This newsletter serves as the first reminder of the year regarding upcoming corporate and tax obligations, offering a detailed overview of the associated deadlines and estimated costs for each item. As part of our services, we will lead the corporate and tax due diligence tailored to each client’s needs and remain available to assist with any preliminary questions you may have at this time.



 

For any further inquiries, please feel free to contact our Firm at emily@shanahanlegal.com and/or lawrence@shanahanlegal.com. 

 

1. Corporate Taxes: To ensure the timely payment of corporate taxes from January 1st to January 31st, 2025, please use your corporate identification number. Payments can be made at a local bank or through online banking options. For added assurance, particularly with bank payments, we recommend verifying that the name of your corporation appears under the corporate identification number entered by the bank teller. The tax obligation is approximately $150 USD for inactive corporations, compared to $250 USD for active corporations (these amounts are subject to fluctuations in the exchange rate). For active corporations, the tax amount is also contingent on the corporation's income based on thresholds established by the Tax Department, as follows: gross income less than 120 base salaries (25% of the base salary), gross income between 120 and less than 280 base salaries (30% of the base salary), and gross income equal to or greater than 280 base salaries (50% of the base salary).

 

2. Education and Culture Tax Stamp: Pursuant to Law 5923, all legal entities and representatives of foreign corporations registered with the Mercantile Registry of the National Registry must pay the Education and Culture tax stamp every year during the months of February-March. The amount typically ranges from $20.00 to $40.00 USD. Similar to the corporate taxes, this obligation can be paid at a local bank or through online banking options with the corporate identification number. It is advisable, particularly for bank transactions, to verify with the teller that your corporation's name corresponds accurately to the entered identification number in the system.  

 

3. Luxury Housing Tax “ISO Filing”: Commonly referred to as the “luxury housing tax this tax applies to select residential properties with an appraised value exceeding approximately $280,000 USD. The threshold is not based on market value or construction cost but rather on an assessment of “luxury” features as outlined in the law, determined by a licensed architect or engineer. The tax is calculated on a sliding scale, ranging from 0.25% to 0.55% of the luxury value above the threshold. If applicable, this tax must be paid annually by January 15th, and properties subject to the tax are required to submit an updated declaration every three years.

 

4. Real Property Taxes: Although real property taxes are technically due at the end of each quarter, many municipalities offer a discounted rate for full-year payments made during January or the first quarter of the year. If the taxes are paid online, we recommend that you confirm with the municipality that the payment has been applied to your property.

 

Additionally, if you purchased real property more than five years ago, please be aware that the property value declaration, or “Declaración de Bienes Inmuebles”, requires renewal at the local municipality. This declaration must be updated every five years.

 

5. For Inactive Corporations: Effective January 1st, 2022, corporations classified as inactive (that is, not engaged in commercial activity) became subject to the D-101 Form (in Spanish known as “Declaración Simplificada del Impuesto sobre la Renta D-101”), which has since been reclassified as the D-195 Form. In accordance with current regulations, this filing obligation is due by April 2025. We will contact each client individually regarding the completion of this obligation.

 

6. UBO’s Filing: Every legal entity incorporated under the laws of Costa Rica, and other legal structures that carry out activities in Costa Rica, must file with the platform managed by the Central Bank of Costa Rica a report, inclusive of all required documentation to disclose the identities, along with pertinent personal details, of all shareholders, partners, and/or final beneficial owners exercising direct or indirect control over the entity or structure. Known formally as the “Shareholders and Final Beneficiaries Registry”, this filing must be completed in the month of April each year. In the event that there has been a transfer of shares or control within the entity or structure, an updated declaration should be filed within the next 15 business days after transfer or change of control has taken place.

 

7. Registry Alert (in Spanish “Alerta Registral”): We recommend our clients enroll in this service offered by the National Registry, which is designed to monitor any documents submitted or actions taken against their property and/or corporation. The system notifies the user when any new actions, such as the submission of documents for registration, occur related to their assets. To receive these notifications, an email address must be provided during the enrollment process.

 

 

We trust that this document provides clear and valuable information. Should you require any further clarification, please do not hesitate to contact our Firm.