Buying a house through a corporation or in your own name

Many foreigners who buy a house in Costa Rica do so in the name of a company, and many sellers offer their house inside a company that is already registered. This guide explains why that structure is used, which type of company usually suits you, what tax it pays each year, what to check before buying a company that already owns the house and when it is better to buy in your own name.

Why do many foreigners buy through a company?

In Costa Rica, a foreigner does not need a company to buy a house with title registered in the National Registry: they can register it in their own name with their passport. Even so, buying in the name of a company is a widespread practice among buyers from the United States, Canada or Europe, and many sellers offer their house inside a company that is already the registered owner. Before accepting that structure, it is worth understanding what it solves and what it costs to maintain.

The most common reasons are practical. A company lets several people share the property in clear proportions, with written rules for partners coming in and going out. It can also organise inheritance, because what passes to the heirs is shares or quotas rather than the property itself, as long as the bylaws provide for it. Some buyers value that the National Registry shows the company as owner rather than their name, and others want to keep the house separate from other personal assets or businesses.

The downside is that the company has costs and obligations every year: the tax on legal entities, legal books kept up to date, the beneficial ownership declaration with the Central Bank of Costa Rica, the annual informative return to Tributación even if the company has no activity and, if the house is rented out, accounting and the rental tax returns. Selling shares instead of the house also has its own tax rules, which are worth reviewing with an accountant. To gauge the expenses of a direct purchase, see what buying a house costs on top of the price in Costa Rica.

Corporation or limited liability company?

In Costa Rican practice, two structures are used above all. A corporation (sociedad anónima) divides its capital into shares and is run by a board of directors, with an auditor who oversees management; it is designed for businesses with several investors and for shares to change hands easily. A limited liability company (sociedad de responsabilidad limitada) divides its capital into quotas and is run by one or more managers; its structure is simpler and a new partner usually needs the agreement of the others to come in.

For the annual tax there is no difference: under article 1 of the Tax on Legal Entities Law (Law 9428), if you hold your property through a company, that company pays the tax, which falls on every commercial company, branch of a foreign company and sole-proprietor limited-liability company registered with the Registry of Legal Entities.

For a family home with one or two owners, a limited liability company is usually enough: it has fewer positions to fill and fewer minutes to keep. A corporation makes more sense when there are several investors or when stakes are expected to be sold often. With either one, ask for the bylaws to state what happens if a partner dies, divorces or wants to leave, and who may sell or mortgage the house.

How much does the company pay each year and what if it stops paying?

The amount is set as a percentage of the monthly base salary, which is updated every year, so the charge in colones changes from one year to the next. Under article 3 of that law, a registered company that is not registered in the Single Tax Registry (RUT) pays 15% of one monthly base salary, and one that files profit tax pays a higher percentage depending on the gross income in its previous return. Even if the company has no activity, it must file an annual informative return with Tributación: ask your accountant to handle it and to confirm which tier of this tax applies.

The calendar is short. Under articles 2 and 4 of Law 9428, the tax accrues at the start of each year and is paid within the first 30 calendar days after that; a company registered during the year pays the tier (a) rate pro rata for the rest of the period, within 30 calendar days after its filing with the Registry. Article 4 of that law adds that the company's legal representative is jointly and severally liable with the company if the tax is not paid.

Failing to pay has direct consequences for the house. Under article 5 of Law 9428, if the company is in arrears, the National Registry will not issue it certificates of legal standing or register any document in its favour, it may not contract with the State, and the debt becomes a preferential statutory mortgage on its real estate. In practice, while the debt remains, the company's registry procedures stall and the house stands as security for the tax.

If the arrears drag on, article 7 of that law provides that a company that fails to pay the tax for three consecutive periods becomes subject to dissolution and the National Registry cancels its registration. Within three years of the cancellation, its representative may request reinstatement by paying everything owed, with fines and interest. That is why it is wise to schedule the payment every January and to have someone in Costa Rica, a lawyer or an accountant, keep an eye on it if you live abroad.

What should you check before buying a company that already owns the house?

Many houses are sold with the company included: the seller offers to transfer the shares or quotas instead of the house. With that transaction you are not just buying a property, you are buying a legal entity with its whole history: its debts, its contracts, its lawsuits and its outstanding taxes. The review has to be as thorough as that of the house itself, and it is best done in this order.

1. 1
   Request the company's certificate of legal standing from the National Registry to confirm that it is still registered and who its representatives are.
2. 2
   Verify that the company is up to date on the tax on legal entities, because a company in arrears cannot register documents in its favour.
3. 3
   Review the title search of the house: it should be in the company's name and free of mortgages, liens or annotations you do not know about.
4. 4
   Ask for the legal books, with the minutes and the register of partners, and confirm that the seller owns all the shares or quotas.
5. 5
   Confirm that the company has no debts with the municipality, the CCSS, the tax authority or third parties, and ask for the contract to make the seller liable for prior debts.
6. 6
   Appoint your own representatives, register the change with the National Registry and update the beneficial ownership declaration.

That review does not replace negotiating the price. Before making an offer, compare what the seller asks with home prices in Costa Rica in the same area, and ask your lawyer to put in writing who is liable for debts prior to the transfer of the shares or quotas.

Does a company work for residence or for buying near the beach?

If you plan to apply for investor residence by buying a house, a company works against you. Under article 7 of the regulation of Law 9996 (Executive Decree 43926-MGP-H-TUR), whoever invests in property for that residence must be the registered owner in their own name, because assets registered to a company are not accepted, and must provide a municipal certificate no older than three months showing the property's value and that municipal taxes are paid up. You should confirm the minimum investment and the other requirements with your lawyer.

Near the beach, the issue is different. Much of Costa Rica's coastal strip is maritime-terrestrial zone: the municipality does not sell it but grants concessions. Under article 47 of the Maritime-Terrestrial Zone Law (Law 6043), no concession is granted to foreigners who have not resided in the country for at least five years, to corporations with bearer shares, to companies or entities domiciled abroad, to entities incorporated in Costa Rica by foreigners, or to entities more than 50% of whose capital belongs to foreigners.

Buying the shares of a Costa Rican company that already holds the concession does not work either. The same article 47 of Law 6043 provides that neither the concession-holding company nor its partners may transfer quotas or shares to foreigners; the law sets no percentage for this rule and declares any contrary transfer invalid. According to the ICT's legal office, every change of partners must be reported to the municipality with an updated certificate of the capital. A house near the sea with registered title outside that strip follows the general rules: the title search tells you which case applies.

When is it better to buy in your own name?

Buying in your own name is usually the simplest option when one person or a couple is buying, when the house is for living in and when you plan to apply for investor residence. You avoid the annual tax, the legal books and the risk that a missed payment blocks the house at the National Registry. It also simplifies a personal mortgage application and dealings with the municipality.

A company makes more sense when there are several owners who are not family, when the house will be run as a rental business or when your lawyer uses it for a specific estate plan. If you plan to rent it out, first look at the supply of homes for rent in Costa Rica to understand what you will compete with, and ask an accountant how that income is taxed inside a company.

What is worth avoiding is a company by inertia: setting one up because the seller already had one or because it is customary among foreigners, without a reason that justifies its costs. While you decide on the structure, you can browse homes for sale in Costa Rica and bring two or three concrete options to your lawyer to decide with a real case.

What we would do before signing

• Deciding whether to buy in your own name or through a company before signing the purchase option, because changing it later means a transfer with its own expenses.
• Buying in your own name if the plan includes investor residence, because assets registered to a company are not accepted.
• Requiring the certificate of legal standing, the company review and the tax paid up before buying shares or quotas.
• Confirming whether a beach house is in the maritime-terrestrial zone before negotiating, because a company of foreigners does not solve that restriction.
• Also comparing lower-priced options, such as cheap homes for sale in Costa Rica, or renting first among cheap homes for rent in Costa Rica to get to know the area before buying.

Frequently asked questions

Can a foreigner register a house in their own name without residence?

Yes. In Costa Rica a foreigner can be the registered owner of a titled house using their passport, without residence and without a company. The main restriction is in the maritime-terrestrial zone, where concessions carry the limits of article 47 of Law 6043. Outside that strip, buying in your own name follows the same notarial process as for a Costa Rican: title search, deed and registration with the National Registry.

Who is liable if the company does not pay the tax?

The company, first of all, and with it its legal representative, who is jointly and severally liable under Law 9428. If you are the representative, the debt can reach you personally. If it is a third party, for example the lawyer who formed the company, it is wise to agree in writing who pays, by when and how you will be notified. In addition, while the arrears last, the debt weighs on the house as a preferential statutory mortgage.

Can the house be moved from the company into your own name?

Yes, through a transfer deed before a notary in which the company conveys the house to the individual. It is a conveyance like any other, with its taxes and fees, so it is best planned before buying rather than years later. To do it, the company must be up to date on the tax on legal entities, because the debt weighs on its real estate as a preferential statutory mortgage and stalls its procedures at the National Registry.

What happens if the company that owns the house has already been cancelled?

If the National Registry cancelled the company for failing to pay the tax for three consecutive periods, its representative has three years from the cancellation to request reinstatement by paying everything owed, with fines and interest, under article 7 of Law 9428. After that period, the house's situation becomes complicated and requires specific legal advice. That is why it is wise to check the company's status every year, even if nobody lives in the house.

This guide summarises the practice of buying a house through a company or in your own name in Costa Rica as of November 2026, with the rules cited in each section. It does not replace the advice of a lawyer or a notary, who should review your case, the company's bylaws and the house's title search before you sign.