Costa Rica 🇨🇷

Costa Rica offers a Tax Refund Program to attract international film and audiovisual productions. This program provides significant savings on production costs by reimbursing a substantial portion of the value-added tax (VAT) on local expenditures.

1. Costa Rica Tax Refund Film Incentive Program

Tax Refund:

• A 90% reimbursement of the VAT paid on eligible local goods and services.

2. Film Tax Refund Breakdown

Refund Percentage:

• 90% of the total VAT paid on qualifying local expenditures.

Minimum Spend Requirement:

• Projects must invest at least $500,000 USD in Costa Rica to qualify.

Eligible Expenses:

• Local purchases of goods and services directly related to the film or audiovisual project.

3. Terms and Conditions

Eligible Applicants:

• Foreign natural or legal persons (non-domiciled in Costa Rica) who are producers or co-producers partnered with national entities.

Project Approval:

• All film or audiovisual investment projects must be approved by the Costa Rican Foreign Trade Promoter (PROCOMER).

Additional Benefits:

• Tax Exemptions:
  • Exemption from income tax on payments to foreign personnel (actors, directors, technical staff), provided payments are not sourced from Costa Rican funds.
• Import Tax Suspension:
  • Suspension of all import taxes for temporarily imported equipment and spare parts used in film and audiovisual production.

4. Governing Bodies

Costa Rica Film Commission:

• Provides logistical support, including assistance with permits and access to locations.

PROCOMER (Promotora del Comercio Exterior de Costa Rica):

• Administers the tax incentive program and oversees the approval of film and audiovisual investment projects.

5. Application Process

Step 1: Project Registration

• Register the project with PROCOMER to obtain a temporary tax ID required for invoicing.

Step 2: Invoicing

• Ensure all local expenses are invoiced using the temporary tax ID to qualify for the refund.

Step 3: Project Completion

• Upon completing the project, submit the required forms and all invoices to the Costa Rica Film Commission for review.

Step 4: Refund Processing

• The 90% VAT refund is processed within 90 days after the submission of complete documentation.

Resources and Support

• Costa Rica Film Commission: Official Website
• PROCOMER: Official Website

Contact these agencies for detailed guidelines and tailored assistance to ensure compliance and maximize benefits for your production in Costa Rica.