Investment options in Costa Rica and RTBF Compliance. A Guide for Foreign Investors
Costa Rica presents a promising environment for foreign investors, with opportunities in tourism, agriculture, technology, and real estate. The country’s stable economy, eco-friendly policies, and tax incentives make it an appealing choice for entrepreneurs. However, starting a business in Costa Rica also involves meeting regulatory requirements, including the Registro de Beneficiarios Finales (RTBF), a declaration that discloses the final beneficiaries of a business to the Central Bank of Costa Rica. This guide provides an overview of business opportunities, setup steps, and essential RTBF compliance requirements.
RTBF COMPLIANCE: The Registro de Beneficiarios Finales:
The Registro de Beneficiarios Finales (RTBF) is a declaration to the Central Bank of Costa Rica that mandates businesses to disclose their final beneficiaries. This requirement is part of Costa Rica’s commitment to financial transparency and anti-money laundering measures. RTBF compliance is mandatory for all entities operating in Costa Rica. Here’s what foreign investors need to know:
What Is the RTBF?
The RTBF is a regulatory requirement that identifies the true owners or beneficiaries behind a business entity. This declaration helps helps the government establish possible tax fraud or money laundering.Who Needs to File?
All legal entities operating in Costa Rica must file an annual RTBF declaration with the Central Bank. This includes corporations (S.A.), limited liability companies (S.R.L.), and other business structures. Even foreign-owned entities must comply.Data Required for RTBF Compliance:
Companies must disclose information about shareholders and any individuals or entities holding significant ownership or control. This information includes names, identification numbers, and percentages of ownership.How to File:
Businesses typically file their RTBF declarations digitally through the Central Bank of Costa Rica’s online platform. This system is secure and designed to protect the confidentiality of disclosed information, although access is available to government agencies for auditing purposes.Non-Compliance Consequences:
Failure to comply with RTBF requirements can result in fines, restrictions on financial transactions, and potential legal issues. Non-compliance may also affect a business’s eligibility to operate within Costa Rica.
RTBF compliance package:
At CPG Legal, we will gladly help you with RTBF compliance. For a yearly amount, we will draft powers of attorney in order to fulfill the obligation.
Why should foreigners invest in Costa Rica?
Costa Rica’s economy is one of the most stable in Latin America, supported by a robust legal system and a government that actively encourages foreign investment. The country offers Free Trade Zone (FTZ) incentives, (zonas francas) a well-educated workforce, and a strong commitment to sustainability, making it ideal for industries like eco-tourism, technology, and agriculture.
Eco-Tourism Ventures:
Costa Rica is a renowned destination for eco-tourism, and investing in hotels, eco-lodges, or wellness retreats can be highly rewarding, particularly in areas of Costa Rica like Guanacaste and the Southern Pacific.
Agricultural and organic farming:
Known for its rich biodiversity, Costa Rica is an ideal place for organic farming, coffee production, and sustainable agriculture.
Technology and outsourcing hubs:
San José is a growing hub for technology and outsourcing, with opportunities for software development and customer support businesses that benefit from tax incentives.
Real Estate Devolpment:
The demand for residential and tourism-related properties is growing. Regions like the Central Valley and coastal areas are popular among both locals and expats, offering stable growth in property values. Buying properties in Costa Rica for passive rental income is a great idea. Outlets like Airbnb are a popular way, to maximize rentals in the coastal areas of Costa Rica. Our country offers a diverse cultural experience for everyone.
Key steps to investing and business ventures:
A good way to begin investing is to incorporate in Costa Rica. Foreign investors commonly choose either Sociedad Anónima (S.A.) or Sociedad de Responsabilidad Limitada (S.R.L.) due to their limited liability protections
Secure permits and licenses:
Industry-specific permits, such as health permits for restaurants or certifications for tourism operators, may be required depending on your business.
Registering for taxes:
All businesses must register with the Ministry of Finance and secure a tax identification number, including VAT registration if applicable. Corporate tax compliance in Costa Rica is very important.
Costa Rica’s welcoming business environment, combined with its regulatory framework, creates a balanced ecosystem for foreign investment. With opportunities in tourism, agriculture, technology, and real estate, investors have the chance to build profitable ventures in a country known for its commitment to environmental and economic sustainability. By understanding and adhering to requirements like the Registro de Beneficiarios Finales, foreign entrepreneurs can confidently launch and grow their businesses in Costa Rica while maintaining transparency and trustworthiness in this vibrant market.
Dr. Christopher Pirie Gil.