• Currently, more than 200 multinational companies are operating in Costa Rica
• Exceptionally talented and bilingual young workforce. On average 95% of the employees in multinational companies are local
• Preferential access platform to 1/3 of the world’s population, and 2/3 of worldwide GDP. 90% of goods exports through free trade agreements
• Excellent business climate based on a renowned democratic tradition, economic and political stability
• 93% of energy is renewable; electricity costs are low and guaranteed. Redundant telecommunications access
• Quality of life in Costa Rica is high. Safest country in Latin America; and one of the top 5 environmental performers

Talented people in the ideal location, that’s what successful and visionary companies look for when they invest.That’s why they are here.

Costa Rica’s value proposition

• Proven Track Record
• Qualified Work Force
• Strategic Location
• Quality Infrastructure
• Excellent Business Climate

Our people make the difference

• Costa Rica has one of the highest literacy rates in the American Continent (95.8%)

• After the abolishment of the armed forces in 1948, resources have been invested in education and health services for the population

• Education is mandatory until the 9th grade and makes strong emphasis on computers and English skills since the early grades

• Costa Rica has a population of 4.5 million people, 43% are between the ages of 15 and 40 years old

• The labor force is 2.05 million people with an unemployment rate of 6% (estimated to December 2008)

• The National Training Institute (INA) offers free technical training in many fields. A total of 95 technical schools and 60 universities prepare professionals with the highest international standards. These institutions offer training in several areas such as: electronic, electric, mechanical, and processing engineering

Stable Employer – Employee Environment: “Asociación Solidarista”

• Employer-sponsored workers’ association
• All employees are welcome to participate voluntarily
• It operates as a credit union, providing multiple benefits to the employees
• The employer contributes with a portion of the severance provisions, and the employees contribute with personal savings
• “Solidarista” organizations are not sector-wide bargaining instances, as American unions
• There are some similarities with a 401(k) retirement plan, without the stock options
• Cooperation between employer and employee is common. According to the Global Competitiveness Report 2008-2009 of the World Economic Forum, Costa Rica is ranked 8th out of 134, in terms of cooperation in employment relations

Costa Rica has become an important near shore location for companies from the U.S., as well as a strategic offshore location for European companies in the dollar zone, for European-based companies.

It is geographically well situated in the middle of the Americas and can be reached easily from most U.S. cities. Every day, there are approximately 30 different passenger flights from Costa Rica to the US and Canada. Additionally, 60 weekly direct flights are scheduled to other destinations in Central America, South America and Europe.

The country´s time zone coincides with the U.S. Central Standard Time Zone (GMT -6)

Costa Rica is your platform to the world

• Central Standard Time Zone
• 2-3 days delivery time by major express services
• Daily world-wide air cargo through 14 daily flights
• Over 24 world cargo shipping lines with regular departures on the Pacific Ocean and the Caribbean Sea

• Costa Rica has an abundant water supply, reliable hydroelectric power, and an advanced telecommunications system
• An extensive highway system, two major international airports and three seaports
• All major U.S., European, and Latin American passenger and cargo carriers provide service at very competitive rates

Telecommunications

• Redundant fiber optic submarine cables (Maya & Arcos; Pacific Global Crossing)
• Satellite and terrestrial microwave network in place to meet the demand of land lines, mobile and Internet services
• New multinational suppliers are entering the market, providing private networks, Internet and mobile phone services

Electricity

• 93% of electricity is generated from renewable sources (hydroelectric, geothermal and wind)

• Competitive electricity rates (US$ / KW). The industrial cost of electricity ranges from $0.07 to $0.10 per Kwh

Business climate for foreign investments in Costa Rica ( Stability )

• The 2008 World Bank Survey for Global Governance Indicators, ranks Costa Rica in the first place within Latin America for political stability
• The country has no limitations on capital funds transfers associated with an investment, regardless of the currency
• No restrictions are imposed on re-investments or on repatriation of earnings, royalties or capital
• There is no requirement to register investments with any of the government authorities
• Costa Rica has achieved international standards for IPR protection.
• Army abolished in 1948
• Ranked among the highest in Political Stability and Absence of Violence index in Latin America (World Bank, 2008)
• More than 100 years of democracy

Economic growth

• One of the pillars of the Costa Rica´s economic development has been trade liberalization, which has allowed exports to surpass its 30% ratio of GDP in 1980 to a current 50% rate (includes exports of goods and services)

• This trade liberalization has been followed by a series of structural changes, that have led to a productive transformation, diversification of the economy and a higher level of investment

• The real GDP has been increasing in a compound annual growth rate of 5.3% since 1991

• These decades of peace and democracy, stability and economic growth have translated into important social achievements. In the last 25 years poverty was reduced from 45% to less than 18%

• Costa Rica has one of the highest levels of education and health attainment in Latin America, which it is also one of the best in the world. It has been able to provide broad access to services like health, social security, water and basic services for the entire population

• The World Economic Forum’s Global Competitiveness Report 2008-2009, ranks the Costa Rican educational system 32nd out of 132 economies (among the first quarter), being the highest in Latin Americ

Setting up a business in Costa Rica

Legal

Costa Rica respects the rule of law. Throughout the years, the country has continued to strengthen its legal system in order to comply with international agreements and regulations. Furthermore, companies have no limitation of foreign ownership. Both nationals and foreigners can conduct business freely. The country has free capital movement and no foreign exchange controls.

Taxation

Costa Rica has a special program called the free trade zone regime, which grants a 100% exemption status to companies that meet minimum fixed-asset investment requirements and that are foreign-market oriented.

Free Trade Zone

Since the 80s, Costa Rica has actively sought promoting exports of its manufactured goods and services through the creation of special incentive regimes. To this respect, the establishment of the free trade zone regime led to the creation of the first free trade zones in 1982.
In Costa Rica, companies that meet minimum fixed-asset investment requirements and are primarily foreign-market oriented can apply to a very competitive tax incentive program called the Free Trade Zone Regime. This program grants the company 100% tax exemption for a number of years.

Companies that apply to the Free Trade Zone Incentive Program can set up operations at one of the privately-owned Free Trade Zone Industrial Parks. Most of these industrial parks are located within 20 miles from the main international airport.

Immigration

Costa Rica has a friendly and welcoming attitude towards the attraction of world-class talent, regardless of where the talent is to be found.
The General Directorate of Immigration authorized in May 2008 an expedited procedure for registered companies and their personnel. The purpose of the program is to lessen the burden of immigration red tape on both individuals and their employers.
Currently there are two types of status provided to foreign workers:

1. Temporary Working Visa (working in Costa Rica for one year or less).
2. Temporary Residents (working in Costa Rica for over one year).

Labor

Our people make the difference.
Costa Rica’s emphasis on education and healthcare is the pillar of its stability. With almost 96% literacy rate and a solid national healthcare system, companies will find a pool of highly motivated and educated workforce that will significantly contribute to their success.
There labor pool grows of 3.7% annually – an average of 60,000 people join the workforce each year – which allows companies to feel comfortable about the stability and growth of their operations through the years.
Furthermore, a union-free environment in the private sector allows companies to establish programs such as employer-sponsored associations that contribute to a better communication between employers and their workers.

Source: www.cinde.org