GOVERNMENT OR LOCAL PERMITS

BY ALEX THOMPSON

Hello, Readers!!!! Some of you may be already familiar with the process to build, to stamp a Catastrated plan of a property, to submit an application for a Commercial Permit for your business or simply to pay your municipal taxes in the different Municipalities or local authorities in Costa Rica. The Costa Rican and local governments love paperwork. You have to be certain that when you ask anything from the City, in order to proceed, the officials will ask you to fill a certain number of requirements that may involve other authorities and the participation of legal advice. Therefore, all local governments and central government are co dependant when issuing a permission, a patent, etc. Let’s review some examples:

1. You want to build a house: First. Prove ownership of the property. Secondly, bring all the proper technical specifications and blue prints from the architects and/or engineers, as well as the professional contracts with them. Third, you have to pay your workers’ insurance to the INS (Insurance National Institute) and later the imposed dues for the construction permit to the City. Sounds very easy, but on reality, each step results on a series of requirements that you need to conquer little by little.
2. If you have a business, depending on the type you may need a City Permit or Commercial Patent in order to operate. The City has the power to shot down the operation if you do not submit an application and fill the proper documentation to acquire that commercial permit. The Health Permit, issued by the Ministry of Health, is one of the requirements for a Commercial Patent which includes a series of requirements as well. Both, the City and the Ministry of Health have to perform an inspection to corroborate the proper state of the business and the type of items needed depending on the objective. See, a travel agency does not have the same requirements as a restaurant.
3. If you want to divide your property in pieces for future sale of segregated lots, you’ll have to hire a Topographer, who issues a Catastrated Plan (s). Furthermore, in order for the Notary Public to be able to prepare the segregation of the property and dully register it in the National Registry, certain institutions, including INVU and the local Municipality have to approve the Catastrated Plan. This process is called “Visado de Plano”, and again, along with the Catastrated Plan you’ll need to prove the City ownership of the property and other requirements that your attorney can provide for you.
4. Even if you’re actualizing the value of your property, to pay your tri monthly property tax, you’ll need to show at the Municipality with a set of papers that shows ownership over the property and fill certain forms for tax calculations. In this case, some of the forms you’ll sign have a character of “Affidavit” or “Under Oath Declaration”.

As a separate note, one important aspect of all of this is: If you act on behalf of a corporation, a certificate, issued by a Notary Public, called “Personería Jurídica”, shall state who is empowered to act as the corporation’s representative.

Some of the procedures may involve the inclusion of a set of corporate documents, such as constitution, “cédula jurídica” (juridical identification card of the company), and subsequent modifications of the Board or bylaws of the company.

There are other types of procedures with the City and sometimes, even includes the political approval of the City Council.

Please remember to seek professional advice that will save you time and money for sure. At your service.