Trade and business.
Costa Rica has implemented several laws to encourage nationals and
foreigners to invest in all fields available; there are laws that provide
certain fiscal incentives for investments in the areas of tourism, export,
commerce, agro-industries and all new projects are always welcome in
our country.
The Costa Rica-Canada Free Trade Agreement was signed on Monday April
23, 2001, and entered into force as of November 1st, 2002, enhancing
the commercial opportunities of our business sectors. Our Embassy's
priority is to promote the trade and business relations between our
two countries, not only providing information, but facilitating contacts,
organise exploring missions, advices and more.
To provide a better service, we work closely with:
Costa Rican Foreign Trade Corporation (Procomer)
www.procomer.com
– e’mail: info@procomer.com
Office of Promotion of Trade
In Toronto, Canada:
www.procomer.com
- e’mail: canada@procomer.com
Director: Itzamn Huelat Q.
Phone: 416-865-3382
16 Four Seasons Place, Suite 107 Etobicoke, ON. M9B 6E5.
In New York, USA:
www.procomer.com
– e’mail: newyork@procomer.com
Director: Maykool López
Phone: 212-967-0051 - 212-967-0053
40 West 37th Street, Suite 300, New York, NY 10018
Costa Rican Foreign Investment Corporation (CINDE)
www.cinde.org - e’mail:
invest@cinde.org
In New York, USA:
www.cinde.org - e’mail:
cindeny@cinde.org
Phone: 212-984-0631 - Fx: 212- 880-649
100 Park Avenue, 16th Floor
New York, NY 10017
Ministry of Trade and Ministry of Foreign Affairs.
www.rree.go.cr –
e’mail: info@rree.go.cr
Doing business in Costa
Rica | Trade Office |
Doing business
in Costa Rica.
Important information:
Main Exports. Electronic components, telephone
equipment, textiles, bananas, coffee, pineapples, fruit juices, fish
and sea food and others.
Major Revenue generator: Electronic circuits, microstructures,
agriculture and Tourism.
Main Imports. Petroleum, machinery, industrial
capital goods, durable consumer goods, chemical, and foodstuffs.
Industries. Electronics, food processing, apparel,
construction materials and plastic products.
Commercial negotiations. Costa Rica has signed
Free Trade Agreements with Mexico, Chile, Dominican Republic, Trinidad
& Tobago and Caribbean States, Canada, the United States of America,
Panama and Singapore and, has almost finished negotiations with the
European Union, and China.
Constitution of your company in Costa Rica:
Three elements are essential for the constitution
of a Company in Costa Rica:
1) A Public Document containing the constitution of the company before
a Notary Public.
2) Publication of that document at the Official Newspaper "LA GACETA".
3) Registration of that Public Document at the Public Register, under
the Mercantile Section.
In Costa Rican a Public Notary is invested, by law, with public faith
and all civil acts of importance should be executed before him in order
to create a valid public instrument.
Taxation. Income Tax. This tax applies only
to income generated in Costa Rica. It has to be paid by:
1) Persons with profits generating
activities. The following tax table is applicable:
a) Profits up to Can. $3,700 per year are tax-exempt.
b) In excess of $3.700 and up to $6.500: 10%.
c) In excess of $6.500 and up to $10.725: 15%.
d) In excess of $10.725 and up to $22.400: 20%.
e) In excess of $22.400: 25%.
2) Legal entities( corporations or "sociedades
anonimas). the following tax table is applicable:
a) For an annual gross income up to $67.000: 10% on net profits.
b) For an annual gross income up to $135.000: 20% on net profits.
c) Above $135.000: 30% on net profits.
Corporations without any commercial activities during the fiscal year
(October to September) must pay CAN $105 a year. Loses during one fiscal
year may be deducted within the next three fiscal years. In case of
agricultural activities, loses can be deducted during the following
five years.
Note: you have the right to take your profits out of the country.
Tax on distributed profits:
a) Whenever the profits are distributed to partners, 15% tax must be
paid to the Tax Office.
b) When dividends are distributed by a corporation whose shares are
registered in an officially recognized stock exchange, a 5% tax must
be with held only if the shares were acquired through a stock exchange.
Salary Tax:
a) For an annual income salary of CAN $1000: TAX EXEMPT.
b) In excess of $1000 and up to $1400: 10%.
c) Above $1400: $15%.
Land or Territorial Tax: Law No.27 of March 2, 1939,
as amended, establishes a tax on real estate called land or territorial
tax (impuesto territorial). This tax is levied in favour of the Municipalities
and is very reasonable. It taxes land and all permanent buildings, installations
and plantations contained therein.
Conveyance Tax: Law 6153 of November, 1977 as amended
establishes a conveyance tax based on the value of the property transferred
at the following rates. 1.5%, 2.5%, 3.5%, or 4.5%, according to a char.
There are other taxes existing at the present time. You may ask your
lawyer or business advisor in Costa Rica in case you require more information.
Investments Laws: Certain activities such as fishing,
poultry, forestry, pig breeding etc., enjoy special tax benefits. Investments
in reforestation are tax deductible. Tourism Investments (Hotels, car
rentals, etc.) enjoy a very good tax exemption especially for custom
procedures, product or machinery importation necessary with the business
operation. Specific information on tax and fiscal incentives is available
from The Costa Rican Foreign Trade Corporation (Procomer). We recommend
visiting their web site:
www.procomer.com or the Costa Rican Investment and Trade Development
Board: www.cinde.or.cr.
Banking system: The National Banking
System in Costa Rica consists of the following entities:
1) Central Bank of Costa Rica. (Federal Reserve Bank in some countries).
2) State owned or Public Banks: Banco Nacional, Banco de Costa Rica
and Banco Crédito Agrícola.
3) Commercial Private Banks. There are several Private Banks in Costa
Rica and one of them is the Canadian Bank of Nova Scotia. A very interested
characteristic and certainly a safeguard for depositors, is that the
public banks of Costa Rica cannot become insolvent. The State guarantees
the operation of all public banks and thus bankruptcy is ruled out.
Employment requirements: The article 13 of our Labour
Code establishes: “All companies in Costa Rica must have a 90%
of Costa Rican employees; only 10% of foreign employees are allowed.
That regulation is not applicable to the President, Directors, and managers
of the company. Also, to hire an employee, you have to have a work contract,
ask your lawyer about it.
Other related information:
• To get the Costa Rican
Permanent Residence by becoming a " Foreign Investor". Ask
us for the document: "Investment and Retiring in Costa Rica".
• To see Commercial Opportunities Costa
Rica-Canada: see www.procomer.com.
• Investing Opportunities in CR: www.cinde.or.cr.
• For Custom Procedures, ask us for a list
of Custom Agencies.
• For Real Estate information, please contact:
Costa Rican Real Estate Broker's Association: (011-506) 283-01-91 or
Fax: (011506) 283-03-47.
• For more information regarding the Free
Trade Agreement Canada-Costa Rica, contact us or visit:
www.comex.go.cr
• If you would like more information on investing in Costa Rica,
We invite you to fill out the form below and forward it to us by fax
(613) 562-2582, we will be pleased to assist you.
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Trade office in Canada
Interested in Costa Rican products? Contact the Costa Rican Commercial
Office in Canada.
Costa Rica and Canada have strengthened the commercial ties by signing
a Free Trade Agreement that allows Costa Rican products to enter Canada,
taking advantage of certain benefits under this agreement, and vice-versa.
Our Commercial Office is located in Toronto, supported by the Foreign
Trade Corporation of Costa Rica (PROCOMER) offering a wide range of
services to help exporters strengthen and expand the presence of Costa
Rican products in commercial markets world wide. Our main objective
is the promotion of Costa Rican products in Canada, through commercial
missions, independent business visits, fairs and other events of interest.
With the support of Procomer´s experts and other public and private
organizations, our programs are designed by committees of businesspeople
that represent our various national productive sectors. These work teams
assist our institution in identifying the needs of different sectors
and customizing our services.
Currently, Procomer has established Commercial Offices in Canada, USA
(New York and Los Angeles), Mexico, Puerto Rico, Dominican Republic,
Trinidad & Tobago and Chile.
For more information, fee free to contact our Commercial Office in Toronto
any time.
PROCOMER – Canada Office
Director: Itzamn Huelat
Assistant: Nelly Martínez
Address: 16 Four Seasons Place, Suit 107
Etobicoke, ON M9B 6E5
Tel (416) 865-3382
Fax (416) 865-3383
Cell. (416) 721-3382
e-mail: canada@procomer.com
Other related links:
Canada Costa Rica Chamber of Commerce www.costaricacanada.org
The Canadian Trade Commissioner Service http://www.dfait-maeci.gc.ca/trade/intl_bus_dev-en.asp.
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