Costa Rica: an investors paradise
By Carlos Jorge Rodríguez D.

Costa Rica is not only a country of natural beauty, democracy and peace; it is also a country of opportunities.

The nickname “the Switzerland of the Americas” was born because of all these favorable factors and as the economy of this tinny country in Central America rises, that nickname becomes more clearly understandable to outsiders. Nearing a free trade agreement with the United States and with others all ready in the works (Canada, Chile, Mexico), Costa Rica presents it self as a new center for investments, having not only the capable work force, Political stability, non existent military budgets and a remark able social services.

Government officials have been promoting Costa Rica as an “investor’s paradise”, using its natural beauty, and its democracy as a way to catch the eye of many companies and individuals.

Costa Rica has established many types of incentive regimes all of witch are monitored by the national export entity PROCOMER (Promotora de Comercio Exterior de Costa Rica) mainly dedicated or specialized for the establishment of business that export their products or services in the so call free trade zones, where a variety of advantages are available to them like exemption of payment of all taxes and consular fees corresponding to import of raw material; exemption from taxes on capital and assets, property and real estate transfers; exemption from all taxes on profits, and municipal tax exemption, and the possibility of selling up to 25% of the product in the local market (50% for service companies), among others.

Currently, there are nine different free trade zones (AZOFRAS), the majority of which are located near San Jose, and two important main ports of entry, the Juan Santamaria Airport, highways, and container terminal. These installations provide a high and reliable communications technology such as fiber optic infrastructure, which allows establishing high level broadband dedicated connection for voice, data and video transmission. Those incentives are only a few in a long list of opportunities that Costa Rica has to offer foreign investors.

Since tourism is on of the most lucrative activities, it possesses its own incentive guideline, presenting similar advantages as the free trade zones. Regarding real state most of the laws to acquire a property in Costa Rica are similar to the conditions of ownership in the US, in these case the incentives are few but if you are planning on owning a piece of land for the purpose of tourism, those incentives can help on the establishment of a very lucrative enterprise.

Source: CINDE • Jorge Hernandez 201 28 27 • Comex Internet publication • Costarican tourism institute (ICT) • Legislative Assembly of the Republic of Costa Rica (Asamblea Legislativa)