Costa Rican lawmakers are would have debated a bill to offer tax exemptions to foreign companies located beyond the country’s free zones.
Introduced by lawmaker Aida Montiel, the bill specifically talks about attracting investment in the country’s high-tech sector. The country’s Chamber of Information and Communication Technologies (CAMTIC) called the bill “necessaryâ€.
However, few companies operating outside free zones can take advantage of the proposed changes.
To get the tax breaks, the foreign company must invest more than 100,000 USD and create jobs for at least 20 Costa Ricans. Most importantly, its local workforce is expected to increase by 10% each year starting in grade 5.
Some industry experts say the proposed law would not help Costa Rica, pointing to the lack of highly skilled workers in the country.
Costa Rica is just the latest Latin American country to change its free trade zone laws in light of the transformative changes brought about by the COVID-19 pandemic in the global market.
Countries like Uruguay and Colombia have also changed their laws on free zones recently, paving the way for companies operating there to transfer their employees to their home environment.