Key benefits

Costa Rica is located in Central America between Panama and Nicaragua. Dubbed “the Switzerland of the Americas” Costa Rica offers many advantages and favorable tax conditions. The high degree of privacy is one of the biggest advantages Costa Rica holds however in March 2012 Costa Rica signed the Convention on Mutual Assistance in Tax Matters with the Organisation for Economic Co-operation and Development (OECD). This could in effect change the privacy provisions Costa Rica is famous for however the required legislation has not been passed into Law at the current time.

Although the official language of Costa Rica is Spanish English is also widely spoken. Company names can be recorded in either Spanish or English.

Costa Rica’s economy was originally agriculturally based however recent diversification has taken place and Costa Rica has become a member of the World Trade Organisation in addition to developing numerous incentives to promote business and trade.

The most common form of company used in Costa Rica is the “Sociedad Anonima” as shareholders are not liable for the actions of the company. The main advantages of the S.A. are listed below:

Key benefits of a Costa Rica S.A:

  • A S.A. offers a high degree of privacy and anonymity.
  • 4 Members are required for a S.A – President, Secretary, Treasurer & Controller. Board Directors appear on public record.
  • Shareholders do not appear on public record.
  • Costa Rica is not a member of the Hague Convention therefore if a bank account is planned to be opened outside of Costa Rica then the corporate documents have to be legalized. Legalisation costs depend on the specific countries Consulates rates.
  • Timescale of Incorporation – between 20-40 working days.
  • An S.A operates a territorial taxation principle; the company only pays taxes according to the income generated in Costa Rica.
  • There are no reporting or accounting requirements.
  • Costa Rica is not considered an offshore entity and has a number of Free Trade Agreements in place (US, Canada, Mexico, Chile, Dominican Republic and the Caribbean). There are also negotiations underway with China and the EU.

Take the next step, we are here to help.

Register a Costa Rica company.
Open a Costa Rica bank account.

  Resources:

Gibraltar companies now have to disclose full Beneficial Ownership details to Central Register

Gibraltar companies now have to disclose full Beneficial Ownership details to Central Register

Gibraltar is working to implement all EU legislation relating to the 4th Anti Money Laundering Directive into national law, in addition to the current EU legislation on financial supervision and direct taxation, and to this affect, the Government of Gibraltar have established a Central Register of Beneficial Ownership that will be effective from June 26th 2017.

European Commission publishes tax avoidance disclosure directive

European Commission publishes tax avoidance disclosure directive

The EC (European Commission) has published its draft legislation compelling financial service providers or intermediaries to disclose any international tax planning schemes they have encouraged, enabled or assisted in any way.

OECD publishes compliance review for all non-compliant jurisdictions

OECD publishes compliance review for all non-compliant jurisdictions

The OECDs global tax transparency initiative was launched last year in April 2016, with the purpose of encouraging every jurisdiction across the world to commit to implementation of a CRS (Common Reporting Standard) for automatic exchange of information by 2018, and to sign the Multilateral Convention on the exchanging of tax data. A forum on behalf of the OECD has released the results of its review for jurisdictions it considers to be non-compliant.

EU Parliament Committee release findings & recommendations for current offshore taxation measures

EU Parliament Committee release findings & recommendations for current offshore taxation measures

A formal enquiry into the Panamanian law firm Mossack Fonseca has been launched by the European Parliament's Committee, which found gaps in beneficial ownership transparency for trusts and fiduciaries and didn’t meet the EU standard.

2017 G20 summit: Enforcement of taxation highest priority

2017 G20 summit: Enforcement of taxation highest priority

The 2017 G20 leaders’ summit took place in Hamburg last week where the European Commission Council and leaders discussed the priorities and primary projects for the upcoming summit. EC President Jean-Claude Juncker has stated that advancing the global combat against tax evasion is top of the list.

The EC takes action against advocates promoting tax avoidance schemes

The EC takes action against advocates promoting tax avoidance schemes

The European Commission has recommended the implementation of a new regulation regarding companies or intermediaries who promote or design cross-border tax planning schemes will going forward be required to provide full disclosure to the tax authorities of their relevant jurisdiction within five days of offering them to clients.

What are the new Beneficial Ownership reporting requirements for BVI companies?

What are the new Beneficial Ownership reporting requirements for BVI companies?

Going forward, a new regulation will require certain British Virgin Islands companies to gather and retain details of Beneficial Owners with 25% or more of the company’s shareholding rights, with an ongoing requirement to keep the details up to date.

Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?

Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?

Cyprus is once again working to improve its economic desirability and will be able to increase its alternative business base for Russians with good creditworthiness.