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Costa Rica’s Regulatory Compliance Requirements: A Guide for Foreign Investors and Businesses
When it comes to doing business in Costa Rica, regulatory compliance is crucial to avoid legal issues and financial penalties. Failure to comply with financial regulations can have serious consequences, damaging your company’s reputation and impacting its operations.
Why Costa Rica is an Attractive Destination
Located in Central America, Costa Rica has a stable economy and a high level of English proficiency, making it an attractive destination for foreign investors and expats. In 2019, the country received over $2.5 billion in foreign direct investment (FDI), and with recent government incentives to encourage foreigners to return, Costa Rica is poised for continued growth.
Financial Regulatory Compliance in Costa Rica: Key Responsibilities & Dates
For businesses operating in Costa Rica, there are several key compliance responsibilities to be aware of:
- Annual Shareholders Meeting: Holding an annual shareholders meeting within the first three months of the fiscal year (January 1 to December 31), which must be done by March 31.
- Corporation Tax Payment: Paying annual corporation tax to Costa Rica’s General Directorate of Taxation (DGT) no later than January 31.
- Income Tax Returns: Filing annual income tax returns via Form D-101 with the DGT no later than March 15 following the end of the fiscal year.
- Annual Statement Summary: Filing an Annual Statement Summary of Suppliers, Clients and Specific Expenses via Form D-151 by February 28 of the year following the fiscal year being filed for.
- Ultimate Beneficial Owners Declaration: Declaring Ultimate Beneficial Owners (UBOs) by April 30 each year.
- Education and Culture Stamp Payment: Paying the annual ‘Education and Culture Stamp’ to the DGT by March 31.
Additional Considerations
In addition to these key compliance responsibilities, businesses operating in Costa Rica must also:
- Have a Registered Address: Have a Costa Rican address registered where official correspondences can be received.
- Appoint a Legal Representative: Appoint a legal representative in Costa Rica who will represent the company before authorities. If the appointed legal representative is not a Costa Rican citizen or resident, a resident agent must be appointed and they must be a qualified Costa Rican attorney.
Partnering with Biz Latin Hub
At Biz Latin Hub, our team of multilingual corporate support specialists has extensive experience helping businesses navigate financial regulatory compliance in Costa Rica. With our back-office solutions covering accounting & taxation, company formation, legal services, hiring & PEO, and visa processing, we can be your single point of contact for entering and doing business in Costa Rica or any of the other 17 markets around Latin America and the Caribbean where we have teams in place.
Get in Touch
Contact us today to discuss how we can support your business.