Costa Rica has established itself as an attractive destination for foreign investors thanks to its political stability, tax incentives, and commitment to sustainability. Its strategic location, highly qualified human talent, and business-friendly environment make it an ideal choice for business expansion in Latin America.
Incentives for foreign investment
The Costa Rican government has designed a set of tax incentives that facilitate the entry of foreign investment. Among the most outstanding are the exemption of 100% of customs taxes on imports and exports and the elimination of Value Added Tax (VAT) on local purchases. These measures allow companies to reduce costs and optimize their operations.
Also, outside the Greater Metropolitan Area (GAM), companies can access special social security rates, which reduces labor costs and encourages decentralization of investment, promoting the development of less populated regions.
Special regimes and tax benefits
To attract foreign direct investment, Costa Rica offers three special regimes:
– Free Trade Zone: in force since 1990, it allows companies to access tax benefits with a minimum investment of US$100,000.
– Inward Processing: favors companies that transform imported goods and export them without paying taxes on the inputs used.
– Duty Drawback: allows tax refunds to exporting companies.
These mechanisms seek to increase the country’s competitiveness in the international scenario.
Sustainability: an added value
Costa Rica is a global benchmark in sustainability and environmental protection. More than 30% of its territory is protected, and it has reversed the deforestation process, becoming the first tropical country to do so. Its commitment to renewable energies and sustainable development makes it an ideal destination for environmentally responsible investments.
Infrastructure and business support
World-class legal, accounting, and real estate firms and state-of-the-art business parks support Costa Rica’s business ecosystem. The country also offers specialized support to facilitate the arrival and operation of foreign companies.
Political stability and educational quality
Costa Rica has maintained excellent political stability thanks to its solid democracy. In addition, it invests 7% of its GDP in education and 8% in health, guaranteeing a skilled labor force. Its universities are recognized as the best in Central America and rank second in Latin America in the Global Talent Competitiveness Index.
Connectivity to international markets
Costa Rica’s geographic location facilitates access to key markets. It has direct flights to major cities in the United States and Europe, free trade agreements with more than 50 countries, and bilateral investment treaties with 16 nations. It is also a member of the WTO and the OECD, strengthening its position in global trade.
If you are thinking of investing in Costa Rica, Englobally offers its experience and specialized team to help you choose and set up the most appropriate corporate structure for your company. We also provide support in key aspects such as tax compliance, payroll administration, and accounting, ensuring full support for your business’s development.