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Does any one know what is better. To Purchase a property in your own name or in the name of a corporation that my family as established?
The common advice is to purchase real estate in the name of a corporation which has that property as its sole asset. This limits your liability, makes it easier to sell in the future, and limits future taxation.
You beat me to the puch David. Wouldn’t you agree that most property is not listed in a coporation?
The only way a non Costa Rican can buy concession property is in a Corporation owned by CR Nationals.
Stanwhat is “concession” property? My property is under the name of a corporation which I named,created and registered with my Costa Rican attorney.I am a non Costa Rican and the non Costa Ricans I know of who have purchased property in Costa Rica have done so under the auspices of a Costa Rican Corporation which they, as non Costa Ricans, own.
Stan, I wouldn’t hazard a guess about the incidence of ownership of real estate in or outside corporations. Dunno where that information would arise.
Real estate in Costa Rica can be owned by any party whether that party is a human being or a corporation. It can be owned by a corporation formed in Costa Rica or in another country. And it can be owned by a Costa Rican national or the national of any other country. There are no restrictions.
Formal ownership of real estate is registered in the Costa Rican National Registry. If it is owned by a corporation, that ownership must also be recorded in the corporation’s legally-issued books.
According to my attorney, the biggest advantage to owning property in a corp. is transfer of ownership in the event of your death. Corp can be setup to assign ownership to a person of your chosing if you die. If not in a corp. your property would have to go thru probate. I can just imagine the nightmare.
Donbuc, you raise an interesting point, but I think it needs elaboration. Ownership of real estate in a corporation may facilitate its transfer in the event of your death, but you still need a valid Costa Rican will, duly executed and registered. When you “own” a corporation and its assets, what you really own is shares of stock in that corporation. Those are a real asset in your estate, just like a bank account, and just like in the U.S.
And (this is important) your American will is meaningless in Costa Rica. The courts will give it no consideration. If you have assets in the U.S., you need a valid will there and another that covers your assets in Costa Rica.
Should you fail to file a will in Costa Rica to cover assets here, and if you have no family here, your assets will Ultimately go to your local school.
David
You are talking about an SA or Society Anonomous Corp. According to Peterson’s Book THAT SCOTT SELLS there is another type of Corporation that is very similial to our LLC in the USA. This Corporation can be registered in the USA and though you would lose some anamonity you can transfer the shares with ease in the US without going to Costa Rica. It is my understanding that in the shareholders book you can write in the event of my death all shares transfer to you wife or you can put down my name or better yet if you have no one write down Scott Oliver for the support of this website.
Stanley PutraEdited on May 19, 2007 07:43
Sir Concession property is beach property. If you are not within 200 meters of the high tide mark you are ok. By the way with an SA corporation you have 6 Corporate Books. I would suggest that you keep these books in YOUR possession. They are Coporate property NOT the attorney’s. You can not make any changes in your corporation without the books. You can take the books to any attorney to make any changes but if your books are kept by your attorney and most offices are 1 person attorney’s, what do you do if he dies, or you have a disagreement-we are dealing with a different culture here- you are screwd. You can write in the shareholders’ book in the event of my death all shares transfer to you wife or you can put down my name.
Stanley Putra
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