Arnold C. Says:
How would I go about starting my own business in Costa Rica?
IL Executive Editor Jennifer Stevens Says:
Hi Arnold,
To start a business in Costa Rica you must register with the Tax Department to get your taxpayer identification. You also need a Municipal Business License from the local government where the business is located.
Also, as long as you abide by the Costa Rican labor code, there are no restrictions as to the number or nationality of the people you employ, and you can open up any type of legal business you like.
One of Costa Rica’s main sources of revenue is tourism, with the bulk of visitors coming from the U.S. Because of this, businesses targeting these visitors have proved very attractive to overseas entrepreneurs.
One downside is that rents on commercial premises are quite expensive vs.other countries in the region. Because high-quality premises are often in demand, it can be difficult to negotiate good terms. If you are outside the hotly-contested city districts, you can negotiate more business-friendly terms.
Another cost worth remembering is that electricity is charged at a higher rate for commercial premises. Expats should also be aware that some locals will attempt to boost prices when dealing with foreigners. However, if you are well informed, you should be able to pay the same prices as locals for the goods and services your business needs.
The business outlook is good for Costa Rica. Many medium to large businesses have relocated from the U.S. to Costa Rica to cut costs, and this trend seems to be growing. However, for small businesses, there is an increase in bureaucracy, regulations, and taxes that can make it more difficult, depending on the type of business.
For more information on doing business in Costa Rica, contact the Costa Rican-American Chamber of Commerce (AmCham) or the Costa Rica Embassy.