apply for the C.R. driver´s license. 

If you would like more information about legal residency options in our country, please give us a call 2682-0075 or send us an email to info@lawxpertscr.com

Requirements: 

• You must have a DIMEX C.R. RESIDENCY CARD to obtain the driver´s license
• You have to bring two photocopies of the following documents: identity card, valid license from your country of origin with a translation to Spanish language and a medical test certificate.
• Photocopies of: Residency card, main passport page and of last stamp to the country, and bring physical residency card and passport. Tourist visa must be up to date to apply for driver´s license. 
• The cost of the driver’s license is ¢5,000. 
• Applicants can go either on Tuesday or Wednesday from 8:00 a.m. to 11:00 a.m to to the ‘Direccion General de Educacion Vial’ (COSEVI) and no appointment is needed.

Please find location here: 

For persons living in Guanacaste, GOOD NEWS: 

You don’t have to go all the way to San Jose, you can actually  do the process in Liberia, the place you have to go it is called “Departamento de Licencias and it is located next to the “Delegación de Policía de Tránsito”.

Please find location here: 

If you need our guidance and our company during this process, we will be happy to help you!

Remember to email us at info@lawxpertscr.com for any inquiry or give us a call to 2682-0075 or 8832-5176. 

What is this about?

The Costa Rican government issued a new legislation, which requires the shareholders or beneficial owners of any Costa Rican corporation or foreign company registered in Costa Rica to submit a declaration delivering personal information of the shareholders and final beneficiaries (individuals). 

How do you submit this declaration?

This Regulation requires from Costa Rican Corporations (S.A. – LLC) and Private Trusts to submit a declaration delivering personal information of the shareholders and final beneficiaries (individuals). 

It must be submitted before the Costa Rican Central Bank Registry (BCCR) through the BCCR online platform through a digital signature. The legal representatives of the corporate entities must have a valid digital signature (Firma Digital) card in order to submit the declaration. The digital signature is a card issued by the Costa Rica Central Bank or through authorized Costa Rican banks. The digital signature is only available for Costa Rican citizens or foreigners that have residency and a valid DIMEX card.

When does the Obligation to submit the Declaration Begin?

On September 1^st, 2019 according to the following schedule based on the last digit number of your corporation identification number (cédula jurídica)

• Corporations with last digit ending in 0-1: September 2019
• Corporations with last digit ending in 2-3: October 2019
• Corporations with last digit ending in 4-5: November 2019
• Corporations with last digit ending in 6-7: December 2019 
• Corporations with last digit ending in 8-9 January 2019

 What information needs to be completed in the declaration form?

1.For Corporations (S.A.-LLC): 

         Name, address and ID of shareholders and final beneficiaries

         Capital stock and share distribution

2.      Private Trusts: 

         Purpose and nature of the Trust

         Name and ID of Settler

         Name and ID of Beneficiaries 

         Name and ID of Trustee

The law requires that the form be filed by the legal representatives of the corporations as follows:

• For S.A.:     The President
• For LLC:    The Manager 
• For Trusts:  The Trustee

How often do you have to file the declaration?

The form must be filed on a yearly basis starting on April 2020. The frame for submittal is fromApril 1^st through April 30^th of every year.  However, if anytime during the year a single person or other entity becomes owner of more than 15% of the capital stock of the corporation, they must report that within 15 days of the acquisition.

What are the Penalties for Not Filing?

Obliged subjects who have not submit the declaration as of January 31, 2020 will be considered as non-compliers. 

The applicable penalties are those established in Article 82 bis of the Tax Procedural Code which indicates that the fine would equal to Penalty fee of 2% of the Corporation yearly gross income if company has commercial activity.

National Public Registry will block all registry services for each Corporation transactions, such property register, vehicles register, etc. 

How can we assist you?

We can handle this process for you accordingly to Ordinance N° 41040 -H. Please check below for options: 

1.      If you are in Costa Rica, we will need you to:

         Grant us notarized POA 

2.      If you are abroad, we will need you to:

         Grant us POA throughout a shareholder’s assembly 

3.       If your Corporation books are not in Costa Rica please e-mail for further instructions.  

LAW XPERTS can handle this sensitive matter with the needed responsibility, accuracy and absolute professionalism that you require, please email for further inquiries. 

A new tax regulation has been published by national tax authorities on last December 20th, 2019 and contains two important things for you to know.

1.REGISTERING THE COMPANY AS INACTIVE

As from January the 6th 2020, all non-active corporations – S.A. LLC – must report and register as an inactive taxpayer at Treasury Tax Portal System. (ATV) and must file this D140 FORM  in monthly groups determined by the last digit of the corporation identification number as follows:

TERMINATION OF CORPORATION ID  & TO BE REGISTER BY

• 1 & 2 – January 2020
• 3 & 4 – February 2020
• 5 & 6 – March 2020
• 7 & 8 – April 2020
• 9 & 10 – May 2020

HOW TO DO THIS PROCESS BY YOURSELF?
You can  fill out this declaration (D140 FORM) in the ATV (Administración Virtual Tributaria)  in the following website: www.hacienda.go.cr

2. DECLARING GLOBAL VALUE OF THE COMPANY

Additionally, the regulation states that as of January 2021 and until March 15th, 2021, another declaration (D135 FORM)  must be completed by all INACTIVE CORPORATIONS. In this declaration, corporations have to declare their assets (passives and actives), capital stock,  patrimony and the global value the company.  It’s important that the information that is going to be declared its inserted properly and accordingly  in the Company Books.

HOW TO DO THIS PROCESS BY YOURSELF?
By next year, Tax Authorities will have available on their website the form to comply with the declaration. You can fill out this declaration (D135 FORM) in the ATV (Administración Virtual Tributaria)  in the following website: www.hacienda.go.cr.

FAQS

WHAT IS AN INACTIVE CORPORATION?
An inactive corporation can be described as a corporation that does not perform commercial activity in the country.   Typically they are created ONLY to hold assets such as properties/vehicles, etc. If you have an inactive company please get in touch with us.

DO YOU HAVE TO PAY A TAX?
No. This is not a new tax, it’s just a new regulation issued by the TAX AUTHORITIES, which purpose is that all corporations register as INACTIVE companies before Tax Authorities and eventually declare the company’s assets.

WHERE DO YOU SUBMIT THESE DECLARATIONS?
Before the Tax Authorities on their ATV online platform. To be able to use their online platform you have to have a NITE number (its a TAX number) and a password to enter the system. If you are a foreigner living in CR and don’t have residency yet,  you will have to go personally to Tax Authorities to get your NITE number and password first and comply with certain documentation to obtain it.

DO YOU HAVE TO SUBMIT THESE DECLARATIONS YEARLY?
The D140 FORM (which is the registration of the company as inactive) JUST ONE TIME.

The D135 (which is the declaration of the global value of the company) has to be submitted yearly, within the 2 months and 15 natural days at the end of the fiscal period.

IS THIS THE SAME REGULATION AS THE DECLARATION OF SHAREHOLDERS?
No, this is a completely different declaration than the Declaration for the Registry of Shareholders that has to be submitted yearly in April before the CENTRAL BANK, which purpose its solely to declare who are the shareholders and/or final beneficiaries of the company.

Please feel free to contact us to be able to assist you with all your corporate matters and avoid high fines. 

My name is Nicole Quesada Gurdián and I am the founder of L.A.W. Xperts. I want to share my story with you and hope that one of these days you can share yours with me.

I moved to Nosara in February 2016 for what was supposed to be only a ‘season’. I quit my job in one of the most prestigious firms in San Jose. My career and life were going great but I realized that city life was just not for me. I needed to feel closer to the ocean, sand, and nature.

I changed my life in the blink of an eye following my heart… not knowing what the future was holding there for me. 

I did not come however hoping to make a business in Nosara, I just came hoping for a better quality of life and to find simplicity.

My first year in Nosara totally changed my life. I not only connected deeply with nature but also with God as an almighty intelligence that keeps this planet going and in this path, I found my true self.

Before I founded the firm, I had many jobs in Nosara that were not law-related, this was a sacrifice that I had to make at the beginning when I first moved here. 

However, the job that left a mark on me was at the famous clothing store that you probably have seen in Guiones’ main road ‘LOVE NOSARA’.

Working there led me to where I am today because on this main road I was able to meet the coolest friends that in a certain way encouraged me to open the firm. 

I met Gato and Juanita who sell coconuts in town,  Jefferson who sells empanadas and Caribbean soul food, and I also met all the artisans who sell their beautiful jewelry and crafts, among others. 

They quickly found out that a lawyer was working at the clothing store so they would always stop by for legal consultations and many times offered me pipas, empanadas, and bracelets in return. 

I felt happy and honored to help them with everything I could because they reminded me of who I really was.  We have many stories to share about standing up for their rights in this little road and I will be forever grateful for them.  

During this time I suddenly had an epiphany: 

“If the people that I see on a daily basis in just one road in a 10-meter circumference need help and protection, probably many other people in town need this as well.” 

This was the moment of realization where I took the leap and Founded LAW XPERTS. 

I could not ignore anymore who I was, my PASSION for law and for standing for people’s rights. 

Today, I consider it a BLESSING to be able to work in Guiones and to get to meet all the beautiful people that end up in this magical town and that just like me think ‘it’s only for a season’.

As of September 2019, a new legislation was issued which stated that the shareholders or beneficial owners of any Costa Rican Corporation or foreign company registered in Costa Rica and/or Trusts have to submit a yearly declaration, due in APRIL of every year, delivering personal information of the shareholders and final beneficiaries (individuals). (If you haven’t heard of this please check our article here).

Recently, a new resolution, specifically the “Resolution N° DGT-ICD-R-19-2020” was published in La Gaceta (our official newspaper) modifying the dispositions for the declaration that had to be submitted this year before the RTBF (Registry of Transparency and Final Beneficiaries) or commonly known as the “Registry of Shareholders”. The most important thing is that this resolution stated that this year the declaration does not have to be done, if you submitted a declaration for 2019.

Meaning that the declaration that was submitted for year 2019 is now going to count as the declaration for year 2020 as well.

Therefore if you did the declaration for the year 2019, take into consideration that you don’t have to do it this year anymore and the next declaration would be due by April 2021.

MOST IMPORTANT POINTS OF THIS RESOLUTION :

-If you submitted a declaration for year 2019 in the RTBF system, you will not have to submit one for 2020 because the system will process it automatically and for this time only it will use this same declaration for this period.

-If you did not submit a declaration for year 2019, then you do have to comply with this declaration and it will count for years 2019 and 2020.

-If you had created a corporation between January 2020 to March 2021, you don’t need to submit this declaration within the regular 20 business days, but until April 2021.
Any changes or extraordinary declarations to the shareholders must be presented until April 2021

-Trusts, Third-party resource administrators, and non-profit organizations that are not yet required to submit the declaration directly in the RTBF system must maintain the information stated in the law to improve the fight against fiscal fraud and hand it to the pertinent administration in case required, until there is a procedure established to submit it directly to the RTBF system.

If you need help submitting the declaration for 2019, we would be more than happy to assist you. Take into account that late presentation of the declaration creates high penalties.

For further inquiries please feel free to write to us at Nicole.quesada@lawxpertscr.com, on our Instagram, or our Facebook page for any further questions.

We’ll be happy to assist you in anything you need!

Licda. Nicole Quesada

LAW Xperts

A boutique conscious LawfirmHOME

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On march 1st, on Immigrations website a new administrative resolution was published Indicating literally the following:  “The General Direction of…

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