When considering property ownership in Costa Rica, using a corporation as the legal entity for holding real estate has been a common practice for both locals and foreigners for many years. The decision to use a corporation for property ownership in Costa Rica is influenced by legal, financial, and practical considerations.
Here are some of the reasons it may be better to own a property through a corporation:
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Protecting Your Assets and Privacy:
- Using a corporation to own property in Costa Rica helps protect your other assets from legal problems or debts.
- Corporations offer some privacy, but they are not completely anonymous in Costa Rica.
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Easier to Transfer and Pass On:
- Transferring ownership is simpler with a corporation; you transfer shares instead of property titles.
- Useful for passing property to family or others smoothly.
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Dealing with Foreign Ownership Limits:
- Forming a corporation helps navigate rules about foreign land ownership near borders or the coast.
- Allows non-residents to own and control certain properties indirectly.
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Good for Business:
- Owning property through a corporation simplifies business activities like partnerships and acquiring multiple properties.
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Estate Planning and Taxes:
- Corporations help in planning for the future and passing property to heirs.
- Talk to a local tax advisor to understand potential tax benefits.
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Following Rules and Regulations:
- Corporate ownership requires adherence to specific rules, including regular meetings and record-keeping.
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Impacts on Residency and Visas:
- Corporate property ownership can influence residency or visa applications in Costa Rica.
In conclusion, it is essential for individuals to seek legal advice from professionals familiar with Costa Rican real estate laws and regulations to make informed decisions based on their specific needs and circumstances.