Costa Rica Film Incentive

How Does Costa Rica's Film Incentive Work?

Costa Rica offers a production incentive structured as a 90% rebate on the country's 13% Value Added Tax (VAT) for qualifying film and audiovisual productions. Enacted under Law 10657, this mechanism provides an effective benefit of approximately 11.7% on qualifying expenditure, making Costa Rica one of the few Central American countries with a formal production incentive.

Incentive Structure

The incentive works through the VAT system:

• Costa Rica VAT rate: 13% on goods and services
• Rebate percentage: 90% of VAT paid on qualifying production expenditure
• Effective benefit: ~11.7% of total qualifying spend (90% of 13%)
• Minimum spend: USD 500,000 in qualifying Costa Rican expenditure

Productions must register with the Costa Rica Film Commission and COMEX (Ministry of Foreign Trade) to access the rebate. The VAT refund is processed after production wraps and qualifying expenditure is verified.

What Productions Are Eligible?

• Feature films and television series
• Documentaries and reality productions
• Commercial and advertising productions
• Animation projects with Costa Rican production services
• Streaming platform originals

Why Productions Choose Costa Rica

Biodiversity and locations. Tropical rainforests, volcanic landscapes, Pacific and Caribbean coastlines, cloud forests, and lush jungle, all within a country smaller than West Virginia.

Political stability. One of the most stable democracies in Latin America, with no standing army since 1948 and a strong rule of law.

Bilingual workforce. A growing pool of English-speaking crew members, particularly in the Greater San Jose area.

Proximity to the US. Direct flights from Miami (3 hours), Los Angeles (5.5 hours), and New York (5 hours).

How Do You Apply for the Costa Rica Film Incentive?

• Register the production with the Costa Rica Film Commission
• Submit projected budget showing USD 500K+ in Costa Rican spend
• Obtain approval from COMEX for VAT rebate eligibility
• Track all VAT-eligible purchases during production
• Submit audited expenditure report after production wraps
• Receive 90% VAT refund upon verification

Costa Rica Film Incentive: Key Facts

• Effective rate: ~11.7% (90% of 13% VAT)
• Min spend: USD 500,000
• Legal basis: Law 10657
• Credit type: VAT rebate
• Administering body: Costa Rica Film Commission / COMEX
• Official resource: COMEX