Endorsement of Shares as Payment of Property Tax

The creation of a Register of Shareholders in Costa Rica aims to control the payment of tax on transfer of real estate.

Monday, March 17, 2014


Analysts say that if the purpose of the creation of the Register of Shareholders was the fiscal control of a commercial act geared towards commercial companies with specific characteristics, simpler ways could have been devised to achieve it, rather than creating a general obligation for all corporations.

An article by Ricardo Gonzalez in Nacion.com reports that "officials at the Tax Administration have clarified that the intention of publishing the "Resolution on the Statement of Shareholders in Companies" and the consequent creation of the Register of Shareholders of Costa Rica, is to be able to control payment of transfer tax on real estate, when the mechanism is chosen for such a negotiation is the endorsement of shares and not a change of registered owner."

In Costa Rica registering valuable commercial real estate as belonging to companies, has been widely used to circumvent the fiscal costs in the event of a sale, since it is undertaken as endorsement of the shares of the company owning the property.

" ... Controlling these transfers of shares which are not declared or reported on any public record, is a problem for the Administration and with this objective the intention is to gather information from all partners and all corporations."

More on this topic

Shareholders Registry: Projecting Backlogs in Costa Rica

September 2019

Businessmen ask for an immediate extension in the application of any fines, as many representatives of companies have not yet managed their digital signature and at this time, there is no capacity installed in the authorized posts.

Since September 1, the process of registration of approximately 370,000 legal persons began. They will have the obligation to comply with the "Registry of Transparency and Final Beneficiaries," and the legal documents ending in 0 and 1 should have done so first.

Costa Rica: Companies Must Report Their Shareholders

February 2014

The Taxation Office has sent to consultation a resolution that would require corporations to disclose information about their shareholders.

The Directorate General of Taxation has sent to consultation a resolution demanding that every society must report who their shareholders are.

Tax Shields to Protect Identity of Shareholders

January 2013

In Guatemala "there are still ways to start a business with due secrecy for its owners."

Specialists in corporate and tax law in Guatemala say the Forfeiture Act, Decree 55-2010, leaves the gate open for owners of shares of companies to withhold their identity.

Alvaro Castellanos Howell, a lawyer at the law office Consortium, cited as an example the establishment of a company in countries "where bearer shares are allowed, and then an investment is made in Guatemala with shares, buying moveable goods as an off-shore entity".

Anonymous offshore corporations & the bearer share

April 2008

Panama Corporations are known world wide for being the most anonymous corporations in the world.

There are many advantages to incorporating your offshore company in Panama. The company has strict privacy laws, easily accessible banks, they don’t recognize tax evasion as a crime or participate in any tax treaties and a corporation can be set up within a matter of days.

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Barrantes & Associates is a full service Costa Rica Law firm located in San Jose Costa Rica. We have been in business since 1999. All our Attorneys are English speaking.
Operates in Costa Rica and Panama
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