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My Two Colones

“People have lost their residency” On April 4th, CRHoy an online news outlet, published an article stating that 577 foreign nationals lost their residency for leaving the country during the travel restriction. This was not the case. This false information may send the message that if you leave the country,

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Several bills are being discussed by the Costa Rican senators right now which are looking to suspend or reduce the municipal property tax collections, as part of the measures to help those affected by the sanitary emergency of the new coronavirus. Some of these bills propose to allow taxpayers to access a moratorium, or a decrease from 25% and up to 50% in taxes, fees, services, and other municipal charges. The legislator María José Corrales, for instance, proposes that such reduction of 50% in the taxes collected by the municipalities, should apply to those quarters of 2020 that will be defined by municipal agreement, only to benefit those taxpayers who are up to date with their municipal property taxes, and that should be granted to periods that have not been endorsed by the union of local governments. Moreover, as also proposed by that same bill, a total or partial remission of the surcharges, interest, fines, and other charges for penalties owed in municipal charges should be granted. Such a measure would apply in the period from the first quarter of 2020 to the closing of the second quarter of the current year. And in order to be eligible for special reduction or tax condonation benefits, the taxpayer must be subscribed to a commercial license and should be up to date with the payments corresponding to the last quarter of 2019. On the other hand, this past Tuesday March 31st, a bill was introduced by the senators which proposes that the municipalities grant a moratorium, which would allow to transfer the dates of tax payments until April 2021. This would, help as these senators mentioned, “to guarantee that workers, entrepreneurs, and merchants, in their communities, have options that would allow them to face their commitments to the municipality”. In addition, the National Union of Local Governments (UNGL), which is the organization that represents municipalities as a group, announced that they will also present their own proposal on the matter. As informed by them, “they have tried to agree with the entire municipal system on a bill that tries to specifically benefit the taxpayer, through direct benefits that they could receive in terms of permits, licenses, and the different contributions that they carry out with each one of the local governments”. According to the UNGL, for them the most important thing is not to affect some of the essential services such as waste collection, safety issues, water, track cleaning, and additional services. For now, as mentioned, all of these options are being discussed, so we would need to wait and see what is the final decision on the matter.
PropertyReal EstateTaxes

Several bills are being discussed by the Costa Rican senators right now which are looking to suspend or reduce the municipal property tax collections, as part of the measures to help those affected by the sanitary emergency of the new coronavirus. Some of these bills propose to allow taxpayers to access a moratorium, or a decrease from

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residency status updates - outlier legal services

There continues to be confusion regarding the initial statement made by President Carlos Alvarado that any Resident (or person with legal status or application in progress) who departs the country during the COVID19 crisis will have their status cancelled. This has been published in various newspapers, it was even mentioned

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GovernmentHealth CareImmigration

It is well known that we are all facing difficulties as a result of the COVID-19 crisis. These are complicated times which have forced governments around the world to make harsh decisions in an effort to contain the spread of the virus. Speaking specifically about Costa Rica, the number of cases has

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March 27th version of the General guidelines for Condominiums
CondominiumReal Estate

On March 27th, 2020, the Department of Health published the latest version of the guidelines applicable to commercial and residential condominiums, as part of the preventive and mitigation actions dictated for addressing the alert by COVID-19. As mentioned in our previous communication published regarding these guidelines, they will be reviewed periodically, and the

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Border closing and other measures extended until April 30th, 2020.

The following measures have been extended until April 30th, 2020: As a result of the COVID19 crisis, only Costa Rican nationals and Residents will be allowed in the country. This measure will be in effect until April 30th, 2020. Some of the exceptions to the rule, per Decree N° 42238

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tax relief costa rica

According to the latest guidelines promulgated by the Government, the Tax relief measures will be applicable to: a) VAT taxpayers, meaning people who sell assets or services. This includes: importers, exporters, and people subject to the simplified regime, as well as those who sell exempt assets or services. b) Taxpayer of the selective consumption

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Withdrawal from the Labor Capitalization Fund

The Labor Capitalization Fund (LCF) in Costa Rica is similar to unemployment benefits in the United States. Employers make contributions to the fund so employees can receive income in case of future unemployment.  The general rule is that this benefit becomes available after five continuous years working for the same employer,

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Registry of Transparency and Final Beneficiaries 2020 update

Per Resolution N° DGT-ICD-R-06-2020 published March 30, 2020, all corporations will now have until September 2020 to comply with the yearly RTFB.  But this is not the only change to the mandatory requirement, please keep reading: Ordinary declaration (yearly):  The obliged corporations will have 6 additional months to comply with the 2020 period (April to September 2020). This requirement will now

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Sanitary Vehicle Restriction by COVID-19 and the Fundamental Right to Free Transit

On March 16, a State of Emergency was declared in Costa Rica due to the COVID-19 disease, which causes coughing, fever, and serious respiratory problems. Given this unusual situation, the Executive Power of Costa Rica, in compliance with current regulations and being responsible for protecting the lives of the inhabitants

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