Form a Sociedad Anónima (S.A.) or Sociedad de Responsabilidad Limitada (S.R.L.) and operate from a stable LATAM democracy in the US Central time zone. Foreign source income is exempt under the territorial principle, Régimen de Zona Franca exporters pay 0% CIT for 8 years, and local income is taxed at 30% (graduated 5/10/15/20% for smaller companies) with 13% VAT.
When Costa Rica is the right call, and when it is not.
PROCOMER administers Régimen de Zona Franca, granting qualifying exporters 100% corporate income tax exemption for 8 years (then 50% for 4 years for strategic services tenants), 100% import duty exemption, and 100% capital tax exemption. Service companies need USD 150,000 minimum initial investment and meet job creation criteria. Manufacturing, BPO, medical devices, and shared services dominate the regime.
Costa Rica taxes Costa Rican source income only. Foreign source dividends, interest, royalties, and trading income earned by a S.A. or S.R.L. fall outside the CIT base. The regime has tightened post EU listing review (Law 10381 of 2023 added substance rules for passive holding companies) but remains favourable for active foreign source businesses. USD is widely accepted alongside CRC.
Costa Rica is in the US Central time zone, has the highest English proficiency in Central America (EF EPI top 30 globally), produces ~15,000 STEM graduates per year (UCR, TEC, ULACIT), and benefits from CAFTA DR duty free access to the US. Median senior developer compensation runs USD 35,000 to 60,000 per year, materially below US and EU comparables. Intel, Amazon, and HP run nearshore hubs locally.
Domestic source income is taxed at the 30% headline CIT (graduated 5/10/15/20% for smaller companies based on gross income brackets) plus 13% IVA. Caja Costarricense de Seguro Social (CCSS) social contributions land at around 26.5% employer plus 10.5% employee. For purely local revenue, the effective burden is materially higher than offshore peers.
Costa Rican incorporation runs through a Costa Rican notary public, with Registro Nacional filings, legal book registration, and CCSS enrolment. Timelines run 21 to 28 days end to end, and Spanish language documentation is mandatory. Faster jurisdictions in the region include Panama (5 days) and US Florida (3 days).
Working data for Costa Rica. Cite check each figure before use.
Bundle for Costa Rica, one invoice.
Click any question to expand the answer.
Join 500+ founders who incorporated through CorpSec.
Each rate, threshold, and deadline below is cited from an authoritative source.
Information is provided for general guidance and reflects tax year 2025 unless noted. Specific situations require advice from a local practitioner. Always confirm against the cited tax authority and registrar before relying on a figure.