New Initial Investment

In Costa Rica, for a company to be able to obtain the benefits of the Free Trade Zone Regime, it must meet a series of requirements established in the Law, such as, for example, making a new investment in the country.

Said new initial investment consists of a parameter of minimum amounts established in the Regulations of the Free Trade Zone Regime Law, in accordance with the following:

For those companies that are established inside the Greater Metropolitan Area (GAM)

i. A minimum initial new investment in fixed assets of at least US$150,000.00 or its equivalent in national currency, for companies established in a Free Trade Zone Park.

ii. A minimum initial new investment in fixed assets of at least US$2,000,000.00 or its equivalent in national currency, for companies established outside a Free Trade Zone Park.

For companies established outside the Greater Metropolitan Area (GAM)

i. An initial new investment in fixed assets of at least US$100,000.00 or its equivalent in national currency, for companies established in a free zone park.

ii. An initial new investment in fixed assets of at least US$250,000.00 or its equivalent in national currency, for companies established outside a free zone park.

iii. In the case of companies operating in human health service centers in category g) specializing in ophthalmology, orthodontics, dentistry, cosmetic or reconstructive surgery, which are established in an area outside the GAM, the total new investment must be at least US$5,000,000.00 or its equivalent in national currency, in the case of operating within a free zone park. When established outside the free zone park, the total new investment must be at least US$10,000,000.00 or its equivalent in national currency. For companies in category g) classified as high-resolution hospital entities, they must make a new investment total of at least US$140,000,000.00 or its equivalent in national currency.

iv. For supplier companies in category h) located outside the GAM, they must make an initial new investment in fixed assets of at least $100,000.00 or its equivalent in national currency. Such companies may operate outside the industrial park as long as the initial investment in new fixed assets is at least US$250,000.00 or its equivalent in national currency.

v. In the case of companies developing sustainable adventure parks, they must make an initial new investment in fixed assets of at least US$5,000,000.00 or its equivalent in national currency.

These investment parameters represent the minimums required by the legislation; said initial investment must be fulfilled in a maximum period of 3 years (exceptions) and must be maintained throughout the period in which the company operates under the Free Trade Zone Regime.

Exceptions to the 3-year period are as follows:

a. Companies with human health service centers in category g) that specialize in ophthalmology, orthodontics, dentistry, cosmetic or reconstructive surgery are required to have an investment plan to be fulfilled within a period of 3 years from the notification of the executive agreement. If they also make investments in human capital and/or public infrastructure, they may make these investments for a maximum period of 5 years.

b. Companies with human health service centers in category g) with a high-resolution hospital category will be required to have an investment plan to be fulfilled within a period of 8 years, calculated based on the book value of assets subject to depreciation, and at least 100 permanent employees, throughout the operation of the company, duly reported on the payroll to the Costa Rican Social Security. The calculation of the initial term of this benefit will be counted from the date of commencement of productive operations of the beneficiary company, provided that said date does not exceed 3 years from the publication of the respective executive agreement.

c. Companies developing sustainable adventure parks that are established outside the GAM will be required to have an investment plan to be fulfilled within a period of 8 years, calculated based on the book value of assets subject to depreciation and at least 50 permanent employees, throughout the operation of the company, duly reported on the payroll to the Costa Rican Social Security. The calculation of the initial term of the benefit will be counted from the date of startup of productive operations of the beneficiary company, provided that said date does not exceed 3 years from the publication of the respective executive agreement.

All companies benefiting from the Regime have the obligation to comply with the minimum amount of new investment, which is independent of the obligation to comply with the total amount of investment to which the beneficiary company promises, and which is stated in its executive agreement.

For more information, feel free to reach out to me.

Alejandra Arguedas M.
aam@quatro.legal
Free Trade Regime Director

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.