Cryptocurrencies have been making serious inroads in Central and Latin America for quite some time now. Costa Rica is no exception. A few countries have been slightly hesitant to take the leap but Costa Rica hasn’t hesitated and is now being heralded as new cryptocurrency heaven. If you are interested in opening a cryptocurrency company in Costa Rica, read on.
What is cryptocurrency?
Cryptocurrency, such as Bitcoin or Ethereum is a type of virtual or digital money. Cryptocurrency is similar to fiat currencies such as dollar or euro, as it can be exchanged for goods and services. It differs because it does not take a physical form. Cryptocurrency is entirely digital and each transaction is logged on an immutable distributed ledger called a blockchain.
What makes Costa Rica attractive for crypto?
The thriving cryptocurrency and Bitcoin community in Costa Rica is the result of a number of different factors. Firstly, its favourable legal and regulatory system is notoriously welcoming and free from excessive bureaucracy. The Costa Rican government is known for its open attitude towards cryptocurrency and its various applications. It’s even legal to pay part of the staff’s salaries in crypto in the country! This combined with an educated and skilled workforce, and the increasing acceptance of cryptocurrency as a payment method in society makes it the perfect place to set up shop.
Costa Rica is also the most stable democracy in the region and enjoys a strong economy.
Business benefits in Costa Rica
If you’re incorporating in Costa Rica and your cryptocurrency business carries out business activities outside the country, you don’t need to pay any income tax on that revenue. For business conducted within the jurisdiction, tax is payable at a rate of 30%. There are some double taxation treaties in place, more in the pipeline, and agreements with the US that ensure you will be taxed at the right level.
It is also very quick to set up a cryptocurrency company in Costa Rica. In terms of incorporation time, you are looking at around two weeks with a very straightforward process. You only need one shareholder and two directors. Also required is a local address and a registered agent who can take care of correspondence for you.
Limited liability companies are the most popular in Costa Rica. This means that you can keep your business dealings separate from any other personal or business assets you may have. You are also entitled to a certain degree of financial privacy that you don’t get in many other jurisdictions.
How Fast Offshore can help
Fast Offshore has over two decades of experience in corporate services and has been involved in cryptocurrency ventures since the beginning. We are up to date on the latest industry trends and regulations and are able to provide expert advice to businesses wanting to get up and running. From incorporating a cryptocurrency company to setting up bank accounts, payment providers, and taking care of all other corporate matters, Fast Offshore is here to help.