Doing Business in Costa Rica

Just a short while ago many foreigners were only coming to Costa Rica to retire. Now they have come also to invest and enjoy country club lifestyle. Many North Americans are retiring earlier and perhaps with less and have realized their money can go much farther here. This surge in foreign presence has been created by the North American business climate. Nowadays in North America people are hired and fired when needed. This trend has forced young capable people who are interested in doing something exciting for the rest of their lives.

Before starting a business make sure that it is the right decision for the business. Doing business in Costa Rica can be complex, challenging, frustrating, bureaucratic, and let’s not forget in many cases dealings will be in another language.

One must ask oneself, if they ave enough know how and experience in a sector before jumping into something new. Owning a business in Costa Rica is not always a day at the beach.

If there is an opening for a new type of business in Costa Rica that is obvious and has not been filled, there is usually a major reason why not. Be careful, diligent, and participate in some type of research before considering starting a business in Costa Rica. Also, if neccessary hire some appropriate specialists to assist in the process.

This is not to say that all business in Costa Rica is unpleasant. Costa Rica has a friendly business climate with the government promoting foreign investment most business friendly in Latin America. Afterall, Costa Rica has been deemed Central America’s “Silicon Valley.”

Any investment that creates jobs, promotes tourism, and does not negatively impact the environment is welcomed. North Americans can succeed in business here because they bring a new fresh perspective, enthusiasm, experience, expertise, and imagination. Those who usually have the least success are the people who are trying to make tons of money in short amounts of time.

Types of Corporations

Currently, in Costa Rica there are only two main types of Corporations. Even though the general structures are similar the two entities have important differences. Items such as ID, Governance, Representation, Liability, Legal Books, Stock, and taxes are discussed...

Forming a Corportation

Forming a corporation can be a discouraging process if one is unfamiliar with the process. However, knowing the proper steps and hiring the appropriate help can make the process much easier and more enjoyable, freeing up more time for to focus on what really matters, business...

Offshore Corporations

Offshore Corporations are a popular holding method, taken advantage of by foreign customers. Not only are they an advantage for secrecy, but also for gaming entities and for investors who want alternative means to holding money, than their native country provides...

Corporate Taxation

The Costa Rican income tax system is based on the territoriality principal; therefore, only Costa Rican source income derived from real estate, movable assets, goods, services and services rendered or located in Costa Rica is subject to tax. Tax evasion is a crime that could incur economic sanction, minor tax crimes, incarceration for up to ten years, and seizure or confiscation of equipment...

Employees & Labor Laws

There are lots of things to to know about before considering hiring employees in any business in Costa Rica. Costa Rica has a huge set of very strict rules and laws protecting workers wages and benefits. Of all the laws in the country these are some of the laws that are most strictly enforced. These laws are very fair for the worker and are not unreasonable for any decent employer, especially since labor costs are low...

Business Advice

Each successful business has its own recipe; however, hopefully these tips for owning a business in Costa Rica help launch a trouble-free business and turn it into a prosperous venture...

Professionals in Costa Rica

A significant amount of foreigners who are considering Costa Rica for relocation and work are members of recognized professions. In fact, foreigners must be permanent residents in Costa Rica at the time of applying for membership, as well as have a certain minimum number of years of residence in Costa Rica. Unless someone is a professional who is coming down with a guaranteed job from an international company it is unlikely that one will be able to work or work in his/her profession here in Costa Rica...

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