POLITICAL STABILITY

Costa Rica is one of the oldest democracies in Latin America, and is known as one of the most stable and politically, socially and environmentally progressive countries in the region. The country abolished its standing army in 1948 and invested the resources previously committed to defense in conservation, education and public health. Dr. Oscar Arias, Noble Peace Prize recipient in 1987, was elected President of the country, his second term, in February of 2006.

ECONOMY

Costa Rica's basically stable economy depends on tourism, exports of microchips, medical devices and agriculture. Foreign investors are attracted by the country's renowned political stability and high education levels of potential employees. Among others, well known companies such as Intel, Hewlett Packard, Procter & Gamble, Baxter Healthcare maintain sizable operations in Costa Rica.

Weather - Costa Rica is a tropical country located between 8 and 11 degrees north of the Equator. There are two well defined seasons: the rainy season or winter (invierno), and the dry season or summer (verano), with basically one main difference between them: rainfall averages. The Dry season runs from December to April, and the Rainy season from May to November. Seasonal changes do not bring significant changes in temperatures, although nights may be cooler in some areas during the rainy season. Mornings will usually be sunny basically all year round. Coastal areas tend to have higher temperatures (80-90s) year round than the mountainous Central Valley region (70-80s).

EDUCATION

Costa Rica’s population is one of the most literate in the hemisphere. The literacy rate is 95%, highest in Latin America. Public education is available everywhere to all, at no cost (except for text books, uniforms, school supplies, etc.) at the primary level (six years, compulsory) and at a very minimum cost at the secondary level (five years). Apart from public schools, there are many private schools throughout the country, most of them bilingual.

Medical Care - Costa Rica boasts one of the highest life expectancy rates in the world. The health system is very good, certainly one of Latin America’s best, offering both public and private care. Many of the doctors are foreign trained, most in the United States. Universal accessibility to public health care is guaranteed, and a social security system is a basic tenet of Costa Rican society. All employees and employers pay health- care contributions, while those who are personally-employed are required by law, if not in fact, to acquire public health coverage. There are also private health-care schemes that non-Costa Ricans can join if they are residents here.

Residency and Immigration - Permanent residency is available to those individuals who can prove a permanent and stable income from investments, pension or retirement benefits. The closest Costa Rican embassy/consulate can usually inform you of the terms and requirements, but it is advisable to ask a competent local attorney what the current requirements may be.

PROPERTY OWNERSHIP

Everyone Costa Rican nationals, foreign residents and even non-residents – can own property in Costa Rica. Thus, no restriction or distinction is made in regards to property ownership by foreigners. Certain areas are exempt for all, such as those near proximity to national borders and beaches. All land up to 50 meters (about 55 yards) from the ocean tide line is public property; land from 50 to 200 meters (about 220 yards) is concession land, which is not owned, but leased from the local municipality. All other available land is titled, or fee simple. Please check the Real Estate in Costa Rica section of this website for more detailed information on this topic.

INCOME TAXES

There is no income tax on money earned outside Costa Rica and brought into the
country. Personal income taxes are low for those operating a business here (15% average); many personal expenses are deductible. Corporate taxes are also very low (15-30%). There is a 13% sales tax applicable to most goods except some foodstuffs, and a 10% tax for table service at bars and restaurants.

Cost of Living - For ex-patriots, the cost of living in Costa Rica is significantly less than it is in the United States, Canada or Europe. Property taxes are very low and there are no capital gains taxes. Excellent food, housing, entertainment and medical care are available and affordable. About the only things more expensive in Costa Rica than in the U.S., Canada or Europe are cars (because of import taxes) as well as gasoline and some imported foodstuffs.