Taxation and what inheritance laws apply to foreigners who leave property in Costa Rica: what are the limitations, and if making a property is desirable.
TAX INHERITANCE
How high are legacy taxes in Costa Rica?
Heritage and gifts in Costa Rica are not specifically taxed. The free transfer of property and property rights, however, is subject to a substitute tax system. Property transfer is taxed at gradual rates depending on the value of the property. flats for sale in qatar
LAW INHERITANCE
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What are the laws of heritage in Costa Rica?
The inheritance law in Costa Rica follows the territorial principle: that is, the applicable law depends on the property's location.
Title XI, General rules of legacies: articles 520 to 570; Title XII, Proceedings of heritage in the absence of a testament: articles 571 to 576; Title XIII; Testaments: articles 577 to 62. Law N° 3284, Trade Code; trust: articles 633 to 662. Law N° 5476, Title I, Family Code, Marriage; Family wealth: articles 37 to 47. Title V, Custody: sections 175 to 229.
These regulations are generally applicable to all property owners in Costa Rica. Costa Rica does not discriminate or provide different legal services, in accordance with its constitutional principles, to members of different religions, nationalities or other groups; they are all treated as citizens of Costa Rica.
In the case of real estate, the territorial principle applies; another regime may apply in the case of other kinds of property. The competent court for property matters is where the property is located in Costa Rica. The courts with competence over heritage cases are the Civil Courts or when the Superior Tribunal and in the last instance the "Corte de Casación" have appeals. The jurisdiction of a court is divided by subject matter. All judicial proceedings shall be brought before the Civil Court.
The judicial process usually takes between 1 and 4 years in heritage cases, depending on their complexity. But Costa Rican law also has a quicker and easier process before the notary who is public, who can be applied when all hereditaries are legally old and willing to agree on the distribution of the property.
If one spouse belongs to one nationality or religion and the other to another, this would unlikely raise any legal issue under Costa Rican law, given that the law applies the territorial principle, irrespective of the nationalities of the husband or the wife.
A specific reserved portion is not established in the Costa Rican Law but the Judge will reserve a portion of the deceased's economic staff if the proof hearing is commenced before the Costa Rican Court.
Everyone is free to draw up a will, expressing their will and all their property and assets. You have no obligation to reserve a portion for any particular person.
But if the test hearing is initiated before a Costa Rican Court, a portion of the estate will be reserved by the judge for those economically dependent upon the dead person. This section shall maintain the person(s) appointed by the judge until the final judgment is reached. It is usually granted to the deceased's spouse and children.
The formalization of a will is simple with the right legal advice.
It is not usual for Costa Ricans to make a will, but the legal framework permits all to draft a will.
A Costa Rican foreigner has two options: A local public notary may have a will regarding his/her assets in Costa Rica. This is completely valid in Costa Rica and the assets must be distributed in accordance with its instructions. Another option is to validate a foreign will with the authorities of Costa Rica; in this case exequatur should be sent to Costa Rica for approval after a decision by a foreign court and duly registered in the Public Registry.
For a foreigner it is advisable to make a will, because it is easier and faster to execute a local will. If the will is made abroad, it requires a special procedure, embassies or consulates and exequatur. These procedures take time and are usually more costly.
In the civil code, two types of will are recognized: the non-occupational or open-will and the sealed or closed-will.
In the presence of a Notary Public and three witnesses, the notarized Open Will is written. If the testator writes the testament, two testimonies and a notary are required. A certified Open Will may be written by the Testator and four witnesses without a Notary Public. If the testator is not hand-written, six witnesses must attest to it.
A Closed Will must be written according to certain formal requirements. When the tester signs the tester, it must be placed in an envelope and screened. The envelope containing the will is then transferred to a notary who must write a notarial letter on the envelope. The notarised statement must certify that the testator has given the notary public a sealed envelope with a testament and the tester has informed him/her of the number of pages in the testament. It must also show that the tester wrote and signed the tester and whether it contains annotations or smudges. The Notary Public must take a record of this proceeding in his/her protocol book and it must be signed by the testator and three witnesses.