RE: What are the advantages of buying real estate in Costa Rica in the name of a corporation rather than in your own name?
Many lawyers in Costa Rica recommend buying real estate via a corporation set up just for that purpose. Â They claim better liability protection – does anyone have clear examples of when this setup protected someone from liability claims? Â There are some disadvantages of using a corporation as well – paying corporate taxes in CR, effects on US tax reporting, annual legal fees, etc. Do the benefits outweigh the disadvantages?
I am an expat and I own real estate under a corporation.
Before there use to be advantages to own one, I think now it does not make much of a difference but certainly there are some things to consider, like:
If you own a corporation you can be tax exempted: Â if you are a small business and/or after you have the corporation for 5-10 years…
yes, it does protects you from liability and anonymously.
If you buy Real Estate in your name you still will have to pay taxes, but you can not exempt your self (?).
If you are only going to own Real Estate in a corporation, perhaps is best to do it in your name to avoid all those issues, but if you are going to use it as a business as well then you should consider those ideas.