Costa Rica
30%
Corporate Tax
5–10 days
Setup Time
No minimum (symbolic amount accepted)
Min. Capital
100%
Foreign Ownership
#74
Ease of Business
Costa Rica is Central America's most stable democracy and most attractive destination for foreign investment. Free Trade Zones (ZFEs) offer 100% exemption from all taxes for qualified companies for 8 years, then 50% for 4 years — the most generous FTZ regime in the region. Intel, HP, and Amazon Web Services have major operations here. San José is an increasingly popular base for US-facing tech operations given the timezone alignment, English proficiency among educated Costaricans, and proximity to the US. Standard CT is 30% (outside FTZ), with lower rates for smaller income brackets.
- Tech companies wanting US-adjacent Latin American presence with timezone alignment
- Companies qualifying for Free Trade Zone 100% tax exemption
- Expat founders seeking stability and quality of life in Central America
- Digital nomads using Costa Rica as a base for remote work
- Service companies targeting North American clients
The standard 30% corporate tax rate is high for Latin America — the Free Trade Zone benefits are the primary attraction for tax-conscious businesses. Outside the FTZ regime, Costa Rica is not a low-tax jurisdiction. The territorial tax system exempts foreign-source income, but proper structuring and documentation are essential to support the foreign-source characterisation. Banking onboarding is slower than in many other Latin American countries.
At a Glance
Available Business Structures
Cost Snapshot
Tax Overview
Banking Reality Check
Timeline: 1–3 weeks
Costa Rican banking is functional but slower for non-residents. BAC Credomatic and Scotiabank are the most international-friendly banks. In-person presence is generally required for account opening. Expect thorough KYC documentation requirements including proof of business activity and source of funds. Some founders use a US-based bank account as a primary account and a local Costa Rican account for domestic transactions.
Visa & Immigration
Costa Rica offers a Digital Nomad Visa (Ley 10,008) for remote workers earning at least $3,000/month from foreign sources, valid for one year and renewable. The Rentista visa requires proof of at least $2,500/month in stable income. An Investor visa is available for investments of at least $150,000. Citizens of the US, EU, UK, Canada, and many other countries can enter visa-free for up to 90 days.
Free Zones & SEZs
40 free zones available
Common Mistakes
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.
Frequently Asked Questions
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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.