{"investor_group_id":"1","date_received":"2026-02-27","question_original":"9. Conversion into lots \u2013 legal and tax aspects  : Have the legal and tax implications for non-Costa Rican investors converting bonds into lots been fully analysed (transfer taxes, stamp duties, local registration, potential withholding or indirect tax exposure)?","internal_owner_id":"1","draft_answer":"Yes, the legal and tax implications of bond conversion into land lots for non-Costa Rican investors have been considered and will be fully documented prior to implementation.\r\n\r\nFrom a legal standpoint:\r\n- Upon conversion, the transaction would be structured as a formal transfer of real estate under Costa Rican law, duly recorded with the National Registry;\r\n- Title transfer would require execution before a Costa Rican notary and registration in the Real Estate Section of the Registro Nacional;\r\n- Foreign investors are legally permitted to own Costa Rican real estate directly, without residency requirements.\r\n\r\nFrom a tax perspective:\r\n- A real estate transfer tax (currently 1.5% of the higher of the registered value or declared transaction value) applies;\r\n- Standard registration and notarial fees would also be payable;\r\n- No Costa Rican withholding tax applies merely due to the buyer\u2019s foreign status;\r\n- Indirect tax exposure (e.g., VAT) depends on the legal nature of the lot (raw land vs. developed property), but undeveloped land transfers are generally outside VAT scope.\r\n\r\nIf required, the conversion can also be structured through a local SPV owned by the investor, depending on individual tax planning considerations in the investor\u2019s home jurisdiction.\r\n\r\nPrior to launch of any conversion mechanism, a formal Costa Rican legal and tax memorandum can be provided outlining:\r\n- Step-by-step transfer mechanics,\r\n- Applicable taxes and costs,\r\n- Registration timelines,\r\n- Compliance requirements for non-resident investors.\r\n\r\nThis ensures that the conversion feature is legally executable, transparent, and predictable from both a regulatory and tax standpoint.","final_answer":"","status":"In progress","priority":"Medium","version":"V1 2026-02-27","update_date":"2026-02-27","linked_faq_id":"7","notes":"Ici l\u2019investisseur teste si l\u2019option de conversion en lots est r\u00e9ellement ex\u00e9cutable juridiquement et fiscalement pour un investisseur \u00e9tranger, et pas seulement th\u00e9orique.","updated_at":"2026-02-27 11:50:28"}