Tax Haven Costa Rica



Costa Rica is situated in Central America and is bordered by Panama and Nicaragua. Costa Rica has a population of approximately 4.1 million people. The official language is Spanish. Over the years Costa Rica has been able to attract many investors through its tax exemption programs. The tax haven of Costa Rica is popular for incorporating companies. Costa Rica is not known as an offshore jurisdiction since it has no developed offshore sector but was once called the Switzerland of Central America.


Costa Rica has made a name for itself as being one of the best countries in the world to retire to. The tax haven has attracted hundreds of retirees from North America, Canada and other more developed countries. People choose to retire to the tax haven of Costa Rica as they can reducing their tax liabilities.


Costa Rica was classified as a tax haven for its tax scheme. The country has no tax preferences. There is no discrimination when it comes to taxation in Costa Rica. Both resident and foreign companies are taxed based on the same tax regime. As a tax haven Costa Rica allows for the incorporation of the following business companies: Costa Rica Stock Corporation, Costa Rica Foreign corporations, Costa Rica General Partnerships, Costa Rica Sole Proprietorship, Costa Rica Limited partnerships and collective partnerships. Costa Rica Trusts can also be formed.


The tax haven of Costa Rica has been successful in drawing in some of the world’s biggest and most successful companies because of the extraordinary incentives. Companies incorporated in tax haven Costa Rica can do business both in and outside of the jurisdiction. Companies incorporated in tax haven Costa Rica that do no business in the jurisdiction are exempted from all local taxes. Companies doing business in the tax haven are liable to pay corporate taxes which are based on the annual profits of the company.


A typical characteristic of any tax haven in the world is its ability to provide privacy and protection for its clients and Costa Rica does not lack in this department. When incorporating companies in the tax haven of Costa Rica there is no need to make the names of the beneficiary owners known to the registrar of companies. The names of beneficial owners and directors are not filed with the public registry and therefore do not become public knowledge. This provides privacy for company owners and shareholders.


The corporations registered in the tax haven of Costa Rica are not obligated to prepare and file annual financial reports to the tax authorities in the country. Costa Rica companies in the jurisdiction tax haven are advised to keep their financial records to show the financial position of Costa Rica Companies. Costa Rica corporations can keep their financial audits at any location desired by the beneficial owners. In this way the financial position of the company remains confidential and private, this will be known only by the company officers. The company legislation of Costa Rica makes provisions for Costa Rica companies to hold their shareholders meetings at any location in the world.

Offshore companies incorporated in the tax haven of Costa Rica can conduct business in any country in the world. Costa Rica offshore companies will enjoy tax free trading with the United States of America, China and Canada. Offshore companies can be incorporated by persons of any nationality in the tax haven of Costa Rica.

The tax haven of Costa Rica has a growing offshore banking sector. In the tax haven there are many private and public banks available for setting up bank accounts. The tax haven promoted privacy for offshore bank account holders in Costa Rica.

Costa Rica as a tax haven has no exchange controls in place which Costa Rica Corporations can use to their advantage. The presence of no exchange controls means that money can be transferred in and out of tax haven Costa Rica without limitations or having to declare source of funds. The is no information exchange laws in place in the tax haven of Costa Rica which provides further privacy for offshore investors form their government authorities.

The tax haven of Costa Rica is very instrumental in tax planning allowing foreign clients to reduce on tax liabilities. Costa Rica has emerged as one of the most popular countries in South America for incorporating foreign companies. In the tax haven of Costa Rica all companies incorporated must pay an annual license to the government at the end of each financial year. The license fee for a company in the tax haven of Costa Rica is inexpensive. Costa Rica Companies are easy to maintain. Costa Rica has very well developed infrastructure and communications systems which make it an ideal tax haven for conducting business.


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