Business in Costa Rica is much like business in North America or the UK. Considering its location, Costa Rica offers excellent infrastructure for business development. It is advanced regarding technology and the internet, and has been called the Silicon Valley of Latin America. Roads and distribution channels are well developed, and banks, schools, and shopping centers are easy to come by. The international airport is well connected worldwide, and the relatively new airport in Liberia now provides International flights directly from the remote and beautiful Guanacaste beaches for ease of access.
The level of education is high and comparable with North American standards. Costa Rica has the highest literacy rate of the American Continent (94%). Most university graduates can speak English which makes doing business in Costa Rica much easier regarding both hiring services and hiring employees.
In general Costa Rican laws do not discriminate against foreigners, the only exceptions are the Telecommunications, Insurance and Energy providers who remain controversial monopolies. None the less, any private entity or individual can register a business in Costa Rica, regardless of their citizenship.
Costa Rica offers prime investment opportunities in small businesses such as tourist hotels, bars, restaurants and other turnkey operations. In areas such as Guanacaste many of the local businesses are run by foreigners, many being North American or European.
Costa Rica has a very friendly attitude towards foreign investment, and a national referendum has recently voted Yes for a Free Trade agreement with the US (Oct 2007), although many laws are still pending approval by parliament. Bringing funds from abroad is easy, there are no limitations on capital or exportation, and it is not required that foreign capital be registered.
Export is a particular area which receives a great deal of legislation bestowing significant incentives to companies in the industry, in particular the Free Zone system includes many total or partial tax exemptions and expedited customs clearance, although this may become less relevant with the advent of the Free-Trade Agreement.
There are many very large international companies currently operating out of Costa Rica, particularly in the areas of manufacturing of electronic components, pharmaceuticals, and clothing and food products, as well as perform data processing, remote customer service and software development. In fact Intel has now become the number exporter in the country.
If you’re looking for help setting up your business in Costa Rica, CINDE (Costa Rican Investment and Trade Development Board) is a private non-profit organization set up to help foreign investors get started in Costa Rica and is a good resource for newcomers. CINDE - http://www.cinde.org
Jennifer Cross, February 2008
