Costa Rica has many distinct characteristics and advantages that International Business Corporations (IBC’s) can make the most of. Although Costa Rica is not classified as an offshore financial hub in the traditional sense, its favorable tax regime did result in it being generally known as a tax haven some decades ago.

The Costa Rican government has only recently realized the potential of being a tax haven and has started to actively legislate and promote this sector of economic activity. The low taxation available to businesses of Costa Rica makes it an attractive offshore financial investment center for many businesses from around the globe.

A number of well known businesses have already set up shop in Costa Rica but the economy is still full of potential. The offshore or private banking and wealth management sector is yet to develop and make its mark.

Costa Rica’s largest sector of low-tax industries is grouped around the Free Zones (Export Processing Zones) that run with export incentive programs. These cover a wide variety of industry and service sectors, but special mention  is due to the electronics sector. The greatest potential of Costa Rica is its workforce. Its people really excel in potential which IBC’s can use in their business ventures. Prestigious transnational companies like Intel, Procter and Gamble, Western Union and Hewlett Packard among others to use the knowledge and skills of Costa Ricans to provide services for national and international clients.

Making use of this trend, law firms are flourishing in rendering assistance for new IBC’s.  Law firms offer the most complete and all inclusive turnkey services for interested IBC’s that intend to operate in Costa Rica. These professionals also offer business consulting expertise encompassing a wide spectrum of services.

 

Some of the happiest expat residents of Costa Rica are mobile professionals… people who moved to Panama but maintained their businesses elsewhere or back home.  Most of these people are creative professionals (web designers, graphic artists, photographers, journalists), but we even met an attorney with a small firm in New York who is building a house ion the beach with the idea of telecommuting to meetings from a hammock!

What draws these people (and makes us particularly envious of them!) is that they are able to continue billing North American or European fees while having only a Panamanian cost of living.  Because of the broadband internet, cheap phone rates, inexpensive English speaking workforce and a US-dollar based economy, we think that there is an excellent opportunity for small global and creative or know-how/consulting businesses to “off-shore” themselves to Costa Rica, just as so many large businesses have done.