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Implications of CAFTA

Costa Rica is one of the safest countries in Latin America for foreign investment. Laws governing business in Costa Rica are very conducive to foreign investment or management.

The growing economy, political stability and commercial freedom create the ideal climate for starting a business.

Incentives

There are benefits for foreigners to own and operate businesses in Costa Rica. According to research by American University grad students, the Costa Rican government offers these incentives:

Attractive tax and other incentives offered by the Costa Rican government:

• 100% exemption on import duties on raw materials, components and capital goods

• 100% exemption on taxes on profits for 8 years, and 50% for the following 4 years

• 100% exemption on export taxes, local sales and excise taxes, and taxes on profit repatriation

• 100% exemption on municipal and capital taxes

• No restrictions on capital repatriation or foreign currency management

• Fully expedited on-site customs clearance

• Can sell to exporters within Costa Rica

• Can also sell up to 40% in the local market”

(from the American University MBA course "Impacts of National Information Technology Environments on Business")