Navigating Costa Rica's Tax Landscape in 2025
Navigate Costa Rica's 2025 tax updates. Inactive companies holding real estate must now file Form D-195. Learn the new rules for tax compliance, key deadlines, and how to avoid penalties that can freeze your assets.
While not quite a "sting operation," Costa Rica's tax authorities have significantly tightened regulations in recent years, particularly concerning inactive companies and real estate holdings. If you own property or a business in Costa Rica, understanding these updates is crucial for tax compliance and avoiding hefty penalties.
For many years, it was common practice to set up an "inmobiliaria" (a company holding real estate) to facilitate property transfers. This allowed for faster sales and often bypassed real estate transfer taxes. However, a significant number of these entities never properly registered with the Tributación Directa (the tax department). With an estimated 308,000 companies at the Registro Nacional (national registry) and far fewer registered for tax purposes, the government has been on a mission to rectify this to boost tax collection and align with international standards.