1.         The Free Trade Zone 

Companies located in free trade zones operate largely tax and duty-free.  No more than 25% of production may be sold on the local market.  Taxes and duties apply if the amount permitted for local sales.  The new investment in fixed assets must be at least $150,000 for companies located inside free zone areas, or $2,000,000 for companies located outside of free zone areas. 

Tax exemptions include import duties, capital tax (10 years), 100% income tax exemption for 8 years then 50% for the next 4 years, sales tax, export tax, selective consumption tax, property tax, real estate transfer tax, and withholding tax on payments made outside of Costa Rica.  Income tax exemptions of up to 12 years are available if the company is located in an area of “lesser relative growth.” 

Another benefit is simplified customs clearance procedures. 

            2.         Drawback Industries           

This allows temporary duty free admission of goods to be processed in Costa Rica for export to countries outside Central America and Mexico.  There are tax benefits and streamlined customs procedures. 

            3.         Promotional Agencies 

CINDE - This is a private, non-profit organization that promotes social and economic development in Costa Rica through private investment.  It was originally funded by AID, the foreign development organization, but now is funded locally. 

PROCOMER - This is a government-funded organization to assist manufacturers and other companies locate in Costa Rica. 

For contact names, addresses, telephone, fax and email see the “RESOURCES” section at the end of the Casa Canada booklet.

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