registering company in Costa Rica

[L0rdCROISSANT]

I'm wanting to register a company that will act as the main company while owning subsidiaries else where in US/Canada and Europe. I understand that those companies will have to pay their taxes but as long as I don't have a physical presents in Costa Rica, I will not. While not an offshore haven operates like one, no double tax and does not share information with other countries on the business that are registered there.
thoughts....

 

[Sols]

Costa Rica has a tax system similar to the perhaps more well-known Hong Kong and Panama. Tax is owed on a territorial basis, meaning you only pay tax on income derived from activities within Costa Rica. This typically means you can run your business from Costa Rica but only pay tax on profits earned from Costa Rican residents (persons and companies).

Costa Rica has signed many TIEAs and a few DTAs. See Exchange of Information Portal

They have also signed up for AEOI/CRS starting from 2018.

 

[L0rdCROISSANT]

I'm going to have to google those acronyms lol

pretty much been lurking on this site for a bit before registering... noticed more talk about why you can't than anything else lol

 

[L0rdCROISSANT]

so game plan is this...
I stream, wanting to incorporate
want to setup merchandise site and have a place for those that want to donate funds to support my stream etc

it's what has me searching for information for a couple of months now ugh, and brought me here

 

[OrangeTIco]

Costa Rica just passed a new fiscal law. I highly do not recommend getting a Costa Rican corporation unless you specifically need it for some reason. The government is making it worse daily for corporations and before end of 2019 they're publishing more directives and more disclosers companies must make and this ESPECIALLY includes any foreign shareholders.

Panama corporation in almost all situations is better. Hell even Belize is better.

 

[L0rdCROISSANT]

Costa Rica just passed a new fiscal law. I highly do not recommend getting a Costa Rican corporation unless you specifically need it for some reason. The government is making it worse daily for corporations and before end of 2019 they're publishing more directives and more disclosers companies must make and this ESPECIALLY includes any foreign shareholders.

Panama corporation in almost all situations is better. Hell even Belize is better.

wow and I just contacted a company, inquiring about the process
thank you!
it really is extremely hard to trust or find someone that can give you the information without them working an angle jezz

 

[lavel]

They are following the presure from the rest of the world. It's not different then what happened in many other well known offshore jurisdictions.

 

[OrangeTIco]

wow and I just contacted a company, inquiring about the process
thank you!
it really is extremely hard to trust or find someone that can give you the information without them working an angle jezz

In my experience if you ask three lawyers questions on Costa Rican law, you will get three different answers. The truth is in many cases no one knows. There is little enforcement, almost no legit legal system (unless you want to ten years, no exaggerating), and while there are a lot of lawyers it seems very few have actual experience..

Make sure you ask your lawyer, "Have you done this before" and "How did it work before" and if they start telling you how things have changed and how it will work this way or that moving forward unless they have seen it and experienced it don't believe a word of it because no one knows. No one has a clue.

Earlier this year they passed a new fiscal law that is suppose to affect everything. Almost all of it is negative and no one in the entire country likes the bill. Protests went on forever. However the bill is here.

However, the details of what is suppose to have for corporations (SA and SRL) have not come out and those will be by the end of 2019. This article says September but I doubt it Shareholder Registration postponed until September - CostaRicaLaw.com

And there are court challenges and of course we all have no idea how the system will work or how it will be enforced as sometimes laws are just ignored and not enforced in Costa Rica.

Perfect example ... in 2012 Costa Rica came with a tax on corporations, but then in 2016 the supreeme court canceled this tax for only 2016, but was valid for 13, 14, and 2015........ But many people had already paid the tax for 2016. Uh ... ok, so the people that paid $300 on their twenty corporations are obviously getting a full refund, correct? No. No. No. They get zipo and thank you for your donation to Costa Rica.

I wish I paid attention more so I could fully explain this and get links for you. But this is what is happening in Costa Rica. Stay away. No one in their right mind would want to do anything in that country. Property is another example. Just know when you sell your property regardless of how much you made or lost, you will be paying almost 10% off the top of the GROSS amount for taxes and lawyers. 10%! Yup.

Costa Rica is honestly barely a country. Super amazing wildlife and unreal beaches. But everyone with any money is stashing it outside the country and the politicians have beyond zero clue. At least in Panama they have like 2% of an idea and you need that to have a country function.

 

[Spinat]

I agree that different people will tell you different about Costa Rica. Fact is, it is a s**t hole for most use except illegal gambling and unlicensed financial service which both have roots in CR!

 

[L0rdCROISSANT]

In my experience if you ask three lawyers questions on Costa Rican law, you will get three different answers. The truth is in many cases no one knows. There is little enforcement, almost no legit legal system (unless you want to ten years, no exaggerating), and while there are a lot of lawyers it seems very few have actual experience..

Make sure you ask your lawyer, "Have you done this before" and "How did it work before" and if they start telling you how things have changed and how it will work this way or that moving forward unless they have seen it and experienced it don't believe a word of it because no one knows. No one has a clue.

Earlier this year they passed a new fiscal law that is suppose to affect everything. Almost all of it is negative and no one in the entire country likes the bill. Protests went on forever. However the bill is here.

However, the details of what is suppose to have for corporations (SA and SRL) have not come out and those will be by the end of 2019. This article says September but I doubt it Shareholder Registration postponed until September - CostaRicaLaw.com

And there are court challenges and of course we all have no idea how the system will work or how it will be enforced as sometimes laws are just ignored and not enforced in Costa Rica.

Perfect example ... in 2012 Costa Rica came with a tax on corporations, but then in 2016 the supreeme court canceled this tax for only 2016, but was valid for 13, 14, and 2015........ But many people had already paid the tax for 2016. Uh ... ok, so the people that paid $300 on their twenty corporations are obviously getting a full refund, correct? No. No. No. They get zipo and thank you for your donation to Costa Rica.

I wish I paid attention more so I could fully explain this and get links for you. But this is what is happening in Costa Rica. Stay away. No one in their right mind would want to do anything in that country. Property is another example. Just know when you sell your property regardless of how much you made or lost, you will be paying almost 10% off the top of the GROSS amount for taxes and lawyers. 10%! Yup.

Costa Rica is honestly barely a country. Super amazing wildlife and unreal beaches. But everyone with any money is stashing it outside the country and the politicians have beyond zero clue. At least in Panama they have like 2% of an idea and you need that to have a country function.

greatly appreciate the feed back and honestly I am NOW more lost than when I first found this forum, lol.

I read once that if a country had other means besides foreign funds that their banks are far more stable than one that solely relies on the money.
So people still look at Panama even after that whole soap opera?
Right now I'm also wondering if I'm over thinking the whole thing but I can't see it being a good thing if one doesn't.

 

[L0rdCROISSANT]

so I got an email from the one company about Costa Rica.... they strongly suggested Panama would a better country lol
guess they don't think it's a good idea any more

 

[Suzy Emerald]

You could look into Guatemala instead. No CRS but neither much of a country.