As a prospective business owner looking at Costa Rica as a possible location, it would be in your best interest to do all you can to research the concept of a free zone as rigorously as possible. Simply put, organizing a business under the regulations of a free zone will give you a variety of exemptions from tax and is usually done as a way to spur economic development in a particular area or region.
Costa Rica has a variety of free zones actively recruiting economic development and finding one that suits your business needs will ultimately exempt you from the following tax charges: import tax, export tax, transfer taxes for a ten year duration and sales tax. Obviously, this can translate into significant saving for your business and researching Costa Rica as a possibility is one way to pursue that option.
Additionally, some free zones, depending on the local municipality and its version of the free zone, will give you relief on income taxes over a period of time and for a particular amount. The exact amounts vary from free zone to free zone. However, you must keep in mind that the goods being handled or manufactured must ultimately be exported. This is a key aspect of Costa Rican free zones and one to keep in mind when exploring the possibility.
In fact, much of the economic resurgence of Costa Rica can be traced back to foreign investment in trade zone business development, much of it coming from the United States. One example of such a company is Dole which processes bananas on the island for export, enjoying tax benefits while still employing local workers and benefiting the Costa Rican economy.
Further, Dole and other companies currently operating in Free Zones on Costa Rica enjoy a complete exemption from taxation on organizational assets, an exemption from taxes on company profits, the ability to use foreign currency of their choosing in business dealings all significant benefits and reasons that Dole and other companies have invested heavily in Costa Rica over time.
Of course, Meléndez & Bonilla would love to help you determine if your current business or prospective endeavor is well suited to pursue Free Zone investment in Costa Rica. For those organizations that input goods, process them and export them, Free Zones represent significant tax benefits that can improve the health of that company over the long term.
Because Costa Rica has a historically intelligent, productive work force, those Free Zone benefits can be attained without sacrificing quality in employees. This is a great combination of benefits and is one that Costa Rica has leveraged over time to increase international business interest in the country.
With over 15 years serving clients with a variety of taxation and business needs, Meléndez & Bonilla can provide expert advice in pursuing a Free Zone business development deal for yourself and assist you with a strong, local voice as you go through the process of creating, locating and running your business.
Contact us directly via the Contact Us page on this web site and we will get started right away, catering to your business needs and ensuring that you get the best possible situation with the best possible benefits for your prospective Costa Rican business.