Costa Rica is a very open and secure environment for foreign investment, our country offers an attractive and stable environment in which to establish a business and although Costa Rican telecommunications and transportation infrastructure are state controlled and in need of investment, they are nonetheless the best in the region.
A branch of a foreign company operating in Costa Rica must appoint a Costa Rican resident as its legal representative with full power of attorney on matters concerning the business of the branch.
The Costa Rican government has introduced a wide variety of incentives to encourage foreign investment. Among the most important we can mention the following:
• The ‘’Law on Promotion of Exports’’ (Ley de Fomento a las Exportaciones) No 5162 of 1972 encourages foreign investors to assemble prime products in Costa Rica and re-export the finished products to other markets free of all import duties. The final product which is re-exported is not assessed to any business income tax on profits.
• Free Zones – The Government created Free Export Zones under law no 7210 (known as the “Export Processing Law”). Substantial tax incentives including 100% exemption from virtually all taxes and Government finance for the training of employees have traditionally been available to companies which located within one of the 12 free export zones (6 of which are privately managed).
• Trade Agreements are an incentive as they offer: reduced import duties; no import duties for certain products, simplified procedures; special port tariffs;
Eproint is able to counsel you on how best to set up your company in Costa Rica, what legal structure is appropriate to your practice and also in the management of customs matters all hand in hand with intellectual property rights.
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