Costa Rica
Capital: San Jose.
Official languages: Spanish.
Currency: Costa Rican colon.
Company registration provides the following benefits:
- No local office required.
- Income from foreign sources is not subject to tax.
- Developed infrastructure and high level of service for legal entities.
- Limited liability.
Costa Rica is one of the smallest countries in Central America. It is located in the narrowest part of the isthmus connecting the two continents. In the southwest the country is washed by the Pacific Ocean, in the northeast by the Caribbean Sea.
Costa Rica is famous for being one of the most liberal jurisdictions for doing offshore business. The key advantage of the country is the territorial principle of taxation of companies.
Features of taxation and reporting
Costa Rica applies a territorial tax principle for corporations. This means that companies are only taxed on income earned within the country. Income earned outside of Costa Rica is exempt from taxation.
- SRL companies that do not operate within Costa Rica are exempt from income tax.
- If the company conducts some activities in Costa Rica, then there is an income threshold of $150-200 thousand per year, below which the tax exemption remains, subject to other conditions.
- VAT is 13%. But export of services is taxed at 0%.
Company registration
Time frame for company registration: 2-4 days.
The most common form for registering a company is a limited liability company (Sociedad de Responsabilidad Limitada, SRL).
An important factor for entrepreneurs is that there is no requirement to have a local office. This means that companies can operate their business in Costa Rica without the obligation of maintaining a physical office.
To register a company remotely, you will need to provide the following information:
- Choosing a company name: three options are required.
- A document confirming the residential address of all participants (utility bills, bank statements indicating the address).
- AML Compliance Officer within the company structure.
- Copies of passports of shareholders and directors, as well as the director must have two identification cards.
- Resume of the director of the company (curriculum vitae).
A quick guide to registering a company in Costa Rica:
To quickly register an SRL in Costa Rica, contact IT-OFFSHORE specialists. The cost of our services includes:
- Preparation of documents (collection, filling, notarization, etc.).
- Company registration.
- Payment of all government fees.
- Registration agent services for 1 year with the possibility of extension.
- Translation services.
- Delivery of registration documents to any address.
The bottom line
Costa Rica, with its favorable tax environment, provides unique business opportunities. The lack of income tax on income outside the country, coupled with the lack of local office requirements, makes the country an attractive choice for entrepreneurs looking to optimize their tax obligations and grow their business internationally. However, when choosing a jurisdiction for a company, it is necessary to take into account not only current legislation, but also its possible changes in the future. We recommend consulting with IT-OFFSHORE lawyers to avoid possible legal consequences and ensure compliance with laws.
Our company offers comprehensive support for the company at all stages - from registration to full support of its activities. We not only help you legally register a company, but also take on many subsequent tasks.
In particular, our scope of services includes maintaining accounting and tax records, providing nominee directors and shareholders, leasing a legal address, obtaining all necessary licenses and permits for the company. We actually ensure the full operation of the business in accordance with the laws of a particular jurisdiction.
