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Central Pacific CENTRAL PACIFIC A Strategic Link Between Costa Rica and the World This document was developed by CINDE in collaboration with the MarViva Foundation, and with support from the Government of the United States of America. This is part of a project to create a “More Prosperous and Secure Puntarenas, Through Institutional Fortification,” led by the MarViva Foundation. Table of 1 About the Costa Rican Investment Promotion Agency (CINDE) 2 Why Invest in Costa Rica? Contents 3 Costa Rica’s Value Proposition 4 Why Invest in the Central Pacific? 5 The Central Pacific’s Value Proposition Prosperity • Proven Track Record • Tax Incentives • Preferential Access to Markets • Sectors with Investment Potential: Light Manufacture, Food Processing, Logistics Services, and Tourism Infrastructure People • Demographics • Employment • University Academic Offer • Technical Academic Offer • Health Services Planet • Energy Matrix and Electricity Generation in Costa Rica • Protected Biodiversity CENTRAL PACIFIC CINDE Non-governmental, apolitical, non-profit Extensive experience in strategic sectors organization, founded in 1982 including Life Sciences, Manufacturing, Corporate Services, Clean Technologies - Renewable Energy, Food Industry, Digital Technologies, and others. Declared of public interest by the Government of Costa Rica in 1984 CINDE was listed as the world's #1 institution for attracting foreign direct Active promotion of foreign investment, investment (International Trade Center, local support, and post-establishment 2019) business services CENTRAL PACIFIC Specialist Immigration Lawyers Assistance in the process of site selection for establishing operations Business Tax Advisors Logistics and Accountants Attention regarding the needs of investors: Preparing meetings with governmental organizations, universities and key service providers CINDE supplier registry: List of key suppliers, such as lawyers, CINDE Banks Relocation accountants, industrial parks and offices, environmental Services advisors, and banks, among others Specialized support in strategic aspects aimed at successfully developing operational expansion projects or promoting product diversification Advisers Recruitment / On Labor Law Payroll / HR Lawyers Corporate CENTRAL PACIFIC Why Invest in Costa Rica? Costa Rica enjoys a privileged location, Costa Rica offers growth in sustainable 99% of electricity is generated from ideally suited to communications with productivity, which allows companies to renewable sources. the Americas and the world. grow with the right talent. Costa Rica’s stability, innovation and 52% of the Costa Rican territory is Access to the main world markets: 15 recognized international covered in forest. The country is home free trade agreements allow for competitiveness provide the right to more than 6% of the world’s total preferential access to 58 trade partners, climate for success. biodiversity. representing 75% of world GDP. CENTRAL PACIFIC PLANET Commitment to Biodiversity A collaborative and technologically enabled ecosystem, where biotechnology, smart manufacturing, and life sciences converge. PROSPERITY LIFE CENTERED HUB Costa Rica provides a dynamic talent platform, aligned with the market’s needs and the jobs of the future. Talent is our primary resource. PEOPLE PROSPERITY PEOPLE Robust Ecosystem Human Talent with Cross- Platform Collaboration We are your strategic ally in generating impact and achieving Sustainable Development Goals. For more than 60 years, sustainability has been part of our DNA. PLANET CENTRAL PACIFIC Central Pacific Region of Costa Rica outside the Greater Metropolitan Area Puntarenas 298,107 3,910 km2 PROVINCE POPULATION AREA (1,510 mi2) LOCATION 83.6 km (52 miles) from Costa Rica's main international 52 airport, Juan Santamaría (SJO) in Alajuela MILES 1 Puntarenas 5 San Mateo 148 km (90 miles) from the second-largest airport in 2 Puntarenas 6 Orotina 90 the country, Daniel Oduber (LIR) in Liberia 3 Montes de Oro 7 Garabito MILES Comprised of eight cantons: Puntarenas, Esparza, 4 Esparza 8 Parrita Montes de Oro, Quepos, Parrita, Garabito, San Mateo, and Orotina 9 Quepos 8 Source: MIDEPLAN, 2018 CANTONS CENTRAL PACIFIC Strategic Location Expertise in Food Processing and Exclusive Natural Attractions Links Costa Rica with the west coast of Manufacturing Proximity to beaches and a diversity of the United States, Asia, and key markets This region supplies seafood and fish landscapes on the Gulf of Nicoya in Latin America. varieties to Costa Rica and Latin islands, as well as proximity to National America. In addition, it has Parks with varied climates – from established experience in Monteverde to Manuel Antonio. Logistics Corridor manufacturing and production, from Puerto Caldera is a solid center for metalworking products (rolled iron imports, exports and logistics, which or steel) to precision mechanics. Tourist Destination Par Excellence allows companies to maximize on Costa A must-see destination for cruise Rica's free trade agreements with China, travelers, with more than 120 stops per South Korea, Singapore, and the United season, as well as high-end recreational States. boating in nearby luxury marinas. CENTRAL PACIFIC A Strategic Link Between Costa Rica and the World PROSPERITY PEOPLE PLANET through logistics activities, light with both technical and and environmental safeguards manufacturing, agribusiness, university talent in protected areas, and a and tourism infrastructure richness of marine-coastal soils v Prosperity CENTRAL PACIFIC CENTRAL PACIFIC PROSPERITY Proven Track Record Proven record of national and multinational companies generating value in the region CENTRAL PACIFIC PROSPERITY Free Trade Zones Costa Rica grants incentives and benefits to companies that make new investments in the country, as stipulated by Law No. 7210 Regions Incentive for Investment Outside the Outside the GAM Great Metropolitan Area The country also grants differentiated tax incentives for companies established in areas outside the Greater Great Metropolitan Area Metropolitan Area CENTRAL PACIFIC PROSPERITY MANUFACTURING COMPANY Attractive Regular Project Tax Incentives CORPORATE INCOME TAX PAYMENT EXONERATION First 6 Years Next 6 Years Next 6 Years Main benefits of the free trade FROM YEAR 1 FROM YEAR 7 TO FROM YEAR 12 TO zone regime outside the GAM TO YEAR 6 5% YEAR 12 15%YEAR 18 Additional renewals of 6-year terms may be granted, if significant reinvestment is made OTHER EXEMPTIONS Import duties Taxes on the consumption of Tax on remittances abroad goods and services Minimum Investment: Investment Includes: fixed assets, subject Investment Term: REQUIREMENTS $100,000 $500,000 1 to 3 years Inside a FTZ Park Outside a FTZ Park to depreciation NOTES A company can complete the Plan during any year in the period, at which time Once a company has complied with an investment plan, it must maintain the assets that Source: Free Trade Zone Regime Law No. 7210 PROCOMER will verify that an investment of $100,000 or $500,000 has been made, comprised said plan. Asset substitution is allowed, as long as the new asset is at least equal to the according to the book value for the fiscal period of the year in which the company book value of the previous value, at the time the company completes the Investment Plan. completes the plan. CENTRAL PACIFIC PROSPERITY MANUFACTURING COMPANY Attractive Megaproject Tax Incentives CORPORATE INCOME TAX PAYMENT EXONERATION First 12 Years Next 6 Years Main benefits of the free trade FROM YEAR 1 TO YEAR 12 FROM YEAR 12 TO YEAR 18 zone regime outside the GAM 5% Additional renewals of 12-year terms may be granted, if significant reinvestment is made OTHER EXEMPTIONS Import duties Taxes on the consumption of Tax on remittances abroad goods and services Minimum Employment Investment Includes: Minimum investment amount Investment Term: Level: fixed assets subject $100,000 1 to 8 years REQUIREMENTS 100 to depreciation * full-time jobs * Does not include purchase of land because these are appreciated instead of being depreciable assets NOTES A company can complete the Plan in any year of the period, at which time Once a company has complied with the investment plan, it must maintain the assets that Source: Free Trade Zone Regime Law No. 7210 PROCOMER will verify that the investment of $10 million has been made, according made up said plan. Asset substitution is allowed as long as the new asset is at least equal to to the book value of the fiscal period of the year in which the company completes the book value of the old one at the time the company completed the Investment Plan. the plan. CENTRAL PACIFIC PROSPERITY MANUFACTURING COMPANY Attractive Employment 100+ Strategic Sector¹ Tax Incentives EXONERATION OF THE PAYMENT OF CORPORATE INCOME TAX Main benefits of the free trade First 12 years Next 6 years zone regime outside the GAM FROM YEAR 1 TO YEAR 12 15% FROM YEAR 12 TO YEAR 18 Additional renewals of 12-year terms may be granted, if significant reinvestment is made ¹ For example: Advanced Manufacturing and Life Sciences projects, Research and Development (R&D) activities, and innovation projects Minimum Investment: Minimum Employment Investment Includes: Investment term: $100,000 $500,000 Level: REQUIREMENTS fixed assets subject 1 to 3 years Inside a FTZ Park Outside a FTZ Park 100 Full-time jobs to depreciation NOTES A company can complete the Plan during any year in the period, at which time Once a company has complied with an investment plan, it must maintain the assets that comprised Source: Free Trade Zone
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