Costa Rica Real Estate

In Costa Rica you have a choice of different legal forms of corporation. The most important are as follows:

Stock Corporation (Sociedad Anónima)

A stock corporation (sociedad anónima) is the most frequent legal form of corporation in Costa Rica. To constitute this kind of corporation, you need three future board members, who are not required to have permanent or temporary residency in Costa Rica.

The sociedad anónima is very often used to hold various assets in the name of a particular corporation. This is a very common practice because of the advantage of not having to pay property transfer taxes during a real estate transaction. There is only a transfer of shares and a change in the board of directors. A minimum contribution of capital is not necessary to found a corporation.

A stock corporation offers 100% anonymity.

Only the board of directors is registered. Shares are common shares. The person who is owner of all the common shares represents all the capital of the corporation. If the president does not have a majority of the shares, he or she represents the corporation only formally. S/he has virtually no power in the activities of the corporation. The person with the power of attorney has real power. This empowered person can, but does not have to be the owner of all shares.

Limited Partnership (Sociedad en Comandita)

This legal form of corporation consists of at least one general partner and a limited partner. Capital shares can be positioned as immovable property, cash, or commercial patents. Loans or services cannot be positioned. In comparison to the stock corporation, this legal form of corporation is rarely used.

Limited Liability Corporation (Sociedad de Responsabilidad Limitada)

This type of corporation is an alternative to the corporation and often used for smaller businesses. It has fewer regulations and is suitable for family real estate and management of heritages. After the death of the administrator his or her power can easily be transferred to co-owners. The Limited Liability Corporation consists of at least two partners. They have limited liability in the positioned capital. Each partner receives shares, which cannot be sold to the public.