Costa Rica's Legislative Assembly is considering Bill 22118, which was presented on 30 July 2020 and provides for the introduction of new tax incentives for investment in the tourism sector. The incentives include:
- A 25% tax credit for 7 years for new investment of at least USD 500,000, subject to the condition that a minimum of 5 full-time employees are maintained during the 7-year period, which is increased to a 50% credit if the new investment is made in an underdeveloped region; and
- A 25% tax credit for 5 years for re-investment and additional investments that increase equity value by at least 30%, subject to the condition that at least 3 new employees are hired.
Further to the above, qualifying companies would also be granted a two-year exemption from VAT on electricity and would be allowed to benefit from other incentives for the tourism sector as well.