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Accidents happen ...
If you have done some driving in Costa Rica, you may have felt an “urge” to get insured (lol) . Most of our clients in the PASS service end up getting voluntary coverage, often mainly for the road side assistance which is valid nationwide. The following information is basic information on the mandatory and voluntary insurance in Costa Rica. What they cover and some information about costs.
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Should I use a company to buy the car ?
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Two door version Toyota RAV4 1998-1999 models
A lot of people have been told to use an S.A. to buy the car, for the purpose of asset protection. This may or may not be good advice. Some lawyers charge $500 and more to set up the company and there are some disadvantages you will encounter:
- You will always need an up to date “personería juridica” when you do something with the car (RTV inspection, insure it, pay the annual marchamo – property tax, base insurance)
- The company has to file a tax return each year in September and pay a stamp in March. This is obligatory, whether or not you have economic activity in the company.
- The legislative assembly is discussing a tax bill that will charge $200 annually for companies.
- Being in an S.A. protects the car in case you are sued, but the vehicle is more likely a source of liability (due to accidents) so in most cases the protection is limited.
- Board members – you need to have different members of the board and a legal representative. This can cause problems later, for example if the lawyer fires his secretary and she is on your board, then you will have to replace her. An unscrupulous or careless attorney can cause you to lose control of the company that will own the vehicle if people are granted powers in the incorporation that they should not have. Ask your attorney about making a Responsibilidad Limitada (partnership or sole proprietor) rather than a Sociedad Anonima (S.A.) to avoid this.
- Advantages
- Are there advantages to having the company own a car? You may want to have the car in a company name if it will mean you can declare it for local taxes or you are using it for a business. It does protect the vehicle if you are faced with a civil suit for some reason not related to the car, so if it is a very expensive car and this is a consideration, you may want to have it in a company. If you are arrested for some reason having the car in a company name could protect it. If you have an accident with the car, the car could not be placed under a lien as a part of the civil suit arising from the accident. If you do decide to use a company, make sure:
- The company should not own bank accounts or real estate, only the vehicle. (unless it is a related business enterprise)
- Consult with your lawyer or CPA about what documents you must file for the company and when.
- Get a personería jurídica from your lawyer. This can also be obtained when necessary from the service window at the Registro Nacional, it is pretty straightforward process that anyone can do.
Costa Rica Vehicle Registration – Transfer Process
Vehicle registration in Costa Rica goes through the National Registry
In Costa Rica, vehicle registration or transfer done using a lawyer one of 2 ways. Transfer costs are roughly 3.5 % of the fiscal value of the car according to tables the Registry uses; which may be higher, lower or the same as market value. You can base it on market value to get a rough estimate, this should include lawyer’s fees and all taxes. Read More
Hyundai Galloper SUV For Sale in Costa Rica
The Hyundai Galloper SUV 2000 Model
The Hyundai Galloper is the most practical SUV for Costa Rica, the initial investment is unbeatable, it is economical in fuel consumption and parts are very cheap (for Costa Rica at least).
Features and Options
The Hyundai comes with many extras as standard features, for example most Gallopers have electric windows and door locks. All Gallopers are true 4 x 4, meaning that they have a low and high 4 wheel drive to get you through most situations. They are available in automatic and manual transmission, although the manual is much more common. Most available in Costa Rica have true luggage racks (not luggage rails! ) for tying down gear or suitcases, running boards and a rear ladder. Fog lights are often a factory feature or have been added. High quality aluminum rims are a standard feature also.
Mitsubishi Montero and Montero Sport for sale in Costa Rica
A Fascinating Evolution
Mitsubishi Montero History
Mitsubishi Montero - Power and grace, a classic SUV for Costa Rica
The Mitsubishi Montero first appeared in Costa Rica with the 1985 – 1991 model. The Montero and the Sport version have always been considered a class act and are highly regarded by Ticos. They tend to have lots of options befitting a higher end SUV. The early models are an excellent choice for those who want a good SUV for around $6000. In 1992 the design was upgraded, Mitsubishi added body side moldings and improvements to the suspension and interior. Because of this styling prices are higher than earlier models, which can happen quite often in Costa Rica, so you want to be careful. For example, if you want a 1992 model, you will find prices similar all the way through the 1998 model, so you can always get a better year for a little more money. Whereas, in 1999 the body style and model were changed again, so they are significantly more expensive than a 1998 model. The 1999 – 2000 models are “tweeners”. They have more features, more power and a better suspension than the earlier models, but the 2001 and newer models have a distinctive new “cheeky” look and major improvements to the options package, in addition to more power in the drive train and improved handling.