🇨🇷 Annual Compliance — Costa Rica

Assuming all income is exempt under the territorial system

Fix: Costa Rica's territorial tax system only exempts genuinely foreign-source income. If your Costa Rican company has employees working in Costa Rica, contracts executed in Costa Rica, or services delivered from Costa Rica, the tax authority may characterise that income as Costa Rican-source. Get a local tax opinion on the sourcing of your specific income streams.

Underestimating the time and cost of Free Trade Zone qualification

Fix: FTZ status requires a formal application to PROCOMER (Costa Rica's trade promotion agency), minimum investment commitments, and employment creation thresholds. The process takes several months and is not automatic. Plan ahead and engage a local FTZ specialist before committing.

Trying to open a bank account without in-person presence

Fix: Most Costa Rican banks require at least one director to appear in person for account opening. Plan a trip to San José to coincide with company formation and banking setup. Bring comprehensive documentation — banks in Costa Rica are thorough with KYC for foreign-owned companies.