Trusts in Costa Rica: Asset Protection for Expats
Trusts in Costa Rica can be useful for holding property, managing family wealth, establishing succession instructions and separating certain assets from an individual’s personal patrimony.
But the first thing to understand is that Costa Rica does not need to imitate an American or British trust in order to accomplish this.
Costa Rica has its own statutory trust: the fideicomiso.
Articles 633 onward of the Costa Rican Commercial Code expressly regulate the fideicomiso. Article 633 provides that the fideicomitente transfers property or rights to a fiduciario, who must use them for lawful purposes established in the trust instrument. Article 634 then provides that the assets placed into the fideicomiso constitute a separate autonomous patrimony dedicated to those purposes. Costa Rican Commercial Code — Articles 633 onward
That makes the fideicomiso fundamentally different from simply putting a house into an SA or SRL.
The right structure, however, depends on what you are trying to accomplish.
A fideicomiso, Sociedad Civil, SRL and direct personal ownership can all hold assets, but they solve different problems.
What Is a Fideicomiso in Costa Rica?
The Costa Rican fideicomiso is a contractual legal structure.
The person creating the arrangement is the fideicomitente. The person or entity receiving and administering the trust property is the fiduciario. The person who ultimately benefits from the arrangement is normally referred to as the fideicomisario or beneficiary.
Article 633 of the Commercial Code establishes the central concept: the fideicomitente transfers property or rights to the fiduciario, who becomes obligated to administer them according to the lawful objectives established in the trust agreement. Article 633 of the Costa Rican Commercial Code
Article 634 goes one step further.
Property placed in the fideicomiso becomes an autonomous patrimony dedicated to the purposes of the trust.
The Procuraduría General de la República has repeatedly explained that trust property remains separated from the personal patrimony of the fiduciario, fideicomitente and fideicomisario. Procuraduría explanation of autonomous trust property
That separation is one of the most important legal characteristics of a Costa Rican fideicomiso.
What Can Be Placed in a Costa Rican Trust?
Article 634 permits essentially any property or right that can legally be placed into commerce to become trust property.
That can include real estate, corporate interests, money and other legally transferable rights.
When registered property is transferred into a fideicomiso, Article 636 requires the transfer to be registered in the appropriate registry. The property is then registered in the fiduciario’s name in its fiduciary capacity, rather than as the fiduciario’s unrestricted personal property. Commercial Code rules for fideicomisos and registered property
This matters particularly with Costa Rican real estate.
Suppose you own a home in Costa Rica and transfer it into a fideicomiso.
After the transfer, you no longer personally hold title to the property in the same way you did before. The fiduciario holds the property in its fiduciary capacity subject to the terms and purposes of the fideicomiso.
That legal change should never be treated as a simple administrative maneuver.
What Is an Autonomous Patrimony?
The phrase patrimonio autónomo is important because it explains much of the value of a fideicomiso.
The trust assets form a patrimony separated for the purposes established in the trust.
The fiduciario must keep those assets separate from its own property and from assets belonging to other trusts it administers.
The Procuraduría has explained that the trust assets are not simply part of the fiduciario’s personal estate and must remain segregated and identified as belonging to the fideicomiso. PGR opinion explaining separation of fideicomiso assets
That provides a much stronger legal foundation for discussing asset separation than vague claims that a trust “protects everything from creditors.”
Asset protection must always be analyzed according to the particular obligation, timing of the transfer and trust structure.
A fideicomiso should not be created to conceal assets from existing creditors or frustrate legitimate legal claims.
Can a Fideicomiso Help With Estate Planning?
Yes.
The Commercial Code expressly provides that a fideicomiso can be created inter vivos or by testament.
This allows the trust agreement to establish rules governing administration and distribution of property that can continue beyond the settlor’s personal involvement. Commercial Code provisions governing creation of fideicomisos
That makes the structure potentially useful when someone wants more than a simple instruction that an asset pass from one person to another at death.
For example, a fideicomiso might establish rules for management of property for children, provide instructions regarding when beneficiaries receive assets, or create continuity in the management of family assets.
That said, a fideicomiso is not necessary for everyone.
For a person with one Costa Rican residence and a relatively straightforward family situation, a properly coordinated will and clean ownership structure may accomplish the estate-planning objective with much less complexity.
Our broader guide to estate planning in Costa Rica explains how wills, corporations and succession fit together. CRI: Corporations and Estate Planning in Costa Rica
Does a Trust Avoid Probate in Costa Rica?
This question requires more precision than a simple yes or no.
Assets that were validly transferred to a fideicomiso during the owner’s lifetime are no longer personally owned by that individual in the same form. That can change what belongs to the individual’s succession estate.
But this does not mean every fideicomiso automatically “avoids probate.”
The outcome depends on the trust agreement, what property was actually transferred, who retained rights, whether those rights themselves form part of the estate and what happens under the agreement when a party dies.
The better estate-planning question is therefore:
What exactly will I still own personally when I die?
That same principle applies to corporations.
If an SRL owns a house, the deceased individual may not own the house personally—but the individual may still personally own the SRL quotas.
Those quotas can form part of the succession.
You can read more about that distinction in our guide to probate in Costa Rica for foreigners. CRI: Probate in Costa Rica for Foreigners
Fideicomiso vs. Corporation
A fideicomiso and a corporation are not variations of the same structure.
An SA or SRL is a legal entity organized under the Commercial Code.
The Commercial Code recognizes the SA and SRL as commercial companies and gives registered commercial companies their own legal personality. Costa Rican Commercial Code — commercial companies
A fideicomiso, by contrast, is a fiduciary arrangement involving property transferred for specified purposes.
The fiduciario does not simply receive the property as an ordinary owner free to do whatever it wishes. The fiduciario must administer the property within the limits established by the trust agreement and the law.
A corporation is often appropriate for an operating business.
A fideicomiso may be more appropriate when the central concern is administration of specific property according to predetermined instructions.
Sometimes the two can coexist.
A fideicomiso can potentially hold corporate interests, while a corporation may own operating assets. Cross-border tax consequences should be reviewed before creating layered structures.
What Is a Sociedad Civil?
The Sociedad Civil is another structure frequently discussed in Costa Rican asset planning.
It is not a trust and it is not an SA or SRL.
Costa Rican law recognizes civil societies separately from commercial corporations. Instruments creating a Sociedad Civil can be registered in the Registro de Personas, and Costa Rican law expressly recognizes these civil-law entities. Costa Rican Civil Code — registration of Sociedades Civiles
A Sociedad Civil can be useful when two or more people want a legal framework for holding and managing assets for a common civil rather than commercial purpose.
For that reason, it can deserve serious consideration for family-property ownership and estate planning.
We have a separate detailed guide explaining how this structure works. CRI: Sociedad Civil in Costa Rica for Asset Holding
Does a Sociedad Civil Automatically Avoid Probate?
No.
This is one of the most important corrections to the original version of this article.
A member’s interest does not simply disappear at death.
Costa Rican law has specific rules addressing what happens to a Sociedad Civil when one of its members dies. The Civil Code provides that death of a member can cause dissolution unless the governing agreement or applicable law provides that the society continues among the surviving members, with or without the deceased member’s heirs.
The Procuraduría has specifically discussed this rule and Article 1242 of the Civil Code in connection with succession to interests in a Sociedad Civil. PGR analysis of death of a Sociedad Civil member
That means the constitutive agreement matters enormously.
If estate planning is one of the objectives, the agreement should address death, continuation, admission of heirs, transfer of interests and administration.
Simply forming the entity and transferring a house to it does not complete the succession plan.
Does a Sociedad Civil Protect Assets From Personal Creditors?
This should not be stated categorically.
A Sociedad Civil has legal separation between the entity’s property and the partners’ individual ownership interests, but that does not mean every creditor problem disappears.
The legal outcome depends on what obligation exists, whether the liability belongs to the entity or the individual, the nature of the member’s rights, the governing agreement and the circumstances surrounding transfers of property.
Likewise, no entity should be created or funded for the purpose of fraudulently frustrating existing creditors.
Asset protection is strongest when it is prospective, lawful and connected to a legitimate ownership or management objective—not when restructuring begins after a claim already exists.
Direct Ownership vs. SRL vs. Sociedad Civil vs. Fideicomiso
There is no universally superior structure.
Direct ownership is often the simplest choice for someone buying a personal residence. There is no separate entity to maintain, but the property remains part of the individual’s estate and is directly exposed to claims legally enforceable against the owner.
An SRL can make sense for an active business, multiple owners or an ownership structure requiring centralized management. The underlying property belongs to the entity, but the quota holder still owns an interest that requires succession planning.
A Sociedad Civil can be useful for non-commercial co-ownership and family asset arrangements. Its governing agreement can provide flexibility, but death and succession must be deliberately addressed.
A fideicomiso is fundamentally different because assets transferred into it become part of an autonomous patrimony administered according to the trust instrument.
For a detailed comparison of Costa Rica’s principal entity structures, see our article on Costa Rica business entities: SA, SRL and Sociedad Civil. CRI: Costa Rica Business Entities — SA, SRL and Sociedad Civil
Privacy Is Not the Same as Secrecy
Asset-holding structures should no longer be promoted primarily on the basis of “privacy.”
Costa Rica maintains the Registro de Transparencia y Beneficiarios Finales, or RTBF.
The current RTBF regulations cover legal entities and fideicomisos and are designed to identify the individuals who ultimately own, control or benefit from covered structures. Ministerio de Hacienda: RTBF rules and guidance
For fideicomisos, the rules are particularly explicit.
Costa Rica’s RTBF regulations identify the parties to the trust—including the fideicomitente, fiduciario, fideicomisario and protector where one exists—as relevant beneficial-ownership information. Official RTBF regulation for fideicomisos
Hacienda also confirms that private fideicomisos that own or administer assets or rights—including qualifying foreign trusts carrying on activities in Costa Rica—can have RTBF reporting obligations. Hacienda: RTBF requirements for fideicomisos
Likewise, the RTBF rules specifically include Sociedades Civiles among the legal entities subject to beneficial-ownership reporting when applicable. Official RTBF rules covering Sociedades Civiles
So an entity can separate legal ownership without making the actual people behind the structure invisible to Costa Rican authorities.
What Ongoing Compliance Does a Structure Create?
This is another reason not to create an entity simply because someone said it provides “asset protection.”
Every additional legal structure brings administration.
Commercial corporations can have annual corporate-tax obligations, tax registration requirements depending on their activities and RTBF reporting.
For 2026, the Ministry of Finance confirms that Costa Rica continues to impose the annual Impuesto a las Personas Jurídicas on covered commercial entities, with different amounts according to activity and gross-income classification. Hacienda: 2026 Annual Corporate Entity Tax
Fideicomisos also have their own reporting obligations, including RTBF requirements in applicable private trusts.
A sophisticated structure that nobody maintains properly can be worse than a simple structure that accurately reflects the owner’s needs.
Does Moving Property Into a Structure Create Costs?
Yes.
If real estate is transferred from you personally to a corporation, Sociedad Civil or fideicomiso, that is a legal transfer of registered property.
The transaction may involve notarial fees, registry charges and taxes depending on the structure and transaction.
Article 636 of the Commercial Code specifically requires trust property subject to registration to be registered in the appropriate registry. Commercial Code provisions on registering trust property
That means “putting the house into a trust” is not simply an amendment to an estate-planning file.
Title actually changes.
The cost and tax consequences should be calculated before the transfer rather than discovered afterward.
International Planning Requires Another Layer of Analysis
Foreigners often have assets in more than one jurisdiction.
A U.S. citizen living in Costa Rica might have Costa Rican real estate, an SRL, U.S. retirement accounts and investment accounts in the United States.
Adding a Costa Rican fideicomiso or Sociedad Civil can affect more than Costa Rican law.
Foreign tax authorities may classify the structure differently.
For U.S. persons in particular, foreign trusts and foreign entities can trigger complicated U.S. tax and information-reporting rules.
That does not mean the structure should not be used.
It means the Costa Rican attorney designing the structure and the foreign tax advisor analyzing it should know what the other one is doing.
Cross-border structures should be coordinated rather than created independently in each country.
Frequently Asked Questions About Trusts in Costa Rica
Does Costa Rica legally recognize trusts?
Yes. Costa Rica expressly regulates the fideicomiso in Articles 633 onward of the Commercial Code. The fideicomitente transfers property or rights to a fiduciario for lawful purposes established in the trust instrument. Costa Rican Commercial Code — fideicomisos
Is a fideicomiso the same as a U.S. trust?
No. The concepts share important characteristics, but the Costa Rican fideicomiso is governed by Costa Rican statutory law. Its tax, registration, succession and reporting consequences should be analyzed under Costa Rican law rather than assuming U.S. trust rules apply.
Who owns property placed in a fideicomiso?
The fideicomitente transfers the property or right to the fiduciario, which holds and administers it in its fiduciary capacity according to the trust agreement. Registered trust property is registered accordingly, while the assets form an autonomous patrimony dedicated to the fideicomiso. Commercial Code Articles 633–636
Can a fideicomiso own Costa Rican real estate?
Yes. Real estate can be trust property. Because real estate is registered property, the transfer to the fiduciario in its fiduciary capacity must be recorded in the National Registry.
Does a fideicomiso protect property from creditors?
The trust assets constitute an autonomous patrimony and are legally segregated from the parties’ ordinary property for the purposes of the fideicomiso. That does not justify a blanket statement that a fideicomiso defeats every creditor claim. The particular debt, transfer and trust structure must be analyzed. PGR analysis of autonomous trust patrimony
Does a fideicomiso avoid probate?
It can change which assets remain in a person’s personal estate because property validly transferred to the trust is no longer held personally in the same manner. Whether a particular estate avoids or reduces succession proceedings depends on the trust terms and what rights the deceased still owned.
Can a Sociedad Civil own real estate?
Yes. A properly structured Sociedad Civil can own registered assets, including real estate. The structure is particularly worth considering for family co-ownership and non-commercial asset-holding arrangements.
Does a Sociedad Civil automatically avoid probate?
No. Costa Rican law expressly addresses the death of a partner, and the result can depend on whether the governing agreement provides for continuation among surviving partners or with the deceased member’s heirs. PGR analysis of Sociedad Civil succession
Can foreigners establish a fideicomiso or participate in a Sociedad Civil?
Foreign nationality by itself does not prevent a person from participating in ordinary Costa Rican ownership and estate-planning structures, although the particular property may be subject to separate restrictions—for example, Maritime Zone concession property.
Are trusts private in Costa Rica?
Not in the sense of being invisible to government authorities. Private fideicomisos can be subject to RTBF reporting, including disclosure of the parties and ultimate beneficial owners. Hacienda: Fideicomisos and the RTBF
Is a trust always better than owning property personally?
No. For someone with a single residence and straightforward succession goals, direct ownership combined with a properly coordinated will may be simpler and less expensive. Trusts become more compelling when the owner needs continuing administration, conditional distribution, separation of a specific patrimony or more sophisticated family planning.
Start With the Problem, Not the Structure
The biggest mistake in asset planning is deciding on the structure before defining the problem.
A person who wants to buy a retirement home has a different problem from a family trying to preserve several rental properties across generations.
An entrepreneur operating a business has different needs from a parent who wants property administered for children after death.
A fideicomiso, Sociedad Civil, SRL or direct ownership can each be appropriate.
The structure should follow the objective.
For foreigners with significant assets in Costa Rica, the planning process should examine ownership, liability, administration, succession, taxes, RTBF compliance and foreign-country consequences together.
That is much more useful than simply asking, “Should I put the house in a corporation?”
If you own property, a business or other significant assets in Costa Rica and want to understand whether a fideicomiso, Sociedad Civil, corporation or direct ownership makes sense, reach us. We can review the structure in the context of your actual estate-planning and ownership goals.
