Establishing in the Free Trade Zone Regime in Costa Rica: Benefits and Requirements

The Free Trade Zone Regime in Costa Rica offers a series of competitive advantages for investor companies that decide to establish themselves in the country. Among the benefits are tax exemptions, customs facilities, and a favorable environment for business growth. This regime not only reduces operating costs but also provides a clear and stable regulatory framework, allowing companies to focus on their development and expansion. Through this article, we will explain the key requirements for entering the Free Trade Zone Regime and how BDO can assist you at every step of the process, ensuring a smooth and successful transition.

Investment Requirements

Depending on the type of industry or activity, there are some additional requirements that must be met in order to qualify for the benefits, however the general investment requirements are as follows:

1. Greater Metropolitan Area (GAM):

Within the Industrial Park: Minimum investment of $150,000.00
Outside the Park: Exceptionally, only when the characteristics of the production process or the nature of the project make it impossible to develop it within an industrial park, and depending on the activity of the company, the Free Zone Regime may be granted for the company get established outside an industrial park, provided that the initial investment is at least $2,000,000.00

2. Outside the Greater Metropolitan Area (GAM):

Within the Industrial Park: Minimum investment of $100,000.00
Outside the Park: Exceptionally, only when the characteristics of the production process or the nature of the project make it impossible to develop it within an industrial park, and depending on the activity of the company, the Free Zone Regime may be granted for the company get established outside an industrial park, provided that the initial investment is at least $250,000.00

3. Megaprojects:

Minimum investment of $10,000,000 in fixed assets subject to depreciation.
Regardless of the location, companies have a maximum term of 8 years to comply with and maintain this investment.

General Obligations

Beneficiary companies of the regime must comply with several obligations, including:

Accounting and Record-Keeping: Maintain and record operations related to goods that enjoy tax exemptions.
Operational Contract: Sign an operations contract with Procomer and fulfill the investment and employment commitments.
Declarations and Control: Use information systems for the control and documentation of customs operations.
Annual Report: Submit an annual operations report to Procomer, with the legal representative's digital signature.
Regulatory Compliance: Comply with environmental, urban, and health regulations, and maintain the necessary operating permits.
Monthly Fee Payment: Pay a monthly fee to the Costa Rican Foreign Trade Agency, calculated based on total sales.
Employment: Companies must commit to maintaining the employment level while enjoying the benefits of the regime, with specific exceptions for manufacturing companies classified as strategic or megaprojects.

BDO: Your Partner in the Onboarding Process

At BDO, we have the necessary experience and knowledge to guide your company through every step of the process of establishing in the Free Trade Zone Regime in Costa Rica. We offer comprehensive services that include advice on meeting investment, employment, and general obligations requirements, as well as support in filing reports and maintaining necessary accounting and records.

Do not hesitate to contact us for more information on how we can help you take full advantage of the benefits of the Free Trade Zone Regime in Costa Rica. At BDO, we are committed to the success of your company.

Sources:

Free Trade Zone Regime Law (No. 7210)
Regulations to the Free Trade Zone Regime Law (No. 34739-COMEX-H)