UBO Declaration in Costa Rica: A Crucial Deadline for Property and Business Owners

If you own a company in Costa Rica, there’s an important compliance requirement you can’t afford to overlook—the Ultimate Beneficial Owner (UBO) Declaration. The deadline to file your UBO declaration is April 30, and failure to comply can result in significant penalties. This applies not only to businesses but also to expats who own property under a corporation. Here’s what you need to know.

What is the UBO Declaration?

The UBO Declaration is a mandatory report that all Costa Rican legal entities must submit to disclose their ultimate beneficial owners. The purpose of this requirement is to enhance transparency and prevent financial crimes such as money laundering and tax evasion.

The declaration must be filed annually through the Central Bank of Costa Rica’s (BCCR) online platform, known as the Registro de Transparencia y Beneficiarios Finales (RTBF).

Who Needs to File?

The UBO declaration applies to:

• Corporations (S.A.), Limited Liability Companies (S.R.L.), and other legal entities registered in Costa Rica.

• Trusts and other structures involved in financial transactions.

• Expats who own property under a corporation, even if the corporation is inactive.

Does This Include Property Owners?

Yes! Many expats purchase property in Costa Rica through a corporation for tax or liability reasons. If you own a home, rental property, or any land under a corporation’s name, you must file the UBO declaration—even if the corporation is not actively generating income.

What If My Corporation Has No Profits?

The UBO declaration is required regardless of whether the corporation is making money. Even if your corporation holds property but doesn’t rent or sell it, you must still submit the declaration.

If your corporation does generate income (through rentals or sales), you must also ensure you are complying with corporate tax and capital gains tax requirements.

How to File the UBO Declaration

To submit the declaration, follow these steps:

1. Obtain a Digital Signature Certificate (Firma Digital): The legal representative of the company must have an electronic signature issued by an authorized Costa Rican provider.

2. Access the RTBF Platform: Log in to the Central Bank’s system using the digital signature.

3. Provide Required Information: Include details about shareholders, beneficial owners (anyone with 15% or more ownership), and the entity’s structure.

4. Submit Before the Deadline: Ensure the declaration is filed no later than April 30.

Consequences of Non-Compliance

Failing to file the UBO declaration can result in:

• Fines: Up to 2% of the company’s gross income, capped at 100 base salaries (approximately $40,000 USD).

• Business Restrictions: Your company may be unable to conduct financial transactions or obtain legal certifications.

• Legal Consequences: The entity could face further scrutiny from regulatory authorities.

Stay Compliant and Avoid Penalties

If you haven’t filed yet, take action now to avoid costly fines and potential disruptions to your business or property ownership. If you need assistance, consider consulting a legal or financial expert who specializes in corporate compliance in Costa Rica.

For more information, visit the Central Bank of Costa Rica’s website or speak with your legal advisor.

Don't wait until the last minute—ensure your company or property-holding corporation remains in good standing by submitting the UBO declaration before April 30!

Arcadia Team