Investing in Costa Rica
Investing in Costa Rica
There are many reasons to consider Investing in Costa Rica. On first instance, the country is facing a much better picture since the aftermath of the global economic crisis. This crisis made prices fall and normalize, especially for Costa Rica’s property market.
Why Invest in Costa Rica
Costa Rica is one of the most stable countries in the region, with an ever growing economy. Thanks to ever stronger exports, tourism levels growing at record levels each year, and one of the highest levels of Foreign Direct Investment in Latin America. Costa Rica is regarded as one of the safest bets in the emerging markets.
Where To Invest In Costa Rica
The real estate market in Costa Rica has proved to be a profitable investment for years. Between 2000 and 2008, real estate investments saw 15 to 20 percent returns, year-on-year. After the crisis, inflated properties fell to a more fair and realistic market. It has since steadily risen, but there’s still plenty of opportunity for real estate investments in Costa Rica.
Those earlier returns have escalated back to figures between 6 and 7.8 percent but still, keeps being quite strong. Investors can net more than a hundred dollars a day on a short-term rental basis. Returns in the long spectrum remain very attractive.
Plus, expats have exactly the same rights as nationals regarding real estate property. A huge plus for investors.
Where to Make Property Investments In Costa Rica
Costa Rica’s places of interest for property investment are on the northern Pacific Coast and the southern zone.
The northern zone includes places like Guanacaste, Tamarindo, Punta Arenas, Uvita, and Quepos. These are all prime beach areas, and most investors set their aims for bed and breakfast businesses or short and long term rentals.
The southern zone contemplates San José and its vicinity and is considered as the best place to invest due to infrastructure. Also, most of Costa Rica’s commercial activity takes place in the Central Valley and San José’s greater metropolitan area. This sets up great opportunities for investment in nearby satellite cities or downtown areas.
Costa Rica makes a lot of sense for services companies that offer their expertise to offshore clients. This is because Costa Rica doesn’t tax any income perceived from offshore clients. Thus, entrepreneurs are flocking to Costa Rica for the lower cost of living, laid-back lifestyle, and tax cuts.
Offshore Services and Consultancy
Many expats come here as offshore consultants, or freelancers, mostly free-lance writers. This makes for a comfortable and laidback lifestyle. You only need your laptop, and you are set.
One of the main advantages of entrepreneurship in Costa Rica is that it is not regulated by the Work Ministry. This means you need neither a resident visa nor a work permit to have your own business (get ready for border runs every 3 months, though).
Some expats experience Costa Rica at full, gain expertise on where are the best places to go, where to stay, and what to do. Then, they take their knowledge and use it to sell tour packages and other services to folks back in America who wish to visit Costa Rica.