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Published on Wednesday, November 17, 2021
By the A.M. Costa Rica staff
The country will begin offering a series of benefits to attract film industry international companies with the signature of President Carlos Alvarado, enacting the new law No.10071 "Attraction of film investments in Costa Rica."
The law has the goal of positioning the country as a destination for international film producers, increasing the investment of these companies and creating more jobs.
All types of film companies producing long films, documentaries, shorts, series, advertisements, video clips, digital animation, video games, among others, could receive a series of financial benefits as the exchange of filming in the country.
Among the benefits is the return of 90% of paid sales tax, known as IVA, to companies that invest more than $500,000. The remaining non-refundable 10% tax will be assigned to the Costa Rican Center for Cinematographic Production, an institution that belongs to the Ministry of Culture, to be used to promote the film and acting industry in the country.
Another benefit is the income tax exemption (or tax on the annual profits) for actors, producers and production staff, who receive their payments abroad.
Importation tax is another benefit. It applies to the temporary importation of equipment or spare parts used for film production.
Companies will also be exempted from importation tax on any additional stocks required for filming such as costumes, makeup, scenery parts and technical equipment.
According to the Foreign Trade Promotion Agency, the country has lost deals of up to $114 million in the last two years, with companies that decided to develop their films in countries that offered financial benefits.
President Carlos Alvarado signing the law made the last step to take effect for Law No. 22.215, known as the Law to Attract International Digital Nomads. The law will grant a series of benefits to international virtual workers.
Recently, another law was created which grant a series of benefits to international virtual workers.
This year almost one million tourists entered Costa Rica, according to the Institute statistics.
What other benefits could Costa Rica offer to attract international film companies? We would like to know your thoughts on this story. Send your comments to email@example.com