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This year, June 30 is the last day available to carry out the Registration of Transparency and Final Beneficiaries.

What is the Registry of Transparency and Beneficial Ownership (RTBF)?

The Transparency and Final Beneficiaries Registry consists of a computer system developed by the Central Bank of Costa Rica, which allows legal persons and other legal structures such as: trusts, third-party resource managers and non-profit organizations; provide the information to register its participants (shareholder partners, quota holders or some other denomination depending on the type of legal person, parties that make up a trust, or other administrative members of legal structures, etc.) and their final beneficiaries, as well as other information of natural persons that allows effective control in the fight against tax fraud, money laundering and terrorist financing.

Legal basis:
Second chapter of the Law to Improve the Fight against Fiscal Fraud, Law No. 9416.
Regulation of the Registry of Transparency and Final Beneficiaries, Decree No. 41040-H.

Where should I provide the information required for the Registry of Transparency and Final Beneficiaries?

The information must be presented in the transactional platform of the Central Bank of Costa Rica called Central Directo: https://www.centraldirecto.fi.cr.
Legal Bases
Artículo 4 de la Resolución Conjunta de Alcance General, DGT-ICD-R-06-2020

Can the information be provided to the Registry of Transparency and Final Beneficiaries (RTBF) in person with physical documents?

No, the entire process is done digitally, through a web portal on the internet. With the objective of promoting voluntary compliance, the General Directorate of Taxation makes available to the obligors the Tax Kiosks that are located in the different Tax Administrations of the country, under the self-management method to make said declaration.

Source:

Ministerio de Hacienda

Who are the subjects obligated to provide information in the Registry of Transparency and Final Beneficiaries (RTBF)?

Answers:

The subjects obligated to provide information are:

• legal entities with current share capital and/or those that have been assigned a legal identification number by the National Registry.
• third-party resource managers.
• non-profit organizations
• private trusts, including foreign trusts that have legal identification assigned by the National Registry and carry out activities in Costa Rica.

Note: currently only legal persons and trusts must provide the information, the other obligors will be incorporated later, with the proper official communication. But they must have the information available in case the competent authorities request it.

Legal Bases

Artículos 5 y 6 de la Ley para Mejorar la Lucha contra el Fraude Fiscal, Ley N°9416

Artículo 3 del Reglamento del Registro de Transparencia y Beneficiarios Finales, Decreto N°41040-H Considerando IX de la Resolución Conjunta de Alcance General, DGT-ICD-R-06-2020

What are the subjects that are excluded from providing information in the Registry of Transparency and Final Beneficiaries (RTBF)?

Asnwers

The subjects excluded from presenting the information are:

• Companies whose shares are listed on an organized stock market, whether national or foreign. Article 19 of the joint resolution of general scope establishes the necessary requirements for the application of this exclusion (they must prove it annually by means of a summary record on the Central Directo platform).
• Public Trusts
• In relation to their depositors, financial entities supervised by the General Superintendency of Financial Entities, and legal persons, legal structures such as: third-party resource administrators, authorized, regulated and supervised by the General Superintendency of Securities or the General Superintendency of Pensions, in what corresponds to its clients and investors.
• The Executive Branch, Legislative Branch, Judicial Branch, Supreme Court of Elections, centralized, decentralized, autonomous, semi-autonomous public entities and embassies.

Legal Bases

Artículos 4 y 8 del Reglamento del Registro de Transparencia y Beneficiarios Finales, Decreto N°41040-H.

Artículo 19 de la Resolución Conjunta de Alcance General, DGT-ICD-R-06-2020.

What type of digital signature certificate should be used in the Registry of Transparency and Final Beneficiaries (RTBF)?

Answers

To interact with the Transparency and Final Beneficiaries Registry, the person responsible for providing the information established in article 1 of the Joint Resolution of general scope and its reforms, must have a valid digital signature certificate for natural persons.

Every person who interacts with the RTBF must have a digital signature card for a natural person, be it the legal representative, the proxy, who has extrajudicial representation in the legal entity and even notaries.

It should not be confused with the digital signature card for legal persons, since for the purposes of the RTBF only digital signature for natural persons is accepted.

Legal Bases

Artículo 5 del Reglamento del Registro de Transparencia y Beneficiarios Finales, Decreto N°41040-H.

Artículo 3 de la Resolución Conjunta de Alcance General, N°DGT-ICD-R-06-2020.

What happens if the person responsible for including the information in the declaration of the Registry of Transparency and Final Beneficiaries – RTBF does not have a DIMEX or DIDI identity document, or for some other situation makes it impossible for him to obtain a digital signature and therefore does not can you make the statement?

Answer

If the person responsible for providing the information does not have a DIMEX or DIDI identity document and for this reason cannot obtain a digital signature in Costa Rica, they may provide the information to the RTBF through another person who does have a digital signature, for which you must go before a notary public so that:

a) It is the notary who verifies whether there is already a person with sufficient powers to make the statement.

b) Grant a special power of attorney in a public deed so that the proxy can fill out the declaration.

In both cases, the notary must enter the Central Directo digital platform to accredit (register) that person empowered in the RTBF system. After this procedure by the notary, said representative may enter the system with his digital signature to make the declaration on behalf of the obligated subject. In the exercise of this function, notaries must follow the guidelines issued by the Superior Notarial Council for notarial activity.

In the event that he is abroad, he must go before the consul to carry out the corresponding procedure.

Legal Bases

Artículos 14 y 23 de la Resolución Conjunta de Alcance General, N°DGT-ICD-R-06-2020.

Lineamientos del Consejo Superior Notarial.

What is considered “final beneficiary” for the purposes of the Registry of Transparency and Final Beneficiaries (RTBF)?

Answer

For purposes of the Registry of Transparency and Final Beneficiaries, the final beneficiary is considered to be that natural person who has any type of final effective control over a legal person or legal structure or chains of ownership over them, or who receives benefits from them; either through:

• have direct or indirect control by ownership of substantive shares in the case of legal persons
• for appearing within the parts of a trust.
• for exerting significant influence.
• Ultimately, if no final beneficiary is determined from the above conditions, the person with the main management position may be considered as such.

Legal Bases

Artículo 2 del Reglamento del Registro de Transparencia y Beneficiarios Finales, Decreto N°41040-H.

What are the sanctions for not providing the information corresponding to the Registry of Transparency and Final Beneficiaries (RTBF)?

Answers

Sanctions in the case of non-provision of information are regulated in article

84 bis of the Code of Tax Regulations and Procedures and consist of three specific situations:

• When public notaries issue documents to obligated subjects, they must verify the list of defaulters and, if included, must be included in the document.

• The National Registry may not issue certifications of legal status or register documents in favor of obligated subjects.

• A proportional pecuniary fine of 2% of the figure of the gross income of the legal entity or legal structure will be applied to them, in the profit tax period prior to the one in which the infraction occurred, with a minimum of three base salaries. and a maximum of one hundred base salaries.

Legal Bases

Artículo 16 de la Ley para Mejorar la Lucha contra el Fraude Fiscal, Ley N°9416.

Artículo 84 bis del Código de Normas y Procedimientos Tributarios, Ley N°4755.

Artículos 25 y 26 del Reglamento del Registro de Transparencia y Beneficiarios Finales, Decreto N°41040-H. Artículo 27 de la Resolución Conjunta de Alcance General, N°DGT-ICD-R-06-2020.

Testaments and Wills in Costa Rica

Testaments and wills are important legal tools that allow people to plan how their assets will be distributed after their death. In Costa Rica, there are two types of probate: testamentary probate and intestate probate. In this blog, we will explore the step-by-step process to carry out a probate or will in Costa Rica.

Step 1: Understand the law

Before beginning the probate process, it is important to understand the law in Costa Rica. The law governing probate and wills in Costa Rica is the Civil Code, which establishes the rules and requirements for these processes. Some of the things that are important to understand include:

The order of priority of heirs in case of intestate succession.

The requirements for a will to be valid

The rights and responsibilities of the heirs.

Step 2: Make an inventory of assets

The next step is to make an inventory of the assets to be included in the estate or will. This may include real estate, vehicles, bank accounts, investments and other assets. It is important to make a complete and detailed inventory of all assets to ensure that nothing important is omitted.

Step 3: Decide who the heirs will be

In the case of probate, the testator must decide who the heirs will be and how the assets will be distributed among them. It is important to be clear and specific in the will to avoid confusion or disputes in the future.

In the case of intestate succession, the law establishes an order of priority for the heirs, which is based on the relationship of the deceased to his or her closest relatives. This order of priority may include your spouse, children, parents, siblings and other relatives.

Step 4: Drafting the Will

In the case of probate, the next step is to draft the will. The will must be written and signed by the testator, and must comply with the legal requirements established by the Civil Code. Some of the requirements include:

The will must be written on paper or any other medium that allows its preservation.

The will must be signed by the testator at the end of its contents or on each sheet that composes it.

The will must be signed by two witnesses of legal age, who cannot be heirs.

It is important that the will be clear and specific as to how the assets are to be distributed. Provisions for the care of minor children, the choice of a guardian or conservator, and other matters relating to the welfare of the family may also be included.

Step 5: Probate the Will

Once the will has been drafted and signed, it is important to probate it before a notary public. The notary will verify that the will meets the legal requirements and issue a public deed certifying the validity of the will.

Step 6: Appoint an Executor

In the case of probate, the testator may also appoint an executor, who will be responsible for carrying out the provisions of the will. The executor can be a trusted person, such as a relative or close friend, or an attorney.

Step 7: File the will or initiate intestate probate

Once the will drafting and probate process has been completed, the will must be filed with the National Registry. The National Registry is the entity in charge of maintaining property and other public records in Costa Rica.

In the case of intestate succession, a legal process must be initiated to determine who the heirs will be and how the assets will be distributed. This process takes place in a court of law and can be long and complicated.

Step 8: Pay taxes

In Costa Rica, inheritances and wills are subject to taxes. Taxes may vary depending on the value of the assets and the relationship between the deceased and the heirs. It is important to consult with an attorney or accountant to determine the amount of taxes due and how they should be paid.

Step 9: Distribute the assets

Once the taxes have been paid and all legal formalities have been completed, the assets can be distributed among the heirs. It is important to ensure that the provisions of the will or the rules of law in the case of intestate succession are followed.

Step 10: Register the assets

Finally, the assets must be registered in the name of the new owners. This may include transferring title deeds, updating bank accounts and other paperwork necessary to ensure that the heirs have legal ownership of the assets.

In summary, probate and wills are important tools for planning how assets will be distributed after death. In Costa Rica, the process to carry out a probate or will can be complicated and may require the help of an attorney or accountant. However, with proper planning and an understanding of the law, it is possible to ensure that assets are distributed according to the wishes of the deceased and in a fair and equitable manner among the heirs.

Additional Considerations

In addition to the steps mentioned above, it is important to highlight some additional considerations that may be useful when carrying out a probate or will in Costa Rica.

First, it is important to make sure that all assets are included in the will or intestate succession process. This includes not only tangible assets such as property, but also other assets such as investments, bank accounts and other assets that can be easily overlooked. If any assets are omitted from the will or probate process, there can be legal problems and disagreements among the heirs.

Another important consideration is the choice of executor or executors if several have been appointed. It is important that the executors be trustworthy and responsible persons, and that they be willing to comply with the provisions of the will or the law in the case of intestate succession. It is important to discuss with potential executors their role and responsibilities, to ensure that they are willing and able to carry out their role.

It is also important to consider making updates to the will from time to time, especially in the event of significant changes in the testator’s life. For example, if the testator acquires new assets or if there are changes in the family structure, it may be necessary to update the will to reflect these changes. It is also important to keep an updated copy of the will in a safe and accessible place.

In terms of costs, it is important to keep in mind that the probate and will process can have significant costs, including attorney and accountant fees, as well as taxes and other associated expenses. It is important to discuss these costs with a professional and plan ahead to avoid unpleasant surprises.

In conclusion, probate and wills are important tools for planning how assets will be distributed after death. In Costa Rica, the process can be complicated and may require the help of a lawyer or accountant, but with proper planning and an understanding of the law, it is possible to ensure that assets are distributed according to the wishes of the deceased and in a fair and equitable manner among the heirs. By considering these additional considerations, it is possible to make the process smoother and ensure that the wishes of the testator or the law in the case of intestate succession are followed.

On May 10, the fDi Intelligence website, one of the leading investment promotion and economic development solution sites, published an article with an analysis of the countries that have shown the best performance in terms of economic recovery and increased foreign investment. (FDI) after the pandemic.

Of the countries evaluated, three from the Middle East obtain the first positions while Costa Rica leads Latin America and obtains fourth overall place and being the only Latin American country in the Top 10, at the same time that we will focus on the opportunities that Costa Rica offers for international investors.

In this post on Clare Facio Legal’s blog, we will analyze the trends, key factors and outstanding achievements that have led these countries to lead the recovery process and how Costa Rica can position itself as an attractive investment destination.

The COVID-19 pandemic has significantly affected the global economy, but some countries in the Middle East have achieved remarkable economic recovery after the crisis period. Costa Rica, for its part, has shown resilience and offers a favorable environment for foreign investment. As the world recovers from the challenges of the pandemic, it is important to look at the opportunities that both the Middle Eastern countries and Costa Rica present for international investors.

Position 1 – United Arab Emirates (UAE): The United Arab Emirates leads the ranking with an outstanding economic recovery and a significant attraction for foreign investment. Its diversified economy, with a focus on sectors such as tourism, technology and finance, has attracted massive investment. With a focus on innovation and modern infrastructure development, the UAE has managed to build investor confidence and attract high-end investment.
Position 2 – Saudi Arabia: In the second position, Saudi Arabia has positioned itself as an attractive destination for foreign investment. With its vision of diversifying the economy and reducing dependence on oil, the country has made significant investments in sectors such as renewable energy, technology, and manufacturing. These initiatives have attracted substantial investment and have contributed to its economic recovery.
Position 3 – Qatar: Qatar occupies the third position in this ranking, with a focus on economic diversification and the attraction of foreign investment. The country has invested in infrastructure projects, such as the organization of international sporting events and the development of special economic zones. These initiatives have generated significant investments and have contributed to its economic growth.
Position 4 – Costa Rica: Costa Rica is in fourth position, standing out as a country in Central America with a solid economic recovery and attractiveness for international investors. The country has experienced growth in sectors such as technology, sustainable tourism and agribusiness. Favorable government policies, political stability and its focus on sustainability have attracted growth investment and contributed to its economic development.
Position 5 – Portugal: In fifth position is Portugal, a country that has achieved a significant economic recovery and has attracted investment in sectors such as tourism, logistics and renewable energy. Favorable government policies, investment in infrastructure, and a focus on economic diversification have been key factors in its attractiveness to investors.

What does this mean for Costa Rica?

Government policies and economic stability

Both the Middle Eastern countries and Costa Rica have implemented investment-friendly government policies and have maintained remarkable economic stability. In the case of Costa Rica, the country stands out for its commitment to democracy, political stability and respect for the rule of law. In addition, it has established a series of tax incentives and support programs for foreign investment, which has created a favorable environment for investment and business development.

Infrastructure and technology

Middle Eastern countries have been noted for their investments in modern infrastructure and cutting-edge technology. Costa Rica, for its part, has developed a solid infrastructure that includes seaports, international airports, highways, and advanced telecommunications. In addition, the country has positioned itself as a technological center in the region, attracting important technology companies and promoting innovation and talent development in the sector.

Growth sectors and investment opportunities

Both the Middle Eastern countries and Costa Rica offer a wide range of investment opportunities in growing sectors. In the Middle East, the sectors of renewable energy, technology, tourism, manufacturing industry and logistics stand out. In the case of Costa Rica, the technology services, agribusiness, sustainable tourism, advanced manufacturing, and financial services sectors present great potential for growth and profitability for international investors.

Human Capital and Talent

In both the Middle East and Costa Rica, the availability of human resources and specialized talent is a key factor in attracting foreign investment. Both regions have a qualified and trained labor force, as well as educational institutions and training programs that promote the development of technical and professional skills. This guarantees the availability

availability of trained and talented personnel to support the operations of foreign companies.

In the case of Costa Rica, the country has stood out for its high level of education, with a highly educated and bilingual labor force. In addition, the government has promoted the creation of training programs in strategic areas, such as technology and innovation, to further strengthen the skills of local talent.

Business environment and ease of doing business

Both the Middle Eastern countries and Costa Rica have made significant efforts to improve the business environment and make it easier to do business. They have implemented reforms to simplify administrative processes, reduce bureaucracy, and promote transparency in business procedures. These measures have generated confidence among investors and have streamlined the start-up and operation of companies.

Sustainability and environmental commitment

In the current context, sustainability and environmental commitment are increasingly important aspects for international investors. Both the Middle Eastern countries and Costa Rica have demonstrated a commitment to protecting the environment and promoting sustainable business practices. They have implemented policies to promote renewable energy, the conservation of natural resources, and the adoption of responsible production and consumption practices.

In conclusion

In conclusion, the countries of the Middle East have experienced an outstanding economic recovery and present attractive opportunities for foreign investment. At the same time, Costa Rica stands out as a country with a favorable environment for investment and a wide range of growing sectors. Its economic stability, favorable government policies, developed infrastructure, qualified human talent and commitment to sustainability are aspects that position it as an attractive destination for international investors.

The continued implementation of favorable policies, the strengthening of trade relations, and the fostering of innovation will be key factors in driving economic growth and attracting investment in both Middle Eastern countries and Costa Rica. Both regions offer exciting opportunities for investors looking to expand their businesses and take advantage of the growth potential in dynamic markets.

https://www.fdiintelligence.com/content/data-trends/middle-east-countries-lead-postcovid-investment-rebound-82470