Costa Rica reality vs fantasy?

Henrych wrote:

I spent a week in SJ abandoning my house and nothing happened other than stripped pineapple plants. My doors are symbolic, just a finger push required to open (I'll be replacing them). Locals knew that I was away. I purchased a 2008 Fortuner Diesel in SJ in August upon arrival. So far so good. Purchasing a vehicle in CR is a risky endeavor though unless one is rich enough to buy it new.

Stole your pineapples... Bastards!
Costa Rican Pineapples are a whole 'nuther fruit. Not like the ones in the States where they are picked green and ripen on the shelf. I prefer the ones from Paso Canoa as they are golden ripe incredible fruits.

Yeah, I would be that rich guy (relatively speaking) with a new car. With the Digital Nomad laws you can buy new (HiLux Diesel) for the same price as a used car because there is no import fees. I would likely buy one in Panama or Nico but as others have noted on this forum, the law may be signed but details not implemented. There are also places that will let you store your vehicle but how safe are they?

This law still remains in the area of wishful thinking.

I read this article from the Outliers Legal website, last week.
Please note the final sentence of the article
The Digital Nomad Visa does not allow for the tax free vehicle, but is for Pensionado, Investor and/or Rentista status.
Some additional info on the Digital Nomad life in Costa Rica

I neglected to add the link to the Ticotimes article, regarding Digital Nomad visa

kohlerias wrote:

I neglected to add the link to the Ticotimes article, regarding Digital Nomad visa

Thanks for this... I would qualify under the Investors loophole where purchasing a property over 150k qualifies.

Yes, you should be OK, however, there is on the article where it says " Final consideration: Please consider the fact that this process needs to be done for a corporation. All corporate and tax obligations must be updated in order to proceed."

It used to be commonplace for lawyers to  'persuade' new residents that all property should be put in a corporation, even a cell phone, but owners no longer want this as it is an extra expense and it has to be done every year...and it is not only unnecessary but costly. Unless you have a very expensive lifestyle...

So, along with luxury property tax on homes over $200K, regular land taxes, etc., these funds are adding up.

Yes. I was convinced to open the corporation (inactive), paid 2K and it sucks my money as I have to pay regular fees plus tax. The car, house and even phone (as well as all utilities) are registered on the corporation. I was told this is more secure. Arguments were rather questionable.  I am going to close it, which will cost again a fortune.  This is why this new rather questionable law/benefit mentions corporation. This is a part of the "pura vida".

Another interesting article by [Removal of name :Could lead to defamatory content] a Residency Specialist on The Costa Rica Star, regarding 'the new rules'

Investigate well before creating a corporation.
Originally corporations were called Sociedades Anonimas which means "Anonymous Companies". They are no longer anonymous at all.
In fact you have to fill out a form giving your fingerprints and all sorts of financial info and you have to also report your corporation to the IRS in the USA or risk severe penalties.
Also you have to now fill out paperwork every year that for most people requires an attorney or accountant to fill out, and buy the aparatus required to give a Digital Signature.
All in all the original idea of a Switzerland-like anonymous corporation is now complete bullshit, and is a pain in the ass to maintain and with yearly fees which have increased and likely will increase further, along with the bureaucracy.
Bottom line: My advice is "Think 3 times well before putting your property in a Corporation in Costa Rica.

Also I forgot to mention when I went to close my corporation it required that I pay an attorney to do it and the government has to get its fees. This cost me nearly $2k because I owned several lots which my property had been divided into. Even if it was just one property though it still would cost a lot to dissolve it and require an attorney.

@marianne817

very interesting to read.

@kohlerias **** can wright meaningful articles but as an immigration consultant she isn't good at all. I had to switch from her to now defunct Outlier, who were excellent.

We, too, dissolved the corporations that held our residential property and our car. Yes, there was a cost, but the bureaucratic nightmare of annual reporting to the government made it worthwhile.

What's more, having a corporation used to not only confer anonymity but it also provided some protection from legal liability should someone be injured or killed on your property or in a vehicle accident in which you are found to be at fault. Neither of those is true today.

If you want to protect yourself from legal liability, buy public liability insurance on your vehicle and add it to your homeowner's insurance. It's cheap. The annual marchamo charge on your vehicle does include some level of public liability insurance, but it's laughably inadequate. Instead, get your insurance agent to arrange both public liability and property damage insurance on your vehicle. Buy all the coverage they'll sell you; it's cheap.

I’m keeping my SRL. Also have INS liability policy and $5 million umbrella liability policy. I’m an American, and rent (VRBO and Airbnb)  out my CR condo mostly to Americans.  If something happens, I will get sued in the US. I sleep better at night. 

@daveandmarcia My lawyer told me that after 3 years of non-paying corporation related crap taxes it is dissolved automatically. Is that true? I tend to double check CR lawyers.

@daveandmarcia Dave, my lawyer told me that after 3 years of non-paying corporation associated taxes it is dissolved automatically. Is that true?

@TravelWorldNow ......It is not even worth owning anything in that type of ownership structure.......Just carry more insurance and bypass buying into the S.A and SRL.The laws reform and you end up owning nothing but pillow feathers...

@daveandmarcia

Dave, my lawyer told me that after 3 years of non-paying corporation associated taxes it is dissolved automatically. Is that true?
-@Henrych

I don't know if that's correct or not. What would concern me, however, are the possible consequences of not paying those annual taxes. True (if correct), you'd be relieved of the annual filing and taxation requirements, but what of the corporation's assets?? It would probably be a major mistake to save three years of corporation taxes but lose your home or vehicle.