Costa Rica: Customs & Residency Programs for Businesses & Individuals
Inward Processing Regime (PA) in Costa Rica
The Inward Processing Regime (PA) is a customs procedure in Costa Rica that allows goods to enter the country with the suspension of all types of duties and taxes, subject to a guarantee. This regime is designed to promote re-export and local sales of transformed products.
Modes of the Inward Processing Regime
This scheme operates under two primary modes:
- 100% Re-export (Directly or Indirectly): This mode benefits companies that re-export their entire production to Central America and other international markets. Companies opting for this mode are not permitted to sell their products in the domestic market.
- Re-export (Directly or Indirectly) and Local Sales: This mode is suitable for companies that re-export or sell their products in the local market. The percentages for re-export or local sales are pre-defined by the company. Production sold within Costa Rica is subject to all applicable taxes on inputs and other goods entered under the scheme and used to manufacture the final product. This includes exempt taxes (e.g., excise tax) on local purchases of goods used for this purpose.
To qualify for the incentives associated with this regime, goods must undergo a process of transformation, repair, reconstruction, assembly, or be incorporated into machinery, transportation equipment, and other complex items.
Benefits and Eligible Goods for Inward Processing
Goods eligible for tax suspension under this regime include:
- Raw materials and primary forms (including semi-prepared or processed goods).
- Semi-processed goods for administrative activities (e.g., desks, computers, office supplies) typical of the recipient’s operational or production area.
- Goods necessary for food preparation, serving furniture, equipment, fixtures, and furnishings for training, safety, medical treatment, or rehabilitation, exclusively for employees directly involved in the company’s operation, production, administration, and transport processes.
- Manufactured or finished products, and samples required for commercial, industrial, or scientific purposes.
The standard period of stay for most goods listed above is twelve months. However, specific categories of goods may establish a five-year term, automatically renewable for equal periods, without prejudice to any action that competent authorities of the regime may take in case of breach.
Other Export Incentives (Not Managed by PROCOMER)
Beyond the Inward Processing Regime, other export incentives are available, though not administered by PROCOMER. These include:
- Duty drawback regime.
- Exemption from sales taxes and/or selective consumption taxes on purchases.
- Tax and surcharge exemptions for the agricultural sector.
Tourism Infrastructure Development Incentives
To promote the development of tourism infrastructure, incentives are provided for the following services and activities:
- Hotel services.
- Domestic and international air transport of tourists.
- Rental of domestic and international air transport for tourists.
- Water transportation of tourists.
- Tour operator and travel agencies exclusively dedicated to this activity.
Migration Regimes for Costa Rica Residency
Costa Rica offers various residency programs for individuals seeking to live in the country. These regimes cater to different financial situations and investment interests.
Resident Pensioner Status
To obtain Resident Pensioner status, applicants must verify a permanent and stable income of at least US$600.00 per month, generated from foreign banks or the National Banking System. Individuals under this scheme cannot engage in paid work. Excluded from this prohibition are those who invest in charitable activities for the country, as per Costa Rican Institute of Tourism Act 4812.
Resident Annuitant Status
To obtain Resident Annuitant status, applicants must verify a permanent and stable income of at least US$1,000.00 per month, generated from foreign banks or the National Banking System. Individuals under this scheme cannot engage in paid work. Excluded from this prohibition are those who invest in charitable activities for the country, as per Costa Rican Institute of Tourism Act 4812.
Resident Investor Status
For Resident Investor status, the individual must invest at least US$50,000.00 in sectors deemed priorities by the Executive Branch (e.g., ornamental plants, leather goods, spices, fruits and vegetables, processed foods, wood products, and tourism). For non-priority sectors, the minimum investment is US$200,000.00 or its equivalent in other currencies accepted for international exchange by the Central Bank of Costa Rica (General Law of Immigration).