History & Culture

Costa Rican culture is in many ways a reflection of its racial diversity. The predominant influence has long been European, which is reflected in everything from the official language -- Spanish -- to the architecture of the country's churches and other historic buildings. The indigenous influence is less visible, but can be found in everything from the tortillas that make part of a typical Costa Rican meal, to the handmade ceramics sold at roadside stands.

An important aspect of Costa Rica's cultural legacy is their love for peace and democracy. The Ticos like to stand out that their nation is the exception in Latin America, where military dictatorships have long dominated politics.

They take pride in having more than one hundred years of democratic tradition, and almost half a century without an army. The army was abolished in 1948, and the money the country saves by not expending in military issues is invested in improving the Costa Ricans' standard of living, which has fostered a culture of social peace that makes it such a pleasant place to visit.

The Ticos

The Ticos, as Costa Ricans are commonly known, are famous for their hospitality, and are quite happy to live up to their reputation. They are well-educated and hard working people, who are quick with a handshake and a smile. They are well aware of the special land they have, and most likely they will help foreigners when they get lost, even explaining things that might seem bizarre to foreigners, and making their stay as enjoyable as possible.

People say the Ticos are their nation's greatest asset, and once you've experienced their friendliness and spontaneity, you'll have no doubt to that regard.


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Geography & Climate

Rugged highlands are found throughout most of the country, ranging from approximately 1,000 to 2,000 meters (3,000 to 6,000 feet above sea level). The Guanacaste Mountain Range, Central Mountain Range, and Talamanca Mountain Range are the main mountain ranges extending the entire length of the country.

There are several active volcanoes (Arenal Volcano, Irazu Volcano, Rincon de la Vieja Volcano and Turrialba Volcano) and the country’s highest mountain (Chirripo Hill) with a height of 3,819 m/12,530 ft. The country has a relatively long coastline in both the Atlantic and Pacific oceans, as well as a number of rivers and streams that attract specialist kayakers and rafters from all over the world.


Climate

In general, the climate in Costa Rica is very pleasant not only during the dry season, which

extends from December to April but also during the rainy season, which runs from May to November. During the rainy season rain can be expected in the afternoons, on the other hand the mornings are usually sunny.

Costa Rica has a tropical climate with an average temperature of 22 degrees C (72 degrees F) that increases considerably on the coastal areas. The changes in temperature are considerable and due to the short distances in this relatively small country, they can all be experienced in just one day.

Due to factors such as the geographical location, the weather conditions, the formation of mountain chains, mountains, and valleys, this country experiences different microclimates that give a home to different types of vegetation.

The following climates in the country can be categorized in the following regions :

The high and cold region:

With an elevation of 3,000 to 3,100 meters in altitude with temperatures of 0 degrees C

The hot region:

The elevation is above 1,500 meters in altitude, with temperatures between 14 degrees C and 18 degrees C

The humid tropical region:

The elevation is up to 1,100 meters in altitude with temperatures between 25 and 26 degrees C

The tropical region:

Pertaining to the dry season, with temperatures between 26 and 27 degrees C

The inter-mountainous valley region with an elevation between 1,000 and 1,100 meters in altitude which is a characteristic of the central valley, with temperatures that range from 14 to 18 degrees C

Due to the weather characteristics and the topography of the country, different types of forests can be appreciated: the cloud forest, the rain forest, the dry forest, and the transition forest.


Enjoy the sun, but carefully

Going to the beach is a must when traveling to Costa Rica and a nice suntan is always possible. It is not advisable however, to try to tan in just one day because it takes 24 to 48 hours for the skin to produce melanin, a dark pigment that reduces the aging process caused by sunburn. The healthiest thing for you to do is to use a PABA-free suntan or UV sun blocking lotion.


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Our People

Costa Rica’s richness also lies on the cultural diversity of our people. Throughout our history, the indigenous population of pre-Hispanic origins have been added movements of immigrants which settled in these lands, making it their home. Populations of European origin, mainly Spaniards, persons of African and Asian ascendance, as well as people from different places of the American continent have interacted among them, enriching the cultural backgrounds in the process.

Currently, besides the predominant half-breed component, there are ethnical-national groups and colonies of immigrants recovering their particular cultural heritage: African descendants, Chinese, Hebrew, Lebanese, Italian, etc.; as well as the indigenous populations of the Bribri, Cabecar, Maleku, Teribe, Boruca, Ngöbe, Huetar, and Chorotega.


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Health & Education

Are there Modern Medical Facilities?

Y ES! Health care in Costa Rica is excellent and there are several ultra-modern hospitals with English speaking Doctors (some are North Americans) in the greater San José area. For emergency assistance in Costa Rica, dial 911.


Medical Services

Despite its size and being an under developed country, Costa Rica has positioned itself among the countries with the highest public healthcare development in Latin America.

The Costa Rican Social Security Service (CCSS) is a public service institution that has accomplished important goals regarding health issues, including pensions and social security. This institution offers coverage and integrated health services through two types of insurance:

• General coverage insurance, with a service that covers 100% of the country.

• Contribution coverage insurance, with an 86.80% of the population.

Costa Rica is the country in Latin America with the highest life expectancy rate at 77.75 years old; it is also one of the countries with the lowest infant mortality rate: 10.82%. It is also far advanced in issues regarding prenatal prevention and control.


Education

Costa Rica is praised because of its efforts for investment in public education that different governments have accomplished throughout the years. There are close to 6,147 elementary, middle, and high schools and more than 50 universities in the country.

The first higher education institution to be established was the University of Costa Rica, which was the only higher educational center up until the year 1971, when the Technological Institute of Costa Rica was founded.

In 1973, the National University of Heredia (UNA) was founded, also the Distance Education University (UNED) was established in 1977, and in the year 1979, the first private institution known as the Autonomous University of Central America (UACA) was created which set the example in 1986 for a large number of other private universities to open their doors in Costa Rica.


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Goverment

The political system is represented by three powers, which are: The Executive Power, the Legislative Power and the Judicial Power. The Elections Supreme Court is considered the fourth power of the Republic. Every four years national elections are carried out. Among other positions of popular representation, the President of the Republic is elected through direct representation by secret ballot.


Holidays

Though government offices and most banks close on national holidays, this causes little inconvenience to travelers, since money and traveler's checks can be changed at most hotels. We recommend that you do not change money on the street.

There are days when hardly anything will be open, such as Christmas, New Year, and often a couple of days proceeding, and during Holy Week from Wednesday to Easter Sunday.

Some holidays can be attractive for travelers, such as the last week of the year, when there are parades and many other activities in San Jose and throughout the country. On July 25 every year (the annexation of the province of Guanacaste), the main towns in this northwest province are overflowing with revelry and folklore. Carnival, which is celebrated in the Caribbean port of Limon during the week of October 12, is another colorful affair.


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Bussines & Economy

Banks & Money

There is an ample selection of state owned and privately held banks in San Jose, and throughout the country. The official currency of Costa Rica is the colon; however US dollars are widely accepted. US dollars and traveler's checks can be changed in banks and hotels. Most major credit cards are widely accepted, and cash advances can be obtained at banks around the country and a variety of places throughout San Jose.


Business Hours

Government offices are generally open from 8:00 am to 4:00 pm, while banks close anytime between 3:00 and 6:00 pm, according to the bank and its branch. Most shops are open from 9:00 am to 6:00 pm, while some open at 8:00 am and others close at 7:00 pm; most grocery stores close at 8:00 pm. Some shops also close for lunch, between noon and 1:00 or 2:00 pm.


Economy

You don't have to drive very far in Costa Rica -- past the coffee, pastures, bananas, and other crops -- to realize that agriculture is the basis of its economy. Coffee has historically been the country's most important crop, and Costa Rica continues to produce some of the finest coffee in the world. However in recent years less traditional crops have been playing an increasingly important economic role. Bananas are the second most important export crop, with vast plantations covering parts of the Caribbean lowlands. There is also significant land dedicated to the cultivation of pineapples, sugar, oranges, rice, hardwoods, and ornamental plants, as well as raising cattle for beef and dairy products.

Though agriculture remains the basis of the national economy, tourism has earned more than any single export crop during the last few years and the tourism industry continues to grow providing new employment opportunities and stimulating the conservation of our complex biodiversity.

Actividad Económica
Población ocupada p/sectores
Agricultura y pesca: 21,6%	Servicios: 53,5%
Industria: 18,1%	Tasa de Desempleo: 5,7%
Construcción: 6,8%	Crecimiento Económico anual: 4,5%

Estructura de Comercio Exterior

Exportaciones FOB (millones de dólares)

Textiles: 788,39

Frutos comestibles: 701,85

Café: 408,10

Pescado, crustáceos y moluscos: 165,03

Plantas ornamentales: 101,08

Legumbres y tubérculos comestibles 61,55

Aceite de Soya y Palma 37,78

Preparados de carne y pescado 71,88

Preparados de legumbres y hortalizas 80,66

Medicamentos 77,68

Restantes 955,53

TOTAL: 2.953,8

Estructura de Comercio Exterior

Importaciones CIF (millones de dólares)

Materia prima para industria y minería 848,3

Materia prima para agricultura 75,6

Bienes de consumo no duradero 237,3

Bienes de consumo duradero 368,6

Bienes capital industria y electricidad 354,8

Bienes capital transporte 97,7

Bienes capital agricultura 26,9

Materiales de construcción 88,8

Combustible y lubricantes 140,1

Otros 0,3

TOTAL: 2238,4

Principales Socios Comerciales
América del Norte 48 %	Unión Europea 23 %
Centroamérica 12 %	Caribe 5 %
Asia 5 %	América del Sur 3 %
Otros 4 %

Principales Proveedores
América del Norte 53,5%	Unión Europea 8,5%
Centroamérica 9,4%	Caribe 5 %
Asia 13 %	América del Sur 10 %
Otros 5,6%

Régimen de Comercio

Costa Rica mantiene políticas de apertura comercial acordes con la tendencia mundial. Es miembro de la Organización Mundial del Comercio (OMC), y aplica en su plano interno políticas de desregulación, eliminación de barreras de ingreso a los mercados y de competencia. Es el único país del área (junto con Panamá), que aplican políticas antimonopólicas.

Existen pocas restricciones a la importación, las prohibiciones que se dan son por razones de sanidad, protección ambiental y seguridad. Además, algunas mercancías requieren autorización especial.


Aranceles e impuestos

La estructura de aranceles e impuestos está clasificada según el Sistema Arancelario Centroamericano (SAC), el cual está dividido en cuatro partes y grava todas las mercaderías importadas.


Derechos Arancelarios (DAI)

Se aplica a todas las mercaderías importadas y van del 1% hasta el 18%. De conformidad con el tipo de bien (materias primas, bienes intermedios o producto final), se aplica un techo y piso arancelario definido a escala centroamericana.


Impuesto Selectivo de Consumo(SC)
Lo pagan 1500 productos y va desde un 10% hasta un 75%.


Impuesto de ventas
Actualmente es de un 13%.


Relaciones Unión Europea-Costa Rica

Las relaciones institucionales entre la UE y Costa Rica se inscriben en el Acuerdo Marco de Cooperación Económica.Anualmente se celebran sesiones de la Comisión Mixta UE-Centroamericana .

Costa Rica se beneficia del Sistema de Preferencias Generalizaciones y de las nuevas líneas de cooperación económica a través de los programas ECIP y AL-INVEST.


Relaciones de Costa Rica con otros países

Existen tratados bilaterales de libre comercio con Panamá y México. Se están negociando convenios comerciales bilaterales con Colombia, Venezuela, República Dominicana, Chile y Mercosur.


Iniciativa para la cuenca del Caribe(CBI)

La iniciativa para la Cuenca del Caribe II es una concesión otorgada por el gobierno de los Estados Unidos a la mayoría de los productos de los países de la región del Caribe, entre ellos Costa Rica. Los únicos productos que no entran en este convenio son: textiles, productos de piel, relojes, azúcar y petróleo.


Acceso a Mercados

La Historia del desarrollo del Comercio Internacional en Costa Rica, ha evolucionado en los últimos años pasando de una economía con cierto grado de protección hasta llegar a constituirse en una economía que participa activamente en los mercados internacionales.

A mediados del siglo pasado, con la creación del Mercado Común Centroamericano en 1962, Costa Rica, que había adoptado un modelo basado en la sustitución de importaciones, busca un mercado natural, dada su cercanía, para establecer vínculos comerciales y que sirvieran de incentivo a las empresas que quisieran establecerse en nuestro país y aprovechar este mayor mercado. En 1968, con la creación del Centro para la Promoción de las Exportaciones e Inversiones, se trata de institucionalizar el desarrollo de las exportaciones así como la atracción de IED. El Mercado Común Centroamericano no funcionó debido a los conflictos políticos e ideológicos que se presentaron en los países Centroamericanos, por lo que la participación en los mercados internacionales fue muy tímida.

Para 1985, como parte de los beneficios otorgados por los Estados Unidos a los países Latinoamericanos que venían de una crisis de deuda, se crea la Iniciativa para la Cuenca del Caribe, lo que le permitía a Costa Rica poder exportar una gran cantidad de productos a los Estados Unidos libre de aranceles. Para 1990 Costa Rica se adhiere al Acuerdo General sobre Aranceles y Comercio en busca de participar de las políticas de eliminación de aranceles y participación en acuerdos comerciales.

En 1994, con el primer Tratado de Libre Comercio con México se inicia una participación mas agresiva en los mercados internacionales, la cual ha aumentado enormemente en los últimos años con una importante participación del gobierno con instituciones como COMEX (Ministerio de Comercio Exterior) y Procomer que promueven las exportaciones y aprovechar las ventajas que tiene Costa Rica en la producción de muchos bienes y servicios.


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General Information

There is an ample selection of state owned and privately held banks in San Jose, and throughout the country. The official currency of Costa Rica is the colon; however US dollars are widely accepted. US dollars and traveler's checks can be changed in banks and hotels. Most major credit cards are widely accepted, and cash advances can be obtained at banks around the country and a variety of places throughout San Jose.

Capital City:

» San José

Área:

» 51,100 km2 (19,730 millas2)

Official Language

» The official language is Spanish. The second language for a large portion of the population is English.

Official Religion

» The official religion is Catholic. Freedom of religious choice is respected.

Official Currency

» Colon

National Symbols

» The Purple Orchid, National Flag, Guanacaste Tree, National Emblem of Costa Rica, Yigüirro (Clay-Colored Robin National Bird) and Typical Cart.

Electrical Services

» Costa Rican Electricity Institute (ICE). Ninety seven percent of the national territory has electrical service. The voltage in residential areas is 110v.

Office Hours

» Government sector: From 8:00 a.m. to 4:00 p.m. from Monday to Friday. National Banks: From 8:00 a.m. to 3:00 p.m. from Monday to Friday. Some banks offer their services after regular hours until 7:00 p.m. and others that are located in some shopping centers are open on Saturdays.

Private Sector

» From 9:00 a.m. to 6:00 p.m. from Monday to Friday. Commerce in general, opens Saturdays and Sundays up to mid-day.

National Holidays

• January 1st: New Years Day • April 11th: Juan Santamaria Day, National Hero. • Holy Thursday and Good Friday: Religious activities. • May 1st: International Labor Day. • August 15th: Mothers Day. • September 15th: Independence Day. • December 25th: Christmas Day.

Other Holydays

• July 25th: Annexation of Guanacaste Day. • August 2nd: Virgin of the Angels Day. • October 12th: Christopher Columbus Day.

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About Costa Rica

Costa Rica is quickly becoming a favorite destination for travelers. It has much to offer the traveler with its rich Latin American culture and the beautiful welcoming smiles of its nearly 4 million people. If you are looking for a warm friendly culture, Costa Rica is the place for you.

Ticos, as Costa Ricans are known, are a friendly, hard working people that take pride in their country and the fact that they have not had an army for more than 50 years. Unlike most of its neighbors, Costa Rica has not undergone a civil war, nor has there been any major military attack in modern history.

As a traveler you can see the Ticos’ appreciation for their country in the way they have preserved it. Over 28% of Costa Rica has been set aside as a national park or private reserve. Part of the preservation is due to the fact that Costa Ricans are very well-educated with a literacy rate over 96%.

With tourism being one of Costa Rica’s main sources of revenue, the industry has grown to meet the needs of the many travelers. A network of private tourist class shuttle/bus transportation has popped up in recent years, as well as some amazing resorts that cater specifically to Costa Rica{s thriving eco-tourism. In addition, most towns have potable water and electricity, and cell phones are becoming increasingly popular.

Given all this, Costa Rica boasts some of the most beautiful tropical beaches and exotic rainforests in Central America and the world. It is a land of active volcanoes and windswept mountaintops. Although it is a small country, many tropical habitats are found within the country, and they are protected by the best developed conservation program in Latin America.

With both Pacific and Caribbean coasts, there’s no shortage of beaches in Costa Rica. Some have been developed for tourism while others are isolated and rarely visited. For a relaxing seaside vacation, you can stay in a luxurious hotel or you can camp on a remote beach. Wherever you stay, you’re likely to find a preserved area within driving distance and monkeys in the trees.

Active volcanoes are surely one of the most dramatic natural sights, and few visitors to Costa Rica can resist the opportunity to peer into the crater of a smoking giant. Whether you want to take a guided bus tour to a volcanic summit or hike up through the rainforest and camp out amid a landscape of boiling mud pools and steaming vents, the information you need is within this tourism portal.

Apart from hiking and camping in rainforests, mountains, and on beaches, you can surf some of the best waves in Central America and raft some of the most thrilling whitewater in the tropics. Pristine rivers tumble down the lower slopes of the mountains, and the riverbanks are clothed with curtains of rainforest – a truly unique rafting experience. The rivers and lakes offer a beautiful setting for fishing, and ocean sport fishing is definitely world class.


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Biodiversity

What type of wildlife can I see in Costa Rica?

Costa Rica has long been a destination of choice for birding enthusiasts, biology scholars, and nature lovers of all types. Nearly all of the National Parks in Costa Rica are home to an incredible variety of wildlife. Manuel Antonio National Park is famous for its semi-tame monkeys. You can also see fantastic jungle creatures on the Osa Peninsula, in Tortuguero, and in other more remote areas. If you love wildlife, be sure to take a guided tour of one of Costa Rica's national parks. The tour guides at the parks are usually very knowledgeable and can point out things you may not notice otherwise. Scarlet macaws, marine turtles, hummingbirds, sloths, leaf-cuter ants, quetzals, toads, frogs, monkeys, crocodiles, toucans, bats, and iguanas are among the most seen and sought-after animals. The list of animals one can see here seems endless. Costa Rica is considered to be one of the most biologically intense places on earth, particularly the Osa Peninsula. Due to Costa Rica’s unique position at the continental divide there is a plethora of exotic creatures, flowers and trees. We recommend you purchase a guidebook for more information on what you can find in each region.


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Human Resources

English Skills

Education is compulsory up to 9th grade and places a strong emphasis on computer skills and English skills since the early grades. To this respect, an official nationwide survey showed that more than 258,000 Costa Ricans could speak English well.


Educational Institutions

Two key factors have become critical to the country's educational strategy: science and technology. Costa Rica's previous and current administrations believe that technical training, along with innovation and technology transfer, are crucial factors to achieve higher levels of productivity and a better competitiveness level in the global economy.

The National Learning Institute (INA) offers free technical training in a wide variety of fields, and is able to provide tailor-made programs to meet specific manufacturing and service investors' needs. Several other technical schools and universities prepare professionals with the highest international standards. Even Harvard University has had an extension in Costa Rica since 1964 through INCAE, to prepare middle and upper level managers. The America Economy Magazine considered INCAE as the best Latin American business school during 2003 and 2004. Schools are allowed sufficient flexibility to pursue curriculums that fulfill the needs of a changing society, but are also monitored to ensure excellence and quality. As a result of this ample array of options, the country enjoys a large pool of engineers, business officers and other professionals. As it was cited in Latin Trade (August 1998), Intel's Corporate Vice President Mike Splinter said the company chose Costa Rica over Brazil, Chile and Mexico because of its "excellent educational system."

Productivity and wagesWorkers are considered very trainable and productive. Costa Rica's main comparative advantage for attracting high-tech investments is to provide sufficient qualified professional and technical personnel at competitive costs. In lower technology industries, although Costa Rica's wage rates are higher than many country competitors abroad, higher labor productivity and modern manufacturing techniques can often compensate for labor costs.


Labor Regulations

Labor unions only have a significant role for public sector workers. The main form of labor organization in private companies is the "Solidarity Association" that employers support through a credit union and other assistance services. Investors seem very satisfied with the operation of solidarity associations, and frequently mentioned that they tend to work with the company, not against it. The associations have not been confrontational in nature or used for negotiating wages. Some companies have a separate permanent council of employees, serving as a mechanism to bring up complaints and problems for solution.

The Costa Rican workforce is considered perhaps the most important attraction for foreign investors, as the population is highly literate and well educated. The government has long placed a high priority in investing in public education, which includes the university system as well as the technical and vocational training scheme.

The abolishment of the armed forces in 1949 freed resources that have mostly been invested in free education and health services for the population, while a generous education expenditure ratio of more than 5% over GDP is currently maintained by law. As an reflect of these efforts, Costa Rica now has one of the highest Human Development Indexes among developing nations (0.834), and one of the highest literacy rates of the Americas (94.9%); in addition, the expected number of years of schooling has been calculated at 10, according to World Bank's World Development Indicators 2004. A nation that long ago realized the importance of education and which currently allocates more than 6% of its GDP to educational programs is indeed the best guarantee for a successful business environment.


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Stability

Costa Rica: a country of stability

The economic, political and social stability of Costa Rica is one characteristic that has distinguished it through its entire contemporary history and one of the most important strength that have enabled it to reach great success in alluring foreign investors.

The Costa Rican government is ruled by a series of constitutional controls and balances. The executive responsibilities rest on the President, who is at the center of power, and is supported by two Vice-presidents and his cabinet. The President and Vice-presidents, plus 57 Congressmen, which conform the Legislative Assembly, are directly elected every 4 years. In addition, the country has a strong legal system that manages the 'judicial power', which ensures law compliance and covers nationals, as well as foreigners, within the country's territory.

The last World Bank survey for Political Stability puts Costa Rica in the second place within Latin America and the 36th place among a total of 209 countries from all over the world. This measure includes several indicators, among which it includes a measure for the perception of the likelihood that the government in power will be de-stabilized or overthrown by unconstitutional and/or violent means, including domestic violence and terrorism.

Costa Rica has a long tradition and stable democracy, which is recognized worldwide and has over 115 years of history. Such vocation of respect for political and peace processes have been enriched by the abolition of the military in 1949, and acknowledged internationally in 1987 when the then President of the Republic, Oscar Arias Sanchez, was awarded the Nobel Peace Prize.

There is no doubt that one of the pillars of the Costa Rican economic development has been trade liberalization, which has allowed exports to surpass its 30% ratio of GDP in 1980 to a current 50% rate. Furthermore, this trade liberalization has been coupled with a series of structural changes, and has pushed towards a productive transformation that has lead to factor productivity growth, diversification of the economy, and a higher level of investment.

The Costa Rican economy has maintained a continuous growth, albeit the different international crisis that affected several countries like Mexico, Turkey and Venezuela in 1994-95; Thailand, Malaysia, Indonesia, Philippines, South Korea and Czech Republic in 1997, Russia and Brazil in 1998, and Argentina in 2002. As a matter of fact, within 1997 and 1998, Costa Rica registered growths above 7%.

These decades of peace and democracy, stability and economic growth have been translated into important social achievements. In this sense, a relevant fact was that in the last 20 years poverty was reduced from 40% to less than 20%. Costa Rica has passed on to occupy one of the highest levels in educational and health attainment in Latin America, which is also one of the best in the world. Furthermore, it has been able to provide broad access to services like health, social security, potable water and basic services for the entire population. Just as the International Monetary Fund Sub-director Agustin Carstens, said, "one basic principle that Costa Rica has made it its own is that, the ultimate goal of economic politics is to achieve human development.".

Costa Rica is one of the most stable economies in Latin America. After the last economic crisis almost 25 years ago due to external debt circumstances, it has maintained a yearly current average growth rate above 7.9%, which has resulted in a per-capita income level of $5,031 for 2006. As a result, Costa Rica has benefited from an excellent access to global capital markets and a moderate country risk premium, as seen in recent Costa Rica's sovereign debt qualifications:

Rating
Moody's	Ba1
FITCH Ratings	BB
Standard & Poor's	BB
Source: Risk qualifiers, January, 2006

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Strategic Location

Costa Rica has an excellent location at the center of the Americas

» The time zone of Costa Rica is the same as the central time of the USA. Also, a direct flight from San Jose takes 2:30 hours to arrive in Miami.

» There are 7 customs of interest for trading purposes. These are located at the borders with Panama and Nicaragua, at the main Atlantic & Pacific ports, at the Juan Santamaria International Airport and other strategic points in the country.

» The fact that Costa Rica has major ports in both coasts (Pacific and Atlantic) makes it attractive to 236 major carriers to operate in the country, 60% of them from Moin (in the Atlantic at Limon) and the rest from Caldera Port (Pacific shore). It takes 5 hours of effective transit time through customs to go to San Jose from Moin, and 6 from the Caldera Port. Tariff rates are competitive with respect to the USA, Europe and Asia.

» The main airport (Juan Santamaria) at a distance of 15 km from San Jose. The second major airport is the Daniel Oduber, located at Liberia, Guanacaste, in the northern part of the country. Both airports have been approved Class 1 by the Federal Aviation Administration of the USA

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Market access

During the two last decades, Costa Rica�s trade policy has shifted from being one with a high level of protection into one that promotes openness and active trade negotiations internationally.

Current Trade Agreements

República Dominicana

» Free Trade Agreement between Central America and Dominican Republic, Law No. 7882 on June 9th 1999, published in La Gaceta No. 132 on July 8th 1999, in effect as of March 7th, 2002.

Chile

» Free Trade Agreement between Central America and Chile, Law No. 8055 on January 4th 2001, published in La Gaceta No. 42 on February 28th 2001, in effect as of February 15th 2002.

Canada

» Agreement between the Government of the Republic of Costa Rica and the Government of Canada, signed in Ottawa on April 23rd 2001.

Mexico

» Free Trade Agreement between the Government of the Republic of Costa Rica and the Government of the United Mexican States, Law No.7474 on December 19th 1994, published in La Gaceta No. 244 on December 23rd 1994, in effect as of January 1st 1995.

CARICOM

» Free Trade Agreement between the Republic of Costa Rica and the Caribbean States community.

Panama

» Free Trade Agreement and Preferential Exchange between the Republics of Costa Rica and Panama, Law No. 5252 on July 18th 1973, published in La Gaceta No. 142, July 31st 1973.

Preferential Access To Markets

United States

» United States Caribbean Basin Economic Recovery Act, C.B.E.R.A. Caribbean Basin Initiative, C.B.I.

Europa

» European Union Generalized Preferential Tariff System

Asia

Trade Agreements Currently In Progress

Central American Free Trade Agreement with the USA (CAFTA)

» Signed on May 28th of 2004.

For more information, visit the Ministry of Foreign Trade website: www.comex.go.cr

Indices y tasas vigentes
» Variación Acumulada del Indice de Precios al Consumidor a diciembre de 1997.	10.07%
» Variación Acumulada del Indice General de Precios de Servicios a diciembre de 1997.	11.22%
» Indice Mensual de Actividades Económicas	134.25
» Exportaciones FOB de bienes a agosto de 1998	285,10 millones de dólares
» Importaciones CIF de bienes a agosto de 1998	343,80 millones de dólares
» Tasa Básica Acumulada por el Banco Central a octubre de 1998	24.50%

By 1985, as part of the trade concessions granted by the US government to several countries in Latin America coming out of debt crisis, the Caribbean Basin Initiative, a unilateral mechanism through which Costa Rica exports duty-free products to the US to this date, was created. Later, in 1990 Costa Rica joined the General Agreement on Tariffs and Trade, and since then actively participates in multilateral negotiations concerning the elimination of tariffs, and at the same time, in numerous bilateral trade agreements with its most important trade partners.In 1994, the first Free Trade Agreement as such was negotiated and ratified with Mexico, and since then, Costa Rica started an aggressive venture in international markets with relevant governmental support through COMEX (Foreign Trade Ministry) and its trade promotion agency, PROCOMER.


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Incentives

Types of Incentive Regimes

Since the 90's, Costa Rica has actively sought promoting exports of its manufactured goods through the creation of special incentive regimes. To this respect, the establishment of the free trade zone regime led to the creation of the first free trade zones in 1982, in which the companies established were mainly of the textile industry.

The current regimes are managed by PROCOMER and are an important compliment to other key site selection factors; existing small, medium and large firms that use the regimes now exceed 400 small, the majority of which are manufacturing operations located within the free trade zones. Nevertheless, there are a large number of international service operations enabled by info-communication technologies, such as data entry and contact centers, as well as business processing outsourcing units and engineering and design processing centers. In addition, the tourism sector has a specific regime which is granted through the Tourism Interest Declaratory.

The Active Finishing regime introducing raw materials, inputs and capital goods into national customs territory in order to be subsequently transformed with the suspension of all kinds of taxes. To enjoy the benefits of this regime, it is not necessary to operate within a specific industrial park.

Free Trade Zones as well as Active Finishing Zones are also designed to facilitate the development of relations with suppliers established in Costa Rica through subcontracting.


Economic Impact

The free trade zones regime is currently the main export generation regime, amounting to 52% of the total export value of Costa Rica. Also, almost 90% of the direct foreign investment companies that invest in Costa Rica invest through this regime, while only 0.2% establish under the Active Finishing regime, which generated $373 million in exports in 2004.


Incentive Regimes Exports and Imports

The main export regimes related to the free trade zones and the active finishing (drawback) regime. Free trade zones consist of primary extraterritorial customs and fiscal areas that allow for the establishment of companies whose main purpose is to use Costa Rica as an exporting platform. Free trade zones also confer other incentives, such as tariff exemptions for raw materials and capital goods, income tax payment, added value, asset, and municipal tax exemptions, and the possibility of selling up to 25% of the product in the local market (50% for service companies). Currently, there are nine different private free trade zones (AZOFRAS), the majority of which are located near San Jose, as well as to the two important main ports of entry, the Juan Santamaria Airport, the key highways and container terminals. Most of the parks provide fiber optics that allows high-level broadband and dedicated services for voice, data and video transmission.

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Quality of Life

A Relaxing Place to Stay

» Costa Rica's weather is enjoyable year round. Average temperature range in San Jose goes from 14 to 24 degrees Centigrade (57 to 75 Fahrenheit) in December, and 17 to 27 degrees (63 to 81 Fahrenheit) in May. The Caribbean coast averages 21°C (70°F) at night, and over 30°C (86°F) during the day. The Pacific coast is hotter than the Caribbean, but is less humid.

» With over 360 hotels, located throughout the country, Costa Rica provides a wide spectrum of possibilities to rest and relax.

»The combination of rest places and adventure activities (golf, fishing, surfing, rafting, canopy, etc) make this country an ideal place to stay.

Easy Access

» With over 1.65 million visitors in 2006, Costa Rica has been an excellent destination choice for the international tourist. Tourist activities for 2004 generated over 1.66 billion dollars.

» An increasing offer of international flights has taken Daniel Oduber Airport (Liberia) has a new entry port. It's close to the Pacific coast, as well as to main tourism facilities in the country. New resources are being destined to the improvement of the main airport infrastructure (Juan Santamaria), as well as other secondary airports.

Costa Rica: country of natural beauty

» Costa Rica occupies first place in ecological tourism in the world.

» Costa Rica represents 1% of the planet's surface and contains 5% of the world's biodiversity.

» 25% of the country's territory is protected as national parks or biological reservations.

» 34 national parks are distributed throughout the country.

» Over 1000 varieties of orchids, and 845 varieties of birds can be found in the country.

» Fauna includes; jaguars, pumas, agouties, green turtles, three species of monkeys, crocodiles and sloth's.

Health Indicators of a Developed Country

» Social security in Costa Rica is a subject of great importance in the history of the country. After the abolishing the military in 1949, resources that were used for the military were redirected towards education and health. This has allowed the country to boast the best health indicators of all Latin America, and comparable only to those of developed countries.

» Besides the National Public Health System, the country has a strong private health system, with hospitals and clinics of great prestige and reputation.

» Costa Rica registered an infant death rate, for 2004, just as low as the United States (9.25 deaths for every 1000 born live in Costa Rica, against 6.5 deaths for every 1000 born live2 in the United States) This is particularly relevant, when considering that the United States has a per capita income 8.7 times more than that of that in Costa Rica3.

» According to the World Bank, Costa Rica has the highest birth life expectancy in all of Latin America. With 78.7 years of life expectancy at birth, Costa Rica equals Canada, and beats the United States life expectancy by one year.

» 95% of the Costa Rican population has adequate water access (at least 20 liters per person per day) from an improved source (home connection, public, well or connection or protected sources, or collected rain water). Also, 93% of all Costa Rican have access to improved sanitary facilities.

» According to the United Nations, between 95 and 100 percent of Costa Rican have possibilities of obtaining basic medication at accessible prices.

Real Estate

» There are little real estate restrictions for foreigners; the Law ensures the same rights for foreigners as for citizens, which means that there are no special conditions for the acquisition of properties in the country.

» According to the US Department of State, more than 20,000 US expatriates reside in Costa Rica, many of them as retirees.

» To perform a real estate transaction in Costa Rica, the following steps are basically required:

- Identification document

- Cadastre Property Print

- Public registry

- Powers

Cost of Living

» According with The Economist Intelligence Unit Costa Rica has one of the best combinations between high quality of life and cost of living.

» According to their surveys on 2004: the Hardship Rating 2004 and the World Cost of Living 2004, San José, Costa Rica is the city with the best quality of life in Latin America an is one of the most inexpensive countries.

» The Economist Intelligence Unit's HARDSHIP RATING, part of the Worldwide Cost of Living survey, assesses conditions for expatriates in 130 cities around the world by looking at 12 factors grouped in three categories: health and safety; culture and environment; and infrastructure.

» The Worldwide Cost of Living Survey compares the cost of a representative basket of goods and services in dollar terms from over 130 cities worldwide to provide guidance for the calculation of executive allowances. Using New York as a base index of 100, Costa Rica's cost of living is 54, ranking 117th of 133 countries, which the cost of buying the same goods basket in Costa Rica is almost the half the cost it has in New York. Only 3 other Latin-American cities are cheaper than San Jose.

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