Owning A Business In Costa Rica
Whether your interest is to semi-retire while operating a small Costa Rica boutique hotel, or to relocate a multinational company, Costa Rica is worthy of your consideration. This country offers a unique combination of factors that attract investors. Factors like favorable tax rates, employee safety, cost and quality of health care, proximity to the US and all other Latin American markets, government incentives for foreign investment, political stability, and of course, the world class weather. At the time of this writing, over 200 high-tech, multinational companies have agreed with this assessment as Costa Rica has become home to them. Among the international business community, Costa Rica is considered an excellent location for advanced manufacturing, life sciences, clean technologies, regional distribution centers, infrastructure projects, tourism, agribusiness and much more. Favorable government regulations and tax laws, coordinated with financial service institutions, have made doing business in Costa Rica profitable and convenient, which encourage foreign investment. Unlike most Latin American countries, drug culture is NOT rampant and out of control in Costa Rica. These countries compete for foreign investment and for that reason, Costa Rica was named the safest country in Latin America for investment and corporate relocation due to the absence of violence and kidnappings that you constantly read about in other countries. This weighs heavily in the decision of companies when choosing a safe location for their employees to relocate or expand to.
Starting or Purchasing a Small Business
Starting purchasing a small business in Costa Rica if fairly routine and is done frequently with little effort. It is always advisable to use a local attorney to guide you through the basic procedures and reporting process. Also advisable is an accountant to oversee corporate updating, employee benefit payments to the CAJA Government Health Insurance, income taxes and all other miscellaneous reporting. An local attorney should always be engaged for all legal processes required to open a business like registering the property, setting up a corporation, setting up a board of directors as well as outlining employees benefits and insurances.
Semi-Retire In Paradise With a Bed & Breakfast Hotel Investment
Costa Rica bed & breakfast, or boutique hotels are very popular for investment. Depending on the size of the operation, a business like this can allow an investor to semi-retire for a minimal investment (around $250,000 and up) in a choice of beautiful locations all over the country. Larger operations will require more of a hotelier’s marketing experience, a full time effort and a dependable staff, but the promise of fantastic return on investment makes it worth while. And the smaller "mom & pop" operations (4 to 10 rooms) typically provide a good return on initial investment, a comfortable annual income, a residence for the owner, and the promising future value of a proven income producing property in one of the most desirable locations in the Americas. What’s not to like?
Owners of property purchased for $200,000 or more automatically qualify for residency in Costa Rica, providing a few other requirements are met. Hotel owners can work, draw a paycheck and purchase the affordable public or private healthcare in Costa Rica, and immediate family members can enjoy the same benefits.
