Business Opportunities and Challenges in Costa Rica

This presentation will look at the business climate in

Costa Rica in hopes of identifying potential

opportunities for Expats

Costa Rica Is Easy To Get To

Foreigners can not work for Costa Rican Companies. You can be arrested for doing so. They can however, run their own businesses.

With Tourism being the number one source of income in Costa Rica, look to this area

for potential opportunities

There are some road blocks to doing business in Costa Rica. The biggest

challenge is Bureaucracy

Costa Rica is the top destination on the planet for Eco Tourism

The market for tourism in Costa Rica comes from many places

Always Dreamed of Opening a Dive Charter?

A Surf Camp or Surf School?

You can do some things in Costa Rica that you could not do in the US. Costa Rica is not a litigious society!

Costa Rica Prohibits Foreigners from Operating Charter Fishing Boats, You Must Partner With a

Costa Rican or Operate through a Corporate Entity

With over 800 species of Birds, Opportunities exist for Bird Watching Tours

This retired Pan Am Pilot is now the largest

breeder of Macaws in the World!

Advantages of Doing Business in Costa Rica

•Low Cost of Employees•Strong Economic Growth•Stable Currency vs the Dollar•Slower Pace, Less Stress•Friendly •New Opportunities under CAFTA

American StandardBaxter HealthcareBristol Meyers SquibbChevron Corporation (Worldwide Headquarters)Cisco SystemsCitigroupCoca-ColaColgate-PalmoliveComputer AssociatesDole Food CompanyErnst & Young GlobalGEHilton HotelsIntelJohnson & JohnsonL.L. BeanLucent

MarriottMerck CompanyMicrosoftMotorolaOraclePfizerPhilip Morris InternationalPrice Waterhouse CoopersProcter & GambleRadisson HotelsSony Music EntertainmentThe Gillette CompanyTommy Hilfiger3Com3M CompanyUnisys (Corporate Headquarters)UPS (Corporate Headquarters)Western Union

Well known US Companies doing business in Costa Rica

TaxesCosta Rica Corporate Tax Environment

For Corporate entities the following tax table prevails: • Gross income up to $43,000 10% �• Gross income up to $86,500 20% �• Gross income over $86,500 30% �

• There is also a 13% “Sales Tax” which is levied on Hotels and Restaurants

Insurance in Costa Rica

Full Coverage including liability, natural disasters, fire, flood, etc…

Runs about 1% of declared value on property

Tree Farms Are Another Popular Investment in Costa Rica and the Government Gives Incentives

to Expats – Including Easing Residency Restrictions

Many Expats Operate Restaurants in Costa Rica

And Hotels. There is a Current Shortage of Hotel Rooms in Costa Rica and Demand Exceeds Supply, Making Room Rates High

Dreaming of Owning a Hotel? Here’s one for $950k plus a 3 bedroom 2 bath house.

Opportunities Also Exist in Real Estate Development, Investment and Services. Many Well Known US Real Estate Franchises are Now Opening Offices in Costa Rica. Remax, Century Twenty One and Coldwell Bank Have Multiple Offices in Costa Rica and are Adding More

Construction Services are in High Demand

The Vacation Rental Market Has Strong Demand. A Home and Land costing $350,000 has a Weekly

Rental Income of $2000 per Week!

Specialty Retail Opportunities Abound

Who are the Entrepreneurs of Costa Rica

Ticos, Americans, Canadians, French, Dutch, German, Students, Retirees, Professionals, Farmers, Entrepreneurs, Artists, Bakers, Designers, Families….

“When looking back at life it’s

not usually what we did that we regret, it’s what we didn’t do.”