COSTA RICA REAL ESTATE MAGAZINE

What is the best choice for the type of residency that a foreign national should apply for from the various options offered? Would this vary depending on his goals, i.e. retiring and just buying a home to live in versus relocating to start a new busi ness versus buying investment property such as a vacation ren tal? Are there cases where if not li ving full time in the country it might be best to not acquire any type of residency? In Costa Rica there are several residency categories for which a foreigner could apply. (Investors, retirees, among others and each with different benefits and requi rements), however, not every fo reigner meets the requirements for all categories, so the most important thing is to have a pre vious interview with your attor ney to analyze which is the most favorable alternative for you. The categories to which a per son applies vary according to each person’s circumstances. If a person does not plan to live in the country continuously (ter ms of more than 6 months), he/ she could remain in the country without the need to apply for a residency, since they will be able to stay in Costa Rica for 6 months legally.

What would a foreign national require starting up a new bu siness in Costa Rica. What are the steps they would have to take to reach the point of esta blishing and opening the doors to a new business and what is the annual tax rate of profits? For most businesses, it is enou gh to obtain an operating permit issued by the Ministry of Health and a Municipal Patent (munici pal permit to operate). Additio nally, the business must register with the respective tax authority. Usually that is enough, but de pending on the type of business it may require additional permits: For example, to open a bank, a law firm, an accounting firm, a drugstore and the like, special additional permits are required. It is important to get legal advice to confirm it. What are the requirements and fees to temporarily bring a ya cht into Costa Rica? What are the taxes should one wish to nationalize such a vessel? To import a Yacht, the services of a Customs Broker are required, which is a government-licensed professional who advises on the best way to do it, what tax clas sification corresponds to paying the lowest taxes and/or to deter

mine if there is any exemption of taxes. As a lawyer it is not our normal area of business. One last question Lic. Vargas, on a more personal note, can you tell us a little about where you live and what you like the most about it and if it is a good area for a foreigner to consider for retirement, to relocate and raise a family, to start a new bu siness and to invest in general such as buying a vacation ren tal property? Well, I live in the city of San Isidro de El General, approximately 40 minutes from Playa Dominical. However, I work in that area and also in Uvita, Dominical and all the South Pacific Coast. Howe ver, our law firm (CVFIRM Attor neys) also provides legal services in multiple areas of the country. In my opinion, San Isidro and its surroundings are a good area, a very healthy place to raise a fa mily and it is also close to both mountainous and beach areas. The area of Dominical, Uvita and in general the South Pacific Coast is a good choice to start a busi ness and to make investments.

Casimiro Vargas (Abogado y Notario Público)

Attorney at Law and Notary Public San Isidro de El General, Costa Rica Tel +506 2770 9041 - Fax +506 2771 7191 USA: +1 (860) 929 1431

e-mail: casimiro@cvfirm.com Web page: www.cvfirm.com

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