Ceasing your tax residency in Costa Rica can be a meticulous process, but with a clear understanding of the required steps, you can navigate it smoothly. This guide will provide you with a comprehensive outline to ensure you adhere to all legal requirements.
Step 1: Notify the Tax Administration
Submit a formal written notice to the Tax Administration (Dirección General de Tributación) indicating your intention to cease tax residency. This notice should include your personal details, tax identification number, and the effective date of cessation. Ensure that you have acknowledged receipt from the Tax Administration for future reference.
Step 2: Settle Outstanding Tax Obligations
Ensure that all outstanding tax obligations are settled before ceasing your tax residency. This includes paying any due taxes, filing all required tax returns, and addressing any pending issues with the Tax Administration. Obtain a tax clearance certificate to confirm that you have no pending tax liabilities.
Step 3: Deregister from the National Registry
Deregister from the National Registry (Registro Nacional) if you have any registered assets or businesses in Costa Rica. This involves submitting the necessary forms and documents to officially remove your name from the registry. Ensure that any business activities are legally terminated or transferred.
Step 4: Update Immigration Status
Inform the Immigration Department (Dirección General de Migración y Extranjería) of your intention to leave the country and update your immigration status accordingly. This may involve submitting a formal request for cancellation of your residency status and returning any residency documentation issued by the authorities.
Step 5: Close Local Bank Accounts
Close any local bank accounts in Costa Rica to prevent future tax obligations or issues. Visit your bank, submit a request for account closure, and ensure that there are no pending transactions or obligations tied to your accounts.
Step 6: Retain Documentation
Retain copies of all correspondence, forms, and receipts related to the cessation of your tax residency. These documents will serve as proof of compliance with legal requirements and may be necessary for future reference or in case of any disputes.
Legal References
- Ley del Impuesto sobre la Renta (Income Tax Law)
- Reglamento de Procedimiento Tributario (Tax Procedure Regulation)
- Código de Normas y Procedimientos Tributarios (Tax Norms and Procedures Code)
Useful Links
