Costa Rica continues to position itself as an attractive destination for companies seeking to establish, expand or restructure their operations in the region. In this context, the Costa Rica Free Trade Zone Regime can be an important tool for strengthening competitiveness and supporting new investment projects.
The regime provides a range of tax and operational incentives for companies that meet the applicable requirements. These may include reduced income tax rates or exemptions, as well as certain benefits related to imports, local purchases, remittances abroad and municipal taxes.
Accessing the regime, however, requires careful preparation. A company’s legal and corporate structure, the activities it intends to carry out, its local operations and the specific characteristics of the investment project should be assessed from the outset.
The importance of early planning
One important consideration is the time required to complete the corresponding process before the Costa Rican Foreign Trade Promotion Agency (PROCOMER), which may take several months.
For this reason, companies should consider the Free Trade Zone Regime during the initial stages of an investment project, allowing sufficient time to coordinate the legal, corporate and operational aspects of the proposed structure.
Early planning can also help identify the requirements applicable to the project and ensure that the company’s operations are structured consistently with its growth objectives in Costa Rica.
Legal support for companies investing in Costa Rica
At CENTRAL LAW in Costa Rica, we advise local and international companies seeking to establish, expand or restructure their operations under the Free Trade Zone Regime, providing legal and corporate support throughout the different stages of the project.
A careful preliminary assessment and appropriate structuring can be key to effectively taking advantage of the opportunities provided by the regime and establishing a sustainable operation in Costa Rica.
Author: Tomás Quirós
Partner | CENTRAL LAW in Costa Rica
CENTRAL LAW in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama and the Dominican Republic
