International Film Productions that Choose Costa Rica will Enjoy Substantial Tax Benefits and other Incentives

International film productions that choose Costa Rica for their projects would enjoy tax benefits and other incentives to carry them out in the country. That is the plan that deputies Carlos Ricardo Benavides and Laura Guido propose, through bill 22,034 “Law of Attraction for Film Investments in Costa Rica.”

The initiative seeks to position the country as a film destination, which allows the generation of jobs, local production chains, and a source of fresh income for the country. “This international project will allow Costa Rica to compete with other countries in the world that annually attract production companies and networks that create streaming movies and series,” said Benavides, of the liberationist caucus.

“Our objective is that while remaining in the country, they promote the development of local productive chains, the hiring of Costa Rican human talent and generate consumption of tourist services such as hotels, vehicle rental, and restaurants,” added the deputy. Additionally, tourism will be promoted due to the exposure of Costa Rica in the films.

Wide range of Benefits

The benefits for which international productions may choose would be:

– Total exemption from income tax.

– Refund of all taxes that fall on the permanent importation of goods into the national territory for the performance of film activities.

– Exemption of all taxes, levies, rates, or contributions for temporary importation that falls on equipment, tools, spare parts, clothing, makeup, scenery, and technical material that are required for the project.

– The people in charge of entering materials, equipment, or clothing of the project will be facilitated the entry of the corresponding luggage, without paying taxes or other charges.

– When they make purchases and goods and services that exceed $ 500,000 on Costa Rican soil, they will be refunded 100% VAT

– The exemption from income tax or any other tax on profits is sought, natural persons not domiciled in Costa Rica

– The municipalities may authorize the exemption of fees and royalties to natural or legal persons who are beneficiaries of the intended Law.

– Local Governments could provide facilities in the granting of permits or authorizations necessary for the development of these activities. Migration facilities for foreigners would be established for this purpose.

Ample options

Within the productions of the entertainment industry that the project contemplates, include short and long-length films, documentaries, series, and novels. In addition to reality shows, special events, audiovisual marketing pieces, video clips, programs, and/or chapters of the same, post-production services and digital drawing and animation. The proponents detail that, for example, in Puerto Rico, thanks to these incentives, revenues of $ 225 million were recorded in 2017.

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