INTRODUCTION

Costa Rica, known for peace and tranquility, is located in southern Central America, bordered by Nicaragua to the north and Panama to the south. Wedged between the Pacific Ocean and Caribbean Sea, Costa Rica boasts over 1000 miles of breathtaking coastline with some of the best marine life in the world. Despite its small size, few countries offer such an abundant variety of flora and fauna in an inviting tropical climate, offering preserved cloud forests, tropical rainforests, national parks, volcanoes, and awe-inspiring vistas. Strong in environmental protection, endless real estate opportunities, a growing tourism industry and flourishing export economy, this tropical jewel is one of the most popular destinations in the world for travel, investment and retirement.

OPPORTUNITIES

Many tourists first come to Costa Rica for a vacation get-away, but end up falling in love with the country and investing in property to secure their own permanent piece of paradise. Costa Rica’s stable democratic political environment, solid infrastructure, educated workforce and zero limits on foreign control of corporations, investment capital transfers or reinvestment attracts foreign residents from far and wide to buy property and start up business. Eco-tourism is abounding, both as an attraction as well as an appealing investment, and the Costa Rican government provides incentives like tax exemption to encourage investment in non-destructive development and sustainable business ventures.

REAL ESTATE

Costa Rica is one of the safest and most attractive countries in Central America for foreign investment and business, with real estate opportunities ranging from mega-malls and hotels to condo complexes and private housing developments. Costa Rica is currently undergoing a growth spurt, and development is expanding throughout the country, most notably in the San Jose suburban areas and along the Pacific Coast. Foreigners enjoy the same property rights as Costa Ricans, and regulations for building, buying, and renting property are similar to those in the US and Canada. However, there are some significant differences, and a good lawyer should assist you in the legalities of real estate transactions, residency permits and forming a corporation. With impressive returns on real estate investments, new infrastructural improvements on roads, highways and airports, generous incentives and tax breaks—including extremely low property taxes and no capital gains tax, Costa Rica is an investment-friendly destination with endless benefits and advantages.

PEOPLE

Costa Ricans, locally known as Ticos, have built their society upon a history of peace and democracy. The country's current president, Oscar Arias, won the Nobel Peace Prize in 1987 for his work on the Central America Peace Plan. In 1948, Costa Rica abolished the armed forces and directed government resources to education, health services, economic reforms and modernization, leaving behind a legacy of democracy, peace and human rights. Due to an overwhelming European influence, 90% of Costa Ricans are white or of mixed Spanish heritage, and the remaining 10% is comprised of Nicaraguan immigrants, indigenous natives, and a slight percentage of North Americans (50,000 and growing gradually each year). Costa Ricans are friendly and full of hospitality, making Costa Rica an inviting place for foreigners. Family relations are the center of Costa Rican society, and relationships with others are highly valued and respected, and socializing with Ticos is a comfortable learning experience not to be missed.

LIVING HERE

In the past 10 years, the number of foreigners moving to the country for business or retirement has increased dramatically. Offering a variety of living options from traditional, mountainous and secluded to upscale, metropolitan or beachfront, Costa Rica has something for everyone. Cleanliness, the availability of quality services, US-style supermarkets, restaurants and shopping malls make the adjustment to Costa Rican living a breeze. The cost of living in Costa Rica is significantlylower than that in the US or Canada, and travelling around the country is easy and inexpensive. Quality health care in Costa Rica is both available and affordable, and you can choose from a number of government subsidized public hospitals and clinics or opt for inexpensive private care.

LEGAL MATTERS

Owning and purchasing property: Lawyers are extremely helpful in the process of purchasing and owning property to save time and aggravation. Property must be registered with the Property Department of the Public Record Office in Zapote and title information can be found at the National Registry. Property is transferred from buyer to seller by completing a transfer deed before a notary public, who must also be a certified lawyer. Property can be bought individually, jointly, or most advisably in the name of a corporation. Residency: Residency laws and application requirements are strict, yet there are several ways to obtain Costa Rican residency, including a proven earning of at least $1,000 a month income and no serious criminal record.

Hiring employees: The government makes it easy for foreigners to do business here, and are strict on enforcing human rights and labor laws, including that the employer is responsible for Social Security payments, paid vacations, severance, Christmas bonus and minimum wage, Taxes: in Costa Rica tax is paid only on income earned, and taxable income is based on gross income minus expenses and deductions. Tax rates vary from 12% to 36% of net profits and there is no capital gains tax. Property taxes in Costa Rica are very low, about 0.025% of the property value. The local municipal government also collects a general tax covering garbage pickup, water and sewage.

ECONOMY

Costa Rica’s economy has undergone a transformation in the past 10 years, relying less on its traditional primary exports bananas and coffee by diversifying and including electronics, furniture, pharmaceuticals and textiles in the export mix. Today, Costa Rica’s economy depends primarily on agriculture, tourism and electronic exports. Tourism is a major source of income for Costa Rica, as well as foreign investment with the recent emergence of foreign companies like Intel Corporation, Microsoft, HP and Symantec. The US is Costa Rica’s largest trading and investment partner and the recent Central American Free Trade Agreement (CAFTA) was voted into existence through a popular vote in 2007, strengthening ties between the two countries and requiring significant changes in the Costa Rican economy including tax-free imports, reduced external tariffs, and the privatization of key state-owned enterprises such as telecommunications, insurance, water, electricity, and social security. Costa Rica's currency is the colon, fluctuating at an exchange rate of approximately 500 colones to the dollar. Banking in Costa Rica can often be time consuming and it is commonplace to face long lines, extensive forms, and calculations. Private banks may provide a more efficient option and there are several to choose from.

POLITICS

The 'Switzerland of the Americas,' Costa Rica entertains a stable and peaceful democratic political structure, with a long history of isolationism during the colonial era and durable national institutions at the core of society. Since independence from Spain in 1821, Costa Rica has had a remarkable history of meaningful elections and peaceful transfers of power and thanks to the government’s ongoing commitment to broad social welfare, Costa Rica has one of the highest standards of living in Latin America, free of the political conflict that has plagued the majority of its neighbors. Costa Rican government structure is similar to that of the US, divided into three branches: executive, legislative and judicial with presidential elections every four years. The leading political parties are Partido Liberacion Nacional (PLN), and Partido Accion Ciudadana (PAC) and in 2006, former president and PLN candidate, Oscar Arias, returned to office. The states plays a leading role in providing inexpensive services to Costa Rican citizens, including electricity and telecommunications, social security, health care, and education, allowing for free nationalized medical care and extremely inexpensive higher education.