The trust: a key tool to protect your investment in Costa Rica
Are you living in Costa Rica as a foreigner or planning to invest in the country? If so, you should learn about the Costa Rican trust, a legal tool that allows you to protect your assets, avoid unnecessary legal proceedings, and manage your property with privacy and efficiency.
In this article, we explain why trusts have become the preferred instrument for foreigners seeking more control and legal certainty over their assets in Costa Rica. Most importantly, we show why ERP Lawyers is your best legal ally to structure one properly.
What is a trust and why is it ideal for foreigners?
A trust is a legal agreement in which you (the trustor) transfer assets to a trustee, who manages them according to your instructions and for the benefit of designated beneficiaries.
Key benefits:
- Avoids probate: Assets in the trust are transferred directly to your heirs without a judicial process.
- Separates personal risk: Trust assets cannot be seized due to personal debts or foreign lawsuits.
- Ensures privacy: Unlike properties held in your name, trust contracts are private and not publicly registered.
- Speeds up legal processes: Trusts operate under private terms, avoiding lengthy court procedures.
What types of trusts are available?
Depending on your needs, ERP Lawyers can structure various types of trusts. These are the most common among our foreign clients:
🔹 Guarantee Trust
Ideal for private lenders. If a borrower defaults, the trustee can enforce the collateral (such as a property) without lengthy court action.
🔹 Estate Planning Trust
Designed for heirs living abroad. Ensures a fast, private, and cost-effective asset transfer after the trustor’s death.
🔹 Real Estate Trust
Facilitates the purchase or development of properties, even in restricted areas like the Maritime Zone.
🔹 Asset Protection Trust
Shields your Costa Rican assets from external claims. A powerful legal structure to isolate them from global liability.
How does a trust overcome legal challenges in Costa Rica?
Costa Rica has a solid legal system, but it can be complex and slow for those unfamiliar with it. A trust functions as a private agreement, providing fast and customized solutions without going through court.
Practical example:
A European citizen acquires property in Costa Rica. Instead of putting it under their name, they place it into a trust. Upon death, their heirs avoid probate or document translation. The trustee follows the instructions and transfers the assets as agreed, without delays.
Why structure your trust with ERP Lawyers?
ERP Lawyers & Associates has over 13 years of experience advising foreigners and residents in Costa Rica. We are a boutique law firm specializing in estate planning, asset protection, and real estate transactions.
We have a proven track record working closely with Costa Rica’s leading real estate brokers. This allows us to anticipate risks, understand local market dynamics, and deliver tailored legal solutions.
Our contracts are bilingual (Spanish and English), and the entire process is handled with clarity, professionalism, and personalized attention.
Want to protect your assets in Costa Rica?
ERP Lawyers offers expert guidance in creating trusts for foreigners. Contact us for personalized, confidential advice on the best way to structure your estate in Costa Rica.
📩 Contact us now to schedule your legal consultation.
