Rate
—
Duration
12 years
Prior non-residency
—
required before applying
Standard top income tax
25.0%
Costa Rica, without the regime
Overview
- Regime
- Zona Franca (Free Trade Zone)
- Country
- Costa Rica
- Type
- Free zone
- Status
- Active
- Effective from
- —
- Expires on
- —
Details
- Summary
- Companies operating in designated Free Trade Zones receive significant income tax exemptions and other benefits.
- Eligibility
- Manufacturing, services, logistics, and technology companies operating in designated FTZ areas.
- Benefits
- 100% income tax exemption for first 8 years, 50% exemption for next 4 years. Exemption from import duties and local taxes. No WHT on dividends.
- Requirements
- Must operate within designated FTZ. Minimum investment and employment requirements vary by zone.
- Limitations
- Cannot sell more than 25-50% of production locally (varies). Subject to Pillar Two top-up for large MNEs.
- Income types covered
- Business income from qualifying activities within the FTZ.
- Duration details
- 12 years (8 years full + 4 years partial exemption).
View source PwC Worldwide Tax Summaries