Legal guide to investing in Costa Rica: what every foreigner should know

Costa Rica has established itself as one of the most attractive destinations for foreign investment in Central America. With a stable democracy, a solid legal framework, and a strategic location, the country offers exceptional opportunities for investors from around the world.

Legal framework for foreign investors

Costa Rica's legal framework allows foreigners to acquire property with the same rights as national citizens, with some exceptions in maritime-terrestrial zones. The Foreign Investment Law guarantees equal treatment and investment protection.

Most commonly used types of companies

The most common corporate structures for foreign investors are the Sociedad Anónima (S.A.) and the Sociedad de Responsabilidad Limitada (S.R.L.). Each has specific characteristics regarding liability, management, and taxation.

Due diligence: an essential step

Before any investment, it is essential to conduct thorough due diligence, including property registry verification, cadastral plan review, confirmation of permitted land use, and a review of liens and encumbrances.

Key tax considerations

Costa Rica applies a territorial tax system, meaning only income generated within the country is taxed. Investors should be familiar with the Income Tax, Value Added Tax (VAT), and the Real Estate Tax.

At BRZ Legal Consulting, we guide foreign investors through every step of the process, ensuring legal certainty and efficiency in all their operations in Costa Rica.