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Here we leave you with important considerations about the legal system, regulations and legal procedures in Costa Rica.

Can foreign companies own local companies?

Yes, if the foreign company is not impeded by its own charter or jurisdiction it may own a Costa Rican company or create a subsidiary if so chosen.

Is there a corporate tax?

A recent enactment of a new tax has created a yearly tax. After 3 years of nonpayment of the corporate tax, the company may be dissolved by the government and the assets it holds may be sold to pay the taxes due.

How many stockholders are required to incoporate a company?

The minimum partners to incorporate a company in Costa Rica are two. However a depending on the corporate structure, it may require up to 4 members to record it.

Can a foreigner own a company and represent it?

Under Costa Rican law, foreigners have no restriction both in owning and representing local companies. There is no need to have a Costa Rican citizen as a partner.

Can an executor be appointed if he resides abroad?

Due to the nature of the responsibilities in taking custody and care of the assets of the Estate, it is not possible to grant a position to a person not residing in Costa Rica

How is a will issued in Costa Rica?

The Costa Rican common practice is to have will executed before a Costa Rican Notary having three witnesses. It must be issued in Spanish but may be translated in the foreign language using an officially accredited translator.

A more limited option is for the testator to grant the will on his own but having a notary seal the contents in an envelope. This process formal in its manners and content is not normally recommended as a common practice

Can a probation be carried out without going to court?

Under the Costa Rican Notarial code, Notaries are public officers who can carry out a probate within their competence. However in order for this to be possible, all heirs must be in agreement and there should not be minors involved

Who are the legal heirs when a will has not been executed by the deceased?

In Costa Rica the non-existence of a will is covered by the appointment of heirs or beneficiaries in accordance with the Costa Rican civil code.

Heirs not indicated by the lack of a will would be recognized in accordance with the following degrees or lines of succession:

  • Wife and Children
  • Parents
  • Brothers and sisters
  • Nephews and nieces
  • The Government.
Is there an inheritance tax in Costa Rica

There is No estate or Inheritance tax per se. However, when the recording of the transfer of a property or asset is being recorded in the Costa Rican National registry, the regular transfer tax is applicable and collected in accordance with the assessment that served as a basis in the probate.

Can a will be probated in Costa Rica?

A US will may be probated in Costa Rica, or the result of a U.S. judgment may be recognized and enforced under local law, with a court recognition from the Costa Rica First Chamber of the Supreme Court.

  • The process would give local application to a foreign sentence.
  • A local process would have to estimate the value of the assets to cover legal fees and, if applicable local transfer tax


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