The Investors Residency -Using your Company to apply for Residency

Costa Rica Residency by Investment: How To Use Your Company To Apply

If you’re exploring options for Costa Rica residency by investment, you might be wondering if you can use your company to qualify for Costa Rica residency options.

Here’s what you need to know…

There have been some important adjustments and improvements to Costa Rica residency laws as they regard temporary residencies. The category that has perhaps had the greatest impact is Investor residency.

Important changes to Costa Rica residency by investment

Before the new regulation was implemented, it was possible to apply for residency using property owned under a corporation.

We recognize that owning corporations is a common practice for many, primarily for liability purposes. However, this approach is no longer viable. If you wish to use your property for the residency process, it must be registered in your name, not under a corporation.

While holding assets in your personal name can reduce certain expenses, it’s crucial to consider factors such as estate planning, liability, and investment optics. Our real estate and corporate teams can help you address your unique considerations and situation.

What if my property is owned by a corporation?

In this scenario, the investment for residency purposes will be based on the shares you own in the corporation, rather than the direct use of the property or assets held by the corporation. Let’s clarify this further.

In Costa Rica, it’s common to assign a low value to a corporation’s capital stock, often around one thousand colones. The Immigration Department and the Tax Agency have pointed out the illogical nature of a corporation with such a low capital stock value holding assets worth more than $150,000. Therefore, an increase in capital stock is required before applying for investor residency.

This increase must be registered in the Public Registry, and upon approval, the necessary documents for the Immigration Department will be prepared. This requirement represents a significant change in the law.

Important tip: If you’re considering forming a corporation for your Costa Rica residency by investment, ensure it’s established with an increased capital stock value from the start. This approach will save both time and money.

With the regulation update, new documents are needed to verify your investment through shares, including proof of the capital stock increase, active status of your corporation with the Tax Agency (specifically on their ATV platform), a certification of capital stock distribution, and a letter from a CPA confirming your investment was made through shares.

Don’t worry — we’re here to guide you through these requirements and documents, as we understand navigating the paperwork on your own can be overwhelming and confusing.

The increase in capital stock does not imply higher taxes or additional expenses for your corporation. The Public Registry will update the information, and your corporation will continue to meet its obligations under Costa Rican law as usual.

Is one type of investment for Costa Rica residency more advantageous than the other?

No, one is not inherently better or offers more benefits of Costa Rica residency. It depends on the nature of your investment and the appropriate procedure for your situation.

If you have questions about how to get costa rica residency, please do not hesitate to contact us!

For more information, please fill out the courtesy e-meeting form at the bottom. We’d love to support you on your journey in Costa Rica!