Costa Rica Real Estate Magazine

porations or foreign corporations regis tered in the Costa Rican National Reg istry must pay a tax called “Timbre de Educación y Cultura” (Education and Culture stamps tax) and its amount is based on the registered social capital. Luxury Tax: (Due January 31st) Prop erties valued above $220.000.00 must file and pay this tax. It has a sliding rate ranging between 0.25% and 0.55% based on the value of the constructions and a portion of the land in use. Every three years, taxpayers must present a D179 form to update the value of the real estate. Property Taxes: It is the tax on the real estate and owed to the county where the real estate is located. The tax rate is 0.25% of the property value regis tered in the Municipality. Filed every 5 years or anytime the property changes ownership, the landowner must pres ent a value declaration to the Munici pality. Once approved by the Munici pality, such value is used as tax base. This tax is due quarterly: March, June, September, and December. However,

some Municipalities offer a discount if the whole year is paid in advance. Simpl ified D101): Declaration of As sets value. Due November 2022 for the first time after extensions approved by the Tax authorities. We recommend that you to keep good records of the property purchase and improvements to prepare and declare the correct amount every year. D140 : This form is filed at tax adminis tration to register the corporation once it is setup or when there are changes in legal presentation, business activity, or domicile. Tax for Nontraditional Rentals: We understand you may buy a house, villa or condominium with the inten sion to use it during a season but rent it while you are away. You must consider the obligation of collecting the added value tax “VAT” plus the payment of the income tax on rentals. Contact E & T now and learn more about the guidelines, we want to help you to keep all in good standing.

Registry of Transparency and Final Beneficiaries (Also known as UFO or Ultimate Beneficial Ownership Regis try): Ordinary reports are due in April of each year (for all the corporations and companies) and it requires to report the ownership of the company up to physi cal person. Corporate Tax: It is the annual tax on Legal Entities and must be paid no lat er than January 31 of each year. The amount is approximately $121 US (de pending on the dollar exchange rates) for inactive corporations and ranges between $121 and $360 depending on company activity and yearly income. Education and Culture Stamp Tax : (Due on March 30th) Costa Rican Cor-

COSTA RICA REAL ESTATE MAGAZINE 29