Many foreign owners hold Costa Rica property through an S.A. or SRL. When you sell, there are two ways to transfer it, and the choice affects the buyer, the paperwork and the tax.
Asset sale
The corporation sells the property itself, which the buyer usually takes into their own new company. Buyers increasingly prefer this because they do not inherit the old company’s history.
Share sale
You sell the shares of the company that owns the property. Transferring control of a company that owns real estate is now taxed as a transfer of the property, and a gain on the shares is taxable, so a share sale no longer avoids tax.
Before you list
Make sure the corporation’s annual tax, beneficial-ownership filing and books are up to date, because the buyer’s attorney will check them. Get legal and tax advice on which route suits your sale.
Related: S.A. vs SRL for Costa Rica real estate.
Request a free valuation or contact the Flamingo Beach Realty team to talk through your sale.
Frequently Asked Questions
How do I sell a property owned by a Costa Rican corporation?
You can sell the property out of the corporation or sell the corporation’s shares. Buyers increasingly prefer to buy the property into their own new company so they do not inherit the old one’s history. Both routes are taxed, so get legal and tax advice before you list.
