Costa Rica – Rich Coast

At first we shall make a small excursus into the history. Costa Rica was discovered by Columbus in 1502 and was called by him a “Rich Coast” – as he was so impressed by numerous gold Indian adornments. In 1509 Spanish conquerors reached this land but Indians opposed desperately and due to this saved their freedom. In 1821 Costa Rica became an independent state. From 1889 the country saw only two revolutions (not very typical for Latin America reputable for revolutions and military coups). In 1917-1919 there was a period of dictatorship, and in 1948 – an armed revolt. In 1949 Constitution was adopted. According to Constitution liability for military service was abolished, as well as the army. From those times Costa Rica became an oasis of piece in Central America. In 1987 the President of the Republic was rewarded with Nobel Prize of Piece.

Shores of Costa Rica are washed by waters of the Pacific Ocean and the Caribbean Sea. The territory of Cost Rica occupies over 51.100 sq. km. The country’s population is about 3,8 mln of people (96% have Spanish origin, 2% – African, 1% are native Indians, 1% are Chinese, and about 356 thousand of gringo). Gringo is the local name for the USA citizens. The capital of Costa Rica is San Hose with population equal to 340.000 of people. Main languages are Spanish and English. English is used in business sphere. Religion: 85% are Roman Catholics, 14% are Protestant. As concerns public organization, Costa Rica is a democratic presidential republic. Monetary unit is colon. Main economic sectors: tourism, electronics, food industry (in particular, coffee export, bananas export, sugar export). Textile industry, productions of construction materials, fertilizers are also very developed. Major commercial partners of the country are the USA, Germany, Italy, Guatemala, Mexico, and Canada. The USA takes about half of Costa Rica’s trade turnover.

Political and Economic Background

During the last fifteen years all countries of Central America experienced a period of formation and rapid economic growth. After dissolution of the USSR, the USA became a monopolist in this region in programs of political and economic development. The USA presence occurs everywhere in Central America. After fall of communist regimes, such countries as Nicaragua, El Salvador raised their economics from dust for a very short period of time. Today these countries have a full stability and have tendencies for steady economic growth. Guatemala and Belize (Spanish and English parts of former united country) actively attract investors for development and running of business in these countries. Panama that closes the Central American region at the South is number one tax-free region in the world. Panama has the lowest prices in the world for many goods: electronics, brown and white goods, furniture, precious stones.

Costa Rica is the political and economic leader in the Central American region – stays in this list separately. This country has clear results in almost all sectors of economy, policy, medicine, ecology and in many other sectors. Political stability is characterized by the fact that in the XX century Costa Rica did not participate in any war; liquidation of national army and conscription in 1949, absolutely tolerant behavior of Costa Rican authorities to all political systems and, at last, the presence of a large neighbor – the USA. The United States locate in Costa Rica all their main representatives – economic, political, cosmic (at the end of the last century Costa Rican astronaut participated in the space flight jointly with American astronauts). Cost Rica is a wonderful country of resorts and a paradise for tourists. About 5 % of world’s flora and fauna are presented in Costa Rica, and that is just 0,03 % from the Earth’s territory. A considerable part of the country is declared as national parks and reserves where there are perfect conditions for ecotourism.

Major advantages of Costa Rica that make it a gold standard for immigration:

1. Rapidly developing economy that gives an opportunity to provide adequate life with minimal capital.
2. Splendid climatic conditions of Costa Rica.
3. High-standards medicine.
4. One of the lowest crime-rate in the world.
5. Population is well-disposed to Europeans that creates favorable conditions for adaptation and integration.
6. Progressive financial system and stable banking system that give an opportunity to get loans for accommodation and business up to thirty years.
7. Many other positive factors.

Rapidly developing economy that gives an opportunity to provide adequate life with minimal capital

Currently, according to estimates of North-American experts, the economy of Costa Rica is the second in the world by rates of growth and investment favor. Indeed, being in Costa Rica you may see with naked eye that the country in the process of economic growth. Stable political and financial- crediting systems also support this growth. Construction of houses, villas, bungalows and other liquid real estate objects is performed throughout the country. The above listed objects are very liquid at North America (the USA, Canada) and at North European real estate markets. The price of luxurious two-storey villa usually does not exceed USD 150,000. An excellent private house may be purchased for USD 30,000 – 50,000. While in large cities of North America and North Europe you can not purchase an average two-bedroom flat for USD 150,000.

Splendid climatic conditions of Costa Rica
Costa Rica is the only country in the world that combines three the most attractive climatic zones. The capital of Costa Rica, San-Hose, has a name “the city of eternal spring”. Temperature of air in this city is equal to +20-23ºC the whole year through, which is optimal for human body and mind. However, there are no problems for those who prefer baking in the sun and swimming in the ocean. An hour and a half drive on excellent roads and you are on the beach of the Caribbean coast. It will take the same time to get to the Pacific coats of Costa Rica, where at the primeval beaches you may relax without a single soul around. Those who get used to alpine mountain resorts should not worry. Costa Rica has the best in all America all-the-year-round mountain resorts, and occupancy of hotels by American and Canadian tourists is more that 80 %. Ecology is also great. Costa Rica is the 9^th country in the world after Scandinavian countries and Switzerland by the level of country’s ecology. For example, Russian Federation occupies the 84^th place in the list.

Medicine of very high standards
Costa Ricans are proud of their system of medical care. An overwhelming majority of hospitals in Costa Rica are the representative offices of American hospitals. All Costa Rican medical institutions have the latest medical equipment. Practically all the Costa Rican doctors hold American diplomas. The range of medical insurance rates is 20-60 USD per month, and this allows performing expensive operations without spending thousand of US dollars. In Costa Rican clinics there are many patients from the USA and Canada, as medical care in Costa Rica is very advantageous for them. Level of diagnostics and medical care in Costa Rica is equal in comparison with those in the USA and in Canada but the prices are substantially lower.

One of the lowest rates of crime in the world
Without any risk you may leave money, valuables and expensive gear in hotels and on beaches of Costa Rica. You may roam the streets the whole day through and you may not be afraid of crime or aggression. Costa Ricans is a devout catholic nation that is genetically bred on aversion of violation of ten tables. From year to year Costa Rica traditionally gets the first place in Latin America by safety of tourism and life in all American and Canadian guidebooks.

The population is well-disposed to Europeans that creates favorable conditions for adaptation and integration
Costa Ricans respect the Europeans greatly. They are absolutely sure that inflow of people from Europe will make their country prosperous and great. They understand perfectly that each coming European brings financial investments and working places. That is why you should not wonder when you see in San-Hose bookstores investments and immigration reference books in English, Spanish, German, and Scandinavian languages. You may also purchase detailed economic bulletins with descriptions, calculations and formulas for running business in Costa Rica.

Progressive Financial and Banking System
Banking system is well developed and gives an opportunity of crediting for purchase of houses and business up to 30 years. Any resident (permanent residence, citizenship) may obtain a loan for 30 years with 5-6 % of annual interest. These rates push Germans and Scandinavians use all the advantages of Costa Rica’s banking system. They pay 30 % of the house’s price; take a loan for the rest 70 %. Having invested USD 30,000 in construction of a house and getting a loan for 30 years with payment of USD 500 per month, they lease the built house to American or Canadian tourists for USD 700 – 800 per month. So, tourists and holiday-makers pay for the house (instead of investors). And investor owns the house and makes profit.

If you want to invest in small enterprises, you may purchase a small business with a good profitability for USD 15.000-30,000, and then get a loan for the development. In addition to an intensive economic growth and stable policy, as well as financial situation, a very attractive factor is an opportunity of duty-free importation of goods from neighboring Panama (two hours drive by car). Tax system of Costa Rica complements all the above mentioned advantages of life and business in Costa Rica. Overall burden of taxes does not exceed 15 % which is ridiculous in comparison with European taxes. Without being an offshore zone Costa Rica opens accounts in its banks, including state banks, for every interested foreigner. Procedure of opening bank account takes about twenty minutes; among the required documents is only the original of travel passport. Costa Rica has many different advantages in various spheres of life that for today makes it a gold standard for immigration or retirement.

The only problem in understanding Costa Rica’s advantages as a place for immigration and living is a poor knowledge by the residents of the former USSR of Central American region and Costa Rica in particular. You may get more detailed information about opportunities of becoming a resident of Costa Rica and other countries at our consultations. If you have any questions or wish to use our legal assistance in obtaining residence in Costa Rica, contact us today