Where can I find more information about doing business in Costa Rica.

Deloitte recently published a great guide to Doing Business in Costa Rica, covering issues such as Real Estate, Immigration, Company Formation, Taxation, Foreign Investment, Labour Relations and more. This extensive guide is a useful introduction and you can download it here





John Englehardt, Knowledge Ventures LLC., has written an informative article, Adventures in Offshoring: Costa Rica describing his personal experience of doing business offshore in Costa Rica, you can download the full article here.

Costa Rica - recent history

Throughout the 20th century, Costa Rica has enjoyed peace and a steady growth in prosperity, with the notable exception of a civil war in 1948 which followed a disputed presidential election.

The Costa Rica Civil War was the bloodiest event in 20th century Costa Rica history. It lasted for 44 days (from March 12 to April 24, 1948), during which approximately 2,000 people are believed to have died. The conflict was precipitated by the vote of the Costa Rican Legislature, dominated by pro-government representatives, to annul the results of the presidential election of 1948, alleging that the triumph of opposition candidate Otilio Ulate had been achieved by fraud. This caused a rebel army under commander Jose Figueres to rise up against the government of President Teodoro Picado, which it quickly defeated.

After the war, Figueres ruled for a year and a half as head of a provisional government junta which abolished the military and oversaw the election of the Assembly that produced the new Costa Rica Constitution of 1949. The constitution finally gave women and blacks the vote and, controversially, dismantled the country's armed forces - giving Costa Rica the sobriquet of 'the only country which doesn't have an army. The junta then stepped down and handed power to Ulate. Costa Rica has not experienced any political violence since then. Jose Figueres proved to be one of Costa Rica's most influential leaders of all time, instituting ground breaking social and economic progress.

Costa Rica continued its progressive social policies through the three decades after 1948 and enjoyed a gradual upward economic trend. The basic policy of the government in the decades after the 1970's was to become more independent agriculturally, but this actually caused a heavy dependence on imported goods needed for farming. Other problems were the continuing drop in the prices of coffee, bananas, and sugar. Costa Rica had also taken out loans to improve its infrastructure and when these loans came due, Costa Rica could not pay and soon its economy was in shambles. Magnifying the country's problems was the instability of Nicaragua and Panama, which did nothing else but hurt Costa Rica. The reputation of Central America as a place of violence and poverty stopped much potential investment. Also, Costa Rica's status as one of the wealthiest third world countries brought a flood of immigrants from its two neighboring countries, taking jobs and money out of the country.

In recent times, one of the most prominent political figures has been Oscar Arias Sanchez of the Partido de Liberacion Nacional (PLN) who was elected president in February 1986.In 1987, Oscar Arias Sanchez received the Nobel Peace Prize for his work to break the cycle of civil war in the other Central American countries and foment the stability that continues. Currently Costa Rica enjoys a reputation as one of the most peaceful, prosperous, and least corrupt countries in Latin America.

In February 1998 the Social Christian Unity Party's Miguel Angel Rodríguez won the presidency with almost exactly 50% of the vote. A conservative businessman who made the economy his priority, he went on to privatise state companies and encourage foreign investments in an effort to create jobs. By the time the February 2002 elections rolled around, however, Ticos (a term locals use to refer to themselves) were mumbling about a lack of government transparency and shady deals between political mates. These grass-roots misgivings resulted in a 'no win' election, and pollsters returned to the ballot box in April 2002. Rodríguez's successor, Abel Pacheco of the conservative Social Christian Unity Party, was elected to step up to the president's ring. Pacheco began his term promising to eliminate the public debt within four years. He launched a conservationist platform banning new oil drilling and mining and proposed legislation guaranteeing citizens the right to a healthy environment. It didn't take long before the sheen paled. A campaign finance scandal clouded his presidency, leading some opponents to demand his resignation, and it became unclear if he could weather this storm through to the end of his term in 2006.

Oscar Arias Sanchez was relected president for a second time, by a narrow margin, in 2006.

Costa Rica will return to the polls in 2010

Costa Rica still has a large agricultural sector including coffee, banana, pineapple and sugar exports. In the last twenty years, eco-tourism and technology have taken off and become top-earning industries in the country. Costa Ricans enjoy a high standard of living, and land ownership is widespread. The country boasts a high literacy rate, a large middle class and a stable government that has functioned without an army for more than 50 years.

Costa Rica is the Happiest Country on the Planet - it's official!

On Saturday the 4th of July the second global compilation of the Happy Planet Index, will be launched. The report, The Happy Planet Index 2.0: Why good lives don’t have to cost the earth, contains the results of updated data for 143 countries around the world, representing 99 per cent of the world’s population.

It also includes new analysis which examines changes in HPI scores for major nations over time.

The report is an innovative measure that shows the ecological efficiency with which human well-being is delivered around the world. It is the first ever index to combine environmental impact with well-being to measure the environmental efficiency with which country by country, people live long and happy lives.

And the Happiest Country in the World is..................Costa Rica!

Costa Ricans report the highest life satisfaction in the world, have the second-highest average life expectancy and have a small ecological footprint

Visit the webite www.happyplanetindex.org to sign up to a new happy planet charter, calculate your own HPI score, and explore the HPI data. Download the full report here.

And of course if you want to learn more about the Happiest Country in the world look through our blog www.costarica-invest.blogspot.com and have a look at our website www.costaricainvest.ie, to see coverage of this story on CNN click here .

If you want to live the dream in Costa Rica - have a look at Finca Di Pacifico Dos, our premier project.

Marine Life around Costa Rica and the Diversity of Marine Life

Costa Rica’s Isla del Coco (Cocos Island) is well known for its untouched lands, incredible diving , shark-filled waters, and remote location. PADI the diving association ranks Cocos Island as the best diving location in the world. As a tourist destination, it is the most untouched, incredible location in Costa Rica, generally attracting only the most serious researchers and divers. And recently, those researchers have discovered that the beautiful island’s waters are home to micro “insects” and algae that are self-illuminatory, much like the phosphorescent creatures of other locations.

These tiny sea creatures are largely responsible for maintaining the island’s clear waters, and feeding the larger species that are so common here. The majority measure less than one millimeter, and are elusive, therefore relatively unknown to science. Their ability to glow in the dark allows them to light up the island’s waters at night, creating a dazzling, sparkling undersea light show.

The creatures’ luminescent abilities are actually a chemical reaction: when they perceive change in their surrounding environment, they release chemicals into the water, which create a blue, glittery effect. To learn more about these creatures, the Center of Scientific Investigation of the Sea and Fresh Water (Cimar), of the Universidad de Costa Rica, has launched an in depth study. Costa Rica offers not only virgin rainforest, fascinating volcanoes and pristine beaches but also an overwhelming world of undersea wildlife - and it is estmated that 3.5% of the wolr's biodiveristy lives in the waters of Costa Rica. A recent study cataologued 6,777 individual species.

Between 2 to 15 miles offshore the northwest of the country from Nicoya peninsula the archipelago of the Catalina Islands is located and this archipeligo consists of about 20 rocky islands of different sizes. A little bit further north, Bat Island / Isla Murciélagos is located. The exposed location of these islands guarantees an abundant variety of sea wildlife which is hardly to be found somewhere else. For some reason - unexplained up to now - the Catalina and Bat Islands are a melting pot of very different undersea wildlife and fish that usually do not occur together. With good luck, even whale sharks are to be seen at Bat Island.

The diversity of marine life is huge and may rival that of the rain forests in the number of species found there, and, yet, our knowledge of ocean life lags far behind that of terrestrial life. A new age of ocean exploration is upon us, and there is a very practical need to better understand changes occurring in the seas for their implications on human life and our marine resources.

The Census of Marine Life (CoML) addresses these issues as a global network of researchers in about 80 nations engaged in a ten-year initiative to assess and explain the diversity, distribution and abundance of marine life in the world oceans - past, present and future. The emphasis of the program is field studies, which are to be conducted in poorly known habitats as well as those assumed to be well known. In both coastal and deep waters, projects will identify new organisms and collect new information on ocean life. Through the field studies and other projects, ranging from analyzing historical documents to modeling future ecosystems, the CoML will enable scientists to compare what once lived in the oceans to what lives there now, and to project what will live there in the future.

Land Banking

What is land banking? - Land banking is the acquisition of land in advance of expanding urbanization. The price of an open space parcel not yet subject to urban development pressures will probably be more closely based on current rather than speculative land uses.

What are the benefits and upsides of land banking?

• Land has the potential to experience tremendous appreciation if bought in the way of growth, or if a higher and better use can be achieved.


• Owner financing can often be obtained through the seller at below-market rates.


• Subdividing can create added value and provide for immediate returns.


• Bricks and mortar depreciate, well selected land increases in value.


• Land is in limited supply “they just aint making any more of it”
  

What are the potential downsides?

• Negative cash flow; usually the land does not generate any income while you pay the principle, interest, taxes and costs of development.


• Tax advantages are scanty as land cannot be depreciated.


• Generally, raw land is considered a long-term ill-liquid investment that often takes time before gains can be realized.


• Risk of loss on resale can occur if you choose poorly, fail to evaluate and negotiate properly, the economy slips or various other unforeseen events occur.


• It is difficult to obtain traditional financing on or borrow against accrued equity.
  

When buying land for land banking what should you look out for?

• The worst you can buy is swamp or marshland.


• Most often flat land is the least expensive to develop and the most desired for building purposes.


• Land with barren rock will increase costs and virtually eliminate a basement just the same as a high water table.


• Plots with trees, a view, rectangular in shape, a gentle slope or none and a good location are most preferred.


• Streams can boost values by 100% in some cases.


• Many people are literally being driven to the hills. Granted the views can be spectacular but roads, utilities, water, sewer, and foundations, such as pilings, can add to building costs
  

How does Finca Di Pacifico Dos stand out?

• Teak growing on your plot offsets the negative cash flow – providing a positive cashflow at harvest, prior to onward sale or development of your plot.


• All plots come with permission to build one residence


• Services - water and electricity are on site.


• Many have river views and sea views


• Tourist development is quickly encroaching on Finca Di Pacifico Dos with a new marina under development, the opening of a new port and docking facility in Puntarenas and many new hotels in Puntarenas and surrounding areas.


• As the baby boomer generation begins to retire your teak will have matured and be ready for harvest as demand for land continues to rise.


• There are multiple exit strategies
  

Finca Di Pacifico Dos may be “the perfect investment”, the teak providing a secure return whilst the land has the potential for spectacular increases in value.

So you can invest right now and have a rich future!

Press Release Listing

Below are a listing of recent Press Releases from Costa Rica Invest. To see the press release just click on the link:



Arenal Volcano and National Park

Arenal Volcano National Park is one of the treasures of any visit to Costa Rica and a must visit destination



Buried Treasure on Cocos Island Costa Rica.

Cocos Island Costa Rica, boasts an incredible diversity of plant and animal life, the best diving in the world and buried pirate treasure!



IMF predicts Costa Rica and Latin America will be first to recover from the global economic crises

Positive predictions from IMF representatives about Costa Rica are great news for investors in Costa Rica.


30 Rare Endangered Scarlet Macaws Released on the Nicoya Peninsula, Costa Rica

Los Delfines Golf and Country Club set an ambitions target in 1996 - to develop a successful breeding program for the endangered scarlet macaw, and repopulate the Nicoya Peninsula with these beautiful colourful birds.


What sets Costa Rica Apart?

A truly integrated holistic approach to the environment and the country’s economic development is what sets Costa Rica, the principal emerging economy in Central America, apart from every other country worldwide.



Timber the Best Performing Asset of the last 100 years!

Timber has outperformed inflation by 3.3% since 1910 and offers a secure high yield investment despite the global downturn, reduction in construction and reduced consumer demand for timber products.


7th Most Politically Stable Country World Wide Located in Central America

A recent report by The Economist Intelligence Unit lists Costa Rica as the 7th most politically stable country worldwide. Further it is the 7th least likely to encounter social unrest as a result of current global economic conditions.


Price Increase In Finca Di Pacifico Dos Early Investors See the Value of Investments Rise by 142%

Prices in Finca Di Pacifico Dos our premier project have increased further with immediate effect. Early investors have now seen the value of their investment rise by 142% over the past 24 months.


Investors and Businesses in Costa Rica to Benefit from New Tax

Costa Rica has introduced new taxation to benefit business and encourage continuing investment into Costa Rica.


Costa Rica and France Work Together in the Battle Against Climate Change

Costa Rica and France have agreed to cooperate closely in the battle against climate change.



Prospects for Costa Rica Remain Attractive for Investors

Costa Rica has been affected by the global economic downturn, but it has not been as badly affected as many other countries and the prospects remain attractive.


Great News for the Environment, Costa Rica Continues on its Eco Friendly Path

Costa Rica aspires to be the world’s first carbon neutral nation by 2021 and it is right on track.


Is Costa Rica Paradise on Earth? “La Pura Vida” is Good for You and Helps You Live Longer.

Costa Rica has the longest life expectancy in the Western Hemisphere and building your dream home in Costa Rica may actually be good for your health and help you live longer.


Costa Rica chosen as the headquarters of the US Food and Drug Administration in Latin America.

The USA has chosen Costa Rica to locate the headquarters for the Food and Drug Administration in Latin America, because of its strategic location and also because of the excellent relations that already exist between the two countries.


Purchasers in Di Pacifico Dos, Costa Rica, to see the value of their investment rise by 112%

Di Pacifico Dos is a unique opportunity to invest in land and teak in Costa Rica. The land registration process is on track and today price increases for the remaining land are announced.


Good News - Green Investments are the only way forward?

The UN recommends, Deutsche Bank agrees and HSBC’s figures show that green investments will help avoid a severe recession. So you can make a green investment, make a great return and help the global economy.


Recession, What Recession?

3000 new jobs were created in Costa Rica in 2008, with 30 new companies established and US$428.6 million invested. 2009 will present its challenges but the early signs for economic growth in Costa Rica during the forthcoming year are encouraging.


Costa Rica Invest Launches New Website

Costa Rica Invest launched their new website today. The reformatted and redesigned website is designed to be a major information source on teak, development land and Costa Rica.


Every Cloud Has A Silver Lining

Costa Rica Invest’s latest project has sold all of its smaller plots but there are still opportunities available. In particular the re-release to the market of a group of sea view plots represents a “not to be missed” investment opportunity.


Costa Rica is the Second Most Globalized Country in Central and Southern America.

The Latin Globalization index ranks Costa Rica as the second most globalized nation in Central and Southern America. Foreign inward investment will increase due to their increasing trade and tourism combined with a highly educated workforce



More Great News About Trees

We know trees are good for the environment, removing carbon from the atmosphere and reducing global warming. A recent discovery shows that a chemical released by trees helps to cool the planet further by thickening cloud cover over forests.


Costa Rica’s Carbon Neutrality Will Affect Land Prices

Costa Rica aims to be carbon neutral as a nation by 2021. A series incentives have been introduced to achieve this goal. As more land is reforested and preserved, development land will become scarcer and will increase in price


7 More Reasons to Invest In Costa Rica

Costa Rica, has been described by CNBC as “the hottest real estate market on the face of the planet” and Costa Rica Invest lists 15 reasons for investors to consider investing in Costa Rica.


8 Good Reasons to Invest In Costa Rica

Costa Rica, has been described by CNBC as “the hottest real estate market on the face of the planet” and Costa Rica Invest lists 15 reasons for investors to consider investing in Costa Rica.


Early Investors Receive An Unexpected "windfall"

Early investors in a unique teak and development land project received an unexpected “windfall”. The first the thinning of the teak on Finca Di Pacifico Dos has generated a greater than expected return of $86,684


Costa Rica Invest announces that the land registration process is on track to commence in March 2009

Costa Rica Invest announces that the process of preparing for Cadastral registration of the land plots in Finca Di Pacifico Dos is on time to commence registration of the individual land plots in March 2009.


73.6% of Finca Di Pacifico Dos, a unique investment in teak and development land, is now sold

Costa Rica Invest announces that 73.6% of Finca Di Pacifico Dos is now sold. This is an absolutely unique opportunity to invest in development land in Costa Rica with the added advantage and security of teak.


Second Funding Round for Di Pacifico Dos Ltd.

After a fully subscribed first round, Costa Rica Invest announces a second round of fundraising for Di Pacifico Dos Ltd. which is structured for self administered pension fund investments in Ireland.


Costa Rica Invest announces alliance partnership with Peter Quealy, IFG Mortgages Dungarvan, Ireland

Costa Rica Invest today announced a successful launch of their alliance partnership with Peter Quealy of IFG Mortgages Dungarvan. Together they held a successful presentation to Peter’s clients on Thursday the 6th of November.


The Trees are Growing – The Time is Now: 14 year old teak plots sold out already

Diversify. Diversify. Diversify. Smart investors saw the opportunity. They invested in Di Pacifico Dos in Costa Rica at an early stage and have bought all the plots with the oldest teak trees. They are now watching their investment grow. The race is on!

Rainforests - Our Natural Drugs and Medicines Storehouse

Rainforests have evolved over millions of years to become the incredibly complex inter woven environments they are today. They represent a store of living and breathing renewable natural resources that for eons, by virtue of their richness in both animal and plant species, have contributed a wealth of resources for the survival and well-being of humankind. These resources have included basic food supplies, clothing, shelter, fuel, spices, industrial raw materials, but the most indispensable treasure contained in rainforests is medicine.

A typical case in point is Vincristine, which is extracted from the rainforest plant, periwinkle. Vincristine is one of the world's most powerful anticancer drugs. It has dramatically increased the survival rate for acute childhood leukemia since its discovery.

But scientists are racing against time to find and identify plant-based medicines. Look at the following figures: The National Cancer Institute has now identified over 3,000 plants that help fight cancer cells and many of them come from rainforests. 70% of these plants are found in the rainforest. Of the 121 drugs that have been produced from plants found in the rainforest today, 74% of them were found during research on the plant's medicinal properties.

In 1983, there were no U.S. pharmaceutical manufacturers involved in research programs to discover new drugs or cures from plants. Today, over 100 pharmaceutical companies and several branches of the US government, including giants like Merck and The National Cancer Institute, are engaged in plant research projects for possible drugs and cures for viruses, infections, cancer, and even AIDS. These companies are working with tribal healers to learn the wealth of their knowledge. Amazonian Indians are often the only ones who know both properties of the plants and know how they can best be used. Their knowledge is very important and is helpful in the conservation of the rainforest.

Amongst those companies, the Amazon Herb Company has already set a good example, the company partners with indigenous Rainforest communities to ecologically harvest herbs in order to provide an ongoing stream of revenue for the indigenous community. The communities harvest the herbs, as they have done for centuries, the Amazon Herb Company markets the herbs and sends a portion of the profit back to the communities to help them gain legal title to their land and to have resources to make new choices about their own future.

Despite these success stories, less than one percent of the plants in the world’s tropical rainforests have even been tested for their medicinal properties. Environmentalists and health care advocates alike are keen to protect the world’s remaining rainforests as storehouses for the medicines of the future.

But saving tropical rainforests is no easy task, as poverty-stricken native people try to eke out a living off the lands and many governments throughout the world’s equatorial regions, out of economic desperation as well as greed, allow destructive cattle ranching, farming and logging. As rainforest turns to farm, ranch and clear-cut, some 137 rainforest-dwelling species—plants and animals alike—go extinct every single day, according to noted Harvard biologist Edward O. Wilson. Conservationists worry that as rainforest species disappear, so will many possible cures for life-threatening diseases.

Although rainforests do provide a perfect natural storehouse of drugs and medicines prodigious efforts are required in order to further explore the medical value of the rainforest plants.