Corporate Taxes

Costa Rica has a graduated tax structure, capping out at a 30 percent tax rate for corporate income levels at $100,000 or higher. For major corporations, this can be a benefit as other areas of the world, particularly the United States, have much higher tax rates for elevated income brackets such as those well above the $100,000 level established by Costa Rica.

Taking advantage of that tax situation on other benefits such as a more encompassing write-off policy can be done through setting up an offshore corporation known as a Sociedad Anonima in Costa Rica. These corporations, abbreviated S.A. after the company name, can be set up anonymously so that the owners of the organization never have their names attached to the corporation.

These corporations function much the same as the United State concept of incorporation, complete with shares that can be bought or sold. Anyone can sign up for an S.A. and having an expert in Costa Rican business like Meléndez & Bonilla can greatly ease the process. Many times, these corporations don’t do any actual business and instead serve as the owners of assets that can then be protected from other tax claims.

This is entirely legal in Costa Rica and is the way many foreign investors use the S.A. system in Costa Rica. With little to no business activity, there is little to no corporate income tax in that scenario as well. Many have used this method to not only keep assets well protected legally but to facilitate simple transfers of title. The S.A. system simply dictates that for a transfer, only shares need to be exchanged. That process is simple and can help facilitate business dealings in Costa Rica.

As owner of this type of business, an investor is entitled to open a checking account for the business and other perks without having to establish citizenship in Costa Rica, another prime advantage of the system. Indeed, the only way to operate a business in Costa Rica without becoming a full citizen of the country is to establish an offshore corporation. Foreigners otherwise do not have access to business creation in Costa Rica.

With years of experience setting up offshore corporations to maximize tax benefits, Meléndez & Bonilla is well equipped to help you set up your own organization in Costa Rica. These types of situations can be handled over the course of a few months with paperwork and other regulations handled entirely by Meléndez and Bonilla.

The corporate structure in Costa Rica of these S.A. organizations is one that values privacy and gives significant shelter to the assets of the owners. By removing the owners’ names from all public records, tracking down who to sue if someone wants to bring a case against an organization is difficult. If a judgment goes against the corporation, personal assets are much better protected in Costa Rica than they are in the United States because of the extra layer of protection that secrecy of ownership provides.

Meléndez & Bonilla would be happy to help with your corporation formation needs. With over 15 years of experience serving those that look to Costa Rica as a corporate tax haven, establishing an S.A. in the country through Meléndez & Bonilla is an easy, simple process. Contact us directly if you are interested in getting started with your offshore corporation needs.