5 Benefits of Incorporating in Costa Rica

Costa Rica is so much more than just a holiday destination in paradise- it offers investors, entrepreneurs and established businesses an opportunity to enjoy a range of business and fiscal benefits. As investor confidence continues to grow, so too does the opportunity to use Costa Rica as a base for a wide range of businesses and business structures. In short, Costa Rica is fast becoming the Central American jurisdiction of choice for savvy individuals looking for a new operational base. Here are just five of the benefits.

Limited Liability

One of the primary benefits when opening a Costa Rica company is the capability of that entity to limit personal liability. This means that you can keep your personal assets separate and protected from business or personal dealings and you can maintain a degree of financial privacy.

Quick incorporation times

It takes around 2–3 weeks to incorporate a company in Costa Rica and the process is very straightforward. Additionally, you only need one shareholder and two directors to open the company but you also need a local address and a registered agent who can manage all correspondence and local issues on behalf of the company. You need to provide the articles of incorporation, a document stating the company’s capital stock, relevant due diligence on directors and beneficial owners and payment of all fees. The minimum paid up share capital required to incorporate a Costa rica company  is $1.

Great fiscal benefits

If you are incorporating in Costa Rica but your business activities will occur outside of the jurisdiction, you are not required to pay any income tax on that revenue. If you are generating money within Costa Rica from your business activities, tax is payable at a rate of 30%. Costa Rica is party to only three double taxation treaties with Spain, Germany and Mexico but it has signed an information exchange treaty with the US which allows for an exchange of tax information to ensure that US individuals are taxed at the right level. Treaties with Romania, the United Arab Emirates, Canada, Israel, Latvia, the Netherlands, South Korea, Switzerland, and the United Kingdom are planned for implementation in the future.

If you are interested in incorporating a company in Costa Rica, do not hesitate to get in touch. Fast Offshore has been providing these services in Costa Rica for over two decades and we are on hand to guide you through the process with minimal hassle.