Offshore bank accounts

Costa Rica company formation

 

Basic facts regarding Costa Rica

The Republic of Costa Rica is located in Central America, between Nicaragua and Panama, with Pacific and Caribbean coasts. Its area is 51,100 square kilometres. In July 2006 the population was 4,075,261, and it had an average growth rate of 1.45%. The great majority of the inhabitants are descended from Spanish and other European colonisers, and the official language is Spanish, although a growing proportion of the population speaks English as a result of the volume of tourism.

Costa Rica may well be considered a Central American success story: since the end of the nineteenth century only two short periods of unrest have clouded the nation’s democratic development. Although it still maintains a large agricultural sector, Costa Rica has broadened its economy to include vibrant technology and tourism industries. The standard of living is relatively high. Land ownership is widely distributed.

Costa Rica taxation

The maximum company income tax rate is 30 percent, but the Costa Rican tax system is based on the territorial principles, what means thta Costa Rican corporations are subject to taxes only on income earned within Costa Rica. Deductions to taxable income, in general, include all expenses necessary to produce taxable income.

Offshore business in Costa Rica

There are no special regulations concerning offshore companies, but given the regulatory environment, Costa Rican entities can effectively acts as classical offshore companies, which are free from income tax (including distributions to shareholders). Nevertheless, all Costa Rican companies must file annual tax returns, regardless of whether they are engaged in operations.

There are over 250 Internet sports book companies registered to operate in Costa Rica. The industry transacts approximately $12 billion annually and employs 10,000 people. This industry in practice is almost unregulated.

Main features of Costa Rican companies

Costa Rican law recognizes following legal entities:

1. corporations [Sociedad Anonima];
2. limited liability companies [Sociedad de responsabilidad Limitada];
3. limidet partnership [Sociedad en Comandita Simple];
4. general partnerships [Sociedad en Nombre Sociedad Colectivo].

Costa Rican companies are not allowed to issues bearer shares. However, after incorporation, shares may be transferred by endorsement. Transfers are only recorded in Stockholders Registry, which is not filed with any government institution and may only by requested for judicial proceeding.

In addition, Costa Rica offers are very flexible trust structures for tax planning and asset protection, which are unknown to most of offshore law practitioners.

Offshore banking in Costa Rica

In Costa Rica there are 3 state banks, 2 banks created by special legislation and 12 ordinary private banks.

International cooperation

Costa Rica has executed Tax Information Exchange Agreements with Argentina, France, Netherlands, Mexico.

[sources: United States Department of State Bureau for International Narcotics and Law Enforcement Affairs; Caribbean Financial Action Task Force; Organisation for Economic Co-operation and Development]

 

Bank accounts

Open a Swiss bank account | Open a bank account in Austria | Open a bank account in Luxembourg | Open a bank account in Liechtenstein