World Expats Services

16/11/2024

CREATING A CORPORATION IN COSTA RICA

Creating a company in Costa Rica involves several steps and compliance with certain legal requirements. Here is a general guide:

1. **Research and Planning:**
- Before starting the registration process, conduct detailed research on the type of business you want to establish, the market in Costa Rica, and specific requirements for your industry. Develop a business plan outlining the structure, objectives, and strategies.

2. **Choosing the Business Structure:**
- Decide on the type of legal entity that best suits your needs, such as a sociedad anónima (S.A.), sociedad de responsabilidad limitada (S.R.L.), or a branch of a foreign company.

4. **Reservation of Company Name:**
- Check the availability of your chosen company name with the National Registry of Costa Rica. If the name is available, you can proceed to reserve it.

5. **Submission of Documentation to the National Registry:**
- Submit the required documentation to the National Registry to formalize the legal existence of your company. Prepare the necessary legal documents, such as the company bylaws and other agreements. You may need the assistance of a lawyer to ensure these documents comply with Costa Rican law.

6. **Opening a Bank Account:**
- Open a bank account in the name of the company. You will need the registered name, company bylaws, and other personal identification documents.

7. **Obtaining Permits and Licenses:**
- Identify and obtain the necessary permits and licenses to operate in your specific industry. Requirements may vary depending on the type of business.

8. **Registration with the Costa Rican Social Security Fund (CCSS):**
- Register your employees (if any) with CCSS to ensure their social security coverage.

9. **Registration with the Ministry of Finance:**
- Register your company with the Ministry of Finance to obtain a tax identification number and fulfill tax obligations.

10. **Registration with the Municipality:**
- Depending on your business location, you may need to register with the local municipality and obtain commercial permits.

11. **Registration with the Ministry of Economy, Industry, and Commerce (MEIC):**
- Some businesses also need to register with MEIC, especially those related to commerce.

12. **Hiring Employees (if necessary):**
- If you plan to hire employees, ensure compliance with labor laws, and register as an employer.

It's crucial to seek legal advice during this process to ensure compliance with all legal and administrative requirements in Costa Rica. We are here to facilitate your path in this crucial decision.

24/10/2024

HOW TO OPEN A BANK ACCOUNT IN COSTA RICA

Opening a bank account in Costa Rica is a relatively straightforward process. Here is a general guide on the steps you can take:

1. **Choose the Account Type:**
- Decide on the type of account you want to open. Common options include savings accounts, checking accounts, and foreign currency accounts.

2. **Select the Bank:**
- There are several banks in Costa Rica, both local and international. Research and choose the bank that best suits your needs and preferences. Some of the major banks in Costa Rica include Banco Nacional, Banco de Costa Rica, and international banks with a presence in the country.

3. **Basic Requirements:**
- To open an account, you typically need basic documents such as your DIMEX and proof of residence in Costa Rica. You must be a resident in Costa Rica to be available to open a bank account.

4. **Visit the Bank Branch:**
- Head to the branch of the chosen bank. Bring along the required documents and any additional information the bank may request.

5. **Complete the Application:**
- At the branch, you will need to fill out an account opening application. The bank staff will guide you through the process and answer any questions you may have.

6. **Initial Deposit:**
- Some accounts may require an initial deposit. Make sure to be informed about this requirement and have the necessary amount ready.

7. **Sign Documents:**
- After reviewing and completing the application, you will need to sign relevant documents. The bank will provide details about the terms and conditions of the account.

8. **Receive Your Card and Documentation:**
- Once the account opening is approved, you will receive an associated debit or credit card and any other relevant documentation.

It's essential to remember that exact requirements may vary depending on the bank and the type of account. It is advisable to contact the specific bank you plan to join for detailed information on necessary documents and any additional requirements.
If you require any legal assistance with this process don’t hesitate to contact us.

account Rica currency

World Expats Services: Your legal partner in Costa Rica. From real estate to immigration, tax planning, and business formation, we've got you covered.

22/09/2024

NOTARY SERVICES IN COSTA RICA

In Costa Rica, notarial services are provided by professionals known as notaries public. Here is relevant information about notarial services in Costa Rica:

1. Functions of the Notary:
- The notary in Costa Rica has the authority to provide public faith and authenticate legal documents. Their functions include drafting and legalizing contracts, deeds, wills, and other legal documents.

2. Real Estate Transactions:
- One of the most common notarial services is assistance in real estate transactions. The notary ensures the legal validity of property transfers and verifies that there are no liens or legal issues associated.

3. Notarial Powers of Attorney:
- Notaries can grant notarial powers of attorney that give legal authority to a person to act on behalf of another. This is commonly used in cases of legal representation or specific legal procedures.

4. Company Incorporation:
- Notaries also play a role in the incorporation of companies in Costa Rica. This involves drafting articles of incorporation and other legal documents necessary for the legal establishment of a business.

5. Wills and Successions:
- Notarial services encompass the drafting and legalization of wills and other documents related to successions and inheritances. The notary ensures that these documents comply with local succession laws.

6. Contracts and Agreements:
- Any legal contract or agreement can be drafted and authenticated by a notary. This includes lease agreements, business agreements, and other legal documents requiring legal validity.

7. Signature Legalization:
- Notaries can legalize signatures, certifying that the signature on a document is genuine. This service is useful in international transactions and other legal processes.

8. Divorces and Separations:
- Notaries may be involved in certain divorce and separation procedures, particularly in the drafting and authentication of legal agreements between parties.

If you are seeking notarial services in Costa Rica, it is advisable to directly contact us. Notaries can be found in urban areas and legal centers. Additionally, note that notarial fees are regulated by the government, and notaries must adhere to established fee schedules.

13/09/2024

VEHICLE COLLISION IN COSTA RICA

Now what? (with only material damages)

In the event of a traffic accident in Costa Rica, the procedural aspects may deviate from those encountered by tourists in their home countries. In instances involving only material damages, it is imperative to initiate contact with emergency services by dialing 9-1-1, reporting the collision, and awaiting the arrival of a traffic officer who will issue a citation. If the vehicle involved is a rental, immediate communication with the rental car agency is mandatory to report the incident. Regardless of culpability for the collision, your departure from the country should not be impeded.

In the unfortunate event of a collision in Costa Rica resulting in injuries to a third party, there are specific procedures to follow:

1. Emergency Assistance. Immediately call emergency services by dialing 9-1-1 to report the collision and request medical assistance. Provide detailed information about the location and the severity of injuries.

2. Do Not Move the Injured. Avoid moving injured individuals unless there is an immediate threat to their safety. Wait for medical professionals to arrive and assess the situation.

3. Notify Insurance Companies. Contact your insurance company promptly to report the collision. Provide all necessary details, including the extent of injuries to the third party.

4. Witness Statements. If there are any witnesses to the collision, obtain their contact information and statements. Witnesses may play a crucial role in determining liability.

5. Contact us for Legal Assistance. Seek legal advice and representation to navigate the legal aspects of the collision, especially if there are injuries involved. Legal professionals can guide you through potential liabilities and help protect your interests.

28/08/2024

A HEALTHY AND SECURE WORKPLACE ENVIRONMENT

As part of our commitment to fostering a healthy and secure workplace environment, we are excited to offer specialized training sessions tailored to address critical issues such as workplace harassment and fraud prevention.

1. Workplace Harassment Training.
Our comprehensive training programs aim to equip your company and its employees with the knowledge and skills to identify, prevent, and address workplace harassment. This includes both sexual harassment and general forms of workplace misconduct. By fostering a culture of respect and awareness, we empower your team to create a safe and inclusive working environment.

2. Fraud Prevention Workshops.
Our fraud prevention workshops provide practical insights and strategies to safeguard your organization against financial and operational risks. We cover key aspects of fraud detection, prevention, and response, helping your team stay vigilant and proactive in maintaining the integrity of your business operations.

Benefits of Our Training Programs.
Expert-led sessions tailored to your industry and organizational needs.
Practical insights and real-world scenarios for a hands-on learning experience
Interactive workshops fostering open dialogue and a culture of compliance.
Customizable content to address specific concerns and challenges faced by your company.

Why Choose Us.

Our trainers are seasoned professionals with extensive experience in their respective fields.
We prioritize creating a supportive and engaging learning environment for all participants.
Tailored solutions to meet the unique requirements and goals of your organization.

To discuss how our training programs can benefit your company and schedule sessions that align with your team's needs, please feel free to contact us at [email protected]

We are committed to empowering your workforce with the knowledge and skills needed to create a secure and respectful workplace environment.

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10/08/2024

LABOR LAW IN COSTA

Labor law in Costa Rica is a comprehensive framework of regulations that govern the rights and obligations of both employers and employees. The primary sources of labor law in Costa Rica include the Labor Code (Código de Trabajo), various regulations, collective bargaining agreements, and judicial interpretations. Here are some key aspects of labor law in Costa Rica:

1. **Employment Contracts:**
– Employment contracts in Costa Rica can be either written or verbal, but it is advisable to have a written contract outlining the terms and conditions of employment. Contracts should include details such as salary, working hours, benefits, duration of employment, and termination clauses.

2. **Minimum Wage:**
– Costa Rica establishes a minimum wage for different sectors of the economy, which is periodically adjusted by the government. Employers must ensure that they pay their employees at least the minimum wage for their sector.

3. **Working Hours and Overtime:**
– The standard workweek in Costa Rica is 48 hours, typically spread over six days. Overtime is payable for work performed beyond the standard hours and is compensated at a higher rate. The maximum number of hours an employee can work per day is established by law.

4. **Vacation and Holidays:**
– Employees in Costa Rica are entitled to paid vacation days and public holidays. The number of vacation days depends on the length of service and is typically accrued over time. Public holidays are also paid, and employees may receive additional compensation if they work on these days.

5. **Social Security Contributions:**
– Employers and employees are required to contribute to the Costa Rican social security system, which provides healthcare, pensions, and other benefits. Contributions are based on a percentage of the employee’s salary and are mandatory for both parties.

6. **Maternity and Paternity Leave:**
– Female employees are entitled to maternity leave, which includes a period before and after childbirth. Male employees are also entitled to paternity leave. During maternity and paternity leave, employees are typically entitled to receive a portion of their salary from social security.

7. **Termination of Employment:**
– Costa Rican labor law regulates the conditions under which an employment contract can be terminated by either the employer or the employee. There are specific procedures and requirements that must be followed, including providing notice and paying any applicable severance.

8. **Labor Inspections and Disputes:**
– The Ministry of Labor and Social Security (Ministerio de Trabajo y Seguridad Social) is responsible for enforcing labor laws and conducting inspections to ensure compliance. Employees have the right to file complaints with the labor authorities in case of disputes or violations of their rights.

It’s important for employers and employees in Costa Rica to be familiar with labor laws and regulations to ensure compliance and protect their rights. Additionally, seeking legal advice or consulting with labor experts can help navigate complex labor issues effectively.

If you are planning to open a business in CR lets us guide, you from A to Z to do it properly.

10/08/2024

COMPLIANCE CORPORATION

1. Legal and Regulatory Compliance: Compliance programs ensure adherence to relevant laws and regulations, helping organizations avoid legal penalties, fines, and reputational damage from non-compliance.

2. Ethical Standards and Corporate Governance: A strong compliance program fosters ethical behavior and high standards of corporate governance, building and maintaining trust with stakeholders, including customers, investors, and employees.

3. Risk Mitigation: These programs help identify and mitigate risks associated with operations, reducing the likelihood of costly legal issues, financial losses, and reputation damage.

4. Reputation Protection: A good compliance program safeguards an organization's reputation by upholding its commitment to ethical practices and legal standards, which is crucial for business success.

5. Financial Integrity: By ensuring accurate and transparent financial reporting, compliance programs support regulatory requirements, boost investor confidence, and prevent financial fraud.

6. Employee Guidance and Training: Compliance programs offer guidelines and training on policies, procedures, and legal requirements, fostering a culture of compliance and reducing inadvertent violations.

7. Customer Trust and Satisfaction: Customers value ethical practices, and a robust compliance program enhances trust and satisfaction by signaling a commitment to fair business practices.

8. Global Operations and Cross-Border Compliance: For organizations with global reach, compliance programs help navigate complex international regulations, ensuring adherence across various jurisdictions and reducing the risk of legal challenges.

9. Efficient Operations and Resource Allocation: A well-designed compliance program streamlines operations, providing clear guidelines and processes that allow for efficient resource allocation and a focus on core business activities.

10. Competitive Advantage: Organizations with strong compliance programs often gain a competitive edge, as customers and partners prefer to engage with companies that prioritize ethical conduct and compliance.

14/07/2024

TAXES IN COSTA RICA

There are various taxes that individuals and businesses may be required to pay. The tax system in Costa Rica includes both direct and indirect taxes.

Income Tax (Renta). Individuals and companies are subject to income tax. The rates vary depending on the type of income and the taxpayer’s residency status. Residents are taxed on their worldwide income, while non-residents are taxed only on their Costa Rican-sourced income.

Value Added Tax (Valor Agregado-IVA). IVA is a consumption tax applied to the sale of goods and services. The standard rate is typically 13%, but there are reduced rates for certain essential goods. Some transactions, such as medical services and education, may be exempted.

Property Transfer Tax (Traspaso). This tax is applied to the transfer of real estate properties. The rate is typically 1.5% of the property’s registered value. Both the buyer and the seller may have obligations related to this tax.

Capital Gains Tax (Ganancias de Capital). Capital gains tax is applied to the profit generated from the sale of certain assets, including real estate. The rates can vary, and there may be exemptions for primary residences.

Corporate Tax (Personas Jurídicas). Entities known as “sociedades anónimas” (anonymous societies) are required to pay an annual corporate tax. The amount is determined based on the entity’s capital.

Customs Duties (Aduana). Customs duties are applied to imported goods. Rates can vary depending on the type of product and its origin. Some goods may be subject to exemptions or preferential rates under international agreements.

Municipal Taxes (Municipales). Local municipalities may levy taxes on various activities and services, such as property taxes, business taxes, and vehicle taxes. The rates and regulations can vary by municipality.

Social Security Contributions (Seguridad Social). Employees and employers contribute to the social security system. These contributions fund healthcare, pensions, and other social benefits.

14/07/2024

PURCHASE A PROPERTY IN COSTA RICA.

Public Notary System. Costa Rica operates under a civil law legal system, and notaries play a crucial role as legal professionals with public authority. Notaries in Costa Rica have extensive legal training and are appointed by the government. Unlike in common law countries where lawyers handle legal aspects of real estate transactions, in Costa Rica, notaries have the authority to handle various legal procedures, including property transfers.

Legal Expertise and Document Authentication. Notaries in Costa Rica have a legal duty to ensure that all aspects of a property transaction comply with the law. They review and verify the legal status of the property, ensuring there are no encumbrances or legal issues. Notaries authenticate and draft the property transfer documents, ensuring that the transaction adheres to legal requirements. This includes drafting the public deed of transfer, which is a legally binding document that transfers ownership.

Title Registration. Notaries are responsible for registering the property transfer with the Public Registry. This registration is crucial to establish legal ownership and protect the buyer’s interests. The Public Registry is a centralized database that records property ownership, mortgages, and other relevant information. The notary ensures that the new ownership information is properly recorded, providing legal security for the buyer.

Preventing Fraud and Protecting Parties. The involvement of a notary helps prevent fraud and provides an extra layer of security for both the buyer and seller. Notaries are responsible for verifying the identities of the parties involved and ensuring that they are legally capable of entering into a property transaction.

Legal Advice and Document Drafting. Notaries in Costa Rica often provide legal advice to both parties involved in the transaction. They explain the legal implications of the transaction, guide parties through the process, and ensure that all necessary legal documents are properly drafted and executed.

World Expats Services: Your legal partner in Costa Rica. From real estate to immigration, tax planning, and business formation, we've got you covered.

14/07/2024

AVOID LOSS OF YOUR CAPITAL - LAW 9208 - SECTION 35.

Both nationals and foreigners, to declare cash or securities upon entering or leaving a country when the amount equals or exceeds ten thousand United States dollars (USD $10,000.00) or its equivalent in another currency. Here’s an explanation in English.

Declaration Obligation:

When entering or leaving a country, individuals, whether nationals or foreigners, are required to declare any amount of cash or securities that exceeds ten thousand United States dollars (USD $10,000.00) or its equivalent in another currency.

The primary purpose of this measure is to prevent illegal activities such as money laundering, tax evasion, and terrorist financing by providing customs authorities with the ability to track large sums of money that may be linked to illicit activities.

Official Forms:

The declaration of these funds must be made using official forms specifically designed for this purpose. These forms will be provided by competent officials from the Customs Administration at immigration checkpoints, which are designated locations for entry and exit controls.

The use of official forms ensures consistency in information collection and facilitates the review process by authorities.

Purpose of Declaration:

Declaration does not automatically imply that the individual will face sanctions or restrictions, but it allows customs authorities to track and analyze international financial transactions.

This type of information is valuable for government authorities in combating criminal activities and can also aid in the enforcement of fiscal policies.

Sanctions for Non-Compliance:

Non-compliance with the declaration obligation may result in sanctions, which could include fines or confiscation of undeclared funds.

These deterrent measures aim to encourage compliance with regulations and contribute to the integrity and security of international financial transactions.

14/07/2024

MARRIAGE IN PARADISE.

Why Choose Costa Rica for Your Beach Wedding?

Spectacular Beach Backdrops: Imagine exchanging vows against the backdrop of pristine white-sand beaches, with the rhythmic sound of waves serenading your special moment. Costa Rica boasts some of the most stunning and untouched beaches in the world, providing an enchanting setting for your celebration of love.

Tropical Weather Perfection: Embrace the beauty of our tropical climate, where sunny skies and warm temperatures are almost guaranteed. Your wedding day will be bathed in the soft glow of the sun, creating a magical and romantic atmosphere for you and your guests.

Natural Beauty Surrounds You: From lush rainforests to turquoise waters, Costa Rica offers a diverse and captivating backdrop for your wedding photos. Capture moments of pure bliss with the vibrant colors of our tropical paradise as your backdrop.

Relaxed and Intimate Atmosphere: Experience the laid-back charm of Costa Rica, allowing you to enjoy your special day in a relaxed and intimate atmosphere. Our welcoming culture and friendly locals add an extra touch of warmth to your wedding celebration.

Adventure Awaits: For the adventurous couple, Costa Rica offers a myriad of activities to turn your wedding into an unforgettable experience. From zip-lining through the rainforest to exploring volcanic landscapes, your wedding can be as adventurous as your hearts desire.

Planning Your Perfect Day: Our team of experienced wedding planners is dedicated to turning your dream into reality. We’ll handle all the details, ensuring your day is stress-free and filled with pure joy. From selecting the perfect beach venue to curating a menu that showcases the flavors of Costa Rica, we’ve got it all covered.

So, why not choose the beauty of Costa Rica for your once-in-a-lifetime celebration? Let the waves witness your love story, and the tropical breeze bless your union.

If you have any questions or would like to explore the possibilities further, please don’t hesitate to reach out. We can’t wait to be part of your love story!

14/07/2024

BUYING A CAR IN CISTA RICA.

In Costa Rica, the process of buying a car involve a notary who is also a a lawyer to handle the legal and administrative aspects of the transaction. Here is an overview of the typical steps involved in buying a car in Costa Rica:

1- Vehicle Inspection. Before purchasing a car, it’s advisable to have it inspected by a trusted mechanic to ensure its mechanical condition.

2- Negotiation and Agreement. Once a suitable car is found, the buyer and seller negotiate the terms of the sale, including the purchase price and any other relevant conditions.

3- Deposit and Documentation. A deposit may be required to secure the deal. The buyer and seller then proceed to complete the necessary documentation, including a purchase agreement.

4- Payment and Transfer. The buyer pays the remaining balance of the purchase price, and both parties go to a financial institution to complete the transaction. The financial institution ensures that any existing loans or liens on the vehicle are settled.
5- Transferring Ownership at the Registro Nacional. The final step involves transferring ownership of the vehicle at the Registro Nacional (National Registry). This process is done by a Public Notary.

6- Vehicle Taxes and Fees. The buyer is responsible for paying the applicable vehicle taxes and registration fees. These fees are typically calculated based on the vehicle’s value.

It’s advisable for individuals buying a car in Costa Rica to seek guidance from local experts or professionals who are familiar with the country’s specific regulations and processes to ensure a smooth and legal transaction.