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World Bank, Chinese Government Invest in Costa Rica

October 10, 2008 by Jennifer

Costa Rica is not only a popular investment destination for foreign individuals, businesses and industries; it is increasingly receiving funds from foreign governments and multi-national organizations as well. Two recent examples are investments by the World Bank and the Chinese government.

The World Bank approved a three-year, $258 million lending program in early September. The program includes $65 million in quick-disbursing funds to cover damages should Costa Rica be struck by a major natural disaster, $13 million for telecom reform, $80 million for secondary education and skills development, and $100 million for the Puntarenas integrated infrastructure development project.

The World Bank program will also help Costa Rica work with the Forest Carbon Partnership Facility (FCPC), which is designed to reduce greenhouse gas emissions by promoting incentives for emissions reduction.

Costa Rica is one of the first 14 participants in the FCPC, launched by the World Bank last year as part of global efforts to address climate change caused by deforestation. (See the World Bank’s press release for additional information.)

Meanwhile, the Chinese government is financing an ecological and recreational park in Jaco, also in the province of Puntarenas. This park, in conjunction with an expansion of the town’s main street, will help increase property values in the area, in addition to maintaining some of the natural beauty of the area as development continues.

The Jaco project is part of the Costa Rican government’s initiative to build new public parks and keep the country beautiful as it becomes more and more popular among foreign residents and investors.

Posted in Costa Rica Developments, International Relations | Tagged , , , | 2 Comments »

Costa Rica Promotes English Proficiency

October 2, 2008 by Jennifer

With more and more North Americans moving to Costa Rica, many businesses opening “overseas” locations here and, of course, the explosive tourism industry, Costa Rica recognizes the ever-increasing need for a population proficient in English.

The government is pushing to make English a common language for the majority of the population. In order to make that goal a reality, over 1100 of the nation’s English teachers have entered the Costa Rica Multilingüe program to receive intensive training to improve their reading comprehension and conversational English skills. The government’s goal is for 75% of high school students attain proficiency in English by 2017.

The Ministry of Public Education (MEP) hopes to solve the problem of English teachers whose own skills make it difficult for them to teach classes <B>in</B> English.

Participating teachers will complete the program’s 140 classroom hours with twice-weekly classes running through December at 62 centers located throughout the country. Costa Rica’s academic year follows the calendar year, so the English teachers will put their newly honed skills to the test when the new school year begins in February.

A group including language specialists, teachers, and representatives of private industry will monitor the teachers’ progress and seek to more precisely identify the skills of teachers, students and professionals who use the English language in both the educational system and the private sector.

Posted in Tourism | Tagged , | Leave a Comment »

Guanacaste Wind Farm Moves Forward

September 25, 2008 by Jennifer

Econergy International, a multinational renewable energy producer based in Boulder, Colorado, has secured $9.2 million in working capital, along with short- and medium-term financing of up to $89.3 million, for the construction of a fifty-five turbine wind farm in Guanacaste.

Known as the Proyecto Eólico Guanacaste (PEG), the project is located in Guayabo de Bagaces. Originally slated to be commissioned in December 2009, the project has offered to open at 50% capacity beginning in December of this year in order to help the national power company (Instituto Costarricense de Electricidad – ICE) offset the seasonal power shortages that Costa Rica, heavily reliant on hydroelectric power, sometimes experiences due to low water levels during the dry season.

In May 2006, Econergy and its partners submitted a bid to supply the ICE with 49.5 MW of wind energy, signing a 20-year power purchase agreement with ICE in December 2007. The PEG’s fifty-five 900kW turbines will be supplied by Enercon GmbH, the third largest manufacturer of wind turbines worldwide, based in Aurich, Germany.

Econergy owns a 45.9% interest in the project, and is currently negotiating for an additional 6%, which would give the company a controlling interest. The 45-meter turbines are expected to generate nearly a quarter million MWh per year, achieving a capacity factor some 55%; well above the 35% capacity factor of a typical wind farm.

Posted in Uncategorized | Tagged , , , | 1 Comment »

Costa Rica’s Entry into CAFTA May Be Delayed

September 18, 2008 by Jennifer

Questions over changes made to Costa Rica’s intellectual property law may prevent the nation from meeting the October 1 deadline for adopting the Central American Free Trade Agreement (CAFTA).

Costa Rican voters ratified CAFTA last year, but the Constitutional Court ruled last week that the changes, made by the Legislative Assembly, were invalid. Because they were made without consulting with indigenous groups, the modifications have been found to be in violation of Convention 169 of the International Labor Organization.

The United States demanded the changes before the agreement goes into effect. The bill in question included provisions on biodiversity as well as intellectual property. Costa Rican legislators have already altered other laws to make the country more open to competition; the ruling overturned on September 11 was the last such proposal. CAFTA opponents have been buoyed, as the appeal was filed in an attempt to block the implementation of the agreement.

Observers believe that the Constitutional Court’s ruling will prevent the legislature from resolving the issue by the October 1 deadline, although the Court has stated that it will do “everything possible” to make sure that Costa Rica’s entry into CAFTA isn’t negatively affected. A spokesperson for the National Liberation Party agreed.

Posted in Costa Rican Law, International Relations | Tagged , | Leave a Comment »

Costa Rica Tax Tips

September 15, 2008 by Jennifer

Costa Rica has a unique tax system. Unlike the United States and many other countries, large portions of income are exempt from taxation altogether here. Knowing where those breaks come in can save you hundreds or thousands of dollars. If you are considering setting up a business in Costa Rica, learning to navigate the tax landscape is critical to success.

For instance, Costa Rica’s minimum payment cutoffs for personal income taxes are very different from what many of us are used to paying. Those earning $800 or less working for a corporation in Costa Rica are not required to pay income taxes at all. Freelance workers also enjoy substantial benefits, earning up to $3,000 in self-employment income without having to file a personal income tax return. For comparison, the cutoff for self-employment tax in the United States is just $600.

The United States requires its citizens to file a US tax return no matter where they live, but under current US tax law, up to $78,000 in overseas income – that is, money earned outside of the United States – is excluded from income tax. For couples, the exclusion is nearly double ($144,000), meaning that many individuals and couples retain their US citizenship while paying little or no personal income tax to the IRS.

Unlike the United States and many other countries, Costa Rica only collects personal income taxes on income generated within the country. This and other exemptions and considerations should be taken into account when settling in or setting up a business in Costa Rica. As a rule, Costa Rican taxes run between 10 and 15 percent of annual income after all the various exemptions and deductions are factored into the equation. Professional help in English is available for the foreigner looking to both comply with the law and reduce his or her tax burden as far as possible.

Posted in Costa Rican Law | Tagged , | 1 Comment »

Costa Rica: Looking Better All the Time

September 5, 2008 by Jennifer

Savvy investors are looking to Costa Rica more and more as world markets continue to teeter uncertainly.

According to a report on Forbes.com, Moody’s Investors Service “revised the outlook on Costa Rica’s key ratings to positive from stable following ‘significant improvement in fiscal and debt positions and the likelihood of the improvement continuing in the medium term’.”

This follows closely on the heels of a similar announcement last month by Standard & Poor’s, which upgraded Costa Rica’s risk rating from “stable” to “positive”.

So, despite a general decline in markets and ratings on the global level, things are humming along in Costa Rica, as the country continues to draw new investors and business ventures. Among the latest and certainly one of the most prestigious new investments, is Amazon.com, Inc., which has announced plans to open a call center in San José to help with the growing demand for customer service in Spanish. The electronic commerce giant will also be hiring English speakers in Costa Rica to help with the coming holiday rush.

Amazon is one of the most popular online retailers in Latin America even though it didn’t even have a Spanish language version of its website until recently. Given the combination of lower wages and an eager and well-educated workforce, the decision to open the San José call center was a no-brainer for the online giant.

Posted in International Relations | Tagged , | Leave a Comment »

Initial Phase of Sonesta Jaco Resort Complete

August 28, 2008 by Jennifer

All exterior work has been completed on the final building in the first phase of the Sonesta Jaco Resort, heralding the grand opening of the largest and most luxurious high-rise resort on Costa Rica’s Central Pacific Coast.

The eco-conscious site plan’s modern, curvilinear design stands out against the more traditional styled buildings in the area. Influenced by the lines of the Sonesta cruise ships, the structures’ curves also bring to mind the verdant foothills that provide a backdrop to the popular beach town of Jaco.

This first phase, featuring nearly 200 one- and two-bedroom suites as well as penthouse condo and hotel units, is scheduled to be completed by year’s end, in time for the resort’s 2009 Grand Opening.

Sonesta Jaco Resort is a contemporary, 13-story all-suite resort featuring whirlpools in every suite and panoramic views of the central Pacific coast and tropical rain forests. The resort is just 90 minutes from the Juan Santamaria International airport, and mere moments from downtown Jaco.

On-site amenities will include international cuisine restaurants, a casino and several bars (including an in-pool bar). There will also be a world-class spa offering everything from massages to hair treatments, and a five-star beach club with convenient shuttles from the main resort.

The Sonesta Group includes properties throughout the Americas and in Egypt, as well as operating a line of cruise ships.

Posted in Costa Rica Developments, Tourism | Tagged , | Leave a Comment »

Americas Real Estate Expo Coming Up in September

August 25, 2008 by Jennifer

Hundreds of realtors and investors will gather in Panama City for the second Americas Real Estate Expo from September 4-6 this year. “A showcase of developments, properties, mortgage companies, banks, retirement service plans and life insurance companies” from throughout the Americas, the Expo will be open to agents, brokers and buyers, including pre-scheduled trade sales appointments with agents representing properties throughout the hemisphere.

The Expo is geared toward Baby Boomers in North America and Europe who are looking to invest or retire, and will showcase hundreds of properties and investment development opportunities in the region.

The first day will be set aside for exhibitors to set up and register, with an Opening Welcome Cocktail for exhibitors and other attendees. Day two is a Trade Day, with seminars for realtors, brokers, investors & financial institutions. The final day will be open to the public, with more seminars offered every 30 minutes. The Expo will conclude with a Farewell Party. Expo-goers will also have the opportunity to enjoy a variety of local tours during the three-day event.

Central America, particularly Costa Rica, has become one of the hottest regions of interest for retirement and investments. The Americas Real Estate Expo will afford interested investors an opportunity to examine the wide range of opportunities in the region, in one convenient location.

Posted in Costa Rica Real Estate | Tagged , | 1 Comment »

Buyer’s Market In Costa Rica

August 20, 2008 by Jennifer

Costa Rica is a very beautiful and diverse country.  From Caribbean and Pacific beaches to mountains, plains and the Central Valley, there is something for everyone. But natural beauty is far from the only reason people invest in land here. Another reason is that property can still be found at reasonable prices, especially compared to most North American markets.

In fact, the troubles plaguing the US economy have turned Costa Rica into more of a buyer’s market as well. There are numerous unsold properties in existing developments, and a lot of the land on the market is sitting untouched as many smaller players – those who depend on mortgaging an existing property to come up with the capital for new purchases – are finding it harder and harder to do so.

This leaves the market wide open for the serious investor. Developers who are taking a realistic view of the market are dropping prices anywhere from 20 to 40 percent compared to the peak prices of three years ago, and offering other incentives to those with the capital to take advantage of the current situation.

The province of Guanacaste remains a hotbed of development, ever since the Daniel Oduber International Airport was built there five years ago, so a savvy investor might look for properties in other parts of the country, where prices have not climbed as much or as quickly.

Posted in Costa Rica Developments, Costa Rica Real Estate | Tagged , | 1 Comment »

Costa Rica Among “Ten Best Ethical Destinations for 2008″

August 13, 2008 by Jennifer

Ethical Traveler has named Costa Rica one of “The Developing World’s Ten Best Ethical Destinations for 2008.”

Ethical Traveler developed its list by examining environmental protection, social welfare and human rights in developing nations throughout the world. The group looked at not only current programs and policies, but at past initiatives and conditions in order to determine trends towards ethical policies. The studies used to determine the scores for 70+ developing nations focused on reducing environmental stresses on human health and promoting ecosystem vitality and sound natural resource management.

The scores were classified into three main categories: Environmental Protection, Social Welfare, and Human Rights.

Costa Rica scored particularly well on the Environmental Protection scale, with very high levels of overall environmental health, biodiversity, air quality, excellent water resources, and a growing use of sustainable energy. The nation also earned the highest possible scores on the Social Welfare and Human Rights scales, which took into account child mortality rates, civil liberties, and other quantifiers.

Significantly, half of the Top Ten nations on the list are Latin American countries striving to catch up with Costa Rica, which has been excelling in ecotourism and sustainable development for some time now.

This prestigious rating can only help the market for sustainable development projects in Costa Rica, as investors are ever on the lookout for favorable prospects and attractive locations.

Posted in International Relations, Tourism | Tagged , , | Leave a Comment »

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