Costa Rica Offers Tax Incentives
The Costa Rican government is trying to lure
overseas nationals into buying and
developing property in Costa Rica by
introducing various tax breaks and trade
agreements, reports Overseas Property
Professional.
The publication reports that developers can
now defer a greater chunk of their tax
liability due to the increase of accelerated
depreciation from 50% to 60% for assets
purchased in 2009, effectively reducing the
cost of buying construction equipment.
“This tax change was brought in to try to
get more international companies to invest
in Costa Rica this year,” said James Cahill
of Costa Rica Invest, which sells
development land on timber plantations.
“It’s just one of the ways that the
government is trying to be proactive and
think outside the box to encourage foreign
investment.
“In general, the tax regime is very
pro-investment. The government is offering
tax breaks at a time when many countries are
trying to increase their tax revenues. There
is low corporate tax here, no capital gains
tax and new companies can get up to eight
years tax free.”
The country’s property market has ground to
a virtual halt over the past year or so,
following a sustained period of boom.
Very few completed homes are currently
selling, while a number of off-plan
residential projects have now been delayed
or scrapped.
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