[ESTABLISHING A BUSINESS ENTITY IN COSTA RICA] 130
from a Costa Rican source. Consequently, income received from or generated from foreign sources is not taken into consideration when calculating the taxes to be paid either by individuals or corporations. All persons who carry out commercial activities and all corporations must register before the Costa Rican Tax Authority as taxpayers. Notwithstanding the above, payment of dividends by local companies to foreign individuals or companies established abroad is subject to a 15% withholding tax. 6.4 Residency 6.4.1 Residency as an Investor A foreigner can only apply for this type of residency if he/she has and may demonstrate investments in Costa Rica for at least USD$ 150,000. If the investment is in specific areas such as tourism, reforestation, and/or any other activity supported by the Costa Rican government the investment may lowered to an amount of approximately USD $100.000. Also, a foreigner may apply for this type of visa if he/she one or more properties in Costa Rica that sum up to a $150,000 worth or more. With the new law for the Attraction of Investors, Rentiers and Pensioners, there are several special incentives for the next five years, including: there are several incentives that will apply for the next five years: a) A one-time exemption from all import taxes for the importation of a household, b) A one-time exemption from import taxes and VAT for the importation of two personal or family-use transportation vehicles (cars or ships). C) If the beneficiary is the property's registered owner, 20% of the transfer tax for real estate purchased within the law's validity will be waived.
6 .4.2 Companies Accredited as a “Recognized Company” Companies that require a constant migration flow in their plan of operation of active employees or executive level employees may be accredited before the General Direction of Immigration. To request this recognition a company must be registered before any of the following institutions: - Companies that are operating under special plans to promote exportation, administered by the Ministry of Foreign Trade (COMEX) and the Promoter of Foreign Trade of Costa Rica (PROCOMER). If the company is registered under this institution it will be classified to request the application as Company under Classification “A”. - That has the support of COMEX, by explicit references to organizations with proven track record, national or international level. If the company is registered under this institution it will be classified to request the application as Company under Classification “B”. - That is acting with the statement issued by the tourist Costa Rican Tourism Institute (ICT). If the company is registered under this institution it will be classified to request the application as Company under Classification “C”. - That are registered with one of the following agencies: the Superintendence of Financial Institutions (SUGEF), the Superintendence of Pension(SUPEN) and the Superintendence of Securities (SUGEVAL). If the company is registered under this institution it will be classified to request the application as Company under Classification “D”.
ILN Corporate Group – Establishing a Business Entity Series
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