F.  ADVANTAGES OF A COSTA RICAN CORPORATION

 Stability - The country is very stable, and democratic.  There is no chance of violent political swings or military coups, and investors in Costa Rica are protected by the constitution of the country, which is enforced by the Constitutional Court.

 Secrecy - Costa Rica has laws to ensure banking secrecy and confidentiality between client and lawyer.

 Surprises - The legal and legislative system in Costa Rica prevents a government from introducing a sudden new tax or law which may be punishing to the owner of a Costa Rican corporation, or which may make an investment not viable.  Retroactive legislation was totally unconstitutional in Costa Rica, although recently the Constitutional Court has recently said that in the case of taxation non-retroactivity of the law is no longer a complete guarantee.

 Selection - There is a large corporate infrastructure in Costa Rica, with hundreds of law, consulting and accounting firms to choose from - including many of the large international firms.  Most major languages in the world are spoken in one firm or another, making it a comfortable jurisdiction for investors from around the world.

 Telecommunications - Touch-tone dialling is available throughout the country for international calls or faxes.  High speed and dial up Internet is readily available, and there is a developed cellular telephone system.  Telex and telegram links are in place.  The time zone for communications with North America is favourable.

 Taxation - At the time of writing there are no taxes payable by a Costa Rican corporation for revenue earned outside of the country.  There are no capital gains taxes, making Costa Rica an excellent country to hold real estate, either locally or outside of the country.  Real estate has a reasonable rate of appreciation due to the country's lure as a retirement site, for the location of industrial plants, for agricultural production and for tourism.  Due to its stability many companies and institutions choose it as a location for their Central American or Latin American head offices, keeping the market for residential and commercial real estate brisk.  Property taxes are very low compared to many countries, and corporate income taxes are relatively low as well.

There are definite advantages to a Costa Rican corporation for those who are interested in investing in Costa Rica, including avoiding withholding taxes on interest and dividends.  See the section on Costa Rica tax law.

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