December 16, 2021
Costa Rica enacts law to promote investment in and development of international film productions in Costa Rica
The law includes tax incentives for beneficiaries that carry out film or audiovisual investment projects in Costa Rica. Those incentives include various tax exemptions and a value-added tax refund for local purchases of goods and services directly related to the project.
On 13 December 2021, Costa Rica enacted the Film Investment Attraction Law, which aims to promote investment in and development of international film productions, co-productions and activities in Costa Rica.
The law establishes tax incentives for taxpayers that carry out film or audiovisual investment projects, duly approved by the Costa Rican Foreign Trade Promoter (Procomer). The taxpayers must be natural or legal persons not domiciled in Costa Rica that are either (1) producers or (2) co-producers, with national legal entities or individuals.
The tax incentives are:
The Law went into effect on 13 December 2021, and the Executive Branch must issue the corresponding regulations within five months.
For additional information with respect to this Alert, please contact the following:
Ernst & Young, S.A., San José, Costa Rica
Ernst & Young LLP (United States), Latin American Business Center, New York
Ernst & Young Abogados, Latin America Business Center, Madrid
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific