What are the benefits of registering a company in Costa Rica in 2025??

Costa Rica is projected to become one of the leading offshore jurisdictions for company formation in 2025. The country offers unrivaled benefits such as the ease of doing business, lenient tax requirements, and a strategic geographical location. We are going to explore the advantages of Costa Rica for company formation in more detail. 

Why is Costa Rica an attractive location for company registration in 2025?

More and more entrepreneurs are getting drawn to Costa Rica company formation, and this trend is expected to continue in 2025. The main reasons for this are its strategic position in Central America, offering easy access to both North and South American markets, a stable and strong financial sector with many industries like technology, agriculture, and tourism, and its fast-developing tech and innovation sectors like software development, medicine, and eco-friendly industries. 

What are the key benefits of Costa Rica’s business-friendly policies for foreign entrepreneurs?

A vast majority of entrepreneurs opening their businesses in Costa Rica are foreign residents. This is because the country does everything to build an attractive landscape for startups from overseas, including no local residency requirements, support for small and medium-sized enterprises, access to multiple international markets, and a high level of spoken and written English, which facilitates the management of operations for foreign investors. 

How does Costa Rica’s tax structure favor new businesses and investors?

Costa Rica has a progressive system for its corporate income tax (CIT), which ranges from 5% to 30%, depending on the company’s gross income level. In addition, some companies can be registered in Free Trade Zones, where they are exempt from corporate income taxes for up to 8 years. At the same time, Costa Rica imposes no tax restrictions on the revenue generated outside the country, which is a huge benefit for foreign investors who do not plan on selling their goods or services to Costa Rican residents. 

What incentives does Costa Rica offer for companies involved in eco-friendly?

Although a relatively small country, Costa Rica is one of the worldwide leaders in sustainability, so it is a no-brainer that the local government offers multiple incentives for eco-friendly companies. For instance, tax exemptions for businesses investing in renewable energy or other sustainable initiatives, government programs with support for clean technology and carbon-free projects, certifications for being eco-friendly issued to companies that operate in sectors closely related to ecology, and support from the Costa Rican Investment Promotion Agency (CINDE), which assists companies in seeking green certifications and investment.

How does the country’s legal framework support business stability and investor protection?

Another visible benefit of Costa Rica as a country for company registration in 2025 is its business-friendly legal framework. The local authorities make sure to provide the same property rights to foreign investors as to Costa Rican residents, investor-friendly policies, a well-curated legal system to settle possible disputes, including arbitration according to international conventions, and investment protection agreements, such as bilateral treaties with other countries to protect investors’ rights. 

What advantages does Costa Rica offer in terms of geographic location?

Costa Rica is located in the heart of Central America, which makes it a jurisdiction with easy and interrupted access to some of the strongest international markets, including both North and South America simultaneously. Besides, Costa Rica has a well-developed transportation system, including ports, airports, and highways, which facilitates business logistics. Finally, Costa Rica is part of several trade agreements,  including CAFTA-DR (Central America Free Trade Agreement), which creates favorable conditions for international exports.

How does Costa Rica’s skilled workforce contribute to the success of new businesses?

There are multiple ways in which the country’s workforce can contribute to the success of your company. For starters, the country has one of the highest literacy rates and education levels in Latin America, which ensures a pool of knowledgeable talents in various fields. Then, a high majority of Costa Rican citizens speak English as their second language, which makes the hiring and collaboration processes easier for companies set up by foreign investors. In addition, Costa Rica educates skilled workers in sectors of high demand, such as technology, medicine, finance, and tourism. Finally, local workers benefit from programs like the National Employment and Training Institute (INA), which provides vocational training in different spheres. 

What are the financial and operational benefits of Costa Rica’s Free Trade Zones for companies?

Costa Rica’s Free Trade Zones (FTZs) provide such benefits as corporate tax exemptions for up to 8 years depending on the company type, simplified export, import, and customs procedures, and access to additional incentives like grants, professional training, and infrastructure support. 

What steps should entrepreneurs follow to register a company in Costa Rica?

Considering all the benefits of company incorporation in Costa Rica, 2025 is the best time to start drawing a roadmap for your future startup. To register a business in Costa Rica, you must choose its structure, prepare legal documentation including identity documents and Articles of Incorporation, apply for the National Registry of Companies, obtain a tax identification number (TIN) from the local tax authorities, register for VAT (if applicable), and obtain a license if your business requires one to operate legally.