On 19 February 2019, Costa Rica’s Ministry of Finance (MOF) published a Resolution (was first published in the Official Gazette on 4 February 2019), which provides rules on the determination of tax residence and the issuance of residence certificates. The Resolution includes that the following entities are considered to have their tax (fiscal) residence in Costa Rica:
- Legal persons incorporated in accordance with Costa Rican law and de facto companies;
- Branches, agencies, and permanent establishments of persons not domiciled in Costa Rica and operating in the country;
- Trusts or trust assignments constituted in accordance with Costa Rican law;
- Successions, regardless of the nationality or domicile of the deceased; and
- Individual limited liability companies and other individual companies that operate in Costa Rica.
With regard to residence tax certificates, the decision shall contain a general description of such certificates and their purposes, for example for the use of tax advantages. The decision also contains the conditions for applying for a certificate of tax residence in Costa Rica. This means that the taxpayer must be registered for income tax and all obligations to the tax office must be up to date. The resolution will apply from the day of its publication in the Official Journal.
