Category: Commercial Law

Opening a Bank Account in Costa Rica for Foreigners & Companies

Oct 16, 2025 | Commercial Law, Immigration Law

Opening a Bank Account in Costa Rica — We Make It Easy for Foreigners, New Residents & Companies

Here’s the truth: Costa Rican banks welcome foreigners—but KYC/AML paperwork can feel overwhelming. Our banking lawyers pre-screen your file, match you with the right bank, prepare you for the compliance interview, and accompany you until your account is live. No guesswork, no back-and-forth.

If you’re investing, relocating, running payroll, or simply tired of paying international fees, a local bank account is essential. We work with non-residents on passports, new residents on DIMEX, and companies setting up treasury. Our role is practical: translate the bank’s language into yours, organize your documents, and make sure approval is not blocked by small mistakes.

Table of Contents

Author: AG Legal • Reviewed by: Corporate & Banking Team • Updated: Oct 16, 2025

Why work with AG Legal (what we actually do)

  • Bank match: We recommend the bank most likely to approve your profile (risk matrix varies by institution).
  • Document pre-screen: We assemble IDs, proof of address/income, and (for companies) bylaws, UBO chart, and source-of-funds narrative.
  • “Mock” compliance interview: We rehearse the questions banks ask (transactions, countries, amounts) so you are ready.
  • Branch accompaniment: A lawyer attends your appointment, helps with Spanish forms, and keeps things moving.
  • Aftercare: We set a compliance calendar so you don’t miss periodic KYC updates that can freeze accounts.

Requirements you’ll need (individual & corporate)

Profile Main requirements
Individual (resident) DIMEX or cédula, proof of address, proof of income (contracts/pay slips/statements), bank KYC form.
Individual (non-resident) Valid passport (+ entry stamp/visa), proof of address (utility/lease), proof of income, KYC form. Some banks ask for home-country tax ID.
Company Good standing certificate, bylaws/shareholder list, legal rep’s powers, UBO diagram + IDs, source-of-funds memo, financials (or projections), tax ID & fiscal address.

Tip: If your documents are abroad, we guide you on apostilles and official translations so the bank accepts them on the first try.

Our lawyer-led step-by-step process

  1. 15-minute intake: We map your goals (personal, business, dual currency, online needs).
  2. Bank selection: We propose 1–2 banks with the highest approval likelihood for your profile.
  3. File preparation: We compile IDs, address, proof of income, and (for companies) corporate & UBO files.
  4. Mock interview: We rehearse answers to typical KYC questions to avoid red flags.
  5. Appointment & accompaniment: A lawyer attends your branch visit and helps finalize onboarding.
  6. Activation & aftercare: We help set up online banking/tokens and add you to our compliance reminder calendar.

Public vs. private banks: who is best for you?

Bank Type Good fit when…
Banco Nacional Public You want stability, wide branch coverage, and payroll/utilities integration.
Banco de Costa Rica (BCR) Public You need government-backed services for SMEs or import/export activity.
BAC Credomatic Private You value strong digital banking and smoother onboarding for foreigners.
Scotiabank Costa Rica Private You prefer an international network and credit products.
Promerica Private You want agile onboarding and modern branches for daily banking.

Fees, timelines & currencies (realistic expectations)

  • Opening fees: often low or waived; minimum deposits typically $20–$100.
  • Monthly fees: small maintenance fees—sometimes waived with minimum balance.
  • Timelines: same-day to 1–2+ weeks depending on KYC complexity and workload.
  • Currencies: CRC (colón) and USD are available for individuals and companies.

Non-residents & digital nomads

You can open on a passport with proper KYC. If you have a Digital Nomad Visa or are applying for residency, bring those records—some banks view them positively. We prepare your income & address evidence and help you avoid phrasing that can slow approval.

Corporate accounts, UBO & compliance

  • We build a clean UBO diagram and collect IDs so onboarding doesn’t stall.
  • We draft a short, bank-friendly source-of-funds memo that answers AML questions up front.
  • We align bylaws/representations so the right signatories pass KYC on the first attempt.

KYC/AML under Law 8204 — what to expect

Banks verify identity, address, and source of funds, and ask about countries, counterparties, and volumes. We rehearse answers and keep your profile updated so your account stays active during periodic reviews.

Frequently asked questions

Can a foreigner open a bank account without residency?
Yes. Most banks accept passports for non-residents with proper KYC (address + income). DIMEX helps but is not always required.
What if a bank declines me?
It happens. We’ll pivot to a different bank and strengthen your file. Each institution has a different risk appetite.
Can I hold USD and CRC?
Yes. Dual-currency accounts are common for personal and corporate needs.
How long will this take?
From same-day (simple personal accounts) to 1–2+ weeks for corporate or higher-risk profiles. Our pre-screening shortens the timeline.

Talk to our banking lawyers — we’ll handle everything

Share your passport or DIMEX, address, and proof of income—we do the rest: bank match, document prep, mock interview, appointment, and activation.

REQUEST A CONSULTATION

This content is informational and does not constitute legal or tax advice. Confirm specific bank requirements and timelines with our team.

Costa Rica UBO 2025: Who Can File & What Changed

Oct 16, 2025 | Commercial Law

Costa Rica UBO 2025: What Changed, Who Can File, and How to Stay Compliant (RTBF)

Quick take: For 2025, Costa Rica tightened beneficial owner disclosure in the RTBF registry. Special powers of attorney (POA) are no longer valid to submit the UBO declaration. Only the legal representative with a Central Bank digital signature or, exceptionally, a person empowered by a general power of attorney (apoderado generalísimo) registered at the National Registry may file. If your legal rep cannot sign, you should grant a generalísimo to your trusted counsel to keep your UBO reporting requirements on track.

Many clients—especially with foreign directors or offshore shareholders—ask who can now submit the RTBF declaration and how to avoid penalties. This article summarizes the UBO 2025 changes, what “special POA exclusion” means in practice, how the generalísimo works, and the exact steps to keep your beneficial owner disclosure (Costa Rica) timely and correct.

Table of Contents

Author: AG Legal • Reviewed by: Corporate & Tax Compliance Team • Updated: Oct 16, 2025

1) 2025 changes at a glance

  • Special POAs excluded: Special powers are not accepted to submit RTBF/UBO. The filing must be done by the legal representative (LR) with a valid digital signature, or by a person under a general power of attorney (apoderado generalísimo) that is duly registered.
  • “Generalísimo” accepted: A general power under Article 1253 of the Civil Code is acceptable, granted by the Legal Representative.
  • Continuity of annual cycle: The ordinary annual declaration window runs each April (common practice: Apr 1–Apr 30), plus updates when ownership changes.

Update on RTBF Filing Powers: Tribunal Ruling on the Temporary Injunction

By resolution of the Administrative Contentious Tribunal, the provisional precautionary measure granted on April 19, 2024—which had ordered the suspension of the third paragraph of Article 5 of Executive Decree No. 44,390-H, Regulation of the Transparency and Ultimate Beneficial Owners Registry (RTBF)—has been dismissed.

The relevant paragraph reads as follows:

“In exceptional and duly justified cases, the legal representative or equivalent may grant a general power of attorney (poder generalísimo) for the filing of the declaration before the RTBF. A General Joint Resolution, as provided in Article 15 of this Regulation, shall establish the procedure and conditions for the registration of such attorney-in-fact.”

Previous Temporary Regime

Until now, the Second Transitory Provision of the General Joint Resolution for the RTBF allowed, while the provisional measure remained in force, that a third party could file the declaration through a general, special, or generalísimo power of attorney, in accordance with the Civil Code, duly authenticated by a notary public.

Current Legal Effect

Following the Tribunal’s ruling, the granting of special powers of attorney for purposes of fulfilling RTBF obligations is no longer permitted.

Henceforth, only the legal representatives of the obligated entities may submit the corresponding declarations.

Exceptionally, a generalísimo attorney-in-fact may file the declaration only when the legal representative does not possess the certified digital signature required to access the RTBF platform.

In Summary

Until a final decision is issued to the contrary, only the legal representative—or, in exceptional circumstances, a generalísimo attorney-in-fact—is authorized to file declarations before the RTBF.

2) Who can file now (and who cannot)

Role RTBF Filing Status (2025) Notes
Legal Representative (president/manager/administrator) Allowed Must use valid digital signature issued by the Central Bank.
Apoderado generalísimo (general attorney-in-fact) Allowed (exceptional route) Requires registered general power (not a limited/“special” POA).
Agent with “special” POA Not allowed Special/limited mandates are excluded for UBO filings.

3) Digital signature & residency considerations

The RTBF platform requires the filer to authenticate with a digital signature certificate issued by Costa Rica’s Central Bank. This credential is generally available to citizens and to foreign residents with DIMEX. If your company’s directors are abroad and lack a digital signature, granting a generalísimo to AG Legal is the most reliable path to ensure timely filing.

4) The “apoderado generalísimo”: scope, cost & registration

  • Scope: A general power under Civil Code Art. 1253 authorizes broad acts of administration/representation. “General powers limited to a type of act” (Art. 1254) are not accepted for RTBF filing.
  • Formality: Must be granted by public deed and registered with the National Registry. Once recorded, the attorney-in-fact may log in and file the RTBF on your behalf.
  • Timing & cost: Inscription times are typically short; registration fees and notarial costs apply. Our team prepares the draft, coordinates signatures (on site or via consulate/apostille), and tracks the inscription until active.

5) RTBF timeline, penalties, and practical compliance

  • Annual window: The ordinary declaration is typically filed during April each year. File updates promptly when ownership or control changes.
  • Penalties & side effects: Non-compliance can lead to fines and operational blocks (e.g., hurdles in banking, registry or licensing processes) until rectified.
  • Our approach: We maintain a single compliance calendar (RTBF, taxes, municipal, labor) so your filings remain synchronized and “transaction ready.”

6) How we file for you (step by step)

  1. Diagnostics: Confirm current LR, board appointments, and signatories; identify whether a generalísimo is required.
  2. Power setup: Draft the apoderado generalísimo deed, coordinate consular/apostille formalities (if abroad), and register it at the National Registry.
  3. UBO data check: Collect ownership/control charts, ID/KYC for natural persons, and review trusts or multi-layer structures.
  4. RTBF filing: Submit via LR’s digital signature or through the registered general attorney-in-fact; capture evidence and acknowledgments.
  5. Ongoing compliance: Calendar annual April filings and event-driven updates; align with tax and corporate governance changes.

7) Frequently asked questions

Is a “special power of attorney” still valid for UBO filings?
No. For 2025 onward, special POAs are excluded. File via legal representative (with digital signature) or a registered apoderado generalísimo.
We don’t have a Costa Rican digital signature—what are our options?
Foreign directors without DIMEX cannot obtain the certificate. The practical solution is to grant a generalísimo so a trusted attorney can file in RTBF.
When is the annual deadline?
The ordinary annual filing window is commonly the month of April. We recommend preparing in Q1 to avoid last-minute issues.
Can AG Legal act as our general attorney-in-fact?
Yes. We draft and register the apoderado generalísimo, gather UBO data, and file the RTBF on your behalf—keeping your registry status in good standing.

8) Sources & official links

  • Tirant Punto Jurídico – Circular DPJ-009-2025 on registering general powers (Aug 2025). Read
  • Ministry of Finance – RTBF resources & reforms (2025). Read

Talk to our lawyers

Need to secure your 2025 and 2026 RTBF filing or appoint a general power of attorney quickly? We set up the apoderado generalísimo, gather UBO data, and file end-to-end—so your operations and banking remain smooth.

REQUEST A CONSULTATION

This content is informational and does not constitute legal or tax advice. Confirm current requirements with your attorney. For complex chains of ownership or trusts, additional documentation may be required.

Costa Rica–China FTA: 2025 Investor Guide

Oct 14, 2025 | Commercial Law

 

Costa Rica–China Free Trade Agreement (FTA): 2025 Investor Guide for Market Entry & Tariff Savings

Quick take: The Costa Rica–China FTA—signed April 8, 2010 and in force since August 1, 2011—removes tariffs on most goods over staged schedules, adds clear rules of origin, and streamlines customs cooperation and services. For Chinese companies, it’s a fast track to competitive pricing and a compliant footprint in Costa Rica.

As corporate and trade counsel at AG Legal in San José, we help Chinese manufacturers, e-commerce brands, medical device makers, EV/energy firms and logistics operators enter Costa Rica with a bankable structure. This guide explains what the FTA offers, how to prove origin, which documents customs expects, and a step-by-step plan to invest and ship with confidence.

Table of Contents

Author: AG Legal • Reviewed by: Trade, Customs & Corporate Team • Updated: Oct 14, 2025

What is the Costa Rica–China FTA?

The FTA is a comprehensive trade agreement between the People’s Republic of China and the Republic of Costa Rica, signed on April 8, 2010 and effective from August 1, 2011. It provides progressive tariff elimination on a wide range of goods, disciplines on customs procedures, and frameworks for services and investment facilitation. Many product lines reach zero duty if they meet origin rules.

Tariff elimination: what qualifies and when

Each side maintains a schedule with staging categories (immediate, 5–10 year phase-outs, and some excluded items, sometimes with tariff-rate quotas). Your exact rate depends on the HS code and the staging assigned in Annex 2 – Tariff Elimination. Many industrial inputs, electronics, machinery and selected agro-products see meaningful or complete duty relief if they originate under the FTA.

Tip: We check the staging line-by-line before you quote prices, and model landed cost versus MFN to lock in margins.

Tariff Benefits by Product Class (China → Costa Rica under the FTA)

HS Chapter Product Class Typical FTA Benefit* Notes for Chinese Exporters
84 Machinery, mechanical appliances, parts 0% immediate or phased (5–10y), line-by-line Verify exact subheading; many lines reach 0% if rules of origin are met. Keep BOM + technical certs where applicable.
85 Electrical machinery, electronics, components 0% immediate/phased depending on line Safety/EMC (TBT) common. Prepare Certificate of Origin and conformity evidence.
90 Instruments, medical devices, optics 0% phased for several lines; some immediate Strong cluster in Costa Rica. Check health/regulatory registrations.
87 Vehicles, parts & accessories Mixed: 0% phased for many parts; some vehicles with longer phase-outs or exclusions Confirm emissions/safety (TBT). Model import costs by subheading.
39 Plastics & articles 0% phased, sensitive to origin rules (RVC/CTH) Align input origin to meet RVC/CTH. Maintain supplier declarations.
72–83 Metals (steel, aluminum, tools, parts) Broad 0% phased, with specific exceptions Watch HS shift requirements. Certify composition as needed.
28–38 Chemicals, fertilizers, paints, cosmetics Mix of 0% immediate & phased Review sanitary/SPS permits and labeling. Origin may require RVC.
50–63 Textiles & apparel 0% phased; some lines more sensitive Specific origin rules (change in heading and/or RVC). Manage sourcing & manufacturing to qualify.
01–24 Agricultural & food products Mixed: 0% phased, TRQ on sensitive items; some exclusions (F) Check SPS and quotas. Example: frozen pork duty-free TRQ (250 MT/year); over-quota pays MFN.
27 + cross-chapters Energy products & technologies Several lines with full or partial elimination Cross-check with 84–85 for equipment. Confirm environmental/technical requirements.
Excluded (F) Items excluded from elimination Excluded (MFN applies); some with duty-free TRQ Consider supply redesign, value-add in CR, or Free Zone programs. See General Notes & Commission decisions.

*Typical benefit = overview by chapter. Exact duty depends on your 6–8 digit HS line, the rule of origin, and the staging schedule in Annex 2. For sensitive products, check TRQs and any Free Trade Commission updates.

Sector snapshots (Electronics, Medical devices, Automotive)

Electronics (HS 84–85)
HS code Product Staging Notes
8471.30.xx Laptops/portable ADP machines A Often 0% immediate if origin test met; check battery pack lines & accessories.
8507.60.xx Lithium-ion accumulators (EV/ESS, non-automotive) B5 Origin via RVC/CTH; TBT and DG transport rules.
8504.40.xx Static converters (inverters/chargers) A EMC/safety conformity may apply.
8528.72.xx Monitors/projectors (non-TV) B5 Screen tech & size impact staging.
8541.40.xx Photosensitive semiconductor devices; solar cells B10 Several lines phase to 0% over 10 years.
Medical devices (HS 90)
HS code Product Staging Notes
9018.39.xx Medical needles & catheters A Often 0% immediate; maintain origin docs and sanitary registrations.
9021.10.xx Orthopedic or fracture appliances B5 Ensure BOM supports CTH/RVC; quality systems.
9018.90.xx Electro-medical instruments & parts A Power specs & EMC may trigger TBT checks.
9027.80.xx Instruments for physical/chemical analysis B10 Precision instruments often have longer phase-outs.
Automotive (HS 87)
HS code Product Staging Notes
8708.30.xx Brakes & parts B5 Frequent 5-year phase-outs; safety/TBT & materials documentation.
8708.95.xx Airbags & parts B10 Strict safety requirements; robust origin documentation.
8501.31.xx Electric motors (EV traction ≤750W) A Some subchapters achieve immediate 0%.
8703.80.xx EVs & hybrid vehicles B10 / F Complete vehicles may face long phase-outs or exclusions.
8708.40.xx Gearboxes & parts B5 Good CTH candidates; coordinate supplier declarations.
Important: The exact rate depends on your 6–8 digit HS line, the rule of origin (CTH/RVC), and the staging in Annex 2. Sensitive products like frozen pork (HS 0203) have a duty-free TRQ of 250 MT/year, and bulk black kidney beans a duty-free TRQ of 10,000 MT/year. Over-quota volumes pay MFN. We verify each line in the official schedule before you quote.

Rules of origin & certificates

  • Origin tests: Generally wholly obtained or substantial transformation based on HS shift and/or regional value content.
  • Certificate of Origin: Use the treaty’s official format; typically valid up to one year from issuance.
  • Record-keeping & verification: Maintain costed BOMs, production records and supplier declarations; customs may verify retroactively.

Why it matters: A 0% rate only applies if you prove origin. We align suppliers, BOMs and documentation so your preference survives audits.

Services, investment & dispute notes

Beyond goods, the FTA includes commitments on trade in services and institutional mechanisms (a Free Trade Commission, committees, and customs cooperation). The treaty also aligns with protections under the separate China–Costa Rica investment agreement (2007). In practice, Costa Rica offers stable rule-of-law courts and predictable registries for corporate setup, real estate and IP.

Customs playbook: from HS code to clearance

  1. Classify correctly: Confirm the HS 6–8 digits and match to the FTA schedule (staging category).
  2. Plan origin: Validate transformation rules and regional value content; close gaps with sourcing or light processing if needed.
  3. Paperwork: Commercial invoice, packing list, Certificate of Origin, and any SPS/TBT permits.
  4. File & claim preference: Declare FTA preference on entry. Maintain records for post-clearance verification.
  5. Quality control: Keep supplier affidavits synchronized with annual HS updates and product refreshes.

Setting up in Costa Rica (entity, permits, banking)

Most investors choose an S.R.L. or S.A. We establish the company legally and provide start-up support through our BPO (Business Process Outsourcing) in accounting, administration, and everything else necessary for a successful launch. In addition, we draft bylaws for banking and compliance, register beneficial owners (RTBF), and secure municipal and sector permits as needed. If you manufacture or provide services for export, the free-zone regime may offer additional tax incentives—structured alongside FTA benefits and origin planning.

How to use the FTA (step by step)

  1. Confirm HS & staging: Identify exact tariff line and whether it’s immediate or phased.
  2. Design for origin: Map rules to your BOM; adjust sourcing or processing to qualify.
  3. Set documentation flow: Determine the issuing authority for Certificates of Origin and implement record-keeping (5+ years).
  4. Price with preference: Quote landed cost under FTA versus MFN; lock in contracts with compliance clauses.
  5. Ship & monitor: Claim preference at import; prepare for any verification requests.
  6. Scale locally: Establish entity, banking and—if relevant—free-zone operations for regional distribution.

Frequently asked questions

When did the FTA enter into force?
August 1, 2011. It was signed on April 8, 2010 in Beijing.
What share of goods can reach zero duty?
Most goods trade benefits from duty-free access on a staged basis, subject to origin compliance.
If my product is excluded, can I still benefit?
Some excluded items may have tariff-rate quotas or alternative routes (supply re-engineering, value-add in Costa Rica, or free-zone programs).
The list provided in this article is not a complete list of products, so each case is analyzed according to the customer’s needs.
Does the FTA include services and investment provisions?
Yes—there are services commitments and institutional mechanisms; investment protections are also grounded in a 2007 agreement referenced in the FTA.
Fastest way to confirm eligibility?
We run a 48-hour HS/origin screen with landed-cost modeling and a draft Certificate-of-Origin workflow so your first shipment is audit-ready.

Talk to our trade & corporate lawyers

We’ll classify your products, confirm origin, and set up your Costa Rican entity and banking so you enjoy FTA tariffs from the first shipment.

REQUEST A CONSULTATION

This article is informational and not legal or tax advice. Confirm current schedules and documentation with your attorney and customs broker.

15 Common Costa Rica Investing Mistakes Foreign Investors Make in Costa Rica (and How to Avoid Them)

Sep 29, 2025 | Commercial Law, Real Estate Law

15 Common Costa Rica Investing Mistakes — and How to Avoid Them (2025 Legal Playbook)

Costa Rica Investing Mistakes Quick take: Costa Rica is a rule-of-law jurisdiction with predictable registries and permitting—if you structure correctly, check zoning and water availability before buying land, respect coastal concession rules, and keep up with taxes and transparency (RTBF/UBO). Our team sets up entities, vets properties, and builds compliance calendars so your project stays bankable and sale-ready.

As corporate and real estate counsel at AG Legal, we routinely identify Costa Rica investing mistakes and rectify preventable errors that cost foreign investors time and money. This guide outlines the top 15 pitfalls we encounter when forming entities, purchasing property, or launching projects in Costa Rica, along with a step-by-step plan to ensure success the first time.

Table of Contents

Author: AG Legal • Reviewed by: Corporate, Real Estate & Tax Team • Updated: Sept 29, 2025

The 15 most common mistakes (and how we fix them)

  1. Buying first, due-dilencing later. Always verify title chain, liens/encumbrances, cadastral match, and condominium bylaws at the National Registry before committing funds.
  2. Skipping municipal “Uso de Suelo”. A municipal land-use certificate confirms permitted uses, setbacks, height, coverage, and other restrictions. Don’t close without it.
  3. No water, no permit. For buildable land, you usually need a water availability certificate (AyA/ASADA) or equivalent to advance permits.
  4. Ignoring environmental screening. Depending on project type and location, SETENA may require environmental assessment (e.g., D1). Build this timeline into your critical path.
  5. Overlooking coastal concession rules (ZMT). The first 200m from the shore are subject to special concession rules and eligibility limits; structure ownership accordingly.
  6. Using outdated entity models. Choose between an S.R.L. (member-managed) or S.A. (board/share structure) based on control and banking needs; register digitally and keep corporate books tidy for lenders and buyers.
  7. Forgetting UBO/RTBF filings. Companies must report beneficial owners (RTBF) and update changes to avoid fines.
  8. VAT assumptions from home country. Standard VAT (IVA) is generally 13%; model this into pricing and budgeting.
  9. Underestimating closing taxes & stamps. Transfers of real estate carry a 1.5% transfer tax (plus stamps/fees). Budget early.
  10. Ignoring annual property tax. Municipal property tax is generally 0.25% of the registered value (plus potential luxury-home surcharges).
  11. Improper legal representation for banking. Banks apply AML/KYC rules; draft bylaws and powers so signatories clear compliance smoothly.
  12. Hiring before registering as an employer. Register the company with CCSS (social security) and secure mandatory INS Workers’ Compensation coverage.
  13. Mixing personal and corporate use of property. Keep minutes, service agreements, and fair-market rents to avoid tax and governance headaches at exit.
  14. Poor escrow discipline. Use supervised trust/escrow and split closing: sign SPA with conditions precedent → fund escrow → record transfer → release funds on registry confirmation.
  15. No compliance calendar. Missed filings (RTBF, municipal licenses, tax returns) lead to fines and blocked transactions. We built a single, centralized calendar for all deadlines. This is one of the biggest Costa Rica investing mistakes.

Company formation: best-practice checklist

  • Choose the right vehicle: S.R.L. (membership quotas) vs. S.A. (shares & board). Think control, investor entry, and bank preferences. Incorporate digitally, then open corporate bank accounts.
  • Governance that works: Appoint reliable local legal reps; define signing powers, profit distributions, and transfer restrictions in bylaws.
  • Transparency: Prepare to disclose Ultimate Beneficial Owners (RTBF), keep a compliance binder (charter, bylaws, UBO confirmations, ID/KYC, tax IDs).
  • Licenses & notices: Depending on activity, register with the municipality (patent), tax authority, and sector regulators as applicable.

Real-estate due diligence (zoning, water, environmental)

Land is “bankable” when its legal feasibility is clear. For buildable parcels, we verify title & plans at the National Registry, request the Uso de Suelo certificate, obtain a water availability letter (AyA/ASADA), and analyze whether the project must obtain SETENA environmental viability (D1, etc.).

Special case: coastal & concession properties (ZMT)

The first 200 meters from the shore form the Maritime Terrestrial Zone, split into a 50m public zone and a 150m restricted zone. Only municipalities grant concessions in the restricted zone, and eligibility limitations apply (e.g., specific foreign-ownership/residency rules). Structure ownership with care before you commit capital.

Taxes & transparency essentials

  • VAT (IVA): Standard rate is 13% on most goods and services. Model cash-flow and pricing accordingly.
  • Real-estate transfer: 1.5% transfer tax plus stamps/fees on property transfers—budget at LOI stage.
  • Annual property tax: Generally 0.25% of registered value (municipal). High-value homes may face additional “luxury” tax.
  • RTBF (UBO) filing: Required under transparency rules; we coordinate filings and updates.

Labor, social security & workplace insurance

Before hiring, register as an employer with the CCSS (social security) and obtain mandatory INS Workers’ Compensation (Riesgos del Trabajo). Both are standard compliance steps for employees on payroll.

Misconception Reality (Costa Rica)
“If the seller shows me a deed copy, I’m safe.” You need current registry and cadastral checks, not copies. Use the National Registry’s official records.
“I can buy beachfront and build right away.” Coastal (ZMT) land follows concession rules; foreigners face eligibility and structuring limitations.
“Permits will figure themselves out.” No water availability → no building permit; environmental screening may be required (SETENA).

How to invest in Costa Rica the right way (step by step)

  1. Choose the vehicle: S.R.L. vs. S.A.; draft bylaws for banking/AML; appoint legal reps with clear powers.
  2. Open compliance files: Tax ID, municipal license (if applicable), RTBF/UBO preparation and calendar.
  3. Property pre-screen: Registry/cadastral review, Uso de Suelo, water availability letter, environmental trigger check (SETENA).
  4. Deal mechanics with escrow: SPA with conditions precedent → fund escrow → record transfer → release on registry confirmation.
  5. Budget taxes and fees: VAT (13%) on services, transfer tax (1.5%) on property, municipal property tax (~0.25%/year).
  6. People & payroll: CCSS employer registration and INS workers’ comp before first hire.
  7. Operational cadence: Compliance calendar (RTBF, tax, municipal), quarterly legal health checks, board minutes, and vendor contracts.

Frequently asked questions

Can foreigners own property outright in Costa Rica?
Yes, outside the Maritime Terrestrial Zone (ZMT) restrictions. Inside ZMT (first 200m), you deal with concessions and special eligibility rules.
What due diligence is essential before buying?
Title/encumbrances & plan match at the National Registry, municipal Uso de Suelo, water availability letter, and, if applicable, SETENA environmental screening.
What are the headline taxes?
VAT 13% on most services; 1.5% transfer tax on property conveyance; approximately 0.25% annual municipal property tax.
Do we need to report Ultimate Beneficial Owners?
Yes—RTBF, filed via the Central Bank platform, with penalties for non-compliance.
When can we hire staff?
After registering as an employer with CCSS and activating the mandatory INS Workers’ Compensation policy.

Talk to our lawyers

Planning to form an entity, purchase property, or launch a project in Costa Rica? We’ll structure, diligence, and permit your investment end-to-end to avoid Costa Rica investing mistakes.

REQUEST A CONSULTATION

Company Formation in Panama (For US Investors) – Step-by-Step Guide, Costs, Banking & Tax

Sep 26, 2025 | Commercial Law

Quick Take

  • Best for: US owners seeking territorial taxation, privacy, and global operations.
  • Popular entities: Sociedad Anónima (S.A.), Sociedad de Responsabilidad Limitada (SRL), and Private Interest Foundations (PIF) for asset-holding.
  • Timeline: 3–10 business days for incorporation; banking KYC may add 1–3 weeks.
  • Ongoing costs: Annual government Tasa Única, resident agent, and basic compliance.
  • US angle: Panama uses territorial tax; US persons remain subject to US tax/reporting.

Intro

Panama has become a leading hub for international company formation, thanks to its territorial tax system, efficient corporate laws, strategic location, and mature banking sector. This guide explains—in plain English—how US investors can incorporate in Panama, open bank accounts, understand taxes and compliance, and choose the right structure for cross-border business or asset protection.

Why Panama for US Investors

  • Territorial taxation: Foreign-source income is generally not taxed in Panama.
  • Efficient incorporation: Streamlined corporate law, fast processing, English-friendly service.
  • Strategic location: Global logistics hub with robust professional and banking services.
  • Asset protection: Mature jurisprudence for corporations and foundations.
  • Operational privacy: Reasonable confidentiality balanced with modern KYC/AML standards.

Entity Types: S.A., SRL & Foundations

S.A. Sociedad Anónima

Panama’s classic corporation. Flexible share structure, directors (typically 3), and broad corporate purpose. Ideal for trading, services, holding companies.

SRL Sociedad de Responsabilidad Limitada

Limited liability company analog. Member-managed, quotas instead of shares, typically fewer disclosure formalities. Attractive for closely held operations.

PIF Private Interest Foundation

Not a company, but a civil-law vehicle used for asset holding, succession planning, and ring-fencing. Often paired with an S.A./SRL.

Tip: For operating businesses, start with an S.A. or SRL. Use a Foundation for asset protection or inheritance planning.

Minimum Requirements & Documents

  • Owners Individual or corporate shareholders/members (US or foreign).
  • Directors/Managers S.A. typically 3 directors; SRL has managers/representatives.
  • Registered Office Mandatory local attorney/resident agent in Panama.
  • KYC/AML Passports, proof of address, professional/bank reference (case-dependent).
  • Name & Purpose Due diligence on name availability and activity scope.

Step-by-Step: Incorporation Process

  1. Structuring: Choose S.A., SRL, or Foundation and define share/quotas and roles.
  2. Documents: Provide KYC (passport, proof of address, references where applicable).
  3. Drafting: Articles of incorporation / foundation charter prepared by counsel.
  4. Filing: Registration with the Public Registry; obtain corporate ID.
  5. Post-incorporation: Corporate book kit, resolutions, and—if needed—licenses.
  6. Banking onboarding: Prepare enhanced KYC/business profile and open accounts.

Banking & KYC in Panama

Panama banks apply rigorous KYC/AML. Expect to show:

  • Passport(s) and proof of address for UBOs, directors, and signatories.
  • Company documents, ownership chart, and source of funds/wealth.
  • Business plan or activity description (invoices, contracts, website helpful).

Timeline: 1–3 weeks on average, depending on profile and bank workload. Remote onboarding may be possible case-by-case.

Taxes: Panama vs US Considerations

  • Panama: Territorial system—foreign-source income generally outside scope. Local source income taxable.
  • US Persons: US tax/reporting still applies (e.g., CFC/GILTI, Subpart F, PFIC, FBAR/FATCA as applicable). Coordinate with US CPA.
  • Withholding & Treaties: Panama has treaties; analyze per transaction flow and counterparties.

This is general information, not tax or legal advice. Always obtain Panama and US tax counsel before acting.

Costs & Timelines

  • Incorporation Typically 3–10 business days after KYC approval.
  • Gov. fees Registration and annual Tasa Única.
  • Professional Varies by entity type, banking assistance, and urgency.

Ongoing Compliance

  • Resident Agent & Registered Office: Maintain continuously.
  • Annual fees: Pay Tasa Única and agent fees.
  • Books & Resolutions: Keep corporate records up to date.
  • Economic substance: Assess per activity; align contracts, invoicing, and management where relevant.
  • Licenses: Obtain sector-specific licenses if operating locally.

Common Use-Cases & Structures

Global services company

S.A. or SRL billing non-Panama clients (foreign-source income).

Holding company

S.A. holding shares in foreign subsidiaries or IP.

Asset protection

Foundation owning investment accounts or real estate SPVs.

Trading hub

S.A. coordinating suppliers and customers internationally.

Talk to a Panama Company Formation Attorney

We’ll map your ideal structure, timeline, banking strategy, and US coordination.

FAQs

How long does incorporation take?

Typically 3–10 business days after KYC approval. Banking may add 1–3 weeks.

Can US citizens legally own Panama companies?

Yes. Panama allows foreign owners. US persons must still comply with US tax/reporting.

What is the difference between an S.A. and an SRL?

S.A. is a corporation with shares and board of directors; SRL uses quotas and is often more closely held. Choice depends on governance, investor profile, and banking preferences.

Do I need to visit Panama?

Often not for incorporation; banking may require in-person identity verification depending on the bank and profile.

What are typical ongoing fees?

Annual Tasa Única, resident agent, and corporate maintenance. Amounts vary by structure and services included.

Costa Rica Corporate Tax 2025 (Law 9428): Rates, Deadlines & Penalties

Sep 19, 2025 | Commercial Law, Taxes

Corporate Tax on Legal Entities in Costa Rica (Law No. 9428): 2025 Rates, Deadlines, Penalties & Practical Guide

Quick take: All Costa Rican legal entities—active or inactive—must pay the annual Corporate Tax under Law 9428. The amount depends on income brackets tied to the official base salary (₡462,200 for 2025). Pay by January 31 to avoid interest, registry restrictions, and potential dissolution after three consecutive unpaid years.

This guide explains who must pay, the 2025 rates, the deadline and how to pay, plus penalties and an annual compliance checklist. It’s designed for international investors and companies evaluating Costa Rica’s corporate tax on legal entities under Law 9428.

Table of Contents

Author: AG Legal Costa Rica • Reviewed by: Corporate & Tax Team • Updated: Sep 19, 2025

Who must pay?

  • Commercial corporations (S.A., S.R.L., partnerships, limited companies).
  • Branches of foreign entities or their legal representative in Costa Rica.
  • Individual limited liability enterprises (E.I.R.L.).

Triggering event: The tax accrues on January 1 each year, or on the incorporation date if registered during the fiscal year.

2025 rates and amounts

Rates are percentages of the official base salary (salario base). For 2025, the base salary is ₡462,200.

Entity / condition Calculation base Rate Amount 2025
Not registered with the Tax Administration (inactive entities) Base salary 15% ₡69,330
Registered with gross income ≤ 120 base salaries Base salary 25% ₡115,550
Registered with gross income > 120 and ≤ 280 base salaries Base salary 30% ₡138,660
Registered with gross income > 280 base salaries Base salary 50% ₡231,100

Gross income brackets are measured in base salaries from the prior period; amounts shown are the percentage applied to ₡462,200.

Deadline & how to pay

Final date without surcharges: January 31, 2025.

  1. Confirm company status (active/inactive; gross income bracket).
  2. Log into your online banking and locate “Impuesto a las Personas Jurídicas”.
  3. Enter the corporate ID and confirm period 2025.
  4. Check the correct amount (table above) and pay before January 31.
  5. Save the receipt for your accounting records.

If incorporated in 2025, the first payment is pro-rated from the registration date.

Penalties and registry effects

  • Interest and surcharges from February 1.
  • National Registry restrictions (e.g., certain filings or certifications blocked until payment).
  • Dissolution after three consecutive unpaid years (Law 9428, Art. 7). Re-registration requires payment of all arrears, interests, and penalties.

Annual compliance checklist

  • 📌 Determine prior-year gross income bracket (≤120, 120–280, >280 base salaries).
  • 📌 Verify status with the Tax Administration (RUT & ATV).
  • 📌 Pay before January 31.
  • 📌 Archive receipt and accounting support.
  • 📌 Review other filings (e.g., income tax D-101 when applicable) and corporate representation validity.

Frequently asked questions

What is the “base salary” and why does it matter?
The official legal parameter used for fines and this tax (Office Clerk I). For 2025 it is ₡462,200; rates apply as percentages of this figure.
Do non-profits pay this tax?
The obligation targets commercial companies, branches, and E.I.R.L. entities. Liability depends on legal form and registration.
Can I pay after January 31?
Yes, but interest and penalties apply. After three consecutive unpaid years, the company faces dissolution.
If I incorporated mid-year, do I pay the full amount?
No. The first-year payment is proportional from the National Registry registration date.
How do I determine my bracket?
Use the prior year’s gross income to classify ≤120, 120–280, or >280 base salaries.

Talk to a tax lawyer

Need help paying, classifying your bracket, or regularizing past years? Our team handles payments, arrears, and registry procedures.

REQUEST A CONSULTATION

Private Interest Foundation Panama

Aug 25, 2025 | Commercial Law

Private Interest Foundation in Panama: 2025 Legal Guide for Families, Businesses, and Asset Protection

Quick take: A Panama Private Interest Foundation is a civil law structure for wealth management and estate planning. Its assets are legally separate from the founder and beneficiaries. It is not used for direct commercial operations, but it can hold shares in operating companies. Management lies with the Foundation Council, and an optional Protector may supervise key decisions. The structure is subject to Panama’s AML/CFT and FPADM regime.

In this clear, up-to-date guide we cover the key features, legal advantages, governance roles (Founder, Council, and Protector), limitations, compliance, and the steps to establish a private interest foundation in Panama. The goal is to help international investors, families, and businesses—especially in the United States—evaluate whether this structure fits their asset protection and succession planning strategy.

Table of Contents

Author: AG Legal Panama • Reviewed by: Corporate & Wealth Planning Team • Updated: Aug 25, 2025

What is a Panama Private Interest Foundation?

A Private Interest Foundation is a civil law structure created by a foundation charter for asset management and planning. It is not a commercial corporation nor an Anglo-American trust, though it shares certain wealth planning goals. The design enables legal segregation between the foundation’s assets and the personal assets of the founder and beneficiaries, so the foundation’s assets do not respond to personal liabilities of the founder or beneficiaries.

Benefits and common uses

  • Asset segregation: foundation assets constitute a separate estate from the founder/beneficiaries.
  • Succession planning: designate beneficiaries and distribution rules (letters of wishes, bylaws, guidelines).
  • Flexible governance: a Foundation Council with generally at least three adult members; one or more Protectors may be appointed.
  • Multi-jurisdiction reach: may hold assets in different jurisdictions and own equity in companies.
  • Confidentiality & purpose focus: not intended for direct commercial profit; prioritizes long-term wealth goals.

For legal purposes, the foundation’s assets form a separate estate. Generally, they cannot be subject to attachment, garnishment, or precautionary measures for personal debts of the founder or beneficiaries; however, they can respond for the foundation’s own obligations, for damages arising from the execution of its purposes, or to satisfy legitimate rights of beneficiaries.

Foundations are not used for direct commercial activities. They may, however, hold interests in companies that carry out business operations. They are subject to the Republic of Panama’s AML/CFT and FPADM compliance framework.

Who can establish it and with what initial assets?

One or more natural or legal persons may establish a foundation—directly or through representatives—while complying with legal formalities. An initial endowment (affected to the purposes of the charter) is required. The initial estate may be increased over time by the founder or by third parties. (Specific amounts and formalities should be confirmed on a case-by-case basis.)

Governance: Founder, Council, and Protector

  • Founder: the individual or company that creates the foundation and makes the initial contribution.
  • Foundation Council: responsible for administration; as a general rule, at least three adult members. A company may act as founder and as the sole member of the Council (corporate model).
  • Protector(s): supervises and may intervene in Council actions; can be granted voting rights over certain decisions.
  • Beneficiaries: those who may receive benefits under the foundation’s purposes and rules.
  • Key documents: Foundation Charter and, if desired, Bylaws / letter of wishes with private instructions.

Compliance and transparency (AML/CFT – FPADM)

Private interest foundations fall within Panama’s AML/CFT and FPADM framework. Appropriate due diligence, ultimate beneficial owner verification, and any periodic obligations must be addressed. Local legal advice is essential to define processes and supporting documentation.

Permitted and prohibited activities

  • Permitted: wealth administration; holding shares/interests in companies; investments; donations and philanthropic aims.
  • Not permitted (directly): commercial operations for profit. For operating businesses, the foundation may own a separate operating company.

Quick comparison: foundation vs. trust vs. corporation

  • Private Interest Foundation (civil law): assets affected to purposes; asset segregation; Council/Protector governance; succession and administration focus.
  • Trust (common law): fiduciary separation; a trustee with fiduciary duties; widespread in common law jurisdictions.
  • Corporation: created for commercial profit; not designed for estate planning (limited liability rules apply, but purpose differs).

How to set up a Private Interest Foundation in Panama (step by step)

  1. Define purposes and beneficiaries: wealth objectives, distribution rules, and governance guidelines.
  2. Choose name and Founder(s): individual(s) or company; appoint the Foundation Council (or a company) and Protector(s) if applicable.
  3. Draft the charter and, where appropriate, the Bylaws / letter of wishes.
  4. Provide the initial endowment allocated to the foundation’s purposes (future increases are possible).
  5. Registered agent and filings with the relevant authorities.
  6. Compliance: set up due diligence processes, UBO verification, and supporting documentation.
  7. Governance & controls: Council protocols, Protector’s powers, and internal records.

Frequently asked questions

Do foundation assets respond for the founder’s or beneficiaries’ personal debts?
Generally, no. The foundation estate is separate and does not respond to their personal liabilities.
Can the foundation carry out commercial activities?
Not directly. It may, however, hold shares in companies that perform the commercial activity.
Who manages the foundation?
The Foundation Council (generally at least three adult members). A Protector may be appointed with supervisory powers and, in some cases, voting rights.
Who can establish it?
One or more natural or legal persons, directly or through representatives, subject to legal formalities.
Is it subject to AML/CFT?
Yes. Appropriate due diligence and applicable obligations under Panama’s AML/CFT and FPADM framework must be observed.

Speak with our lawyers in Panama

Want to determine whether a Panama Private Interest Foundation fits your family or business planning? Our team offers end-to-end advice.

REQUEST A CONSULTATION

Registry of Shareholders in Costa Rica

Jun 5, 2025 | Commercial Law

Registry of Shareholders in Costa Rica: 2025 Legal Guide for Companies

The Registry of Shareholders in Costa Rica is a mandatory annual disclosure for all active legal entities, overseen by the Central Bank of Costa Rica, under Law No. 9416. It verifies shareholder identity and ownership via the Central Directo platform.

📌 What Is the Registry of Shareholders?

This registry (RTBF) collects and verifies identities and ownership percentages of shareholders and ultimate beneficial owners (UBOs) through the Central Directo platform.

Who Must File?

  • Corporations (S.A.) and Limited Liability Companies (S.R.L.)
  • Branches of foreign companies
  • General and limited partnerships
  • Trusts and private legal entities registered with the National Registry

When to File in 2025

  • Annual Filing: April 1 – April 30, 2025
  • First-time filing: Within 20 business days from registration
  • Ownership changes: Within 15 business days

Penalties for Non-Compliance

Fines may reach up to 2% of gross income (minimum 3 base salaries, max 100 salaries). Non-compliance restricts corporate certifications and legal standing.

⚠️ Important for Foreign Investors

Companies with foreign shareholders or complex structures must disclose Ultimate Beneficial Owners (UBO). Legal guidance is strongly recommended for compliance.

How AG Legal Can Help

Visit our Corporate Law Services for:

  • ✔️ Shareholder and UBO analysis
  • ✔️ Legal digital signatures (Firma Digital)
  • ✔️ Filing via Central Directo platform
  • ✔️ Legal representation through Power of Attorney

📋 Ready to File Your Registry of Shareholders?

Let our legal experts handle your filing quickly, accurately, and securely.

📞 Contact Us Now

Company Name in Costa Rica: Key Changes Law 10729

Jun 3, 2025 | Commercial Law

📌 Company Name in Costa Rica: What Changed in 2025?

Registering a company name in Costa Rica is no longer mandatory when incorporating a Sociedad Anónima (S.A.) or a Sociedad de Responsabilidad Limitada (S.R.L.).

Law no. 10729 is applicable as of 30 May 2025, which has already been published.

This reform modifies the Commercial Code of Costa Rica. Instead of a name, the National Registry assigns a unique corporate identification number (cédula jurídica) as the official identifier.

✅ Why Was the Company Name Requirement Removed?

The company name in Costa Rica had become a formal step with limited value due to frequent name duplication, delays, and higher registration costs. Law 10729 was introduced to simplify the process and eliminate unnecessary steps.

🔄 Company Name in Costa Rica: Before vs. After the Reform

🔙 Before 🔜 After
Registering a company name was optional. Company name is no longer required for S.A. or S.R.L.
Name had to be unique and checked for duplicates. Companies are identified by a corporate ID number.
Publication in La Gaceta was mandatory. No edict publication is required.

Now, instead of the name of your company, you must register your commercial name that works as a trademark, which is the correct way to protect your intellectual property before third parties, a process in which AG Legal has a specialised department.

📄 Can You Still Use a Company Name in Costa Rica?

Yes. Even though it’s not required, you can register a commercial name (nombre comercial) through the Intellectual Property Registry to protect your business identity legally and commercially.

Benefits of registering a commercial name:

  • Protects your brand in the market
  • Prevents third-party use of similar names
  • Improves customer trust and recognition
  • Enables legal enforcement of name rights

📰 Is Edict Publication Still Required?

No. According to Article 92 of the National Registry Regulation, when using a corporate ID number instead of a company name, no edict publication is required in La Gaceta.

⚠ Who Still Needs a Company Name?

  • Entities regulated by special laws (e.g., banks, financial institutions)
  • Foreign branches (Articles 226–233 of the Commercial Code)

📂 What About Companies Already in Process?

Companies with documents signed before May 30, 2025, may continue using the traditional format including a company name, until registration is finalized.

🖥 Updates to Online Platforms

Platforms such as Trámite Ya and CrearEmpresa are expected to update their systems. Check whether these forms still request a company name before submitting.

💬 Official Publication in La Gaceta Law 10729

Here is the official publication of Law 10729, see its scope of the day: Official Publication

🛡 Recommendations for Business Owners

  • Register a commercial name with the Intellectual Property Registry
  • Use “S.A.” or “S.R.L.” in all legal documents
  • Verify if your sector requires a company name by law
  • Avoid unnecessary publication costs in La Gaceta

💬 Frequently Asked Questions about Company Name in Costa Rica

Is a company name required to register a business in Costa Rica?

No. Since May 30, 2025, company names are no longer required for S.A. or S.R.L. registrations in Costa Rica. A corporate ID number is now used as the legal identifier.

Can I still use a company name in Costa Rica?

Yes. You can still register a commercial name with the Intellectual Property Registry to protect your brand legally and strategically.

Do I need to publish an edict in La Gaceta?

No. If you don’t use a company name, the edict publication is no longer required, saving time and money during incorporation.

Who is still required to use a company name?

Entities regulated by special laws (like banks) and foreign branches must still include a legal company name under the Commercial Code.

What happens with companies registered before May 2025?

Companies already in process before May 30, 2025, are governed by the previous law. No modifications are required unless changes are made.

🤝 Need Help Navigating the Reform?

At AG Legal, we guide local and international clients through:

  • Incorporating businesses under Law 10729
  • Registering commercial names and trademarks
  • Corporate compliance and legal due diligence

Mandatory Email Registration Costa Rica: Law 10.597

Jun 2, 2025 | Commercial Law

📬 Mandatory Email Registration for Corporate Entities in Costa Rica (Law No. 10.597)

Starting June 4, 2025, Costa Rica will require email registration for companies as a mandatory legal step under Law No. 10.597. This reform obligates all legal entities—new or existing—to register an official email address with the National Registry for receiving legal and administrative notifications.

This measure, supported by Directive DPJ-002-2025 and published in La Gaceta No. 98 on May 30, 2025, is a critical shift toward digitalization and corporate compliance in Costa Rica.

📌 Why Email Registration for Companies Matters

This new regulation is part of Costa Rica’s strategy to modernize its corporate legal framework. By making email registration for companies a legal requirement, the country aims to streamline judicial and administrative communications, reduce delays, and eliminate outdated notification methods.

You can access the Law in this link: Official Law 10597

✅ New Company Formation: Email Required Immediately

All companies incorporated after June 4, 2025 must include a valid email address in their articles of incorporation. Omitting this requirement will result in a registration rejection by the National Registry.

🚫 Email omission = registration error

If the official email is not included in the incorporation documents, the process will be legally invalid until corrected.

🕒 Existing Companies: One-Year to Comply

Companies already registered have until June 4, 2026 to complete their email registration. This must be done through:

  • A public deed executed by the legal representative or general attorney
  • The protocolization of a shareholders’ meeting resolution

📰 Mandatory Gazette Publication

Since this update modifies the corporate charter, an official notice must be published in La Gaceta.

At AG Legal we help you with this official publication.

💼 Key Legal Changes in Law 10.597

  • Email registration for companies becomes a binding legal requirement
  • The resident agent role is eliminated (its inclusion will be considered a registration defect)
  • Email address must be stored exactly as stated in the legal document

💰 Exemptions from Fees

If the only change being filed is email registration, no stamp duties or registration fees will apply. However, if additional amendments are included, regular costs will be assessed.

🛡️ Responsibilities of Companies and Legal Representatives

  • Ensure the email is valid, active, and accessible
  • Verify the spelling and format before filing
  • Clearly declare in the deed that the email will be used for official notifications
  • Handle future changes through proper legal channels

❗ What Happens If You Fail to Register?

As of June 5, 2026, companies that have not completed their email registration will be unable to process any further filings. All requests will be rejected until the registration is corrected.

📋 Best Practices for Compliant Email Registration

  • ✔ Double-check that the email address is spelled correctly
  • ✔ Confirm the email is monitored regularly by authorized personnel
  • ✔ State explicitly in legal documentation that the email is for notifications under Law 10.597
  • ✔ Update promptly if the email changes in the future

If you need more information about the type of companies in Costa Rica, you can find it here: Companies in Costa Rica

🚀 Moving Toward Digital Compliance in Costa Rica

Email registration for companies is more than just a new requirement—it’s part of Costa Rica’s evolution toward digital efficiency in corporate governance. It enables faster, traceable, and secure communications between businesses and public authorities.

🤝 How AG Legal Can Help

At AG Legal, we guide local and international companies through:

  • Email registration under Law 10.597
  • Compliance with Costa Rica’s corporate regulations
  • Business formation, restructuring, and legal updates

📩 Need help with your company’s email registration?

Our legal experts will handle the entire process and ensure your business complies with Costa Rican law.

Contact AG Legal

Costa Rica Gambling License: What’s Possible in 2025

Apr 17, 2025 | Commercial Law

Costa Rica Gambling License: What’s Possible in 2025 (Legal Guide for Offshore iGaming)

Quick take: Costa Rica does not issue a traditional online gambling license for offshore operators. Many groups operate from Costa Rica using a data-processing (call-center) model under Law 9050 while keeping all wagering activity and payments outside Costa Rica. This guide explains legality, tax & AML scope, banking, and a compliant step-by-step setup.

If you’re searching for a “Costa Rica gambling license” or an iGaming sportsbook license, you’ll quickly discover Costa Rica has no formal license for offshore online casinos or sportsbooks. Instead, operators use a linking/data-processing company in Costa Rica (Law 9050 context) and perform all betting—player onboarding, payment processing, RNG servers—abroad. Below we cover the legal framework, what you can and cannot do, tax residency considerations, banking tips, and how AG Legal structures compliant setups for international clients.

Table of Contents

Author: AG Legal (iGaming & Corporate Team) • Updated: Oct 16, 2025

Costa Rica’s law recognizes data-processing/call-center activities connected with gambling data (Law 9050 context). This is not a gambling license; it is an operational framework for back-office services. If your bets occur entirely outside Costa Rica, the local entity can provide support functions (customer service, risk monitoring, data processing) while the wagering, RNG/servers, merchant acquiring, and player contracts are in an offshore licensing jurisdiction.

Key point: A municipal “data processing” permit in Costa Rica is not a gambling license. It only covers support services rendered from CR.

What’s allowed vs. not allowed

Allowed (typical):
  • Customer support & risk/AML monitoring
  • Back-office data processing and trading rooms
  • B2B service contracts with the licensed operator abroad
Not allowed in CR:
  • Accepting wagers from customers in Costa Rica
  • Holding the iGaming license in a Costa Rican entity
  • Processing player payments locally as a gaming operator

“Linking” / data-processing company: how it works

The Costa Rican company contracts with your licensed operator abroad to provide support services. You’ll typically need:

  • Incorporation (S.R.L. or S.A.) and corporate books in order
  • Municipal permit for data-processing/call-center activities
  • Tax registration and routine filings (returns, legal entity tax)
  • UBO/RTBF (beneficial owner) annual filing

Tax & residency in plain English

Costa Rica generally taxes Costa Rican-sourced income. Properly structured iGaming groups keep player revenue offshore, while the Costa Rican entity earns a service fee from the foreign operator. Your effective burden depends on margins, staffing, transfer-pricing, and municipal obligations. We design fee models and compliance calendars that pass an audit sniff test.

AML boundaries (Law 8204) and risk controls

Law 8204 (AML/CFT) covers specified obligated entities (e.g., banks, casinos). A Costa Rican support company without local wagering is usually outside the casino obligations, but counterparties (banks, PSPs, card schemes) impose KYC & compliance anyway. We help align your SOPs (player KYC handled abroad, staff screening, incident logs, vendor oversight) so banking partners remain comfortable.

Banking & payments: realistic expectations

  • Language matters: Lead with data-processing/BPO wording; disclose iGaming context accurately when asked, with compliance packs ready.
  • Evidence: Provide foreign license, player-facing T&Cs, processor contracts, and a flow diagram showing that wagers & funds never touch Costa Rica.
  • Multi-rail approach: Banking for payroll/OPEX in CR + regulated PSP/EMI abroad for player funds.

Costa Rica vs. Malta, Curaçao, Isle of Man (at a glance)

Jurisdiction Local iGaming License? Typical Use Case Banking Outlook
Costa Rica No (Law 9050 covers support/BPO) Back-office/data processing; wagers offshore Good for OPEX; player funds abroad
Malta (MGA) Yes Regulated EU-facing operations Robust but stringent onboarding
Curaçao Yes (modernizing regime) Cost-effective licensing Improving; PSP-led
Isle of Man Yes High-reputation operators Strong; rigorous CDD

How to structure an offshore iGaming operation (step by step)

  1. Pick the licensing country: obtain your actual iGaming license abroad (e.g., Malta, Curaçao, Isle of Man).
  2. Incorporate in Costa Rica: S.R.L. or S.A. for support services. Draft BPO-style service agreements with the licensed operator.
  3. Permits & filings: municipal permit (data processing), tax registration, legal entity tax, RTBF/UBO filing.
  4. Banking: CR bank for OPEX/payroll; player funds with PSP/EMI in the licensing jurisdiction.
  5. Compliance pack: org chart, data-flows, SOPs for KYC/AML (performed under the license abroad), vendor due diligence, incident logs.

Frequently asked questions

Does Costa Rica issue an online gambling license?
No. You operate offshore under a foreign license and keep a support company in Costa Rica.
Can I accept Costa Rican players?
No. The Costa Rican company should not accept wagers locally; betting must happen abroad.
How are taxes handled?
Costa Rica taxes local-source income. Structure your Costa Rican entity to earn a service fee; player revenue stays offshore.
What about AML obligations?
Casino/financial AML rules apply to specific entities. A support company without local wagering typically sits outside that scope, but banks/PSPs still require strong compliance.

Talk to our iGaming lawyers in Costa Rica

We’ll map a compliant offshore-onshore structure, draft service contracts, secure municipal permits, and coordinate banking & compliance packs.

REQUEST A CONSULTATION

This article is informational and not legal or tax advice. Confirm current requirements with your attorney and local authorities.

Free Trade Zone Costa Rica: Understanding the Benefits & Insights

Mar 7, 2025 | Commercial Law

Free Trade Zone Costa Rica: A Comprehensive Guide for Investors

Costa Rica’s Free Trade Zone (FTZ) system offers a highly attractive investment environment for businesses, with tax exemptions, streamlined procedures, and global competitiveness. This guide answers the most important questions for those considering the FTZ regime in Costa Rica.

Click to display the information:

Understanding the Free Trade Zone Regime in Costa Rica

Costa Rica’s free trade zone regime is a government initiative designed to attract foreign investors by offering businesses tax exemptions and incentives to encourage economic growth. Managed by PROCOMER (Costa Rican Foreign Trade Promoter), this regime provides companies with tax advantages and investment incentives to promote competitiveness.

Applicable to industrial parks, service sectors, and manufacturing companies that meet compliance criteria.

Frequently Asked Questions about Free Trade Zone in Costa Rica

What are the main investment thresholds?

Investment requirements depend on your business sector. PROCOMER typically requests minimum fixed asset investments, number of employees, and annual revenue projections. Requirements vary depending on whether the company is located inside or outside the Greater Metropolitan Area (GMA).

Can I export services from the Free Trade Zone?

Yes. Services such as software development, consulting, call centers, and shared service centers (BPO) can operate within the FTZ and export their services globally, enjoying the same tax exemptions as product exporters.

Are there environmental compliance requirements?

Yes. Companies must comply with Costa Rica’s national environmental laws. This includes obtaining environmental permits (SETENA) depending on the type and size of the operation, particularly for industrial or manufacturing activities.

How long does it take to join the Free Trade Zone Regime?

The approval process through PROCOMER can take between 3 to 6 months, depending on the completeness of your application, investment documentation, and pre-approval steps with other government institutions.

Are there FTZ benefits for small or medium businesses?

Yes. SMEs that export a percentage of their services or goods can benefit from the Free Trade Zone regime, especially if located outside the GMA. The Costa Rican government provides additional incentives for rural and non-metropolitan zones.

Can I own the property where my FTZ company operates?

Yes. You can own or lease the real estate where your company operates. However, FTZ companies must be physically located in authorized industrial parks or designated Free Trade Zone areas approved by PROCOMER.