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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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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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RENEGOTIATION OF CONTRACTS IN THE CASE OF FORCE MAJEURE
BusinessEconomyReal Estate

Due to the current state of emergency declared in Costa Rica because of the COVID-19 pandemic, questions have arisen regarding whether it is possible to renegotiate contracts instead of terminating them. If a business is facing financial difficulties, those businesses should ensure that contracts are not terminated and that renegotiations

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bill to pass
BusinessLandlord/TenantReal Estate

This past Tuesday, March 24th, a new bill was received by the Legislative Branch pertaining to a proposed moratorium on judicial and administrative evictions, which means that landlords would not be able to evict their tenants if they fail to pay rent during the term of this moratorium. This law would aim

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General guidelines for Condominiums due to health alert by Coronavirus (COVID-19)
Landlord/TenantReal Estate

On March 22nd, 2020, the Department of Health published the latest version of these guidelines applicable to commercial and residential condominiums, as part of the preventive and mitigation actions dictated for addressing the alert by COVID-19. These guidelines will be reviewed periodically, and the latest version will be published in the

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Tax-Rates-for-Strengthening-Solidarity-Housing-Programs-(ISO)
GovernmentReal EstateTaxes

The solidarity tax, also known as the “tax on luxury homes,” was created by Law No. 8683 on November 19, 2008 and had been in effect since October 1, 2009. The official title of this tax is the Solidarity Tax to Strengthen Housing Programs. This tax was created to fund

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non-traditional-accomodations-costa-rica
PropertyReal EstateTourism

The current technological revolution includes mobile applications for all kinds of services, from buying food and objects which you receive at your door, a ride around town and even non-traditional renting. In Costa Rica the latter type of service had not been regulated until the middle of the month of

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The-Maritime-Zone-in-Costa-Rica
GovernmentPropertyReal Estate

Costa Rica is a country rich in biodiversity: forests, beaches, mangroves, and wildlife are among the many natural resources protected by the state through solid environmental legislation. The extensive coastal zone includes two oceans and extends throughout the country. The Law on Maritime Zone No. 6043 establishes guidelines the protection

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Investing-in-Real-Estate--Advice-for-Securing-Your-Investment
PropertyReal Estate

The Costa Rican real estate industry is growing slowly due to the economic slowdown that our country is currently going through. However, there still are plenty of real estate projects being developed in urban and rural areas and, of course, they come with a lot of benefits and amenities which

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Are-you-a-landlord-in-Costa-Rica.-Find-out-about-the-obligations-according-to-the-new-Tax-Law
Landlord/TenantPropertyReal Estate

If you are the owner of a property in Costa Rica and offer it for rent, you should know that Law No. 9635 (the Law for Strengthening Public Finances) introduced new obligations that you must comply with. Leases in Costa Rica are governed by Law No. 7527 (Urban and Suburban

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