Recently, a bill called “LAW FOR THE ATTRACTION OF FILM INVESTMENTS IN COSTA RICA” was approved, which aims to take advantage of the human talent and privileged locations to attract the international film industry to Costa Rica.

The law grants several  favorable tax exoneration benefits, namely:

a) Exemption from income tax on personal dependent or independent work and withholdings for remittances abroad of foreign personnel for payments to personnel, provided that such payments are not made with Costa Rican source funds.

b) Temporary importation of equipment and spare parts for film and audiovisual production into the territory with suspension of all import taxes, as well as exemption from the guarantee deposit. Such goods must be clearly identified and must be re-exported or imported definitively, within a maximum term of fifteen days from the end of the term granted by Procomer to the film or audiovisual project.

c) Exemption from all taxes, levies, fees or import duties on tools, costumes, makeup, scenery and technical material required for the realization of the project. Likewise, the person in charge of bringing in materials, equipment or costumes for the project will be provided with the entry of the corresponding luggage, without payment of taxes or other charges.

d) When the beneficiary purchases goods and services in Costa Rica that are directly related to the project and exceed US$500 00 00, 90% of the total VAT paid on these purchases will be refunded.

e) Migratory facilities, the DGME will grant, within a maximum term of twenty working days from the recommendation of Procomer, the temporary work visa and/or migratory permit to the foreign persons required for the development or execution of the projects subject to this law.

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