Why And How To Invest In Costa Rica?

Have you been looking for ‘Ways to invest Costa Rica’ or ‘why to invest in Costa Rica?’ on your search engine?

 invest costa rica

You’re just at the right place to explore why investing in Costa Rica is worth it. Costa Rica is a Central American country, or broadly, part of Latin America.  that got its name from Spanish, which means Rich Coast. It is not just rich in terms of coasts and scenic views but also foreign direct investments.

Why foreigners love to invest: Costa Rica has low costs of living, easy investment terms, sustainable and thriving industries, and huge growth potential. This article will explore why to invest in Costa Rica. We will also see how you can benefit from investment opportunities as a foreigner in Costa Rica.

Why Invest In Costa Rica?

If you are an investor looking for opportunities to invest, Costa Rica is best for investment.

Cost Of Living

The costs of livings in Central America are relatively less than that of Northern and Southern America. Irrespective of which city or district of Costa Rica you live in, it is more affordable for permanent residence than in the United States.

Health System

It would be the desire of any person to have permanent residence or investment in a country having 3rd best health system worldwide. The Costa Rican government has aligned social securities, social protection, working protocols, and standards for the best interest of public health. Therefore, the country is fortunate to have a low death rate in medical emergencies.

Additionally, Costa Rica’s Guanacaste is among the blue zone. Blue zone consists of areas with people having the healthiest and longest lives around the globe.

High Returns with Low Risk

When an investor look to invest, Costa Rica offers an attractive buyer’s market. Undoubtedly, the prices are more competitive than what they were in 2013. However, real estate investments are still beneficial. The market has become stable. Investors can make big numbers by investing in a stable booming market like Costa Rica.

 invest costa rica
invest costa Rica

Easy Access

Due to the international airport in San Jose, the capital of Costa Rica, citizens of the United States and Canada can easily access the country. Additionally, it connects Southern America to Northern America. Therefore, the proximity of the country makes it a favourite getaway destination for retiring individuals.

Whether you’ve invested in holiday rental property or hotel development will give you a recurring income. So, it is the right time to invest in Costa Rica real estate.

CAFTA(US-Costa Rica Free Trade Agreement)

The United States and Costa Rica have jointly approved CAFTA(US-Costa Rica Free Trade Agreement). As a result, various free zones and tax exemptions are alluring enough to invest in Costa Rica. As an investor from the United States, you can enjoy import-duty-free raw materials, goods, and parts.

If you are doing business in Costa Rica, you will get a tax exemption for the next 8 years. After 8 years, you will pay only 50% tax in the following four years.

Costa Rica Real Estate Industry

Those who invested in Costa Rican Real Estate enjoyed a 30% return in 10 years. Costa Real Estate Investment is really worth it. The country is enriched with agricultural produce, tourism industry, beaches, coastal line, etc. So, whenever you are interested in real estate to invest in, Costa Rica serves as an ideal location.

Additionally, more and more baby boomers are choosing Costa Rica as their retirement destination. Multi-national companies like Amazon have invested in commercial real estate in the country. Buying property is allowed for foreigners in Costa Rica. All these facets of the Costa Rican real estate industry prove its attractiveness for investment.

Low Taxes, Economic & Political Stability

Among other positive aspects highlighted to invest Costa Rica, there is something more. The property taxes are very low in Costa Rica. You can expect to pay between 0.25% to 1% on the property ranging from agricultural to industrial.

The country has won economic growth and stability. Many multi-national companies like Microsoft, General Electrics, Proctor and Gamble, HP, Intel, Abbot Laboratories, etc., have invested in the growing economy of Costa Rica. Costa Rica has written a success story for Central America in terms of economic development.

The biggest concern of a foreign investor is political stability in the host country. Costa Rica is blessed to have a perfect democracy with no military force. It also gives points to add attractiveness to invest in Costa Rica.

How To Invest In Costa Rica?

The real estate investment in Costa Rica is certainly the most attractive one. But if you want to invest, Costa Rica has other options too. Let’s talk about the investment options.

Invest In Stocks

Investing in stocks requires experience and basic knowledge of how the market works. ‘Bolsa Nacional de Valores’ is the name of the stock exchange of Costa Rica. It has 60 registered companies. Due to fewer listed companies, it is hard to analyze which company is best for investment. Therefore, it will be tricky to understand how the market work and invest on your own without any professional advice.

Costa Rica Real Estate Investment

Among the three options to invest in, Costa Rica real estate investment is the winner. The most attractive industry of the country, the real estate industry, has attracted foreign direct investments for decades.

Due to the beautiful views, coasts, and beaches, the tourism industry contributes to economic growth. It gives a boom to many other associated industries like rental income from the property during holidays. As discussed earlier, old people see Costa Rica as an ideal retirement destination. Due to this, many of them visit Costa Rica for temporary residence.

invest costa rica

By investing in Costa Rica real estate, foreign investors can earn a high return. However, finding a trustworthy real estate agent is tricky. Therefore, you should perform research before choosing your real estate agent. You can choose either to invest in development lands, housing land, or agricultural land of Costa Rica.

Setting Up Your Own Business

Costa Rica offers you to start your own business in the country. You can buy land in the country and start selling your products or services. The Costa Rican Investment Promotion Agency(CINDE) provides excellent support to foreign investors interested in starting their business.

You will find numerous opportunities in different sectors of Costa Rica. However, you will need basic infrastructure and services to set up your business.

You can unlock business opportunities in Costa Rica in the following sectors:

  • Services
  • Advanced manufacturing
  • Basic manufacturing
  • Reselling
  • Agricultural farming