Costa Rica
Costa Rica - The Medical Devices Country!
A cutting-edge Manufacturing Industry in Medical Device
Why Costa Rica ?
Thanks to its Rising Cities and its Free Trade Regime, Costa Rica has become one of the most dynamic states in LATAM, offering a wealth of new investment opportunities.
With more than 10 Free Trade Zones nationwide, Costa Rica offers companies significant tax advantages and incentives, including special tax exemptions on all sectors. The variety of industrial parks and office centers offers significant advantages for businesses.
Thanks to its skilled workforce, local know-how, and expertise, Costa Rica stands out for its ability to reduce production costs through a high level of specialization and flexibility.
The technologically advanced suppliers and best practices of local Costa Rican companies enable companies to boost their investment and enter the market smoothly.
Costa Rica's talents and technological capabilities integrate multiple stakeholders in a connected environment, enabling greater efficiency and tailor-made opportunities for companies.
Its strong commitment to education and the collaborative environment between industry and universities that the country has built up over time allow the country to rank first among Latin American countries in terms of workforce skills, providing the talent and human skills needed for the Fourth Industrial Revolution.
Incentives
Costa Rica's tax incentives offer a competitive framework for achieving a true ROI, with transparency and equal treatment for all investors. The Free Trade Zone Regime meets the standards of the WTO and the OECD, enabling substantial benefits to be obtained outside the Greater Metropolitan Agglomeration.
Governed by Law No. 7210, Law No. 8794, and its regulations, Costa Rica's free zone regime consists of a set of tax incentives and advantages the government grants to companies wishing to make new investments in the country.
Primary zones for offshore tax and customs operations, authorized by the executive branch of government, these free zones are designed to accommodate processes involving the import of inputs and raw materials, manufacturing, assembly, marketing, and export-related services.
The basic requirements for joining the scheme include an initial new investment in fixed assets of at least USD 150,000 for companies inside a free zone park and USD 2,000,000 for companies outside a park. In the case of service companies, at least 50% of the services must be exported.
Thanks to its strong commitment to education and the collaborative environment between industry and universities that the country has built up over time, Costa Rica has the most educated and skillful workforce in Latin America.
With 8% of GDP invested in education, workforce development and training, and a high literacy rate of 98% for people aged 15-24, Costa Rica is leading the way in skills development for the future, outperforming countries such as Ireland, France, South Korea and India.
Specific to Medical Device Manufacturing in Costa Rica, the country has recently created the first Master's Degree in Medical Devices in LATAM, in collaboration with the University of Minnesota.
Costa Rica continues to strengthen its main differentiating factor in attracting FDI: a professional and skilled workforce to acquire the skills for the knowledge economy and the jobs of the future, as well as to become a regional and global leader in innovation.
Costa Rica - The Best Kept Secret
Environment Awarness and Sustainable Productivity
Leading the way in innovation in sustainable productivity, Costa Rica is one of the fastest-growing destinations for Foreign Direct Investment. Far from being just a slogan, sustainability is part of our DNA, with 50% of its territory covered in forest and 99% of its energy coming from renewables.
Safety
Security
Stability
The resilience of Costa Rican companies is well established. Despite the various shocks encountered, Costa Rica's business environment ranks fourth in Latin America, outperforming its regional peers in terms of tax payment, access to credit, electricity, control of corruption, quality of regulation and rule of law, thanks to solid political institutions and a high degree of social stability.
Vibrant
Lifestyle
Costa Rica's vibrant life is a blend of lush landscapes, rich biodiversity, cultural dynamism, and a thriving business scene. Its strategic location and commitment to sustainability make it a key player in international trade and commerce. Its beautiful beaches, emerald rainforests, and warm Tico hospitality create a dynamic tapestry, inviting visitors to embrace the pura vida spirit, not only as a haven for natural wonders but also as a flourishing hub for entrepreneurship and economic vibrancy.
Costa Rica is the Leader in Healthcare
Since 1987, Costa Rica has been a leading player in the medical device manufacturing sector, with over 70 companies producing healthcare products. The country's medical device manufacturing has become the 2nd major exporter of medical devices in Latin America, after Mexico.
Medical devices currently represent 28% of the total sales of Precision and Medical Equipment products, with Medtronic, the world's top medical device manufacturer, operating in various Free Zones in the country.
In 2021, medical technology exports reached $5 billion, with more than 15% of companies cooperating or from corporate offices worldwide. Costa Rica's medical technology industry has access to a market of 2.8 billion people, representing 67% of the global GDP.
What accounts for this success ?
Its skilled and highly educated workforce, geographical location, and open economy have made Costa Rica an excellent place to manufacture medical devices, with 96 companies active today in this sector.
But it is above all the 17 trade agreements signed with more than 50 trading partners, including the United States, Canada, Mexico, the European Union, and China, from which Costa Rica benefits, that have made the Manufacture of Medical Devices the Shining Star of the country's economy.
Companies engaged in the manufacture of medical devices and other appropriate activities in a Free Trade Zone are exempt from income tax for the first 8 years, and certain taxes, such as customs duties on imports and exports, withholding taxes on royalties, fees, and dividends, are exempt from payment for the life of the project.
Parquetec
Your One-Stop Shop to Costa Rica
Parque Tec offers business support and advice to portfolio startups, increasing their chances of success and benefiting investors by reducing risks. This investment model offers advantages over individual-based methods like picking winners, where investors invest in startups they believe are likely to succeed.
Costa Rica Free Trade Zone Regime
The operation of free zones in Costa Rica is governed by Law 7210 on Free Zones. This law stipulates that companies wishing to establish a Free Zone must invest at least $150,000 in fixed assets within three years of the project launch date.
The main feature of a Free Zone is the tax benefits and incentives granted by the federal tax authorities to companies located within its boundaries.
With more than 10 Free Trade Zones throughout the country, Costa Rica offers companies significant tax advantages and incentives:
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100% exemption on import duties on capital goods, components, and raw materials;
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100% exemption on capital taxes;
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No restriction on foreign currency management and profit repatriation;
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100% exemption on local sales and excise tax;
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100% exemption from export taxes;
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100% exemption on corporate income taxes;
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The option to sell to Costa Rican exporters;
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Expedited on-site customs clearance.
Incentives
The Free Trade Zone Regime
Medical device companies benefit from the incentives of the free trade zone, which include tax exemptions and streamlined regulatory processes, encouraging investment and the establishment of research and development centres in the country.
Standardised tax incentives and benefits
100% Tax Exemption for Manufacturing Project for the first 8 years
All Sectors Inside and Outside the GMA
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Key Sectors: Smart Manufacturing, Knowledge Intensive Service, Health and Well-Being
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Custom duties on imports/exports
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Withholding tax on royalties and fees
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Interest income
The Most Highly Educated and Skilled Manpower in LATAM
Professionalism
Costa Rica's investment in technical and higher education yields highly trained individuals recruited by high-tech multinational companies.
Leading the way in Innovation
Costa Rica's commitment to education and strong collaboration between industries and universities enables it to adapt to the digital revolution. Its talent is ahead of countries like Ireland, France, South Korea, and India.
Leadership
Renowned for being hard-working, well-prepared, competent and ready to take on challenges requiring innovative solutions, Costa Ricans aspire to live a pure life as embodied by the internationally recognised expression Pura Vida.
Skilled Workforce
Thanks to the Costa Rican educational system, we can provide you with the best, trained, educated disciplined, and dedicated employees. With decades of excellency in electronics, pharma, and medical devices, you'll enjoy the best workers on the Continent.
News
Costa Rica, renowned for its biodiverse rainforests, iconic sand beaches, and status as a year-round surfer's paradise, is also a dynamic hub for global manufacturing, life sciences, and technology brands. Equally well-known for its renewable energy innovations, the country is now attracting billions of dollars in foreign investment, with these sectors growing at a record-breaking pace.
Investing in Costa Rica requires knowledge, but PROCOMER and Essential Costa Rica have got your back! With the handy "Costa Rica Insights" document, you will have all of the information needed to invest smartly and effectively in the Costa Rican economy. From electricity costs to Human resources, every aspect of Costa Rican life will be at your fingertips.
Team
Gabriel
Hayon
The Diplomatic Institute
Gabriel Hayon is the Chairman of the Diplomatic Institute. He has 25 years' experience in International Sales and Business Development in variety of industries, territories and business models as evidenced by the positions he has held: international sales guru, business facilitator, international speaker, managing director of the Israel Chamber of Commerce in Latin America, managing director of the training and consultancy company WikiSales.
Contact for Internationals
Amihai Shmoueli
Engineering facilitator
Amihai Shmoueli is an engineering facilitator and an expert in group processes and group management. As an organisational development specialist, training facilitator and retreat designer, he works behind the scenes to design appropriate processes for the task in hand. His activities include preparation and design, leading activities, moderating conversations, and follow-up and reporting.
Contact for Costa Rica
