The End of the 'Catch-22': Why You Can't Hide Anymore (2025 Update)
Own property in a Costa Rican corporation? Ignoring the annual corporation tax, RTBF, and D-195 filings now guarantees massive fines and a National Registry block. Your asset will be frozen.
Back in 2003, an article in A.M. Costa Rica described a "Catch-22" for owners of Costa Rican corporations. The tax authority was using a new form (D-175) as a "sting operation" to get thousands of unregistered companies on the books.
The dilemma for property owners was real: "damned if you do, damned if you don’t."
- If you filed the form, you were on the tax authority's radar for future taxes and filings.
- If you didn't file, you risked a relatively small fine (~$185) and being blocked at the National Registry, but with weak enforcement, there was a good chance you'd never get caught.
Fast-forward to today, June 18, 2025. That "Catch-22" is officially over. The choice is gone. The systems are now automated, the penalties are severe, and the "don't file" option has become a catastrophic mistake for any property owner.
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