Page 164 - Caribbean-Central America Profile 2018

COSTA RICA

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

Official Name: Republic of Costa Rica
Capital: San Jose
Guanacaste COSTA RICA Nationality: Costa Rican(s)
Official Language: Spanish
Heredia
Alajuela
Puntarenas Population Total (millions): 4.86 (2016 est.)
Cartago
Size: 19,652 square miles
Currency: Costa Rican Colon (CRC)
Internet Domain: .cr
International Dialling Code: +506
Electricity: 120/ 240 volts

COUNTRY OVERVIEW INVESTMENT INCENTIVES
q The Republic of Costa Rica borders to With a proven track record of 120 years of solid democracy, economic and political stability,
the North with Nicaragua, to the South Costa Rica is unmatched as the top choice for investing in the region. It has positioned itself as
with Panama, and to the East and West a key destination for the operations of multinational companies in different types of industries,
with the Caribbean Sea and Pacific Ocean such as Medical Devices and Advanced Manufacturing.
respectively.
The following sectors are identified as having strong growth prospects for investors:
q Both the Caribbean and Pacific coasts • Healthcare (including pharmaceutical and medical equipment).
are abundant with first class beaches and • Construction.
exuberant vegetation. • Communications.
• Environment, Water projects.
q Costa Rica enjoys a spring like weather all • Tourism (hotel infrastructure & supplies, services, investment).
year round. The average temperature in the
Central Valley is 72º F (22º C). • Agricultural equipment and supplies.
• Information technology.
q There is an abundance of microclimates in • Chemicals.
Costa Rica which has produced one of the • Electricity generation.
richest fauna and flora found on the planet. • Manufacturing.
• Ports and maritime.
q The capital is San José.
Costa Rica is a strategic destination for the FREE TRADE ZONES
operation of multinational enterprises in The Free Trade Zone System is a set of incentives and benefits granted by the Costa Rican
sectors such as the service industry, advanced government to companies making new investments in the country and it provides tax incentives,
manufacturing, life sciences and light which are enhanced to companies establishing in areas outside the Greater Metro Area (GMA),
manufacturing. It has become the preferred including the North Pacific, Central Pacific, Caribbean, North and South.
destination in Latin America for leading Among these requirements is a minimum initial investment of US$150,000. Beneficiary
companies in the high-technology industry companies may include:
seeking to install new investment projects. • Companies that manufacture, process, and/or assemble goods to be exported or re-exported.
Foreign investors remain attracted by the • Companies that only handle, re-pack, or redistribute non-traditional goods to be exported
country’s political stability and high education or re-exported.
levels. Over 200 global companies have chosen • Companies that export services to companies or individuals established abroad or operating
Costa Rica as an establishment location. under the Free Zone Regime.
Tourism is Costa Rica’s main source of income • Companies that manage parks dedicated to the installation of companies under the Free
and hard currency. Costa Rica receives over 1.7 Zone Regime.
million tourists per year, the majority of whom • Research organisations. Companies devoted to research on technological improvements.
come from the United States and Canada. • Companies devoted to run shipyards, dry docks, or floating docks in order to build, repair,
Earnings from tourism amount to more than and service vessels. The Costa Rican Government has authorised this area, with no resident
$1.7 billion US dollars per year. It is estimated population, to bear the name of “Free Zone”.
that up to 80% of all visitors to the country The Costa Rica Free Trade Zone Regime allows 100% exemption on:
come to do eco-tourism related activities.
• Custom duties on imports/exports
• Withholding tax on royalties, fees, dividends
• Interest income
• Sales tax on local purchases of goods or services
• Stamp duty

C-6 Caribbean-Central American Action