For years, owners of inactive corporations in Costa Rica were stuck in a cycle of confusion. Talk of Forms D-135 and D-140, shifting deadlines, and general uncertainty left many expats wondering what, if anything, they were supposed to do.
That era is officially over. The rules are now clear, the forms are established, and the deadlines are firm. If you own an inactive company in Costa Rica—one that exists only to hold assets like a house or a car and doesn't generate income—this is your definitive guide for 2025.
The Old Confusion vs. The 2025 Reality
Let's put the old information to rest permanently:
- Obsolete Forms: Forget everything you heard about Form D-135 and the special use of Form D-140 for inactive company declarations. These are no longer the correct procedures.
- Obsolete Deadlines: The staggered deadlines based on the last digit of your company's ID number are a thing of the past. There is now a single, universal deadline for all.
The indecision at Costa Rica's tax department has been replaced with a clear mandate. The goal is simple: to have a complete record of the assets held by all legal entities, active or not, primarily to establish a baseline for tax purposes like capital gains.
Meet Form D-195: Your Annual Requirement
The one and only form you need to know for your inactive company's annual filing is the Form D-195, "Declaración Informativa de Personas Jurídicas Inactivas."
- What It Is: An "informative" declaration, not a tax payment form. It requires a summary of your company's assets, liabilities, and capital.
- Filing Platform: The declaration must be filed electronically through the government's official online tax portal, Administración Tributaria Virtual (ATV).
- Annual Deadline: The D-195 declaration for the previous fiscal year (January 1 - December 31, 2024) is due no later than April 30, 2025.
Step-by-Step: Valuing Your Assets for the D-195
The most common question from filers is, "What value should I put for my property?" While there are many values associated with an asset in Costa Rica (market value, municipal value, original purchase price), the consensus from accounting professionals is to use the acquisition or book value.
- Property (Real Estate): Use the value for which the asset was originally acquired, which should be recorded in your company's accounting records. This is often referred to as the cost basis.
- Vehicles: The "valor hacienda" (tax value) listed in the National Registry (Registro Nacional) is the most straightforward and defensible figure to use.
- Bank Accounts: Use the balance as of December 31, 2024. If the funds are in U.S. Dollars or another foreign currency, you must convert the amount to Costa Rican Colones using the official BCCR exchange rate for that date.
- Liabilities: Report any mortgages or other loans held against the company's assets.
- Capital Stock: This is the initial capital that was registered when the company was formed.
The purpose of this form is informational, so it's crucial to be consistent and have supporting documents for the values you declare.
How to File on the ATV Portal
Filing on the ATV system is a manageable process, but it requires preparation.
- Gain Access: The legal representative of the company must have an account on the ATV portal. If you are not a citizen or legal resident with a DIMEX card, you will need to authorize a third party, such as an accountant or trusted representative who does have access, to file on your behalf.
- Navigate the System: While the ATV portal is entirely in Spanish, most modern browsers like Chrome or Edge can translate the pages instantly, making navigation much easier.
- Locate and Fill Form D-195: Once logged in, you will find the D-195 form in the declarations section. You will be asked to fill in the summaries of your assets, liabilities, and capital as of the end of the last fiscal year.
- Submit Before the Deadline: Review all information for accuracy and submit the form. Be sure to save a copy of the final confirmation for your records.
In summary: The "will they or won't they" question about inactive company tax returns is definitively answered. An annual declaration on Form D-195 is mandatory for all. By understanding the requirements, properly valuing your assets, and meeting the April 30th deadline, you can ensure your company remains in good standing and avoid costly penalties.
This article is an update to a topic first explored by Garland M. Baker B. in A.M. Costa Rica on January 5, 2020. The information provided is for informational purposes and does not constitute legal or financial advice. Consult a qualified Costa Rican professional for your specific situation. ©2004-2025 Costa Rica Expertise. Free use permitted with attribution (CC BY 4.0). 1200105 ZZ!