Doing Business in Costa Rica The purpose of this presentation is to provide information to investors who are evaluating Costa Rica as a potential location for their business.
General Facts The Republic of Costa Rica is a country in Central America, bordered by Nicaragua to the north, Panama to the east and south, the Pacific Ocean to the west and south and the Caribbean to the east. The country has a total area of 51,100 km2, and a population of 4.7 million.
Government structure The Costa Rican state comprises three powers: executive responsibilities are vested in a president, legislative power is vested in a president, legislative power is vested in the Legislative Assembly, and judicial power is vested in the Supreme Court.
Investing in Costa Rica Costa Rica s value proposition focuses on five major key areas: Proven Track Record: Around 250 high- tech multinational companies are operating in Costa Rica and in 2012, 40 new high technology investment projects confirmed their decision to establish their operations in the country. Out of the total annual inflows of FDI in Costa Rica,over 50 % is reinvestment from established multinational companies. In the Free Trade Zone Regime, 2/3 of the annual inflow of FDI comes from reinvestment. Qualified Workforce: Costa Rica has an exceptionally talented and bilingual young workforce. Approximately 95 % of employees in multinational companies are local.
Investing in Costa Rica Strategic Location: Preferential access platform to 2.5 billion people (34 % of the world s population), and more than 64% of worlwide GDP. 87 % of exports of goods covered by Free Trade Agreements. Excellent Business Climate: The country enjoys an excellent business climate based on a renowned democratic tradition, economic and political stability. Solid Infrastructure: More than 90 % of energy is renewable. The country has redundant telecommunications access. Quality of Life in Costa Rica is high: Safest country in Latin America and one of the top 5 environmental performers of the world.
To ensure wide market access, Costa Rica has signed several free trade agreements with 18 countries, which are: El Salvador Guatemala Honduras Nicaragua Mexico Chile Dominican Republic Canada Trinidad & Tobago Guyana Barbados Belize Panama United States China Peru Singapore European Union
Investment Incentives The Free Zone Regime is the mainstay of Costa Rica s export and investment promotion strategy. The Free Zone Regime is a set of incentives and benefits granted by the Costa Rican government for companies making new investments in the country, as stated in the the Free Zone Regime Act # 7210, Act # 8794, and in its Bylaws. Free Zones are primary areas for offshore tax and customs operations. They are restricted zones with no resident population, authorized to serve as such by the Governmentś Executive Branch. These facilities are intended to accommodate operations engaging in input and raw material imports, manufacturing and assembly or marketing of export goods and provision of export- related services.
Free Trade Zone Incentives: Export processing industries engaged in processing or assembling raw materials to produce export / re- export finished goods. Export trade companies (not producers) engaged in handling, repacking, or redistributing non- traditional export / re- export products and merchandise. Service industries or companies exporting to natural or artificial people abroad or serving to Free Zone companies, as long as these services are directly linked to those companies production processes. Banking, financial, or insurance companies inside Free Zones will not be allowed to benefit from the Regime.
Park- managing companies engaging in installing companies under the Free Zone Regime and to park management and maintenance. Companies or organizations engaged in scientific research to enhance technology levels of industry or agribusiness activities and Costa Rica s foreign trade. Companies operating shipyards and dry docks to build, repair, or service ships. Manufacturing firms which can export or not (minimum export level is not required).
Our Service Our objective is to provide our clients located in Costa Rica and abroad with integral specialized legal services. ARA LAW offers a service focused on providing integral legal advice to establish your company, in accordance with your needs and business goals, preparing the pertaining documentation, performing the acts necessary before the respective authorities, and providing corporate-legal support to your company. Please, contact us by email at info@aralaw.cr or by phone (506)22918844