Controversy in the Ranking of Costa Rica as an Investment Country
Last year a US News report was published where it positions Costa Rica as the third best country to invest in the world, news that caused a lot of hope and pride in the country after 2019 that marked new challenges with the implementation of VAT (Value added tax). However, the viralized news became a farce since days later it was published that the country was not even in the top 25 positions at the beginning of 2020. This caused much confusion and discussions. The government was blamed for publishing erroneous news when in fact after giving us the task to investigate, that publication was real but valid until the end of last year. Despite the controversy and changes in the ranking, we questioned the economic orientation of the country as a strategic place to invest its capital.
Costa Rica, a tropical paradise for innovation and development
Costa Rica acquired great importance in the field of business since the 1990s thanks to the transition from an economy to agriculture towards the field of services and has managed to reactivate its economy after the crisis of the 1980s with the privatization of the opening to the world market with free trade agreements. In the last ten years, it was possible to maintain the inflation index at medium and low levels (between 0.77% and 5.13%) which favored the growth of the national economy of the system with the Ministry of Finance with the beginning of electronic invoices they are attacking to the problems of tax evasion and the creation of VAT on all services allows greater investment power in infrastructure. The resulting business climate attractive to investors due to the fact that there is high human talent and innovations in areas such as engineering, technology and research, ” These advantages, together with a commercial opening that began three years ago from large technology multinationals and in the most innovative country Latin America after Chile ”according to the Global Innovation Index 2019. The country has more than 300 established transnational companies, including HEWLETT INTEL and Walmart. It is important to mention that there is a low control and exoneration system for companies that come to settle in free trade zones. The main motivation for companies to carry out new facilities or offshoring their services in the country resides in the workforce “The Costa Rican is known for being hard-working, talented and trained, ready to take on new challenges that require an agency for the promotion of foreign trade from Costa Rica.
Costa Rica has great benefits such as:
- Political stability,
- The abolition of the army in 1948,
- Promotion as a country brand due to its ecological commitment,
- Leader in the educational system in Latin America,
- Speak English of your population
- GDP per capita of $ 16,142, one of the highest in the region (CINDE, 2020).
- Low control
- One of the best social insurance in Latin America and worldwide
- Since 2019, 100% of electrical energy is renewable (produced with dams and wind systems).
Costa Rica in the eyes of the world
For foreigners, Costa Rica is considered one of the best countries to travel due to its tropical climate, its landscapes and its people. It has 5% of the world’s biodiversity in a territory of just 51,100 km² and has 3 World Heritage sites of UNESCO.
The country receives around 3 million visitors a year, according to data from the ICT (Costa Rican Institute of Tourism), who are commonly seduced by beaches and adventure tourism. The growth of the tourism sector is due to a strong international publicity with the country brand “Essential Costa Rica” and also due to its ecological commitment. Costa Rica is a country sometimes considered the Switzerland of Europe both for its natural wealth and for the high cost of living.
The territory is also the recipient of a lot of foreign investment both for the realization of private residences, hotel projects, shops and service companies and macro projects for multinational companies. The entry into the market of collaborative companies such as UBER and Airbnb have challenged the country in adapting to new economies.
Ranking of Costa Rica in 2020
In position 8 of the best Adventure countries. In position 16 of the best countries open to business. Ranked 15th of the best countries to retire. In position 19 of the best countries to travel alone. Ranked 24 of the best countries to start a business In position 38 of the best countries in general. These results are based on parameters such as political stability, investment, economy and trade studied by BAV Group, The Wharton School of the University of Pennsylvania, and consultations with the U.S. News & World Report.
Invest and design your future project in Costa Rica
Investing in Costa Rica begins with a business plan, the implementation of an innovation or the idea of a personal project. Several companies and institutions can accompany this process and recommend strategies based on the niche and the market trend. Several law firms offer a boutique service to advise them in this process to open their business and facilitate the administrative and fiscal transition before starting their operations.
We, as Micheron Studio, a studio dedicated to minimalist architecture, recommend carrying out your project with a complete consultancy in design and construction. Having the vision of a team of professionals both nationals and foreigners living in Costa Rica invites them to a complete accompaniment from the search for a land opportunity, the calculation of return on their investment and the turnkey development of their ideas.
Our experience in the country allows us to recommend opportunities to clients and investors and to carry out projects with unique designs, merging our experience of European design with the Costa Rican lifestyle, weather conditions and the seismic context. We have digital monitoring of your project online to facilitate its management and save you time to dedicate yourself to enjoying the Costa Rican paradise while setting up your operations in the country.