Set up a Firm in a Free Commerce Zone in Costa Rica?

For many years, Costa Rica has had insurance policies in place aimed toward attracting worldwide enterprise, and to say that these insurance policies have been profitable can be an understatement. One of many methods the Central American nation has attracted worldwide companies giant and small is for a corporation to function in a Free Commerce Zone in Costa Rica. Free Commerce Zones (FTZs) provide a number of tax and import responsibility exemptions, making them extremely profitable locations to do enterprise.

What sort of corporations qualify to function in a Free Commerce Zone in Costa Rica? And what forms of tax advantages do they take pleasure in?

Firm in a Free Commerce Zone in Costa Rica: Industries discovered within the nation’s FTZs

• Aerospace engineering
• Automotive components manufacturing
• Biotechnology
• Shopper electronics 
• Digital parts meeting
• Machine restore/upkeep
• Medical gadgets
• Steel work
• Prescribed drugs
• Renewable vitality
• Software program improvement
• Telecommunications

There are a complete of 48 FTZs in Costa Rica. Most are large industrial parks on sprawling plots of land which might be situated close to Costa Rica’s most important worldwide airport, one of many nation’s sea ports, or in shut proximity to the capital metropolis San José. FTZs will be operated by each private and non-private entities. 

Merchandise of each description could also be held in FTZs, so in case you are not within the enterprise of the industries listed above, worry not – for corporations that need to be in a Free Commerce Zone in Costa Rica, there could also be a niche-FTZ on the market that cater to your specific business.

Moreover, Costa Rica simply handed laws permitting worldwide corporations that work exterior an FTZ, however within the Greater Metropolitan Area (GMA) around San José can apply to be categorized as a “Free Commerce Zone” firm. Corporations working each exterior an FTZ and the GMA may apply to obtain FTZ standing, so long as they meet all the requirements. 

To seek out out if your online business qualifies for working in an FTZ, it’s finest to seek the advice of authorized illustration in Costa Rica.

Advantages of working an organization in a Free Commerce Zone in Costa Rica

Costa Rica’s Free Commerce Zone Regime grants beneficiary companies the widest range of benefits at present obtainable within the nation.

• 100% exemption on import duties on uncooked supplies, machine parts and different items
• Full exemption on company revenue tax
• 100% revenue tax exemption for an eight-to-10-year interval
• Tax exemptions on home purchases of products and providers
• 100% exemption on export taxes, native gross sales tax and VAT
• No restrictions on capital/revenue repatriation or international forex administration
• Expedited on-site customs clearance
• Chance to promote to exporters inside Costa Rica
• Et cetera

FTZs are overseen by the export group Procomer, which is a part of the Costa Rican Ministry of International Commerce. Their Free Zone Regime Guide spells out all the rules, rules, minimal necessities and prohibited actions that have to be adhered to for a corporation to be in a Free Commerce Zone in Costa Rica. 

SEE ALSO: Enterprise Set-Up in Costa Rica – All You Must Know

Varieties of corporations permitted to function in a Free Commerce Zone in Costa Rica

• Buying and selling corporations are permitted, so long as they don’t produce items, however reasonably merely manipulate, repackage, or redistribute non-traditional merchandise for export. 

• Corporations that present providers to individuals or corporations domiciled in Costa Rica, overseas or to different corporations in an FTZ.

• FTZ park directors, and/or corporations which might be devoted to the administration of parks and workplace areas, and so on., for different corporations working in an FTZ.

• Producers that remodel uncooked materials into completed or semi-finished merchandise.

Necessities for corporations in Free Commerce Zones in Costa Rica

• A minimal funding requirement of between $100,000 USD and $500,000 USD relying on the corporate’s location and sort of financial exercise.

• Minimal of $10 million USD funding for industrial exercise deemed to be a ‘megaproject,’ whatever the location.

• Manufacturing corporations require sustaining a minimal of at the least 200 staff on the payroll in the beginning of productive operations. Megaprojects should preserve at the least 100 staff on the payroll.

• All corporations maintain detailed and correct information of the operations of the corporate associated to the products they produce or deal with, as required by Costa Rica’s Ministry of Finance.

• Cost of month-to-month charge to the International Commerce Company of Costa Rica, beginning at $200 USD and going up, in response to the kind of firm working in an FTZ.

• Corporations submit an annual report proving that the entity is fulfilling all the principles and rules outlined within the Free Commerce Zone Regime Information.

Industrial exercise prohibited from working in Costa Rica’s FTZs

• Mining extraction
• Exploration or extraction of hydrocarbons
• Manufacturing or commercialization of weapons and ammunition containing depleted uranium
• Corporations which might be devoted to the manufacturing or commercialization of any sort of weapons
• Corporations which might be devoted to the era {of electrical} vitality, until the era is for self-consumption
• Banking, monetary and insurance coverage entities
• Pure or authorized individuals devoted to offering skilled providers

Biz Latin Hub will help corporations enter a Free Commerce Zone in Costa Rica

At Biz Latin Hub, we offer built-in market entry and back-office providers all through Latin America and the Caribbean, with workplaces in San José, Costa Rica, in addition to over a dozen different main cities within the area. We even have trusted companions in lots of different markets.

Our unrivalled attain means we’re ideally positioned to help multi-jurisdiction market entries and cross border operations.

In addition to data about corporations coming into a Free Commerce Zone in Costa Rica, our portfolio of providers consists of hiring & PEO accounting & taxation, firm formation, and company authorized providers.

Contact us at this time to seek out out extra about how we will help you to find prime tech expertise, or in any other case do enterprise in Latin America and the Caribbean.
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