Special regimes are legal tools governments use to promote a country’s foreign direct investment, exports, and economic development. Their goal is to spur business activity and improve the local economy’s competitiveness.
Companies leasing in Zona Franca Grecia have the right to receive incentives for boosting investment opportunities outside the greater metropolitan area (GMA), according to Law 10,234.
Initially, the categories eligible for receiving the incentives were manufacturing in strategic sectors, services in strategic sectors, and free trade zone park management. Recently, however, the government has decided to expand these to include health service centers, input suppliers, and sustainable adventure parks.
Key Aspects by Sector
- Health services: Specialties such as ophthalmology, orthodontics, and plastic or reconstructive surgery were also made eligible for tax incentives. In addition, the required minimum investment of $10 million outside the free trade zone was reduced to only $5 million inside the free trade zone.In addition, highly specialized healthcare facilities were added that must comply with a minimum eight-year investment plan, have at least 100 permanent employees, and make it possible for patients to remain in the free trade zone while using the services.Input suppliers: Suppliers are able to invest a minimum of $100,000 within the free trade zone compared to the $250,000 required outside the free trade zone. Companies setting up outside the GMA will also have reduced investment requirements and a smaller initial investment of $250,000 instead of $500,000.
- Sustainable adventure parks: For this category, which is defined as open-air activities designed for users’ entertainment and fun while promoting conservation and appreciation for the environment, the Costa Rican Foreign Trade Promoter (PROCOMER) must request the opinion of the Costa Rican Tourism Institute (ICT) on the viability of the proposed activities. If a response is not obtained within thirty days, the opinion will be understood as being favorable.The requirements are an initial investment in fixed assets of at least $5,000,000, an eight-year investment plan, and a minimum of 50 permanent employees during the entire operation.
- Telecommunications services: The National Telecommunications Development Plan will focus on encouraging the development of infrastructure and services outside the GMA and on linking its policies with job creation and economic recovery.
Additional Added Value
– The National Learning Institute (INA) will also promote academic offerings that meet company needs.
Public utility rates will be set for companies that set up in free trade zones outside the city center.
– Public-private partnerships will be encouraged with companies under the special investment attraction regime.
Other attractive benefits that companies setting up operations in Zona Franca Grecia can take advantage of include the following:
- Export exemption;
- Ten-year exemption on movable asset transfer taxes and municipal licenses; and
- Remittance tax exemption.
A comparison of the taxes of a manufacturing company within the GMA with those of a company outside the GMA gives a clear example of how location can affect company taxes.
A company within the GMA has a profit tax of 6% to 30% over twelve years, while a company outside the GMA has a rate that scales up little by little from 0% to 30% over eighteen years, showing how companies can save on taxes by locating in other areas of the country.
Zona Franca Grecia: An Excellent Option for New Investments
Zona Franca Grecia, the Portafolio Inmobiliario project located in Costa Rica Green Valley, is an excellent option for companies seeking to take advantage of investment tax benefits.
With a strategic location and top-class infrastructure, Costa Rica Green Valley provides a favorable and sustainable business environment that meets all the requirements for obtaining these tax exemptions and contributing to the country’s economic development.
Moreover, its commitment to environmental conservation and sustainability make it the ideal choice for companies looking to operate responsibly and ethically in Costa Rica.