In today’s globalized world, companies are always looking to expand their borders and explore new opportunities abroad. Costa Rica’s Free Trade Zone Regime is a government program that offers unique opportunities for companies that want to establish themselves in the country, providing attractive tax incentives and benefits for foreign investment.

Benefits of the Free Trade Zone Regime include:

• Exemption from the Value Added Tax.
• Exemption from Property Tax.
• Exemption from Income Tax.
• Exemption from tax on remittances abroad.

¿ What is a satellite or secondary plant in the Free Trade Zone Regime?

It is basically a place where the company can store its products and carry out part of the production outside its main plant. This satellite or secondary plant will be intended for the development of activities that were previously authorized to the company under the regime, understanding that the opening of the plant is due to the availability of labor, transportation, raw material handling, or other similar qualified reasons.

Requirements and obligations:

Despite being a secondary plant that carries out the same activity as the main one, all the requirements and obligations of the General Customs Law and its regulations, as well as the Free Trade Zone Regime Law and its regulations, must be met.

Additionally, the company must:

• Correctly complete the application from for authorization of the satellite or secondary plant.
• Provide a detailed justification for why the new plant is being requested.
• Provide details of the new plant, including the exact address, expected start date of operations, number of workers, among others.
• Submit a sworn statement, signed by the legal representative with sufficient authority to act on behalf of the company, committing to comply with the different requirements for opening.

Finally, once the opening of the satellite or secondary plant is approved, authorization from the area of the new plant as an Auxiliary of the Customs Public Function must be obtained, which will be issued by the General Customs Directorate.

This is why it’s important to have good legal advice if you’re planning to open a satellite or secondary plant. At ERP Lawyers, we have a tea, of specialized lawyers who are ready to provide you with the best assistance. For more information, don’t hesitate to contact us at info@erplawyers.com

If your company is considering opening a satellite or secondary plant under the Free Trade Zone Regime in Costa Rica, feel free to complete the contact form so that our team of specialized Lawyers can advise you as soon as possible.