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Presentation for the Workshop of 25 April in the Hague, the Netherlands
Citation preview
Proven Track Record
Qualified Work Force
Strategic Location
Excellent Business Climate Quality Infrastructure
Quality of Life
INVESTING IN COSTA RICA
Costa Rica’s value proposition:
Let’s talk about success stories
INVESTING IN COSTA RICA / PROVEN TRACK RECORD
0,0
0,5
1,0
1,5
2,0
2,5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e
Bil
lio
ns
of
US
$
Costa Rica: Total FDI
In the last 10 years our country
has seen a consistent growth
in its foreign direct investment...
INVESTING IN COSTA RICA / PROVEN TRACK RECORD
Source: BCCR
Total FDI inflows have
grown an average of 15.7%
every year since 2001
In 2009, FDI represented
4.5% of the GDP and FDI
per capita reached US$286.
Costa Rica ranks among
the top countries in Latin
America in both indexes
FDI inflows have financed
more than 90% of the
current account deficit in the
last decade
Source: BCCR e: Estimate
2010: US$ 1.75 billion
Costa Rica has also experienced a consistent growth in its exports...
INVESTING IN COSTA RICA / PROVEN TRACK RECORD
Exports have grown at
an average annual rate
of 7.3% since 2001
Exports of goods
represent 30.1% of the
GDP
Costa Rica exports
4,116 different products
to 135 destination
countries
0
2
4
6
8
10
12
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e
Billi
on
s o
f U
S$
Costa Rica: Total Exports (Goods) 2000 - 2010
2010: US$ 9.48 billion
Source: Ministry of Foreign Trade, PROCOMER, BCCR e: Estimate
...and a diversification of its exported products
Source: PROCOMER
INVESTING IN COSTA RICA / PROVEN TRACK RECORD
Exports and imports
represent 69% of
GDP
30
54 55
Advanced Manufacturing Sector
5
80
95
Service Sector
Year 2000 Year 2008 Year 2009 Year 2000 Year 2008 Year 2009 Year 2000 Year 2008 Year 2009
The number of companies
in this sector is 83% higher
than in 2000
The number of companies
in this sector is 288%
higher than in 2000
The number of companies
in this sector is 1,800%
higher than in 2000
The dynamism of these sectors is evident with
the growth that companies have shown...
8
28 31
Medical Device Sector
INVESTING IN COSTA RICA / PROVEN TRACK RECORD
Year 2000 Year 2008 Year 2009 Year 2000 Year 2008 Year 2009 Year 2000 Year 2008 Year 2009
The employment in this
sector is 3 times higher
than in 2000
The employment in this
sector is 6 times higher than
in 2000
The employment in this
sector is 27 times higher
than in 2000
Also with the employment level evolution...
4.500
13.266 13.228
Advanced Manufacturing Sector
1.500
8.195
9.376
Medical Device Sector
1.061
23.830
28.416
Service Sector
INVESTING IN COSTA RICA / PROVEN TRACK RECORD
Population as of July 2009: - 4.62 million
- 34.2% of the population is 15 to 35 years
old
- Annual population growth: 1.9%
- GDP / Capita, 2009: $6,498
Labor force 2009: 2.12 million - Unemployment, 2009*: 7.8%
- Underemployment, 2009*: 7.8%
- Annual labor pool growth: 3.0%
Universal Health Care and Education
System - Pillars of the national stability
- 6% of the GDP is allocated to education
Source: National Institute of Statistics and Census
Our people make the difference
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
* Mid-Year estimates
Labor pool will likely reach 2.7 million
people in 2015
Source: National Statistics Institute
Gross participation rate will increase from 46% in 2009 to 52% in 2015
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
Costa Rica is considered one of the countries with the highest human development worldwide
Source: United Nations Development Program. Human Development Report 2009
The HDI combines normalized measures of life expectancy, literacy,
educational attainment, and GDP per capita for countries worldwide
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
0,966
0,956
0,878
0,866
0,865
0,854
0,854
0,840
0,829
0,813
0,807
0,777
Canada
United States
Chile
Argentina
Uruguay
Mexico
Costa Rica
Panama
Malaysia
Brazil
Colombia
Dominican Republic
Human Development Index
Our educational system is ranked 22th,
the highest in Latin America
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
Source: United Nations. Human Development Report 2009
Source: World Economic Forum. The Global Competitiveness Report 2010 - 2011
66,0
82,0
90,0
91,9
92,7
92,8
93,3
93,4
93,4
94,1
95,9
96,5
97,6
97,9
97,9
99,0
99,0
99,0
99,0
India
El Salvador
Brazil
Malaysia
Colombia
Mexico
China
Panama
Philippines
Thailand
Costa Rica
Chile
Argentina
Uruguay
Spain
Ireland
United States
Canada
Germany
Adult Literacy Rate Rate (%)
128
121
120
107
103
100
90
80
69
67
66
53
39
26
23
22
18
11
5
Panama
El Salvador
Mexico
Spain
Brazil
Chile
Argentina
Colombia
Philippines
Uruguay
Thailand
China
India
United States
Malaysia
Costa Rica
Germany
Ireland
Canada
Quality of the Educational System Rank
Tertiary (University and
Community Colleges)
• Begins at kindergarten
• Total of 6 grades
• Students usually
graduate at age 12
• More than 90% of
institutions are public
In public education, there are
two systems:
• Academic Curricula: 5 years
(7th to 11th grades), students
usually graduate at age 17
• Technical Curricula: 6 years
(7th to 12th grades)
specializing and graduating
with a technical degree,
students usually graduate at
age 18
• Includes two-year
technical degrees
• 4-year bachelor’s
degree programs
• Master’s, PhD,
Specialization
programs
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
Education is free and mandatory since 1870
Technical High School
Graduates (thousands)
Source: Ministry of Public Education
Technical High Schools 89 institutions
Almost 66,000 students enrolled
48 different specialties in 3 areas
of expertise (services, industrial, and agriculture)
Technical High School begins in the fourth year of High School
Students take the regular academic program + technical training
Technical High Schools have one more year than regular academic institutions (Total = 6 years)
Some specialties: Accounting, Architectural
Drawing, Banking & Finance, Computer Programming, Electromechanics, Electronics, Graphic Design, Industrial Electronics, Industrial Maintenance, Network Informatics, Precision Mechanics, Software Development Informatics
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
University Graduates (thousands)
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
Universities: Total of 59: 5 public, 54 private Public Universities:
• Universidad de Costa Rica • Instituto Tecnológico de Costa Rica • Universidad Nacional • Universidad Estatal a Distancia • Universidad Técnica Nacional
Private Universities: 67.6% of diplomas granted in 2009
• ULACIT • Universidad Creativa de Costa Rica • Universidad Fidélitas • Universidad Hispanoamericana • Universidad Internacional de las
Américas • Universidad Latina • Universidad Veritas • UCIMED, UNIBE (Specialized in
Medical and Life Sciences)
INCAE (Harvard University): #2 Business School in Latin America (América Economía, 2010)
Source: CONARE
Strong academic background in public universities
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
Universidad de Costa Rica (UCR): Established in 1940. Largest university in the country
- 7 campuses and 35,000 active students - Approximately 4,500 diplomas granted every year in more than 500 careers - Engineering School: Mechanical, Electrical, Industrial, etc. - Strong background in Life Sciences (academic formation and research labs) - Other careers including: Accounting, Business, Economics, Informatics, etc.
Instituto Tecnológico de Costa Rica (TEC): Established in 1972
- 4 campuses and 8,000 active students - Approximately 1,500 diplomas granted every year in 31 different careers, including:
Biotechnology, Business, Industrial Maintenance, Electromechanical, Electronic, Computer, and Environmental Engineering
Universidad Nacional (UNA) : Established in 1973
- 3 campuses and 15,000 active students - Approximately 2,500 diplomas granted every year in 50 different careers - Careers such as Business, Biology, Computer, Economics, Industrial Chemistry, and
Systems Engineering
Universidad Técnica Nacional (UTN). Established in 2009
- Main campus conveniently located 1.5 km from Coyol in Alajuela - 5,000 students enrolled in 2010 - 30 different technical careers including: Accounting, Business, Electromechanics,
Electronics, Information Technology, Production Supervision, Quality Assurance, and Industrial Production
51,349 people trained in Technical
Areas by INA in 2009
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
Specialized Technician
5%
Technician 42%
Qualified Worker
53%
2009: US$110 million
invested in training
51,349 people in
Materials Technology,
Electrical ,and
Metalwork, among
others areas
2009: Over US$21
million allocated to
English training, and
training in the
Information and
Communication
Technology fields
Source: National Training Institute, 2009
Now we are taking actions to speak to the world...
2017: 100% of high school graduates B1 to C1.
2009: 25,000 people at B1 to C1 level.
2012: 40,000 people at B1 to C1 level.
Goals
* Common European Framework.
Costa Rica Multilingual: a comprehensive program to develop bilingual capabilities in the country’s labor market.
Solid Results
13,000 people graduated from Conversational
English Courses (INA and CONARE, 2009)
20,000 people enrolled in conversational
English courses in language academic institutes (2009)
US$21million allocated to English and IT
Training in the four main universities, and INA (CONARE and INA, 2009)
500 new English language professionals entered
the market in 2009 to improve the population’s skills
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
Academic Collaboration
Technical English
Program for Service
Centers
Developed by INA and
contact center companies in
2005.
Current results: 879
graduated in 2009, and 1,125
enrolled in 2010.
1,000 additional graduates
expected every year.
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
Computer Engineering –
new career
Developed by the Instituto
Tecnológico de Costa Rica,
and the electronic and
software companies.
Current results: new career
started in 2009, first 49
students enrolled. Other 64
students enrolled in 2010
Academic Collaboration
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
Technical English
Program for
Service Centers
Academic Collaboration
Computer
Engineering
Technical High Schools
(secondary)
Service Center Executive (new
specialization area)
Launched in 2006.
Current results: 273 students
graduated in 2009.
Over 300 additional graduates
expected every year.
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
Technical English
Program for
Service Centers
Academic Collaboration
Technical High Schools
(secondary)
Bilingual Accounting: New
specialization area started in
2009. 40 students currently
enrolled.
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
Computer
Engineering
Technical English
Program for
Service Centers
Service Center
Executive (new
specialization area)
Academic Collaboration
Technical High Schools
(secondary)
Bilingual Information
Technologies (new
specialization area)
Focus areas: programming, network,
and technical support.
Implementation in 2010: 40 students
enrolled.
Bilingual Accounting
(new specialization area)
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
Computer
Engineering
Technical English
Program for
Service Centers
Service Center
Executive (new
specialization area)
Academic Collaboration
Adobe Flash – training
program (101)
Launched in 2008.
Current results: first 100 graduates
and direct hires by avVenta
(Interactive Agency with operations
in Costa Rica).
150 additional graduates expected
every year to meet the rest of the
industry demand.
Bilingual Information
Technologies (new
specialization area)
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
Bilingual Accounting
(new specialization area)
Computer
Engineering
Technical English
Program for
Service Centers
Service Center
Executive (new
specialization area)
Academic Collaboration
Adobe Flash
training program
(101)
Tools for Success
English scholarships for
technical high school students
from low income families
Current results:
2010: 304 follow-up
scholarships, 180 new
scholarships
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
Bilingual Information
Technologies (new
specialization area)
Bilingual Accounting
(new specialization area)
Computer
Engineering
Technical English
Program for
Service Centers
Service Center
Executive (new
specialization area)
Employer-sponsored workers’ association:
operates as a credit union, providing multiple
benefits to the employees, who can participate
voluntarily
Both employer and employees contribute to the
fund
They are not sector-wide bargaining instances,
unlike American unions
97% of the companies in the private sector
have the “Asociación Solidarista”. This high
level of participation is a particular tendency in
Costa Rica
There are some similarities to a 401(k)
retirement plan, without the stock options
Stable employer-employees environment:
“Asociación Solidarista”
Source: World Economic Forum.
The Global Competitiveness Report 2010 - 2011
INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
Costa Rica ranks 12th, Germany ranks 18th,
United States ranks 33th, Colombia ranks 46th,
Panama ranks 59th, Mexico ranks 74th, and
Spain ranks 103th
Labor-employer relations in the country are:
1 = Generally confrontational
7= Generally cooperative
Spain
Mexico
Panama
Colombia
United States
Germany
Costa Rica
4,0
4,3
4,5
4,6
4,9
5,3
5,6
Cooperation in labor-employer relations Score
Source: Directorate General of Civil Aviation, July 2010
Costa Rica is just a few hours
away from North America...
Juan Santamaría Intl. Airport:
124 daily flights in July, 2010
Daniel Oduber Intl. Airport :
10 daily flights in July, 2010
INVESTING IN COSTA RICA / STRATEGIC LOCATION
City Flight Frequency Flight Time
(hrs:min)
Atlanta, GA Daily 4:15
Charlotte, NC Daily 4:10
Chicago, IL Once a week 6:50
Dallas, TX Daily 4:20
Denver, CO Daily 5:10
Fort Lauderdale, FL Daily 3:00
Houston, TX Daily 3:35
Los Angeles, CA Daily 5:50
Miami, FL Daily 2:50
New York, NY Daily 5:05
Newark, NJ Daily 5:15
Orlando, FL Daily 3:15
Philadelphia, PA Once a week 5:00
Phoenix, AZ Once a week 5:25
Toronto, Canada Daily 6:00
Source: Directorate General of Civil Aviation, July 2010
...and there is also access to the rest
of the world
INVESTING IN COSTA RICA / STRATEGIC LOCATION
City Flight Frequency Flight Time
(hrs:min)
Bogota, Colombia Daily 2:10
Buenos Aires, Argentina Three times a week 8:00
Caracas, Venezuela Daily 2:50
Frankfurt, Germany Once a week 13:00
Guatemala, Guatemala Daily 1:30
La Havana, Cuba Daily 2:25
Lima, Peru Daily 3:45
Madrid, Spain Daily 10:25
Managua, Nicaragua Daily 1:00
Mexico DF, Mexico Daily 3:00
Panama, Panama Daily 1:15
Quito, Ecuador Daily 2:10
San Pedro Sula,
Honduras Daily 1:35
San Salvador,
El Salvador Daily 1:20
Santiago, Chile Daily 8:50
Santo Domingo,
Dominican Republic Four times a week 2:50
Tegucigalpa, Honduras Daily 1:55
Juan Santamaría Intl. Airport:
124 daily flights in July, 2010
Daniel Oduber Intl. Airport :
10 daily flights in July, 2010
Shipping rates from Costa Rica are
very competitive
Source: Expeditors, 2010
Note: Rates of international ocean freight from Latin America to US are East Coast based and from China to US are West Coast based.
INVESTING IN COSTA RICA / STRATEGIC LOCATION
$0
$1.000
$2.000
$3.000
$4.000
$5.000
$6.000
$7.000
Costa Rica Mexico Brazil China
Cost of shipping 1x40 container to United States
2007 2008 2009 2010
Your company will have exceptional access to the world’s greatest markets
INVESTING IN COSTA RICA / STRATEGIC LOCATION
Market access: 2.3
billion people, more
than 68% of
worldwide GDP
Free Trade
Agreements: 90% of
Costa Rican export of
goods
Investment Promotion
and Protection
Agreements with 15
countries
UNITED STATES
CANADA
MEXICO
CENTRAL
AMERICA
PANAMA
DOMINICAN
REPUBLIC
CARICOM
CHILE
EUROPEAN
UNION
ASIA
CHINA
SINGAPORE
Duty free access
Preferential access through the GSP
Singapore
Chile
United States
Malaysia
Costa Rica
China
El Salvador
Panama
Mexico
Honduras
India
Colombia
Argentina
6.06
5.06
5.03
4.71
4.45
4.32
4.16
4.12
4.04
3.98
3.81
3.72
3.64
Enabling Trade Index
Costa Rica ranks 2nd among Latin American
countries in the Enabling Trade Index
“Costa Rica is an example of best
practices in market access, thanks to
moderate non-tariff measures and
relatively simple tariff structure.”
(World Economic Forum, 2010)
(1-7) score, where 7 is the highest score
Source: World Economic Forum. Global Enabling
Trade Report, 2010
INVESTING IN COSTA RICA / STRATEGIC LOCATION
GDP per capita growth portrays a widespread
perception of economic prosperity
INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
Source: BCCR e: Estimate
GDP per capita is one of
the highest in Latin
America
GDP per capita in US$ in
2009 was almost three
times as much as it was
in 1991
GDP per capita will reach
more than US$7,000 in
2011 (S&P, June 2009)
Poverty has been
reduced 50% in the last
25 years
4.058 4.095 4.137 4.235
4.427
4.682
5.208
5.997
6.706 6.498
6.909
3.000
3.500
4.000
4.500
5.000
5.500
6.000
6.500
7.000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e
US
$/i
nh
ab
itan
t
We have a strong and world renowned
tradition of peace and stability
FOTO: GLORIA CALDERÓN
INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
Army abolished in 1948
Over 120 years of democracy
Presidential system
3 independent powers
4 year-term with possibility of reelection
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Uruguay
Chile
Costa Rica
Panama
El Salvador
Argentina
Brazil
Honduras
Nicaragua
Guatemala
Mexico
Paraguay
Ecuador
Peru
Bolivia
Venezuela
Colombia
Political Stability (Latin American ranking)
Source: Worldwide Governance Indicators, World
Bank. 2009
Our democracy is recognized by
international indicators
FOTO: GLORIA CALDERÓN
INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
Source: Democracy Index 2008 (Next update 2011). The Economist
1
6
11
12
18
19
23
27
32
35
41
55
56
60
67
68
77
82
Sweden
Finland
Canada
Ireland
United States
Czech Republic
Uruguay
Costa Rica
Chile
India
Brazil
Mexico
Argentina
Colombia
El Salvador
Malaysia
Philippines
Singapore
Democracy Index (Position)
Mexico City, Mexico: 3rd
Monterrey, Mexico: 11th
San Jose, Costa Rica: 8th
Panama City, Panama: 6th
Montevideo, Uruguay: 10th
Bogota, Colombia: 7th
Sao Paulo, Brazil: 2nd
Santiago, Chile: 1st
San José ranks among the top ten cities in
Latin America for business
Source: United Nations, 2008
Rio de Janeiro, Brazil: 4th
Buenos Aires, Argentina: 5th
Lima, Peru: 9th Brasilia, Brazil: 12th
Source: Urban Competitiveness Index,
América Economía. 2010
INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
It comprises the following dimensions: Social & Political Framework
Economic Framework & dynamism
Services to Companies
Infrastructure & Physical
Connectivity
Human Capital
Environmental Sustainability
Brand Power
Note: This index measures the countries’ insecurity based on homicide rates as well as other factors
affecting corporate security, and the safety of foreign business executives
2 2 2
3 3 3 3 3 3 3
4 4 4 4 4 4 4
5
Costa Rica
Chile
Uruguay
Panama
Argentina
Dominican Republic
Ecuador
Peru
Paraguay
Nicaragua
Bolivia
Colombia
Brazil
Guatemala
Mexico
El Salvador
Honduras
Venezuela
Costa Rica ranks 1st in the Latin Security Index
(1-5) score, where 1 is the best score possible, 5 the worst
Source: Latin Business Chronicle (FTI Consulting), 2010.
...and Costa Rica is the safest country in Latin America
INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
Foreigners have equal rights and
obligations
Foreigners have no limits to
property handling and they
can conduct business
activities freely
Free capital movement, no
foreign exchange controls
INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
Source: World Economic Forum. The Global Competitiveness Report 2010 - 2011
4,4
4,5
4,6
4,6
4,8
4,9
5,1
5,3
5,3
5,3
5,4
5,6
5,6
5,7
5,8
5,8
6,0
6,1
Philippines
Colombia
India
Brazil
Thailand
Malaysia
United States
El Salvador
Germany
Argentina
Spain
Mexico
Costa Rica
Panama
Ireland
Canada
Chile
Uruguay
Prevalence of foreign ownership Score
Foreign ownership of companies in the
country is:
1=rare and limited
7=prevalent and encouraged
INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
It is guaranteed by the National
Constitution
Costa Rica ranks 2nd in IPRI in Latin America;
protection of intellectual property is a priority
123
119
118
117
106
90
88
87
85
78
73
71
68
64
56
51
50
34
Venezuela
Bolivia
Paraguay
Nicaragua
Ecuador
Guatemala
Peru
Argentina
Dominican Republic
Honduras
Mexico
El Salvador
Colombia
Brazil
Panama
Uruguay
Costa Rica
Chile
International Property Rights Index (IPRI)
Latin American Ranking
Source: Property Rights Alliance 2010
INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
It is guaranteed by the National
Constitution
Modern protection mechanisms
meet international standards
– IPR protections – WTO & bilateral FTAs
– CAFTA’s IP chapter further enhances
Costa Rica’s Intellectual Property Rights
– Enforcement of IPR: civil, administrative,
and criminal proceedings
– Supported by more than 15 international
treaties and 6 national laws
Costa Rica ranks 2nd in IPRI in Latin America;
protection of intellectual property is a priority
123
119
118
117
106
90
88
87
85
78
73
71
68
64
56
51
50
34
Venezuela
Bolivia
Paraguay
Nicaragua
Ecuador
Guatemala
Peru
Argentina
Dominican Republic
Honduras
Mexico
El Salvador
Colombia
Brazil
Panama
Uruguay
Costa Rica
Chile
International Property Rights Index (IPRI)
Latin American Ranking
Source: Property Rights Alliance 2010
INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
It is guaranteed by the National
Constitution
Modern protection mechanisms
meet international standards
Protected areas include
– Copyrights
– Trade Marks
– Encrypted Program-Carrying Satellite Signals
– Industrial Designs
– Patents
– Geographical Indications
Costa Rica ranks 2nd in IPRI in Latin America;
protection of intellectual property is a priority
123
119
118
117
106
90
88
87
85
78
73
71
68
64
56
51
50
34
Venezuela
Bolivia
Paraguay
Nicaragua
Ecuador
Guatemala
Peru
Argentina
Dominican Republic
Honduras
Mexico
El Salvador
Colombia
Brazil
Panama
Uruguay
Costa Rica
Chile
International Property Rights Index (IPRI)
Latin American Ranking
Source: Property Rights Alliance 2010
INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
It is guaranteed by the National
Constitution
Modern protection mechanisms
meet international standards
Protected areas include
IPRI measures 3 core components
– Legal and Political Environment
– Physical Property Rights
– Intellectual Property Rights
Costa Rica ranks 2nd in IPRI in Latin America;
protection of intellectual property is a priority
123
119
118
117
106
90
88
87
85
78
73
71
68
64
56
51
50
34
Venezuela
Bolivia
Paraguay
Nicaragua
Ecuador
Guatemala
Peru
Argentina
Dominican Republic
Honduras
Mexico
El Salvador
Colombia
Brazil
Panama
Uruguay
Costa Rica
Chile
International Property Rights Index (IPRI)
Latin American Ranking
Source: Property Rights Alliance 2010
Paying taxes in Costa Rica
Manufacturing:
* If the company establishes its operation in a less developed area the full / partial income tax exemption period increases to 12 / 6 years with
the possibility of renewing this exemption period multiple times upon reinvestment.
* Minimum level of employment (100 workers) and minimum required investment in fixed assets (US$10,000,000) to be completed in 8 years.
Services:
* Minimum required investment in fixed assets: US$150,000 (inside free trade industrial park) and US$2,000,000 (outside free trade industrial
park) to be completed in 36 months. Required investment in less developed areas decreases to US$100,000 and US$500,000 respectively.
* At least 50% of services must be exported.
INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
Costa Rica taxes/others Statutory Free Trade Zone Regime
Corporate income tax 30%
Free Zone holiday for full / partial income tax exemption for 8 / 4
years* with the possibility of renewing this exemption period
multiple times upon reinvestment
Custom duties on imports/exportsVaries depending
on product100% exemption
Remittances abroad tax 15% 100% exemption
Sales tax 13% 100% exemption on local purchase of goods/services
Stamp duty 1% 100% exemption
Property taxes 0.25% 100% exemption for a 10 year period
Property transfer tax 1.5% 100% exemption for a 10 year period
Municipal patent license 0.3% 100% exemption for a 10 year period
Withholding tax on royalties, fees, dividends up to 25% 100% exemption
Tax on interest income 8% 100% exemption
Limitation on expats in country
Tax on expats
Job creation and training grants
None
All Costa Rican residents and non-residents working within the Costa Rican
Territory under a labor relationship are subject to withholdings and social security
contributions. Personal income tax goes up to 15%.
Free customized technical training available through INA
INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
Distance from San José International Airport (SJO) is specified for each park.
There are several industrial parks and business
centers located in the Greater Metropolitan Area
Costa Rica offers a solid utilities
infrastructure...
Electricity
- 95% of electricity is generated from renewable sources (hydroelectric, geothermal, biomass, and wind)
- Competitive electricity rates (US$ / kWh)
INVESTING IN COSTA RICA / QUALITY INFRASTRUCTURE
Period Rate
Peak Period 0.07 – 0.11
Valley Period 0.036 – 0.044
Night Period 0.025 – 0.035
Peak Period: 10:01 AM – 12:30 PM, 05:31 PM – 08:00 PM
Valley Period: 06:01 AM – 10:00 AM, 12:31 PM – 05:30 PM
Night Period: 08:01 PM – 6:00 AM
Source: ARESEP, April 2010
Electricity availability is assured
Country’s current capacity to be doubled
in 2016 (up to 4,018 MW)
Private production of electricity will
increase in more than 250 MW during
the next three years
Several industrial parks have
redundancy through the connection to a
second electrical substation within the
national interconnected system
INVESTING IN COSTA RICA / QUALITY INFRASTRUCTURE
Source: World Economic Forum. The Global Competitiveness Report 2010 - 2011
Quality of electricity supply is:
1 = worse than in most other countries
7= meets the highest standards in the world
3,1
3,4
3,8
3,9
5,1
5,1
5,2
5,3
5,3
5,4
5,7
5,8
5,9
6,0
6,2
6,2
6,6
6,8
India
Philippines
Argentina
Mexico
Brazil
El Salvador
Colombia
China
Panama
Croatia
Costa Rica
Uruguay
Spain
Chile
Ireland
United States
Canada
Germany
Quality of electricity supply Score
Costa Rica offers a solid utilities
infrastructure...
Telecommunications:
Redundant fiber optic submarine cables (Maya & Arcos; Pacific Global Crossing)
Satellite and terrestrial microwave network in place to meet demand in
fixed, mobile and Internet services New multinational players are expected to enter the market in 2010,
providing private networks, Internet and mobile phone services
Abundant water supply:
Industrial parks for manufacturing facilities can provide more than 350,000
gallons of water per day
INVESTING IN COSTA RICA / QUALITY INFRASTRUCTURE
Public infrastructure concessions move in a positive direction
Juan Santamaria
International Airport
was remodeled in 2008.
New improvements are
under way
Caldera Highway
connects the GMA with
the Pacific Port .
Recently inaugurated
Ongoing plans to
remodel the Limon and
Moin ports (Atlantic
Coast)
INVESTING IN COSTA RICA / QUALITY INFRASTRUCTURE
Source: Ministry of Public Infrastructure and Transportation and
National Council for Public Concessions, June 2010
Juan Santamaría
International Airport
160 km
(99.4 miles) 78 km
(48.1 miles)
Port Limon – Moin
-2009: 748,029 TEUS
- Ranks 15 in Latin
America by volume
Port Caldera
-2009: 127,658 TEUS
- Ranks 38 in Latin
America by volume
TEU: Twenty foot equivalent unit
Source: Latin America’s Top 50 Ports Report, 2010. Latin Business Chronicle based on
data from ECLAC
Costa Rica has ports in the Caribbean and Pacific coasts
INVESTING IN COSTA RICA / QUALITY INFRASTRUCTURE
San José ranks fourth in quality of life in Latin America
Source: The Economist Intelligence Unit, 2010
The country’s capital maintains a
leadership over its competitors,
such as China, Brazil, Panama,
Mexico, India, and Colombia
City / Country Rank
Vancouver, Canada 1
Minneapolis, US 41
San Francisco, US 52
New York, US 56
Buenos Aires, Argentina 61
Santiago, Chile 64
Montevideo, Uruguay 66
San Juan, Puerto Rico 67
San Jose, Costa Rica 72
Shangai, China 83
Sao Paulo, Brazil 92
Panama City, Panama 98
Mexico City, Mexico 105
New Delhi, India 113
Bogota, Colombia 121
INVESTING IN COSTA RICA / QUALITY OF LIFE
(0-100) score, being 100 the perfect
score.
Costa Rica ranks 3th in the
world in environmental
performance
INVESTING IN COSTA RICA / QUALITY OF LIFE
Costa Rica has a strong commitment with environmental protection
Source:
Yale and Columbia Universities, Environmental Performance Index 2010
Iceland
Switzerland
Costa Rica
Sweden
Colombia
Chile
Germany
Panama
Mexico
Malaysia
United States
93,5
89,1
86,4
86
76,8
73,3
73,2
71,4
67,3
65
63,5
Environmental Performance Index
Great Potential
INVESTING IN COSTA RICA / GREAT POTENTIAL
5th Global Services Location in America Global Services Locations Index, 2009, AT Kearney
Costa Rica: A Central American success story in
competitiveness T Global Competitiveness Report 2008-2009, World Economic Forum
1st High-Tech exporter of Latin America World Development Indicators 2010, World Bank
4th High-Tech exporter of the world World Development Indicators 2010, World Bank
2nd Best Country of Latin America Variables measured: Education, Health, Quality of Life, Economic Dynamism, and Political Environment.
Ranking of the World's Best Countries 2010, Newsweek.
INVESTING IN COSTA RICA
Great Potential
Biggest Foreign Direct Investments in Costa Rica are High Tech and Medical
Supplies companies (INTEL and St. Jude Medical) Aeronautic (Tico Electronics)
High potential on alternative energy technology . Solar Panels and eolic turbines
parts , organic fertilizers
Certified buildings under (LEED) program is one of the most widely used systems in
the world for measuring the environmental impact of a building project, along with
the building's operational performance. The US Green Building Council (USGBC) is
an international organization dedicated to developing and refining green building
techniques and performance.
Biotecnology, clean technology, renewbable energy, entertaiment are sectors for the
new FDI ‘s step.
Ad Astra, Electrically-powered plasma rockets could cut travel times for missions
across the solar system. One concept championed by Chang-Diaz involves a 39-day
mission to Mars, but it assumes leaps in nuclear energy production in space.
Why Costa Rica?
Currently, more than 200 multinational companies are
operating in Costa Rica
Exceptionally talented and bilingual young workforce. On
average 95% of the employees in multinational companies are
local
Preferential access platform to 1/3 of the world’s population,
and 2/3 of the worldwide GDP. 90% of goods exported through
Free Trade Agreements
INVESTING IN COSTA RICA / GREAT POTENTIAL
Why Costa Rica?
Excellent business climate based on a renowned democratic
tradition, economic & political stability
Solid infrastructure. 95% of energy is renewable. Redundant
telecommunications access
Quality of life in Costa Rica is high. Safest country in Latin
America, and one of the top 3 environmental performers of the
world
INVESTING IN COSTA RICA / GREAT POTENTIAL
Contact Us
Toll free number from US: 1-866-577-4783 [email protected] Ph: (506) 2201-2800 Fax: (506) 2201-2867 [email protected] Ph: (070) 354 0780 Fax: (070) 358 4754
CINDE Costa Rica
Embassy of Costa Rica to
The Netherlands
www.cinde.org
INVESTING IN COSTA RICA / CINDE / CONTACT
Thank You !
INVESTING IN COSTA RICA