Foreign Buyer's Guide to Costa Rica Corporations (S.A. vs SRL)
Taxes & Corporations in Costa Rica: Should You Buy in an S.A. or SRL?
One of the first questions we hear from buyers in the South Caribbean is: "Should I buy this property in my own name or under a Costa Rican corporation?"
In Costa Rica, it is common practice for real estate to be held by a legal entity rather than an individual. This foreign buyers’ guide for Costa Rica Corporations explores why investors choose this route and helps you navigate the high-level differences between the two most common structures: the S.A. and the SRL.
Note: We always recommend deferring to a qualified Costa Rican real estate attorney for final legal advice.
Why Use a Corporation to Hold Title?
As highlighted in any comprehensive foreign buyers’ guide for Costa Rica corporations, holding property through a legal entity offers three primary benefits:
Liability Protection: It effectively separates your personal assets from your real estate investment.
Simplified Estate Planning: Transferring shares (or "quotas") to heirs is often more straightforward than re-titling physical land.
Ease of Management: If you are not physically in the country, a corporation allows you to grant specific powers of attorney for utilities or taxes.
S.A. vs. SRL: What is the Difference?
The S.A. (Sociedad Anónima)
The S.A. is the traditional "Corporation" in Costa Rica, similar to a C-Corp.
Structure: Requires a Board of Directors (President, Secretary, and Treasurer) and a Fiscal Agent.
Governance: More formal; requires annual shareholder meetings.
Best For: Multi-partner investments or complex ownership structures.
The SRL (Sociedad de Responsabilidad Limitada)
The SRL is a "Limited Liability Company," akin to an LLC.
Structure: Simpler; only requires a Manager (Gerente).
Governance: Higher privacy for partners and less "red tape."
Best For: Individuals or families seeking a straightforward way to hold a single home or lot.
2026 Legal Update: Per Law No. 10729, newly formed corporations are now identified solely by their Cédula Jurídica (ID number) rather than a name. If your new property is held by "3-101-XXXXXX S.A.," this is the modern standard for buying property in Costa Rica.
Ongoing Taxes and Responsibilities
A vital part of any foreign buyer’s guide for a Costa Rica corporation is understanding the "maintenance" costs. To keep your entity in good standing, factor these into your annual budget:
Corporation Tax (Impuesto a las Personas Jurídicas): Due every January 31st.
Education & Culture Stamp: Due in February/March.
Shareholder Declaration (RTBF): A mandatory annual filing due every April 30th declaring the "Ultimate Beneficial Owners."
Mandatory Digital Address: As of 2026, all corporations must register an official email address with the National Registry for legal notifications.
A Note on Real Estate Taxes
Regardless of whether you own the property personally or through an S.A./SRL, the Territorial Tax (Property Tax) remains a flat 0.25% of the registered value. In our region, this is paid to the Municipality of Talamaca.
Luxury Tax (Impuesto Solidario): If your construction value exceeds approximately $234,000, you may be subject to this additional tax, due every January 15th.
Consult with a Professional
The choice between an S.A. and an SRL depends on your tax residency and long-term goals. We work with reputable law firms in Puerto Viejo and San José who specialize in helping expats navigate these structures.
Would you like us to introduce you to a local attorney to discuss which structure is right for your purchase? Contact us here.
