Should You Buy Property in Costa Rica Under a Corporation? Or Just Be You?
- Arcadia
- Jul 5
- 3 min read
Buying a house in paradise should be the fun part. Then someone mentions “incorporation” and suddenly you're Googling tax law in your towel.
Let’s clear the jungle fog.You’re about to buy property in Costa Rica—maybe a hilltop jungle villa, maybe a surf shack steps from the waves. Either way, you’re considering the famous $150,000 investment residency and wondering…
“Should I buy this property under a Costa Rican corporation?”
Great question. Especially if you like paperwork.But here’s the short answer: You don’t need a corporation unless you actually need one.
Let’s break it down, casually, like we’re chatting over coffee in Uvita.
First—What’s This $150K Investment Visa?
Costa Rica offers a residency program if you invest $150,000+ in local real estate (or other qualified assets).It’s called the Inversionista Residency. It gives you temporary residency, renewable every two years, and eventually permanent status.
Pro tip: This program is for individuals. The residency is granted to the human who signs the check—not a shelf company from Wyoming.
So why do people create corporations at all?
3 Reasons People Use Corporations (and When It’s Overkill)
1. They Plan to Run a Business on the Property
Vacation rental? Boutique hotel? Surf lessons with optional smoothie bar?If you're generating income, a corporation might be useful for local payroll, banking, and invoicing. You’ll also need to register with Hacienda (Costa Rica’s tax authority), and that’s cleaner with a corporate entity.
But: If you’re just buying a home to live in, or use personally? Don’t bother.
2. They Think It’s Safer for Liability
Sure, having a corporation own your jungle house sounds like a shield. But in reality, if someone gets hurt on your property, Costa Rican courts don’t just stop at the corporate veil. Especially if you’re the only shareholder and you live there.
It’s not the superhero cape some lawyers make it out to be. Proper insurance is cheaper—and less paperwork.
3. Their Lawyer Told Them To
And yes… some lawyers have default templates that include creating a company “just in case.”It means more billable hours and a few extra signatures.But again, if you're not renting or running a
business, it’s usually just a folder full of extra headaches.
So What’s Better? Corporation or Personal Name?
Let’s simplify it:
Scenario | Corporation | Personal Name |
Buying to live full-time | ❌ | ✅ |
Buying for your $150K residency | ❌ | ✅ |
Running a business from property | ✅ | ❌ |
Renting long-term to others | ✅ (optional) | ✅ (depends on tax setup) |
Avoiding taxes by being clever | ❌ | ❌ |
What If I Change My Mind Later?
Great news. Once you get your residency, you can transfer your property into a Costa Rican corporation later on. Here’s how that looks:
✅ Step 1: Buy the property in your own name
That’s what the residency program wants to see—your name on the title (or shares clearly assigned to you).
✅ Step 2: Secure your temporary residency
Smooth sailing. No weird corporate hoops. Just clean paperwork.
✅ Step 3: Once approved, transfer to a corporation
You can donate or sell the property to your own Costa Rican company. A notary can handle the title transfer. Most people do this to:
Reduce inheritance headaches
Add family or business partners
Start renting the property long-term
Gain separation between personal and investment assets
There will be some costs—transfer tax, legal fees, and ongoing corporate filing—but it’s doable and normal. Arcadia works with legal partners who make this part easy if and when you’re ready.
The Paper Cuts You’ll Avoid by Skipping a Corporation (For Now)
Annual legal fees
Mandatory corporate tax (even if dormant)
Annual shareholder meetings (yes, even with yourself)
Registry updates
Transparency declarations
And the joy of tracking all this from another country...
It’s like adopting a pet sloth that only eats invoices.
The Takeaway
Start simple. Buy in your name. Get your residency.If you need the added structure later, you can always wrap your home in a corporate bow.
Final Thought:
Buying under your own name means your residency process is smoother, your taxes are simpler, and you’re one step closer to sipping coffee in your hammock without reading corporate bylaws.
Now that’s pura vida.
Need help connecting with the right lawyer or accountant?
Arcadia works with trusted professionals who understand international buyers and don’t upsell what you don’t need. We’ll help you keep things human, simple, and strategic.
— Arcadia Team
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