I
Costa Rica

Costa Rica

Company Formation in Costa Rica

Republic of Costa Rica — Registro Nacional

Formation Time
1–2 weeks
Min. Capital
No minimum
Corporate Tax
0% foreign-source; 5%–30% domestic (0% in Free Trade Zones)
Foreign Ownership
100%

Overview

Costa Rica is Latin America's premier technology, software, and medical device nearshoring powerhouse. As the only Central American member of the OECD, Costa Rica combines political stability, high English proficiency, and an advanced digital infrastructure. Like Panama, Costa Rica operates on a territorial tax system: income generated from activities outside of Costa Rica is 100% tax-free. Furthermore, Costa Rica's Free Trade Zone (FTZ) regime offers eligible exporting, software development, and shared services companies a 0% corporate income tax rate for up to eight years (extendable to twelve), with zero customs duties on capital goods. The Sociedad de Responsabilidad Limitada (SRL) is the entity of choice for international entrepreneurs and US corporations, offering flexible governance, single-manager management, and eligibility for US pass-through tax classification. Costa Rica also offers popular Digital Nomad Visas and Investor Visas.

Territorial 0% foreign tax
0% tax in Free Trade Zones
Top Latin America tech nearshoring hub
OECD member
Digital Nomad Visa

Why Choose Costa Rica

1

Territorial tax system — foreign-source income is completely tax-free

2

0% corporate income tax under the Free Trade Zone (FTZ) regime for export and tech services

3

Top nearshoring hub for US tech, software development, and shared service centers

4

Latin America's #1 nation for English proficiency, green energy (99% renewable grid), and political stability

5

Only Central American member of the OECD, guaranteeing international regulatory standards

6

SRL structure allows US check-the-box pass-through flow-through tax classification

7

Popular Digital Nomad Visa and Investor Visa pathways with expedited processing

8

US Dollar is widely used and fully supported across commercial banks

Business Entity Types

EntityOwnershipDirectorsCapitalTaxBest For
SRL (Sociedad de Responsabilidad Limitada)100%1 managerNone0% foreign income; pass-through or CIT; eligible for US check-the-boxSoftware development, digital marketing, consulting, e-commerce, US subsidiaries
Sociedad Anónima (S.A.)100%3 (President, Secretary, Treasurer)None0% foreign income; 5%–30% progressive domestic rateCommercial trading, real estate holdings, larger operations

Step-by-Step Formation Process

1

Deed of Incorporation Execution

2–3 days

Notarize deed of constitution before a Costa Rican Notary Public.

2

National Registry (Registro Nacional) Filing

3–5 days

Submit to Registro Nacional and receive Cédula Jurídica.

3

Hacienda Tax Registration

1–2 days

Register for D-140 tax filing with the Ministry of Finance (Hacienda).

4

Beneficial Ownership Register (RTBF)

1–2 days

Submit beneficial ownership declaration to the Central Bank's RTBF system.

5

Corporate Banking Setup

2–4 weeks

Open CRC and USD commercial bank accounts.

Costs & Fees

Government / License FeeUSD 500+
Our Service FeeUSD 1,800 – 3,800
Annual RenewalUSD 600+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Costa Rican banks offer dual-currency (CRC and USD) commercial accounts, supported by leading private banking institutions (BAC Credomatic, Scotiabank) and state banks.

Account Opening Time
2–4 weeks
Multi-Currency
Yes — multiple currencies supported

Recommended Banks

BAC Credomatic (leading regional private bank)Banco Nacional de Costa RicaScotiabank Costa RicaBanco Davivienda

Tax Overview

Corporate Tax
0% on foreign-source income; 0% in Free Trade Zones; 5%–30% tiered domestic rate
Personal Income Tax
0% on foreign income; 0%–25% on local employment income
VAT / Sales Tax
13% IVA
Capital Gains Tax
15% on domestic capital gains (0% on foreign)
Withholding Tax
15% on domestic dividends (0% under FTZ)
Double Tax Treaties
6 countries

Costa Rica's Free Trade Zone (Régimen de Zona Franca) provides a 0% corporate tax rate for eligible software, call center, shared services, and export manufacturing companies.

Visa & Residency

Digital Nomad Visa (Estancia)

1 year (renewable)

For remote workers earning $3,000+/month ($4,000 for families)

Investor Visa (Inversionista)

2 years (leads to permanent)

$150,000 investment in business or real estate

Family visa: AvailableProcessing: 1–2 months

Frequently Asked Questions

How does Costa Rica's territorial tax system work?
Costa Rica taxes income based strictly on the territoriality principle: only income derived from services, assets, or capital situated within Costa Rica is subject to taxation. If your Costa Rican company provides software, marketing, or consulting services to clients outside Costa Rica, that income is 100% exempt from corporate tax.
What is Costa Rica's Free Trade Zone (FTZ) 0% tax regime?
Costa Rica's Free Trade Zone regime (Régimen de Zona Franca) offers 100% exemption from corporate income tax (0% CIT) for up to 8 to 12 years for companies providing export services, software development, medical device manufacturing, and corporate shared services, with no minimum export percentage.
What is the difference between an SRL and an S.A. in Costa Rica?
An SRL (Sociedad de Responsabilidad Limitada) is governed by one or more managers, requires fewer corporate formalities, and qualifies as a pass-through entity under US check-the-box regulations. An S.A. (Sociedad Anónima) requires a 3-person board (President, Secretary, Treasurer) and a statutory auditor (Fiscal), making it better suited for larger operating entities.
What is the RTBF beneficial ownership filing in Costa Rica?
The Registro de Transparencia y Beneficiarios Finales (RTBF) is Costa Rica's central beneficial ownership registry operated by the Central Bank. Every Costa Rican legal entity must file an annual electronic declaration in April disclosing individuals who hold 15%+ equity ownership.
Why is Costa Rica a top nearshoring hub for US tech companies?
Costa Rica has the highest English proficiency in Latin America, shares US Central Time (CST), has a 99% renewable electric grid, and hosts major R&D campuses for Intel, Microsoft, Amazon, and HP.
Can foreign founders open bank accounts in Costa Rica remotely?
Yes. Incorp International assists foreign founders in establishing dual-currency CRC and USD corporate accounts with private institutions like BAC Credomatic.