[rzamora]

Actually, there are 3 types of Income Taxes for Costa Ricans:

1. Corporate
2. Self-employees/Freelancers
3. Regualr workers with salaries above $12,125per year

Randall Zamora Hidalgo
CostaRicaABC.com

[rzamora]

Hi

The tax would be 0.25% (0.0025)and would be in addition to the current Municipal Property Taxes, the owner would end paying 0.50% (0.0050).

I hope this answer your questions. Very Best

[rzamora]

Anytime, if you have any other question please feel free to contact me at rzamora@costaricaabc.com

Very best

[rzamora]

Actually a handbook will be published, so you will know step by step how to value your property depending on the location, construction materials and systems, etc. This handbook comes also with a whole set of fines for those that under value their property.

Very Besth

[rzamora]

Hi:

Currently the tax that you pay for any house or property in Costa Rica is the Municipal tax,which is used by the local Municipalidad (Local Goverment)to keep in good shape the location where you live, the tax tables posted are for “luxury houses” and if the tax bill passes, then it will be an additional tax to pay to the CR Goverment, not the Municipalidad

Hope this Answer your question.

Randall Zamora/WLCR Accountant

[rzamora]

Hi DC Bob:

I would love to help you, please feel free to contact me at your best convenience, we can gladly take care of your property management, tax and accounting needs.

rzamora@costaricaabc.com
Cell 506-356-8992

Very best

[rzamora]

It-s perfectly possible, I can state that at Banco de Costa Rica you can open a checking account with your passport. If you need some help I will be more than happy to make some phone calls and help you with that rzamora@costaricaabc.com

Best

[rzamora]

Hi:

I would strongly recommend to have a business evaluation before you go ahead with this deal and this must include the tax situation of the current owners (corporation or individuals), as well as the financials and other important topics such as business licenses and permits.

Guanacaste is a fast growing area, therefore, a lot of competition, the way you promote your business and the niche is the key to success.

Best

[rzamora]

Hi:

I agree with Scott and Bill, there are some banks that work both in US in Costa Rica like BICSA and BAC San Jose, but Banco de Costa Rica and Banco Nacional works pretty good regarding International transfer, Banco de Costa Rica is my recommendation to open a checking account whether be personal or corporate.

Best,

[rzamora]

Be careful, everybody may thing that to lower the declared value is generally accepted, but be aware that is purely tax evasion and in most of the case that tool is used by those realtors that overcharge buyers and then they say I am going to help you saving on taxes. Truth is there is no rule or law about how to calculated the declared value, but think about this: how are you going to prove,here or back in your country for tax purposes, that you paid X amount of money for a property, if you do not have any documentation that backs up the transaction?. I know about properties with fiscal value of ¢1!!!!, but that doesn’t means that you are going to declare a value of ¢2; ask yourselves these questions: Am I paying what is fair for this property? Am I going to need to write off or deduct my investment in the future (e.g. if tax bills is approved in CR when you buy a property for $150,000 and declare a value of $75,000 when you sell it, say for $200,000; your Capital Gain Tax is going to be calculated over a profit of $125,000 (200000-75000))?, bottom line, balance first the purpose of your investments, business or pleasure, and then ask to your accountant what could be better to save on transfer taxes or to acquire a future liability on income taxes.

[rzamora]

In a real estate transactions, normally, there are three different values involved: the fiscal value which is the one stated at the Registro de la Propiedad and that is the one used as basis for the property quarterly taxes and is the lower price. The price on the deed which is the one that is used as basis for the calculation of the transfer taxes, and the market value which is the real priced paid for the property and is the one used by the realtors to calculate their commission, and usually the highest. Normally the declared value is a price accorded between the parts (as low as possible)so the transfer taxes are not too high, but can’t be lower than the fiscal value or highest than the market value

Note from Scott – Randall Zamora is a Costa Rican tax specialist and the WeLoveCostaRica.com Preferred Professional for Costa Rica Taxes – you can see many of his article on this site by search for ‘Zamora’

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