Country Information
- Official name:
- Republic of Costa Rica
- Capital city:
- San José
- Population:
- 4, 401, 849 inhabitants
- Language:
- Spanish is the only official Language, according to an official survey more than 250,000 Costa Ricans can speak English fluently.
- Size:
- 51,100 square kilometers (19,730 sq. mi) plus 589.000 square kilometers of territorial waters, about the size of West Virginia.
- Climate:
- Temperature ranges from 57 to 81 F.
- Political structure:
- Democratic Republic with one of Latin America’ s most stable political systems.
- Location:
- On the Central American isthmus, 10° North of the equator and 84° West of the Prime Meridian. It borders both the Caribbean Sea (to the east) and the North Pacific Ocean (to the west), with a total of 1,290 kilometres (802 mi) of coastline (212 km / 132 mi on the Caribbean coast and 1,016 km / 631 mi on the Pacific).
- Army:
- Costa Rica was the first country in the world to constitutionally abolish its army in 1948.
- Natural diversity:
- Costa Rica has the greatest density of species in the world.
- Language:
- Spanish is the only official Language, according to an official survey more than 250,000 Costa Ricans can speak English fluently.
- Literacy rate:
- 96% one of the highest in world (CIA World Factbook, February 2007)
- Life expectancy at birth:
- 78.2 (25th in the world above the United States and highest in Latin America)
- Human Development:
- 47th in the world (High)
- GDP Per Capita:
- $12,000 (52nd in the world)
- Economy:
- Costa Rica has a diversified economy that rests mainly on tourism, agriculture and electronics.
- Competitive advantages:
- well educated people and strategic location to world markets that has attracted Fortune 500 companies like: Intel, Procter & Gamble, Baxter Healthcare, Abbot Laboratories, Western Union and Hewlett Packard among others that have selected Costa Rica as their hub for the Western Hemisphere.
- Main Investment opportunities:
- Real Estate development, call center outsourcing, technology, tourism and sustainable development in general.
- Reputation:
- One of the most stable, prosperous and less corrupt countries in Latin America.
- Labor force:
- 1.81 million estimation as of 2004.
- Unemployment rate:
- 6.6%
- Natural beauty:
- Number one spot in ecological destinations in the world, 34 national parks with more than 25% of its territory protected.
Frequently Asked Questions FAQ's
Find the information you need according to the common inquiries made through the years of services of our corporation:
Costa Rica legal advice faqs
- 1. How different is Costa Rican Law compared to US American Law?
- The Costa Rican legal system is based in Roman Law, also known as Civil Law. On the other hand most English speaking countries including the United States, Canada, UK, Australia, and others use the Common Law system. While the Civil Law is the predominant system in the world, we can say that the main difference between them is that Common Law developed from ancient customs, Civil Law developed from legislation. In simple words, court decisions in Costa Rica are based on statutes and codes, while in the Anglo world cases are the essential source. Yes, the systems are different but at the end common logic prevails in both, and Costa Rica as a developing country is a rather strong State of Law.
- 2. What are the limitations for foreigners to buy properties in Costa Rica?
- Based on the Costa Rican Political Constitution and its Equality Principle, foreigners have the right to invest in properties with essentially no restrictions or limits.
- 3. Can a foreigner be part of a Costa Rican Corporation?
- Based on the Costa Rican Political Constitution and its Equality Principle, foreigners have the right to invest in properties with essentially no restrictions or limits.
- 4. Does Costa Rica offer a second citizenship program?
- No, Costa Rica offers several legal immigration statuses to grant residence but not citizenship. Citizenship can be acquired only after having acquired legal status for a period that varies between 5 and 7 years depending on the nationality of the applicant.
- 5. Can a visitor work in Costa Rica?
- Following general immigration principles around the world, Costa Rica is not the exception, it is illegal to work on a tourist visa. The penalties will be for both employee and employer. One can say that a person is working when he or she is receiving pay for labor or any service provided. In order to be legally employed in Costa Rica it is mandatory to obtain a Work Permit or a Temporary Residence as an Executive of a Recognized Company, to get the approval it is necessary to demonstrate special qualifications that are not common among the Costa Rican labor force.
Costa Rica business advice
- 1. What is normally the first step for doing business in Costa Rica?
- It is typical for business conducted by foreigners in Costa Rica to use a Costa Rica corporation with limited liability. Costa Rican corporations present several considerable advantages for doing business. Costa Rican Corporations are formed by Public Notaries and then presented to the Costa Rican National Registry which issues them in a period that ranges normally from 2-4 weeks. Foreigners can be Directors and/or shareholders with no limitations and find interesting regulatory advantages in their proper use.
- 2. Is it easy to set up a start up company in Costa Rica?
- Costa Rica has many profitable business opportunities but it is necessary to understand certain differences and practices that will be fundamental to be successful in its environment. To find experienced advisors is essential to reduce the gaps that exist if compared to developed nations. The business license is the goal of the registration process of the operation and will vary slightly from one local government to the other, zoning permit, health permit, insurance, social security are the main requirements to be duly registered. The process normally will take approximately 45 office days but will depend on location, industry, and efficiency of applicants. So it is fair to say that the process is not easy, but can be done effectively within reasonable parameters.
- 3. How different are Costa Ricans as business people compared to North Americans?
- Costa Ricans share many business practices with other Latin American countries, in that sense they generally tend to be less aggressive, less direct and more hierarchical if compared to US Americans, but because of the relative lack of a strong ancient culture can be influenced and molded to foreign practices. Because of certain similarities that exist between the United States and Costa Rican societies, US companies in general feel very comfortable doing business in Costa Rica versus other Latin American countries where they find more resistance.
- 4. What are the main business opportunities available in Costa Rica?
- Costa Rica is a diversified economy, agricultural products, tourism, and technological products have made the country experience a significant economic growth that creates many chances for business development. Because of the heavy investment in Education and Public Health that Costa Rica has made mainly in the last six decades, the nation has a well educated labor force that is being fundamental for the development of the country. The country chose an outward oriented model of development in which it can serve as an ideal location for outsourcing of business services to the entire world and specially to North America, also because of its natural beauty and political stability real estate development has seen an unprecedented boom along with the improvement of the business services in which Costa Rica has a competitive edge over most of its neighbors.
- 5. How safe is to do business in Costa Rica?
- Because globalization has taken Costa Rica by surprise, certain sectors of the business community were not ready for the challenges of global business, but in general good faith in business prevails, frauds and scams are the least and in many occasions are done by foreigners and not by Costa Ricans. The system needs to adapt, the foreigner needs qualified advice and protection, the legal system is not agile but it is respectable, still the foreign investor needs to be cautious mainly due to differences in practices that could put his interests in risk.
