Investing In Costa Rica: Things You Should Know
Costa Rica has emerged as one of the top foreign destinations for investment. There are many reasons for this, including the country being a very safe and stable region. With this in mind, here are some of the things you should know about investing in Costa Rica.
Stable & Low Cost Jurisdiction:
Before investing, you should know that Costa Rica is perhaps the most stable of all Latin American countries. They are often referred to as the ‘Switzerland of Central America,’ having peaceful democratic policies ever since abolishing their army back in 1948. This also creates very pro-business policies.
The tropical conditions of the country have also produced what locals call the ‘pura vida,’ or- the pure life. This laid back style of living has also produced a fairly low cost of living with housing, services, and even medical care being much cheaper than in most other parts of the world. If you are coming from the United States or Europe to start a business or invest in property in Costa Rica, bear in mind that while it will be much more affordable, your investments might not produce the same level of profits as back home.
Taxes & Ownership Rules:
Before making an investment, be sure to learn as much as possible about the rules and requirements for taxes and owning property and businesses. Fortunately, the annual property tax in Costa Rica is an amazingly low .25 to .30 percent. Additionally, there is no capital gains tax, which might even out the initial lower rate of return. Taxes are only incurred on income generated within the country and there are many deductions, which can be legitimately taken.
As a foreigner, you will not have any ownership restrictions. In fact, everyone is treated the same in Costa Rica so you will enjoy the same rights and protections as the locals. Each titled, fee simple properties are registered in the National Registry of Costa Rica, which can further help to cement your ownership rights.
Well Educated Local Workforce:
After the country eliminated their military, funds were poured into education. This has resulted in Costa Rica having a 95 percent literacy rate, and the country is considered one of the most well-educated in all of Latin America. This is great news for anyone looking to start a business, since it means a strong and well-educated local workforce capable of many different types of business activities.
Wide Range Of Possible Investments:
There are endless arrays of types of investments that can be made in Costa Rica. You may be looking to open a call center or factory, or you could be simply looking to buy some property. How about opening your own adventure tourism business? Or maybe a tech company, given the fact that the country is considered to be an Internet hub.
Property investment opportunities range from wonderful beachfront real estate to ranches and mountain hideaways, plus everything in between.
There are numerous possibilities and Costa Rica even boasts numerous “free trade economic zones” that are shared with many countries throughout Latin America (even Mexico).
Not only is it easy to invest in Costa Rica, but this could be one of the best decisions you have ever made. The country boasts low taxes and a stable, friendly government that actually wants your dollars to help continue their pace of development. Given the conditions, now may be one of the best times ever to invest in real estate or start your own business–in Costa Rica.