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Guanacaste, Costa Rica by Joseph Emanuelli

Real information and stories from Guanacaste , Costa Rica. Presneted by a long time expat living and working in Costa Rica
Are you breaking the Law in Costa Rica,

I found this great article in the Tico Times on line paper and thought I would share it with you. If you happen to own a property in Costa Rica and you rent it out when you are not here, are you abiding by the law and collecting the 13% hospitality tax? Furthermore if you are collecting it are you paying it? Or is your property manager taking care of your asset making sure it is taken care of?

The President of Costa Rica, Laura Chinchilla, had signed a decree that will become effective in a couple of weeks or so. It basically is a reaffirmation of existing laws that are already on the books. Most good and reputable property manager companies are already and have been in compliance with the law but most are not. So I recommend that you check with them.

The Article goes on to say that ICT, the Costa Rica Tourist Institute, is just trying to level the playing field for Hotels as many owners of vacation rentals do not have their place legally set up to pay taxes on the income they are receiving and hence can ask a lower rate than what hotels offer to tourists.

Personally, as an ex-pat living here in Costa Rica, I find that some remote owners constantly complain about the public services offered by the government, but also in the same breath say they are glad that the tax structure for property ownership here is low. So if the tax structure here is low, which it is, then why are they not contributing to the society they are benefiting from?

In reality, if taxes are not collected or paid, how do these people expect to have paved roads, better electrical service and basic services like trash removal? All these basic items they take for granted in their home country are paid for thru property taxes, municipal taxes and road taxes and I am sure the list can get longer.

So here is the link to the article, http://www.ticotimes.net/More-news/News-Briefs/Authorities-to-vacation-rental-property-owners-You-must-pay-sales-taxes_Wednesday-August-14-2013

I hope you find this informative and helpful, it is not meant to scare you, better to read it from here and make sure you are compliant, before the Tax man knock on your door and you can only just imagine what a scare that can be!!

As always, thanks to my steady followers for stopping by my blog. I hope you enjoy some of my rants, craziness and even some good information, if you want to make a comment just send me an email to jaaechef@gmail.com  my personal email address or post it here. If you have an interest in or are just curious about Costa Rica and want to learn more and why so many people are talking about it, click this link to my new web page and blog site    http://costarica-connection.com   

Thanks and I look forward to hearing from you. Pura Vida!!

Posted: Monday, August 19, 2013 1:07 PM by Joseph A. Emanuelli

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