Costa Rica - Market Overview Costa Rica - Market Overview
The current administration of Carlos Alvarado, which began its four-year term on May 8, 2018, belongs to the same political party as the previous administration of Luis Guillermo Solis. The Solis administration’s contributions to Costa Rica’s already-strong business climate included government support for Costa Rica’s continuing export and investment promotion efforts, sustained and concerted effort in furthering Costa Rica’s aspiration to become an OECD member, near-completion of Costa Rica’s major new Atlantic Coast container terminal (due to open in mid-2019), implementation of significant financial-sector laws and regulations against money laundering, and avoidance of major labor unrest.
Current domestic issues include Costa Rica’s persistent fiscal deficit, internal bureaucracy, the high cost of energy, and the state of basic infrastructure. Over the next several years, plans are in place for major upgrades involving rail, ports, airports, highways and water systems. The World Bank’s “Doing Business 2018” ranked Costa Rica 61 out of 190 countries world-wide.
Costa Rica ratified the Central American Free Trade Agreement (CAFTA-DR) with the United States in 2009. This free trade agreement eliminated most of the tariffs for non-agricultural imports and has made both trade and investment in the region more attractive to U.S. companies. The remaining tariffs on virtually all U.S. agricultural products will be eliminated by 2020. CAFTA-DR member countries have further promised increased transparency in customs dealings, anti-corruption measures in government contracting and procurement, and strong legal protections for U.S. investors.
The United States is Costa Rica’s largest trade and investment partner. Approximately 53% of all Foreign Direct Investment, and 40% of all imports are of U.S. origin. There are no restrictions on capital flows in or out of Costa Rica nor on portfolio investment in publicly traded companies, but companies are subject to local taxes. Foreigners can own property with no title restrictions, although special care must be taken to comply with laws governing coastal areas.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.