Understanding Costa Rica’s Tax Incentives for Traders and Retirees – Cyber Running a blog

ARTICLE 16.- On the enjoyment of fiscal incentives for buyers, retired residents, or income-based residents.

Overseas people categorized as buyers, retired residents, or income-based residents, might benefit from the fiscal incentives established in article 5 of the Legislation.

For these functions, the DGME will ship a duplicate of the decision that authorizes or disallows one or a number of of the classifications talked about within the earlier paragraph to the Basic Directorate of Taxation and the Basic Directorate of Finance, based on the interinstitutional coordination settlement that’s signed for that function.

ARTICLE 17.- Exemption from import taxes. Beneficiaries of Legislation No. 9996 might import exempt from taxes:

Family items: Will probably be exempt from import taxes, for one time solely, upon the beneficiary’s administration within the EXONET System and authorization issued by the DGE, the import taxes for family items, devices, or supplies for the skilled or scientific apply of the candidates.

For this, the social gathering should element and justify of their exemption utility the amount of products to be exempted and show that they’re in line with their financial, household, {and professional} scenario. Based mostly on the knowledge submitted, the DGE will carry out the evaluation based mostly on the definition identified in relation to portions and problems with proportionality, based on every particular case.

Autos: Beneficiary people might import as much as two land, air, and/or maritime transport automobiles for private or household use, freed from all import taxes, customs duties, and value-added taxes.

In these instances, prior authorization from the DGE of the Basic Directorate of Finance will likely be required for the applying of the tax profit, by means of the process established by Govt Decree No. 3 1611-H of October 7, 2003, and its amendments.

ARTICLE 18.- Necessities for the exemption from import taxes.

1. a) Exemption utility made by means of the EXONET System
2. b) Be updated within the compliance with their materials and formal tax obligations, in addition to within the submission of tax declarations they’re obliged to earlier than the dependencies of the Ministry of Finance, in accordance with what’s established in article 18 bis of the Tax Code, as will likely be outlined by common decision.
3. c) Be updated of their social safety obligations with the Costa Rican Social Safety Fund (CCSS), in accordance with what’s established in article 18 bis of the Tax Code and 74 of the Constitutive Legislation of the CCSS.
4. d) Maintain the approved and present migratory standing of “Investor, Retired Resident or Revenue-based Resident”.
5. e) Current the checklist of products and home items to be exempted. On this level, the social gathering should justify the proportionality within the amount of the products and that these are appropriate for his or her financial, household, {and professional} scenario.

ARTICLE 19.- Process to request the Exemption in EXONET. To hold out the procedures associated to the enjoyment of the exemptions listed in article 5 of the Legislation, beneficiary people should register within the Digital Data System known as EXONET of the Basic Directorate of Finance.

The beneficiary should log in by way of the Web to the tab known as “Exemptions” discovered on the official web page of the Ministry of Finance’s Web site or to the URL https://www.hacienda.go.cr/.

In accordance with what’s established in article 102 of the Tax Code, the DGE has a most interval of two months to take care of and resolve the raised administration.

ARTICLE 20.- Registration of actions within the Single Tax Registry. People duly approved by the DGME as buyers, retired residents, or income-based residents, who perform financial actions within the nationwide territory, should register with the Basic Directorate of Taxation, in accordance with the present procedures established for registration, modification of knowledge, and deregistration within the Single Tax Registry.

ARTICLE 21.- Exemption within the Actual Property Switch Tax. In instances the place the beneficiary acquires actual property throughout the validity interval of this legislation, they could apply a discount of as much as twenty % (20%) of the entire switch tax due.

For this, the beneficiary might apply the tax discount within the switch kind established by the Basic Directorate of Taxation, in accordance with the process established by common decision.

In instances the place the beneficiary particular person transfers these acquired property beneath this text throughout the validity interval of the Legislation, the acquirer should liquidate and pay the initially exempted taxes.

ARTICLE 22.- Validity interval of the incentives. As established within the first paragraph of article 12 of the Legislation, buyers, income-based residents, or retirees might go for the advantages granted in article 5 of Legislation No. 9996 solely throughout the first 5 years of its validity.

Within the case of buyers, income-based residents, or retirees who opted for such advantages throughout the first 5 years of the validity of the Legislation, as established within the second paragraph of article 12 of the Legislation, they have to hold the property of their possession for no less than 10 years.

Within the case of automobiles, the switch to 3rd events will proceed after 10 years from the granting of the profit, after the method of tax launch within the EXONET System.

The respective switch is topic to the cost of the tax established in article 10 of Legislation No.7088, Tax Adjustment and Decision 18ª of the Customs and Tariff Council CA, of November 30, 1987, and its amendments.

ARTICLE 23.- Substitute of family items or their devices or supplies for skilled or scientific apply. Items imported exempt that undergo destruction or loss attributable to theft could also be changed by others comparable exempt from the cost of taxes on their acquisition, throughout the first 5 years of validity of Legislation No. 9996, upon compliance with:

1- New exemption utility processed by the EXONET System, through which the necessities established in article 18 of this Regulation, known as “Necessities for the exemption from import taxes”, are supplied.

2- In case of theft, current a duplicate of the corresponding judicial grievance the place the stolen items are adequately described.

3- In case of destruction, current a sworn assertion indicating the explanations and date of the occasion that precipitated the destruction of the products.

ARTICLE 24.- Substitute of auto. Autos imported exempt in accordance with the Legislation and this Regulation could also be changed by one other, in case of lack of the automobile attributable to theft, complete destruction by hearth, flood, collision, or accident, occurring throughout the 5-year validity interval of the advantages granted based on the provisions of the second paragraph of article 12 of Legislation No. 9996, through which case the proprietor might import one other automobile freed from taxes.

In these instances, the process and necessities established in articles 17 and 18 of this Regulation have to be addressed.

ARTICLE 25.- Tax settlement in instances of cancellation or revocation of the authorization of the migratory standing of the beneficiaries. In these instances the place the beneficiary particular person renounces their standing as “investor”, “retired resident” or “income-based resident”, or, within the case that the migratory standing is canceled by the DGME, they have to pay the taxes on the products for which they obtained exemptions, in addition to any kind of profit, additionally having to pay the respective taxes to nationalize these items that had been imported with out the cost of taxes.

Likewise, they have to pay the respective pursuits and penalties, in accordance with what’s established in Title III of the Tax Code.