Open a Trust in Costa Rica

Trusts in Costa Rica are acknowledged under the Commercial Code, starting with article 633. According to the law, these are legal arrangements between two parties (a grantor/settler and a trustee) in regard to the administration of various assets.

If you want to open a trust in Costa Rica, our local specialists can help you with its creation. Furthermore, we are at your disposal if you want to do business here and decide to open a company in Costa Rica.

How to create a trust in Costa Rica

The establishment of a Costa Rican trust relies on drafting a trust agreement through which important aspects are determined. The documents must have a written form and must be registered in the Public Registry for the trust to be considered legal.

The trust deed must contain specific information, such as:

• establish who the creator, trustee, and beneficiary(ies) are;
• provide for the assets that will be administered by the trustee;
• the duties, obligations, and rights of the trustee;
• the duration of the trust.

Apart from this form, a trust can also be created through a testament in Costa Rica.

Depending on the form you want it to take, you can rely on our company formation agents or lawyers in Costa Rica, who can help you with the creation of the trust document and registration. We can assist with all the steps for opening a business in Costa Rica.

Types of trusts that can be set up in Costa Rica

There are several types of Costa Rican trusts available, and they depend on the purpose of creation. Specifically, you can decide to open:

• a transfer trust, through which the assets are managed by the trustee until the beneficiary meets the conditions to enter possession of the respective goods;
• a guarantee trust in which the assets are separated and rely on fulfilling a specific financial obligation;
• a management trust, used for administering investment funds.

Our local consultants can offer more information on each type of trust and specific setup conditions applicable to each of them.

Fiduciaries in Costa Rica

The fiduciary is one of the most important parties in a trust in Costa Rica, as the creation deed cannot be drawn up without its/his appointment. The fiduciary can be a natural person or a company. The latter is often used when creating management trusts, as the appointed party must be a professional fund manager.

When it comes to guarantee trusts, banks that are acknowledged by the Costa Rican Central Bank can be appointed as trustees. This is often the case of companies entering various agreements and wanting to ensure that, in case any of them incurs debts, they can be repaid. For this purpose, they create trusts with assets administered by the chosen bank. In case of debt, the financial institution will pay the other party after disposing of the respective assets.

Why create a trust in Costa Rica?

There are various reasons to open a trust in Costa Rica, and among them we present the following:

• It is easy to create and well-regulated;
• It can be used for improved financial planning;
• In the case of a guarantee trust, it ensures payment of debts;
• It is a flexible way for the settlor to decide how his/her assets are distributed;
• It is also a great asset protection and estate planning tool for both Costa Rican and foreign citizens.

As a foreign citizen, you can rely on our lawyers if you plan to move to Costa Rica to set up a trust. We can help you file for residency and citizenship in Costa Rica, depending on your immigration status at the time.

Trusts in Costa Rica in numbers

Here are some facts about trusts:

• Their duration cannot exceed 30 years;
• Article 659 in the Commercial Code says that a trust is extinguished automatically if it no longer has a trustee.

If you want to open a trust in Costa Rica, do not hesitate to contact us for support.