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April 18, 2023

Costa Rican Executive Branch publishes regulations to law aimed at attracting film investment to Costa Rica

  • Recently issued regulations detail the requirements, conditions and proceedings that a taxpayer must meet to qualify for tax benefits granted under a law aimed at attracting film investments to Costa Rica.
  • Those interested in investing in film or audiovisual projects in Costa Rica should review the law and regulations.

The Costa Rican Executive Branch published Executive Decree No. 43996-H-COMEX-GOB in the Official Gazette on 14 March 2023, providing regulations for Law No. 10.071 (Law) on attracting film investments to Costa Rica.

The regulations detail the requirements, conditions, and proceedings that nondomiciled producers or coproducers must meet to apply for the benefits established under Law No. 10.071 in relation to specific film or audiovisual investment projects duly approved by the Costa Rican Foreign Trade Promoter (PROCOMER).

Tax incentives provided under the Law include:

  • Exemptions for income and withholding tax for payments to the actors, actresses, directors, producers, technical personnel and all those necessary for the development of a project, provided these payments are not made with funds from a Costa Rican source.
  • Suspension of applicable taxes on the temporary import of equipment and spare parts
  • Exemption from taxes applicable on luggage (i.e., utilities, clothing, makeup, scenography),
  • Exemption from taxes on imports of film materials
  • VAT refunds in specific cases

These benefits are subject to several conditions and requirements that are detailed in the regulations.

In addition, the regulations contain provisions on migration facilities for specific film or audiovisual investment projects, as well as provisions applicable to the promotion of productive linkages (e.g., supply chain).

Those interested in applying for any of the tax benefits provided under this Law to develop film or audiovisual investment projects in Costa Rica should review the requirements and conditions detailed in the regulations.


For additional information with respect to this Alert, please contact the following:

Ernst & Young, S.A., San José, Costa Rica

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor