Free Trade Zone Video: Film, Music, and Digital Production in Costa Rica 

Did you know that Costa Rica is one of the most attractive destinations for film, audiovisual, and music production in Latin America? Thanks to modern legislation, unique tax incentives, and an ideal location, the country is emerging as a true hub for the entertainment industry—both within and beyond the Greater Metropolitan Area (GAM).

A Legal Framework that Fuels Creativity

Costa Rica’s Free Trade Zone Regime Law and the Law for Strengthening Territorial Competitiveness offer powerful incentives to entertainment companies that choose to set up operations outside of the GAM. These laws provide access to tax exemptions and legal stability, creating a fertile ground for both local and international creative industries.

Who qualifies?

The following types of companies are eligible:

• Short, medium, and full-length film producers

• Documentaries, series, and soap operas

• Reality TV shows and music videos

• Commercials and advertising content

• Post-production services, digital animation, and video games

• Sound recording, editing, and engineering companies

Costa Rica offers more than just tax benefits

The appeal goes beyond financial incentives. Creative businesses are drawn to Costa Rica because of its:

• Breathtaking natural settings, from pristine beaches to lush mountains

• Highly skilled local talent

• Vibrant creative ecosystem

• Strong legal security that supports long-term operations

For these reasons, many companies are now choosing to locate their projects outside the metropolitan area, where they gain access to unique filming locations and often lower operational costs.

Key tax benefits include:

• Income tax exemptions

• Import tax waivers on production equipment, wardrobe, and set design materials

• VAT exemptions on goods and services

• No withholding tax on foreign remittances

Minimum investment requirements

Investment thresholds depend on where the company sets up:

• Inside a free trade industrial park outside the GAM: at least $100,000 USD in new fixed assets

• Outside industrial parks and the GAM: at least $250,000 USD in new fixed assets

A driver for regional development

This legal framework is not only a boost for the entertainment industry—it also:

• Creates jobs and local employment opportunities

• Encourages supply chain growth through production linkages

• Positions Costa Rica as a regional leader in audiovisual creativity

Quatro Legal: Your Strategic Legal Partner

At Quatro Legal, we guide entertainment companies step by step to help them make the most of these incentives. If your business is part of the creative industry or is looking to expand into Costa Rica, now is the time to invest and grow.

Disclaimer: The information provided in this blog post is for general informational purposes only and is not intended to constitute legal advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change. For the most accurate and up-to-date information, please contact our office directly. Some images may be AI generated.