Costa Rica Company Formation & Taxation FAQs
Costa Rica has become a leading destination for international entrepreneurs, digital nomads, and investors seeking to establish a business in a politically stable, economically dynamic, and tax-friendly environment. Known for its strong legal framework, territorial tax system, and investor-friendly policies, Costa Rica offers a straightforward path to company incorporation for both residents and foreigners.
This FAQ section provides clear, practical answers to the most frequently asked questions about starting a business in Costa Rica. Whether you’re planning to operate a local venture, establish a holding company, or manage international investments, understanding Costa Rica’s company laws and compliance obligations is key to a successful setup.
The most common legal entity used by foreign investors is the Sociedad Anónima (S.A.) or Sociedad de Responsabilidad Limitada (S.R.L.), both offering limited liability and flexibility in management. Incorporation is relatively fast and affordable, but requires appointing legal representatives and registering with the National Registry, Tax Department (Hacienda), and Central Bank (BCCR) for ultimate beneficiary declaration.
Costa Rica does not tax income earned outside the country, making it particularly attractive for offshore service businesses and international entrepreneurs. However, local compliance—including annual declarations, tax filings, and UBO registration—must be carefully managed.
Whether you’re asking how long it takes to incorporate, whether a local director is required, or how to open a bank account in Costa Rica, this FAQ page is designed to address your most pressing concerns. BRIS Group provides expert assistance with company registration, nominee services, registered office, and full post-incorporation support.
Explore the questions below to learn more about incorporating in Costa Rica, or contact us for tailored guidance from our experienced international team.
Frequently Asked Questions About Costa Rica Company Formation
Costa Rica offers a favorable environment for international entrepreneurs, thanks to its territorial tax system, stable legal framework, and openness to foreign investment. This FAQ section answers key questions about registering a company in Costa Rica, including entity types, legal requirements, tax obligations, and setup timelines. Whether you’re launching a local business or establishing an offshore structure, these FAQs provide essential guidance to help you get started with confidence.
🇨🇷 Costa Rica Company Formation FAQs
1. What is a Costa Rica company?
A Costa Rica company is a legal entity registered under Costa Rican law, commonly used for international business, investment, and trade operations. Learn more on our Costa Rica company formation page.
2. What types of companies can I form in Costa Rica?
The most common forms include Sociedad Anónima (S.A.), Sociedad de Responsabilidad Limitada (SRL), and branch offices of foreign companies, each suitable for different business needs.
3. Who can form a company in Costa Rica?
Both residents and non-residents are eligible. There are no nationality restrictions for shareholders or directors.
4. How long does company registration in Costa Rica take?
Registration typically takes 2–4 weeks, depending on document preparation and notarization.
5. What documents are required for registration?
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Passport copies of directors and shareholders
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Proof of address
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Company bylaws and registration forms
6. Do I need a local director in Costa Rica?
No. Costa Rica allows foreign directors, but a local registered agent is required for legal correspondence.
7. Can a Costa Rica company own assets internationally?
Yes. Many offshore investors use Costa Rican companies to hold real estate, intellectual property, and international investments.
8. Is there a minimum share capital requirement?
Yes, the minimum authorized capital depends on the company type but can be as low as ₡100,000 CRC (approximately USD 150).
9. How private is a Costa Rica company?
Costa Rica requires public filing of directors and shareholders, but sensitive operational details remain private.
10. Can I open a bank account for a Costa Rica company internationally?
Yes. Costa Rican companies can open accounts locally and in many international banks.
11. What are the annual compliance requirements?
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Filing of annual financial statements
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Payment of annual franchise taxes
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Renewal of corporate records with the Registry of Legal Entities
12. Are there local office requirements?
A registered office in Costa Rica is required for correspondence, but no physical office is necessary for international operations.
13. Can I rename or restructure my company later?
Yes. Name changes, share restructuring, and directorship updates are allowed with the National Registry.
14. How do I dissolve a Costa Rica company?
Companies can be dissolved voluntarily by submitting deregistration forms and clearing all tax obligations.
15. Why choose Costa Rica for company formation?
Costa Rica offers political stability, favorable business laws, and access to Latin American markets, making it ideal for international investors. Explore more on our Costa Rica company formation page.
💵 Costa Rica Company Taxation FAQs
1. Do Costa Rica companies pay local taxes?
Yes. Companies are subject to corporate income tax on worldwide income if they are resident, while non-residents are taxed on Costa Rican-sourced income only.
2. What is the corporate income tax rate?
The standard corporate tax rate ranges from 10% to 30%, depending on annual taxable income.
3. Are dividends taxed in Costa Rica?
Dividends paid to residents are subject to withholding tax, while non-resident dividends face withholding rates between 15–25%, depending on DTAs.
4. How are capital gains treated?
Capital gains from sale of real estate and shares are taxable, although gains from certain offshore assets may be exempt if not sourced in Costa Rica.
5. Are there annual reporting requirements?
Yes. Companies must submit annual tax returns and financial statements, regardless of tax liability.
6. Can a Costa Rica company be considered tax resident?
Yes. Companies incorporated in Costa Rica are generally considered tax residents and taxed on worldwide income.
7. Are there indirect taxes?
Costa Rica applies Value Added Tax (VAT) at 13% on goods and services sold domestically, but exports are zero-rated.
8. Are there benefits for trust-owned companies?
Yes. Trust structures can provide asset protection, succession planning, and operational flexibility, though they must comply with local tax rules.
9. Can a Costa Rica company operate globally without local tax exposure?
Yes. Income generated outside Costa Rica by non-resident companies is typically tax-exempt, offering opportunities for offshore business planning.
10. How does transfer pricing apply in Costa Rica?
Costa Rica enforces transfer pricing rules for transactions between related parties to ensure arm’s-length pricing for tax purposes.
11. Are there double taxation agreements (DTA)?
Costa Rica has limited DTAs, so international companies often engage in careful tax planning to avoid double taxation.
12. How are payroll and employee taxes handled?
Companies hiring locally must pay social security contributions and payroll taxes, even if most operations are offshore.
13. Are there stamp duties or registration taxes?
Yes, minor registration fees apply for company incorporation and certain transactions, but they are generally low-cost.
14. Can a Costa Rica company change its tax residency?
Yes. Companies can restructure or re-domicile to another jurisdiction with regulatory approval, useful for international tax planning.
15. Why is Costa Rica ideal for international tax planning?
Costa Rica combines strategic location, favorable corporate structures, and international market access, making it a top choice for offshore business and investment. More details are available on our Costa Rica company formation page.
Interested in setting up an offshore company in Costa Rica?
Visit our Costa Rica Company Formation page for detailed guidance, packages, and expert support tailored to your needs.
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