Higher corporation tax will be 189,700 colons

By the A.M. Costa Rica staff As expected, the base judicial salary on which the tax on corporations is figured has increased. Owners of active corporations will have to pay 189,700 colons by Jan. 15 to avoid interest and the freezing of the company. That is about $380. Those owning inactive corporations include many expats who hold vehicles and real estate is sociedades anónimas or limited liability corporations. The tax bill for inactive corporations will be half that for active entities or 94,850 colons, about $190. Costa Rica law sets many fines and taxes on what is called base salary. It is the salary of an auxiliar administrativo 1 who works in the Poder Judicial. When the president signed the bill for the new tax in

2011, the base salary was 316,200 colons or about $622. So the tax on corporations, which went into force this April 1 was half that, $311. But before the ink was dry, judicial workers got a raise to 360,000 colons a month, so the tax increased, too. This is the first year that owners of corporations will pay the full tax. The base salary affects many other aspects of daily life. The base salary system is used so that taxes and fines keep pace with inflation. Judicial officials are generous to employees. The 19,400-colon raise to the auxiliar administrativo 1 represents an increase of about 5.4 percent. That is more than the annual increase in the nation's minimum wages and for salaries elsewhere in the government.

Feliz Navidad!

 

 

 

MERRY CHRISTMAS - FELIZ NAVIDAD!

 

 



San Juanillo, A Hidden Paradise

By Pinar Istek

A Sunday afternoon road trip through the dusty roads between Guiones Beach and San Juanillo took us to a town where our car engine seemed to disturb the silence. At first glance, with the soccer field, the church and the school that create the center of the town, it didn't look that different from any other Costa Rican coastal towns. However, arriving at the San Juanillo Beach made the first big difference. The turquoise color of the water captures one's attention as soon as the beach comes into sight. This short and narrow, yet beautiful beach is populated with local fishermen. Santiago Cerdaz Hurtado, a member of the Fisherman Association of San Juanillo, and many other local fishermen offer boat tours to see the turtles at Ostional Beach, with the possibility of seeing dolphins, whales and stingrays as well. The real surprise came when we made our way through a narrow dirt path to the second beach, Venice Beach. With similar water quality, Venice Beach is longer and even more desolate than San Juanillo Beach. For a quiet afternoon of reading, family time or just spending some loner time, this beach couldn't be any better and the sunsets are magnificent. Snorkeling in San Juanillo, on either beach, is among the best in the area as it provides the opportunity to see the rich marine life near the beach. Because it is possible to swim out to see the fish, many visitors prefer snorkeling without taking a boat tour. San Juanillo is located on the west coast of Costa Rica along the Pacific Ocean. Nearby towns are Marbella to the north, and Ostional, Nosara and Garza to the south. It is 17 km from Guiones Beach. Private transportation is the best way to access to this gorgeous town. For such a small town, San Juanillo offers a rich selection from the world cuisine. A classical dish of the Americas, ceviche, at Soda El Cruce, Italian pizza at La Bahia, vegetarian serves and smoothies at Ancient People, specialty pastas at Buddha Bar and Costa Rican dishes at Soda Mundo Feliz are culinary options to satisfy any appetite. When you get tired of the crowded surfing beaches and are in need of some private time, San Juanillo is a good destination to visit.

Thanksgiving!

 

 

 

 

HAPPY & SAFE THANKSGIVING FROM THE SAN JUANILLO ESTATES

COMMUNITY!!



Bridge Over Rio Montaña Has Foundation Problems

• Ostional is Semi-Isolated • Crossing Open Only to Motorcycles and Pedestrians

By Wilberth Villalobos Castrillo

The National Roadways Council (CONAVI) inspected the bridge over Rio Montaña after the 6.6 magnitude earthquake on Tuesday, October 23rd and determined that it doesn’t have structural damage; however, failures were detected in the refill approaching the bridge. Mauricio Sojo, CONAVI engineer in the Nicoya area who inspected the bridge hours after the quake occurred, reported that “the structure in itself doesn’t have any problem, but the refills approaching the bridge are damaged as a result of the strong rains in the last few days as well as the quake.” According to Sojo, the bridge that connects the communities of Nosara and Ostional is a priority for CONAVI, and they are currently evaluating the costs and when they will be able to work on the structure. “We are analyzing the costs and the moment in which we will work on the structure, which could be next week,” he explained.   This bridge, which cost more than $1.5 million, was not officially finished by CONAVI, so in June this year, area residents decided to refill both accesses to the bridge with stone. Presently, the community of Ostional is semi-isolated since access from Nosara only permits motorcycles and pedestrians to cross and, to the north, the bridge over the Marbella river is damaged.         According to neighbor Rolf Liichtenstein, “unfortunately the new refill that CONAVI did yesterday (Tuesday) has washed out again with the tremor and the rain.” Liichtenstein said that only cars and motorcycles can cross the bridge, but big trucks and buses cannot.

Strongest replica yet near Sámara rattles country

By the A.M. Costa Rica staff The shock from Mother Nature Tuesday night was not only sharp but long. The better-than-6-point quake offshore in the Pacific lasted at least 25 seconds. The quake was felt in nearly all of the country. Recorder displays at the Observatorio Vulcanológico y Sismológico de Costa Rica show that some sensors continued to vibrate for a half hour. In fact, one hour and 12 minutes after the 6:45 p.m. quake another took place in the same general area. That one was estimated at 4.4 magnitude. The magnitude of the 6:45 p.m. quake was estimated differently by different agencies. The U.S. Geological Survey said 6.5. The Observatorio Vulcanológico y Sismológico at Universidad de Costa Rica initially said 6.2. At the Laboratorio de Ingeniería Sísmica the estimated was 6.3. That agency said the 6:45  p.m. quake was 9.3 kilometers south of Sámara and 22.9 kilometers southeast of Nosara in the Pacific. That is about the same area where a 7.6 magnitude quake took place Sept. 5. The 7:55 p.m. quake epicenter was estimated at 28.6 kilometers south southeast of Nosara and

Observatorio Vulcanológico y Sismológico de Costa Rica graphic Flag shows estimated epicenter of 6-point quake. 34.6 kilometers west southwest of Sámara. There also was a 3.6-magnitude quake at 7:43 p.m. with an epicenter below the mountains east of Samara. All over the country individuals reacted to the movement although there was little report of damage other than falling objects. Residents still are jumpy from the Sept. 5 quake and predictions by scientists that another big one is likely. The quakes Tuesday are considered replications of the Sept. 5 event. There have been thousands, but the 6:45 p.m. quake was the strongest yet. The cause is the subduction of the Coco tectonic plate under the lighter Caribbean plate on which Costa Rica rides.

500 Evacuated from Flooding in Pacific Costa Rica

Friday, October 19th, 2012 | Filed under Pacific Central Regional News

The National Emergency Commission (CNE) today declared a green alert (preventive) for Pacific provinces (mainly Puntarenas) of Costa Rica due to heavy rains that have caused flooding and the evacuation of 495 people.
The CNE said in a statement that the alert was streamlined with the transfer of personnel to the area and opened five shelters for homeless mobilize in the province of Guanacaste (North Pacific), most of them in the canton of Santa Cruz.
In Guanacaste reported four rivers overflowing and at least 34 affected communities, in which there are 595 houses flooded and three bridges affected.
In addition, there are small communities isolated Lagarto, Marbella, Deer, Ostional and San Juanillo, all in Guanacaste,said the CNE.
In the province of Puntarenas (Pacific central and south), the CNE said that three rivers overflowing, but so far no evacuees.
The National Meteorological Institute reported that the storm is caused by a low pressure system and heavy rains will remain at least until tomorrow.
EFE
The Costa Rica News (TCRN)
San José Costa Rica

Newest Community Members to San Juanillo Estates

Welcome Doyls Rojas and Family as newest Community Members and Lot owners of #23 in San Juanillo Estates!

191!

 

 

~ 191 Years of Independence!  Happy Birthday Costa Rica! ~

SJE Signage & New Web Site!

Bob & Monique have been working hard to put together new signage for SJE and have developed a new web site.  Check out the new pictures of our sign.  Log on to the new web site

http://www.sanjuanilloestatescr.com/.

Really cool stuff!!

SJE Celebrating One Year Blog & 2085 Visitors via ClustrMaps

Hello All - We are celebrating one year as a blog, tracking our visitors via ClustrMaps.  Over that period of time, we have hosted 2085 visitors!!! 

We have seen traffic explode to over 8170 visitors since the Blog has been established.  On average, 7 visitors check our blog out DAILY!  Also, a third house will be constructed soon, adding to our continued growth.

This is truly a time to celebrate.  Any developer owned lots sold between now and the new year and I persoanlly will pay the new Community Members 2013 dues! 

Take some time to spread the word, view the blog and translate these views into new members to our Community. 

If you have not yet paid your $755.00 2012 Dues, please do so immediately.  Please call me at (800) 523-1490 ext. 108 or email me at kurt.becker@cjbinc.com if you have any questions or concerns.

Thank you for continuing the growth and maintenance of San Juanillo Estates.

Privately Owned Lots for Re-Sale

Check out the Privately Owned Lots for Re-Sale.  Lot #1 / 18 or 38 / 20 / 23 and 40. 

All maintained, build ready and amazingly priced.  Each of the owners, through the HOA, have committed to the upkeep of thier lots over the years and thus are offering you an opportunity to buy into a legitimate Project with Community and Developer based support. 
Take some time to review the blog by hitting the link below.  Compare our project to others in the area.  You will find that we are something worth checking out.  These lots are offered at varied prices in order to provide a purchasing opportunity for any level of investor.

Let us know if you have any questions and feel free to make an offer.  Pura Vida!
http://sanjuanilloestates.blogspot.com/p/privately-owned-lots-for-resale-in-san.html

Costa Rica Ranked 19 in the Top 20 Emerging Economies

Tico Times

When you hear about Costa Rica, the first thoughts that come to mind are exotic vacations, incredible beaches, wild adventures, and tropical rainforests. Though these all are true, more and more people are looking to Costa Rica as a hotbed for foreign investment.

This has recently been supported in a study undertaken by accounting giant, Ernst & Young ranking countries in an emerging economies index.

The company brings another level of legitimacy to the already growing reputation that Costa Rica is a global competitor in the emerging market sector and becoming very attractive for direct foreign investment. In this study, Costa Rica has ranked 19 in the Top 20 emerging economies and is 5th in Latin America behind the behemoths such as Brazil, Mexico, Chile and Argentina.

Often referred to as “The Switzerland of Central America”, Costa Rica from an investment and business standpoint is rapidly becoming newly known as the “Silicon Valley of Latin America”. Investing in Costa Rica is becoming increasingly appealing due in part to its foreign-investment friendly government policies, and social and economic climates.

With many global companies deeply impacted in 2009 by the financial crisis, Costa Rica became an attractive option for moving elements of business units and operations for cost-cutting, offshore purposes to this fertile ground of skilled workers and a highly educated population. Companies such as Microsoft, Hewlett Packard, Western Union, Intel, GE and more are continuing to make sizeable investments in this country.

The World Bank has tipped its hat to Costa Rica’s political stability and robust democracy as one of the best in Latin America. With a conservative central bank, a real estate market that came out of the U.S. housing crisis practically unscathed, and a healthy economic growth rate, there are several positive points when weighing up Costa Rica against other emerging markets.

Organizations such as CINDE offer gateways to foreign investors looking for assistance in participating in various sectors such as; services, manufacturing, life sciences, clean technologies, and more. Free zones offer security beyond the government incentives. Often these office parks are nestled in beautiful, safe, and accessible areas of the Central Valley. 2 Costa Rica Real Estate is another top-level liaison organization with offices currently located in 3 of the hottest investment markets in Costa Rica. Specializing in real estate investments and business consulting, this organization provides sound business and investment advice from experts in the field.

As China leads the rankings in this index, followed by India, Russia, and Brazil, small markets like Costa Rica have become increasingly competitive on the global business playing field. With low-cost labor, highly skilled and educated workers, all supported by a universal health care system, Costa Rica is becoming less dependent on its natural resources and agriculture, and stepping up to go toe-to-toe with multinational giants in services and manufacturing.

These emerging markets are projected to constitute 50% of the world’s GDP by 2020, and foreign investors are driving that growth. The index is compiled using 13 variables within 3 categories: overall integrity, global image, and global integration. These 3 criteria are practically taken out of the Costa Rican government’s playbook on political strategies and economic incentives to attract further foreign investment.

With estimates from Ernst & Young predicating 70% of global growth to come from emerging markets such as Costa Rica, these nations are attracting just short of 50% of global inflows of FDI (foreign direct investment), representing 25% of FDI outflows. With numbers as impressive as these, and a “rising tide raises all boats” foreign investment strategy, small markets like Costa Rica are on for the ride and showing that this small country has big potential.

Costa Rica is still the happiest country in the world

Posted: Thursday, June 14, 2012 - By AFP  

Ticos are the happiest people for second year in a row.

A new report released Thursday finds that Costa Rica and Vietnam are the ‘happiest' countries in the world based upon the health and happiness produced per unit of environmental output.
These findings come from the Happy Planet Index compiled by the New Economics Foundation (NEF) which ranks 151 countries around the world based upon their "efficiency [and] how many long and happy lives each country produces per unit of environmental output."
The Happy Planet Index rank is based upon global data of life expectancy, happiness and environmental sustainability and is calculated as follows (Experienced well-being X Life expectancy) / Ecological Footprint.
The data for well-being is taken from the Gallup World Poll, ‘life expectancy' is based upon the 2011 United Nations Human Development Report and ‘ecological footprint' is calculated from data provided by the WWF.
For Costa Rica, this is the second year in a row at top of the list. The list seems to have be slanted toward Central America countries. Belize, Guatemala, El Salvador and Nicaragua all made the list. El Salvador, ranked 5th, has the second highest murder rate in the world.
Typically the report found that high-income countries, such as the UK (ranked 41st) and the US (ranked 105th), received a low overall score due to the large per-capita ecological footprint. Norway placed in 29th position while Japan came in 45th.
The unhappiest places in the world were Botswana, Chad and Qatar.
According to the Happy Planet Index the top ten ‘happiest countries' are:
01. Costa Rica
02. Vietnam
03. Colombia
04. Belize
05. El Salvador
06. Jamaica
07. Panama
08. Nicaragua
09. Venezuela
10. Guatemala

Quick SJE Updates

Below is a picture of the almost finished bridge that spans the Rio Montana, the first river crossing from Nosara to San Juanillo, from the South.  If you have never traveled the roads of Costa Rica, let alone our section of Guanacaste, this is a HUGE improvement for the area.  That river becomes impassable during much of the rainy season.  Not for much longer!!!!  

The picture below is of the water meter at lot 19.  Soon a meter for Lot 33 will be installed....sometime next week.  As you all know, water is a major issue in Costa Rica and the proper use of water is important.  All new construction within SJE will have meters and basic water usage fee's will be in place so that we can maintain the ASADA. 

The fact that WE are finalizing our ASADA is BIGGER than HUGE.  It is not only the proper way in-so-far-as water conservation and Costa Rica law but it establishes San Juanillo Estates as a legitimate investment for those seeking to buy land in Costa Rica.  It sets us apart from some of our competition who do not have ASADAs.   

Armando is currently clearing lots and the road guts, as well as putting up some new lot signs since a lot of them have fallen down over the years.

All efforts combined, we continue to meet and court with interested parties in buying parcels within The Estates.  Some have kept in contact over the span of a year and still show interest and some have recently contacted us.  It could be that real estate in CR is picking up a bit.  Let's hope so! 

We are very close to having the HOA fully funded for 2012.  Less than half of the SJE HOA members still need to remit for 2012 - myself included on 1/2 of the dues because my money tree died last year :-) - but I will pay.

Please remit your 2012 Dues of $755.00 today, if you haven't already.  You can contact me at kurt.becker@cjbinc.com if you have any questions or concerns.  Not only does the Project depend on your involvement (water meters, lot clearing, road maintaining) but so does the local area (new bridges through taxes).  Thank you and I hope you are all well.    

Corporate Tax Email - NCC Law

**please see FAQ Corp Tax page for add'l information**

Dear Clients

Starting April 1st, 2012, a new annual tax for Costa Rican corporations will apply. The tax rate varies depending on whether taxpayers are active entities or not. Most of the corporations which are incorporated by our Firm as legal mechanism to hold the assets of our foreign clients, are registered before the Tax Authority as inactive companies.  However, every corporation should be individually reviewed.

For the 2012 fiscal period, the tax will be prorated for a nine month period; therefore, the amounts payable will be ₡135,225 ($264) for active corporations and ₡67,613 ($132) for inactive corporations.

The 2013 fiscal period requires corporation to pay the full year,  that is $300 for active corporations and $150 for non active corporations. This US Dollar amount may have a slight change next year since this tax is legally defined as “a percent of a monthly base salary” and it is paid in local currency.  This amount will fluctuate modestly each year depending upon the exchange rate between the US Dollar and the CR Colones as well as the defined minimum wage as measured in Colones.

This law authorizes company´s officers to resign their current positions in Costa Rican companies and also entitles company owners (shareholders) to dissolve these companies before July 2012 to avoid the taxes. This may be the suggested option for companies with no commercial activities and no assets.

The law also authorizes the company owners to transfer assets to themselves individually before the company is dissolved.   This transfer can be effected without taxes or other governmental fees normally required as part of assets transferring transactions. This option does save the taxes incurred by the corporation.  However, this option subjects the assets previously held by the corporation to estate planning issues.  Further, this option exposes those assets to personal liability claims. In case of corporations that hold assets, especially those owned by foreign nation, the safest course of action would be to retain the corporation and pay the taxes. 

The document enclosed explains the proposed tax and the penalty for failure to pay as required by law.

If you want my office to process this 2012 tax payment, please let me know. In addition to the amount to be paid to the Tax Authority, we charge $65 to cover wire transfer fee, exchange rate variations and processing fee.  If you are transferring funds from a local account, the corresponding fee will be $50.

Please feel free to contact me with your particular inquiries and upon your request, wire transfer information will be provided. 

Finally, please take note that this e mail has been addressed to you since your contact information appears in our client´s data base.  If you are not a client of our firm, this e mail was not intended to reach you.  In such case, please disregard this communication and receive my apologies for any inconvenience it may cause.

Best regards

Ricardo Cordero

Checking the Waves at the Inlet

There were waves this weekend.  Some of them were pretty fun.  The water is still cold but the air was warm and the surf was worth it.  Some sets were overhead. 

On Sunday afternoon I was standing on the beach just north of the Manasquan Inlet checking the waves at my home spot. A good friend of mine, who happens to be 55 years old and a phenominal surfer, started to tell me again about a Community he had bought into.  It was several years back, up by Playa Negra (about 1 hour 15 minutes +/- north of San Juanillo).....

No wells or Community water, thus No ASADA. 
No lot clearing - hasn't been up there in years to see what his lot even looks like. 
No care-taker to maintain the roads or ward off potential squaters or the like. 
No one has built a house. 
No taxes paid to date and he has owned it outright for over 7 years. 
No communication with the original Developers and there are still more lots to sell.

He told me that they are just now in the process of joining together (22 or 26 lots, I forget) to create an HOA and have each individual lot owner put money into a fund to pay for common costs.  He said it was tough cause they haven't yet accumulated everyones complete contact information and there is not yet a central control to get things moving.  "There are owners from all over".  He had wished that they had started this years ago but that most of the lot owners that have been contacted are buying into an "HOA" becuase they see the value of the "Community" in their Development.

My brother, who also owns a lot in SJE and was there at the time, smiled and asked me if any of it sounded familiar.  I answered by saying that it was somewhat familiar but that SJE has everything our friend is looking to establish.  Our buddy looked at us and said two simple phrases, "You are lucky.  You have peace of mind". 

This is the second time someone who owns property in Costa Rica has told me that I am lucky to have what is in place at SJE.

__________________________________

If you haven't already, pay your dues for 2012. 

$755.00 per lot.  Make your payment out to San Juanillo Estates Home Owners Association.  Mail it to my attention at:

1500 Melrose Highway
Pennsauken, NJ 08110-1410. 

Please contact me if you have any questions or concerns.  Hope everyone is well. 

Thanks,

Kurt

Manasquan Inlet - Photo Bruce Chrisner

Steve Stillman - Phenominal Surfer

    

A Stunningly Colored Lot #19 House

Beautiful House Guys!

New Bridge over Rio Montana

Lot #33 Cabina - Wonderful addition to the Community

Check out the Progress made (to completion) of the
Lot #33's Cabina.  Simply great!

Costa Rica Yearly Corporation Tax

Costa Rica Implements an Annual Tax on Costa Rican Corporations

Costa Rica has approved an annual tax on all corporate entities registered in Costa Rica.  The  law comes into effect on April 1, 2012.  The amount of the tax is  180,330 Colones [US$ 357] for active corporations and  90,175 Colones [$178.50] for inactive corporations. The amount of tax to be paid is actually based upon the base salary of a government employee.  Active is 50% of base salary and inactive is 25% of base salary.  As such the amounts will change as the base is adjusted.  Also keep in mind the exchange rate as well.

An active company is one that is engaged in business transactions and registered with the tax company.   An inactive company is generally a holding company that holds title to a property or vehicle and does not carry out any commercial activities.

For 2012 the the tax will be due by April 1, 2012  and after that it will become due on January 1st of each year.  For 2012 the amount to be paid will be prorated.

Those of you with Corporations in Costa Rica have 3 options:

1.  Pay the Tax.

2.  Transfer the asset and dissolve the corporation.  For this purpose the law is exempting from transfer taxes and registration fees for a one time transfer to an individual or another corporation.   Likewise, corporations that are dissolved during the months of April, May and June will be exempt from paying the tax.

3. Resign as Officers and Directors.  To avoid personal liability the officers and directors with legal representation of the corporation will have one (1) year in which to resign from their positions and record the resignation in the corporate registry.

The Issue of Personal Responsibility of Corporate Officers and Directors

One of the hideous parts of the law is that it transfers to the corporate officer or director that has the legal authority over the corporation the liability for any outstanding annual tax fees.   The law allows these corporate officers or directors a period of one year - until April 1, 2013 to resign from any corporate positions they may be on to avoid the personal liability.  To do so they must first serve notice at the legal domicile of the corporation of their resignation. Then they must appear before a Notary Public to document the resignation and have the Notary record it in the National Registry.

Automatic Dissolution For Non-Payment

The law has a provision which imposes a mandate to the corporate registry to automatically dissolve any corporation which has three (3) payments (3 years) in arrears.  

Exemptions to the Tax

The law has an exemption for those taxpayers which carry out permanent productive activities as micro and small businesses which have been duly registered as such before the Ministry of Economy, Industry and Commerce (MEIC).

Voluntary Dissolution

The law provides for the voluntary dissolution of a corporation when there is a unanimous approval to do so by the corporate shareholders.  In the past the formal voluntary dissolution of a corporation was cumbersome and expensive and hence rarely done.  The law will allow a Notary Public to dissolve a corporation when requested to do so by all the shareholders of the corporation.

The Exemption from Transfer Taxes and Stamps to Transfer Assets

When you transfer real estate in Costa Rica you trigger a transfer taxes, registry fees and stamp of about 2.3% for vehicles that amount is about 3.3%.  The law will exempt a one time transfer for a period of six months the transfer of assets held in corporations which are transferred to an individual or another corporation.http://www.costaricalaw.com/Corporate-Law/costa-rica-corporation-annual-tax.html