For many years, Costa Rica has experienced insurance policies in area aimed at attracting worldwide business, and to say that these procedures were prosperous would be an understatement. A single of the methods the Central American nation has captivated global organizations massive and compact is for a organization to work in a Cost-free Trade Zone in Costa Rica. Cost-free Trade Zones (FTZs) provide a host of tax and import duty exemptions, producing them really valuable spots to do enterprise.
What type of businesses qualify to operate in a Free of charge Trade Zone in Costa Rica? And what types of tax rewards do they appreciate?
Enterprise in a Absolutely free Trade Zone in Costa Rica: Industries discovered in the country’s FTZs
- Aerospace engineering
- Automotive areas producing
- Customer electronics
- Digital elements assembly
- Equipment repair service/upkeep
- Medical devices
- Metal get the job done
- Prescribed drugs
- Renewable strength
- Software program progress
There are a full of 48 FTZs in Costa Rica. Most are significant industrial parks on sprawling plots of land that are situated around Costa Rica’s principal worldwide airport, just one of the country’s sea ports, or in shut proximity to the capital metropolis San José. FTZs can be operated by both equally community and private entities.
Products of each and every description may well be held in FTZs, so if you are not in the business enterprise of the industries outlined higher than, panic not – for organizations that want to be in a No cost Trade Zone in Costa Rica, there may possibly be a specialized niche-FTZ out there that cater to your unique business.
Furthermore, Costa Rica just passed legislation enabling worldwide organizations that function outside the house an FTZ, but inside the Increased Metropolitan Location (GMA) close to San José can use to be classified as a “Free Trade Zone” organization. Businesses operating both outdoors an FTZ and the GMA may perhaps also utilize to obtain FTZ status, so extended as they fulfill all the necessities.
To uncover out if your business enterprise qualifies for operating in an FTZ, it is ideal to talk to authorized representation in Costa Rica.
Gains of running a enterprise in a Totally free Trade Zone in Costa Rica
Costa Rica’s Free of charge Trade Zone Routine grants beneficiary firms the widest vary of advantages at the moment out there in the place.
- 100 percent exemption on import obligations on raw components, equipment components and other merchandise
- Whole exemption on corporate cash flow tax
- 100 % profits tax exemption for an eight-to-10-yr interval
- Tax exemptions on domestic purchases of products and services
- 100 percent exemption on export taxes, area product sales tax and VAT
- No restrictions on capital/earnings repatriation or international currency administration
- Expedited on-website customs clearance
- Possibility to sell to exporters within Costa Rica
- Et cetera
FTZs are overseen by the export corporation Procomer, which is portion of the Costa Rican Ministry of Overseas Trade. Their Free of charge Zone Regime Guideline spells out all the regulations, restrictions, bare minimum prerequisites and prohibited pursuits that should be adhered to for a company to be in a Cost-free Trade Zone in Costa Rica.
SEE ALSO: Organization Set-Up in Costa Rica – All You Have to have to Know
Sorts of businesses permitted to operate in a Absolutely free Trade Zone in Costa Rica
- Trading corporations are permitted, as very long as they do not produce items, but somewhat simply just manipulate, repackage, or redistribute non-conventional goods for export.
- Corporations that offer expert services to folks or firms domiciled in Costa Rica, abroad or to other businesses in an FTZ.
- FTZ park directors, and/or corporations that are focused to the administration of parks and place of work areas, and many others., for other companies operating in an FTZ.
- Manufacturers that change raw material into concluded or semi-finished merchandise.
Needs for corporations in Free of charge Trade Zones in Costa Rica
- A bare minimum investment prerequisite of between $100,000 USD and $500,000 USD relying on the company’s place and kind of economic exercise.
- Minimum amount of $10 million USD financial investment for business action deemed to be a ‘megaproject,’ irrespective of the place.
- Production companies need keeping a minimum of at minimum 200 workers on the payroll at the get started of effective operations. Megaprojects will have to sustain at minimum 100 workers on the payroll.
- All providers keep specific and exact data of the functions of the organization related to the goods they develop or handle, as demanded by Costa Rica’s Ministry of Finance.
- Payment of month-to-month charge to the Foreign Trade Company of Costa Rica, starting up at $200 USD and likely up, according to the sort of corporation running in an FTZ.
- Providers post an annual report proving that the entity is fulfilling all the regulations and rules outlined in the Absolutely free Trade Zone Routine Information.
Industrial activity prohibited from running in Costa Rica’s FTZs
- Mining extraction
- Exploration or extraction of hydrocarbons
- Manufacturing or commercialization of weapons and ammunition made up of depleted uranium
- Providers that are dedicated to the creation or commercialization of any kind of weapons
- Firms that are focused to the era of electrical vitality, unless of course the generation is for self-intake
- Banking, fiscal and insurance plan entities
- All-natural or authorized people focused to furnishing qualified products and services
Biz Latin Hub can support companies enter a Totally free Trade Zone in Costa Rica
At Biz Latin Hub, we give integrated sector entry and back-business office companies through Latin The united states and the Caribbean, with offices in San José, Costa Rica, as well as above a dozen other significant cities in the location. We also have reliable associates in lots of other marketplaces.
Our unrivalled reach suggests we are ideally put to assistance multi-jurisdiction market entries and cross border functions.
As very well as knowledge about organizations moving into a Free Trade Zone in Costa Rica, our portfolio of solutions contains using the services of & PEO accounting & taxation, firm formation, and company legal expert services.
Get hold of us now to find out much more about how we can aid you in getting major tech talent, or usually do business in Latin America and the Caribbean.
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