Overseas Property Investment

Costa Rica is one of the safest and most attractive countries for foreign investment in Latin America. Costa Rica’s telecommunications and transportation infrastructure may be state controlled, but they are the best in the region, and the government is always on the lookout for foreign investment. The economy is being transformed from its long-time dependence on coffee, bananas and cattle to one centered on sectors such as microprocessors and tourism. With its investment-friendly climate and government policies, Costa Rica has become the “Silicon Valley of Latin America,” with companies such as Microsoft, GE, and Western Union making significant investments in the country.

Costa Rica’s numerous free trade zones and tax holiday opportunities are extremely enticing, offering benefits such as exemption from import duties on raw materials, capital goods, parts and components; unrestricted repatriation of profits; 100% tax exemption on profits for eight years, and 50% exemption for the next four years.

To set up operations here, a foreign company must appoint a Costa Rican resident as legal representative, with full power of attorney for all business matters related to the Costa Rican branch. A business license must be obtained from the appropriate municipality, and the company must register with the Costa Rican Revenue Administration, and be included in the Costa Rican Social Security system as an employer.

Although Costa Rica has no exchange controls as such, foreign currency received by resident corporations or individuals must be sold through a Costa Rican bank and capital imported for investment purposes must be registered in order to avoid difficulties with its eventual repatriation.