Costa Rica, the Southern-most country in Central-America, has 4 million citizens. Costa Rica, besides having one of the world’s largest areas of protected rainforest, is developing as an offshore financial centre.
Until 1995, Costa Rica’s banking industry was a state business, but since the banks have been privatized, slowly but surely the positive tax climate in Costa Rica is attracting the world’s investors and rich & famous. Costa Rica cannot be called a tax haven, yet, but it is developing in that direction.
Low prices for Costa Rica’s traditional export products coffee and bananas have pushed the country to develop a fiscally attractive jurisdiction to attract foreign investors. With this goal in mind, Costa Rica developed so-called “free zones”, where taxes are extremely low to nothing. Big electronics companies- among others- have positioned themselves in these zones. Also, in 2003 fifteen software companies worked out a strategy to build out the role of Costa Rica in the IT sector.
The development of high-quality internet-infrastructure in Costa Rica has led several American companies to organize online gambling in Costa Rica. Thanks to a maze in the American legal system, the costs for setting up an online gambling company are relatively low. Therefore, the country is taking an increasingly important position in the online wagering industry. In 2000, a bookmaker bought a Costa Rican gambling site for 15 million British pounds. However, due to pressure from the United States, Costa Rica plans to increase the taxes on online gambling.
Although Costa Rica cannot be called an offshore financial centre yet, the free zones that were established in the country are attracting a lot of business and industries. Offshore banking, though, is still in the beginning stages and insurances are still not privatized. The amount of banks is growing and the prospects are that this trend keeps on going.
Costa Rica is a promising financial hub, so be sure to keep updated on the developments of this green paradise in Central America.

Source: www.bespaarbelastingen.be

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