Want to setup a company? This will tell you about tax laws in Costa Rica, this article will educate you on the tax laws for a LLC which is the most common legal entity in Costa Rica.
CR taxes income remitted back separately than if it were attached to local operations. Thepredominant approximate percentage for income earned abroad, from our research, and this is not personal tax advice, is 0%. The country does not have major incentives to bring in offshore income earned abroad. Taxes are very reasonable in Costa Rica as the effective rate of taxation on a LLC entity is 30%. This ranks Costa Rica as 134th overall with regards to corp. taxation rate internationally. . .
The VAT rate in Costa Rica is 13.00%, which ranks Costa Rica as 134th when compared to VAT taxation rate internationally. In terms of other taxation, an employer will contribute 26.17% to the equivalent of a social security fund and an employee will contribute 9.17%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 59hours. Contributing to this is the number of yearly labor tax payments, which is 2 in CR.
Thin capitalization restrictions aren't in effect. Thin capitalisation refers to any type of laws on given company with respect todebt-to-asset ratios. Dividends are a distribution of a portion of a company profit, decided by the board of directors, to a particular class of shareholders.Dividends can be one of the following cash payments, shares of stock, or other property. The capital gains taxation rate in CRis 0%. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.
The interest witholding rate is estimated at 15%This should be interpreted usually that the relevant tax authorities expects companies to automatically withhold 15% of payments abroad on interest payments. The dividends witholding rate is 5%-15%This means that the taxman expects LLC's to pay tax on at least 5%-15% of money remitted abroad for dividend payments. The royalties witholding rate 25% This should be interpreted usually that the tax authorities expects companies to pay tax on at least 25% of payments abroad for royalty payments.
There is no known tax on wealth in Costa Rica. There are no known inheritance taxes in CR. There are no frequently implemented credits for innovation spend that include tax relieft in CR.
The above is not tax or legal advice for your company's circumstances. Incorporations.io can to reference you to a tax advisorin Costa Rica who can properly advise you. Ready to get started? Click the free consultation button above.
It takes approximately 18 hours to file and prepare documents for a Costa Rica Civil Law.
The corporate tax is approximately 30% which is 134 in the world.
Owners of a company in Costa Rica are not allowed to carry back a loss and may be allowed to carry forward a loss for 3 years.
The vat rate in Costa Rica is 13% which ranks 73 in the world.
Thin capitalization rules are not in effect.
A corporate director is permitted, meaning this country is a good option if you are setting up a structure where you want to protect director liability.
The directors are not disclosed in the public registry of Costa Rica, AMCHAM. Shareholders are disclosed in the AMCHAM.
Typically companies take 5 weeks to setup and there are 2 director(s) required and 2 shareholder(s) required at the time of incorporation.
Overall we think Costa Rica is a good option and have given it a score of 71 as an IO score, using the Incorporations.IO proprietary formula.
We can help you form a company in Costa Rica. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Costa Rica, which is required by law.
We can help you with your incorporations needs for an initial payment of just $1000.
Easy Step by Step Process:
The standard process typically takes between two (2) to three (3) weeks depending on when we receive all the required information from you. Once we receive your information, we will email you a complete set of documents for your review within 3 working days upon confirmation of payment. After executing the documents, you will need to mail them to us and we will formally submit your application for filing with the Registry. The Registry will then take about 3-8 working days to process the incorporation and produce certificates necessary for opening your bank account.
Applying for Your Bank Accounts:
Incorporations.IO maintains close working relationship within our extensive network of partner banks to help you apply for and receive banking services that are most appropriate to your specific situation. From the time of verification of incorporation it can take (1) one week to (2) two weeks to apply for and receive a bank account. We work primarily with banks that allow for remotely opened accounts to ensure you are ready to do business as soon as possible.
Applying for Payment Processing:
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we have partners that can assist you and are happy to help you with introductions that can empower your business.
Start Online or via Phone:
We can get started for you whenever you are ready via a US$1000 initial payment via credit card. I get notified whenever a payment is made here and would send out the welcome letter and initial forms we would need within 12 hours. If you prefer, we can also process via a phone or Skype call.