Professionals Preventing and Solving Problems for Expats
Tourists and vendors take advantage of the rest area near the Puente Amistad on the Río Tempisque.
The Puente Tempisque Amistad Taiwan or Tempisque Friendship Taiwan Bridge is much more than just that.
The viewing area is a place for tourists to take pictures, and motorists can see hundreds of people gazing at the structure as if it was one of the Seven Wonders of the World.
Individuals who own companies face a Catch-22 situation when they decide what they will do with the D-175 tax form.
A November 10, 2003 article explained how this year’s tax form D-175 is a sting operation, of sorts, by Tributación Directa, the Costa Rican tax authority. The idea is to catch all those companies not currently on the tax rolls.
Have you ever read that the police sent out letters or placed classified ads offering some phony promotion to catch criminals or parking ticket violators? This year Costa Rica’s tax form D-175 is a sting operation of sorts, too.
For many years, in fact since the beginning of transferring property began in Costa Rica, a company could be created and a property could be placed in that company so when the property was sold again, only the company needed to be signed over to the new owner. The sale could be done rapidly and without payment of trasnfer taxes. This kind of company is referred to as an inmobiliaria or a company holding real estate.
However, very few of these entities ever signed up with the tax department, the Tributación Directa. There are an estimated 308,000 companies listed at the Registro Nacional, the national registry. But a far fewer number are listed with the tax department, and the country wants to fix this anomaly so it will be able to collect more taxes in the future.
On Nov. 22, all annotations over one year old will expire and be purged at the Registro Nacional, Costa Rica’s national registry of properties. This could affect you and your property if for some reason its title is not clear or fully registered.
Here’s a little background. On Nov. 22, 1998, a new notary law was approved and took effect. Before that date all property (real and chattel) annotations would never expire. An annotation is a note on a property’s computer file that indicates a document is pending registration and is defective for some reason. A document can be incomplete for even simple problems, like not enough legal stamps were affixed, taxes could be due, or a number like a cédula (identification number) is incorrect.