Costa rica netherlands country official presentation sep 2010

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Presentation for the Workshop of 25 April in the Hague, the Netherlands

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Costa rica netherlands country official presentation sep 2010

  1. 1. Costa Rica’s value proposition: Proven Track Record Qualified Work Force Strategic Location Excellent Business Climate Quality Infrastructure Quality of LifeINVESTING IN COSTA RICA
  2. 2. Let’s talk about success storiesINVESTING IN COSTA RICA / PROVEN TRACK RECORD
  3. 3. In the last 10 years our country has seen a consistent growth in its foreign direct investment... Total FDI inflows have Costa Rica: Total FDI 2,5 grown an average of 15.7% every year since 2001 2,0 In 2009, FDI represented Billions of US$ 1,5 4.5% of the GDP and FDI 2010: US$ 1.75 billion per capita reached US$286. 1,0 Costa Rica ranks among 0,5 the top countries in Latin America in both indexes 0,0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e FDI inflows have financed Source: BCCR more than 90% of the current account deficit in the e: Estimate last decade INVESTING IN COSTA RICA / PROVEN TRACK RECORD
  4. 4. Costa Rica has also experienced a consistent growth in its exports... Costa Rica: Total Exports (Goods) 2000 - 2010 Exports have grown at 12 an average annual rate 2010: US$ 9.48 billion of 7.3% since 2001 10 Billions of US$ 8 Exports of goods represent 30.1% of the 6 GDP 4 Costa Rica exports 2 4,116 different products 0 to 135 destination 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e countries Source: Ministry of Foreign Trade, PROCOMER, BCCR e: Estimate INVESTING IN COSTA RICA / PROVEN TRACK RECORD
  5. 5. ...and a diversification of its exported products  Exports and imports represent 69% of GDPSource: PROCOMER INVESTING IN COSTA RICA / PROVEN TRACK RECORD
  6. 6. The dynamism of these sectors is evident withthe growth that companies have shown... Advanced Manufacturing Sector Medical Device Sector Service Sector 31 95 54 55 28 80 30 8 5 Year 2000 Year 2008 Year 2009 Year 2000 Year 2008 Year 2009 Year 2000 Year 2008 Year 2009 The number of companies The number of companies The number of companiesin this sector is 83% higher in this sector is 288% in this sector is 1,800% than in 2000 higher than in 2000 higher than in 2000 INVESTING IN COSTA RICA / PROVEN TRACK RECORD
  7. 7. Also with the employment level evolution... Advanced Manufacturing Medical Device Sector Service Sector Sector 9.376 28.416 13.266 13.228 8.195 23.830 4.500 1.500 1.061 Year 2000 Year 2008 Year 2009 Year 2000 Year 2008 Year 2009 Year 2000 Year 2008 Year 2009The employment in this The employment in this The employment in thissector is 3 times higher sector is 6 times higher than sector is 27 times higher than in 2000 in 2000 than in 2000 INVESTING IN COSTA RICA / PROVEN TRACK RECORD
  8. 8. Our people make the difference  Population as of July 2009: - 4.62 million - 34.2% of the population is 15 to 35 years old - Annual population growth: 1.9% - GDP / Capita, 2009: $6,498  Labor force 2009: 2.12 million - Unemployment, 2009*: 7.8% - Underemployment, 2009*: 7.8% - Annual labor pool growth: 3.0%  Universal Health Care and Education SystemSource: National Institute - Pillars of the national stabilityof Statistics and Census - 6% of the GDP is allocated to education* Mid-Year estimates INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  9. 9. Labor pool will likely reach 2.7 millionpeople in 2015 Gross participation rate will increase from 46% in 2009 to 52% in 2015 Source: National Statistics InstituteINVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  10. 10. Costa Rica is considered one of the countrieswith the highest human development worldwide Human Development Index Canada 0,966 United States 0,956 Chile 0,878 Argentina 0,866 Uruguay 0,865 Mexico 0,854 Costa Rica 0,854 Panama 0,840 Malaysia 0,829 Brazil 0,813 Colombia 0,807 Dominican Republic 0,777 The HDI combines normalized measures of life expectancy, literacy, educational attainment, and GDP per capita for countries worldwide Source: United Nations Development Program. Human Development Report 2009 INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  11. 11. Our educational system is ranked 22th, the highest in Latin America Quality of the Educational System Adult Literacy Rate Rank Rate (%) Germany 99,0 Canada 5 Canada 99,0 Ireland 11 United States 99,0 Germany 18 Ireland 99,0 Costa Rica 22 Spain 97,9 Malaysia 23 Uruguay 97,9 United States 26 Argentina 97,6 India 39 Chile 96,5 China 53 Costa Rica 95,9 Thailand 66 Uruguay Thailand 94,1 67 Philippines Philippines 93,4 69 Colombia Panama 93,4 80 Argentina 90 China 93,3 Chile 100 Mexico 92,8 Brazil 103 Colombia 92,7 Spain 107 Malaysia 91,9 Mexico 120 Brazil 90,0 El Salvador 121 El Salvador 82,0 Panama 128 India 66,0Source: World Economic Forum. Source: United Nations.The Global Competitiveness Report 2010 - 2011 Human Development Report 2009 INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  12. 12. Education is free and mandatory since 1870 Tertiary (University and Community Colleges)• Begins at kindergarten In public education, there are • Includes two-year two systems: technical degrees• Total of 6 grades • Academic Curricula: 5 years • 4-year bachelor’s• Students usually degree programs (7th to 11th grades), students graduate at age 12 usually graduate at age 17 • Master’s, PhD,• More than 90% of • Technical Curricula: 6 years Specialization institutions are public (7th to 12th grades) programs specializing and graduating with a technical degree, students usually graduate at age 18 INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  13. 13.  Technical High Schools  89 institutionsTechnical High School  Almost 66,000 students enrolled 48 different specialties in 3 areas Graduates  of expertise (services, industrial, and agriculture) (thousands)  Technical High School begins in the fourth year of High School  Students take the regular academic program + technical training  Technical High Schools have one more year than regular academic institutions (Total = 6 years)  Some specialties: Accounting, Architectural Drawing, Banking & Finance, Computer Programming, Electromechanics, Electronics, Graphic Design, Industrial Electronics, IndustrialSource: Ministry of Public Education Maintenance, Network Informatics, Precision Mechanics, Software Development Informatics INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  14. 14.  Universities: Total of 59: 5 public, 54 private Public Universities: University Graduates • Universidad de Costa Rica (thousands) • Instituto Tecnológico de Costa Rica • Universidad Nacional • Universidad Estatal a Distancia • Universidad Técnica Nacional Private Universities: 67.6% of diplomas granted in 2009 • ULACIT • Universidad Creativa de Costa Rica • Universidad Fidélitas • Universidad Hispanoamericana • Universidad Internacional de las Américas • Universidad Latina • Universidad Veritas • UCIMED, UNIBE (Specialized in Medical and Life Sciences) Source: CONARE INCAE (Harvard University): #2 Business School in Latin America (América Economía, 2010) INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  15. 15. Strong academic background in public universities  Universidad de Costa Rica (UCR): Established in 1940. Largest university in the country - 7 campuses and 35,000 active students - Approximately 4,500 diplomas granted every year in more than 500 careers - Engineering School: Mechanical, Electrical, Industrial, etc. - Strong background in Life Sciences (academic formation and research labs) - Other careers including: Accounting, Business, Economics, Informatics, etc.  Instituto Tecnológico de Costa Rica (TEC): Established in 1972 - 4 campuses and 8,000 active students - Approximately 1,500 diplomas granted every year in 31 different careers, including: Biotechnology, Business, Industrial Maintenance, Electromechanical, Electronic, Computer, and Environmental Engineering  Universidad Nacional (UNA) : Established in 1973 - 3 campuses and 15,000 active students - Approximately 2,500 diplomas granted every year in 50 different careers - Careers such as Business, Biology, Computer, Economics, Industrial Chemistry, and Systems Engineering  Universidad Técnica Nacional (UTN). Established in 2009 - Main campus conveniently located 1.5 km from Coyol in Alajuela - 5,000 students enrolled in 2010 - 30 different technical careers including: Accounting, Business, Electromechanics, Electronics, Information Technology, Production Supervision, Quality Assurance, and Industrial Production INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  16. 16. 51,349 people trained in Technical Areas by INA in 2009  2009: US$110 million Specialized invested in training Technician 51,349 people inQualified 5% Worker Technician Materials Technology, 53% 42% Electrical ,and Metalwork, among others areas  2009: Over US$21 million allocated to English training, and training in the Information and Communication Technology fields Source: National Training Institute, 2009 INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  17. 17. Now we are taking actions to speak to the world... Costa Rica Multilingual: a comprehensive program to develop bilingual capabilities in the country’s labor market. Goals2009: 2012: 2017:25,000 people at B1 to C1 40,000 people at B1 100% of high schoollevel. to C1 level. graduates B1 to C1. * Common European Framework.Solid Results13,000 people graduated from Conversational US$21million allocated to English and ITEnglish Courses (INA and CONARE, 2009) Training in the four main universities, and INA (CONARE and INA, 2009)20,000 people enrolled in conversationalEnglish courses in language academic institutes  500 new English language professionals entered(2009) the market in 2009 to improve the population’s skills INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  18. 18. Academic Collaboration Technical English Program for Service CentersDeveloped by INA andcontact center companies in2005.Current results: 879graduated in 2009, and 1,125enrolled in 2010.1,000 additional graduatesexpected every year. INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  19. 19. Academic Collaboration Technical English Program for Service CentersComputer Engineering – new career Developed by the Instituto Tecnológico de Costa Rica, and the electronic and software companies. Current results: new career started in 2009, first 49 students enrolled. Other 64 students enrolled in 2010 INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  20. 20. Academic Collaboration Technical English Program for Service Centers Computer Engineering Technical High Schools (secondary) Service Center Executive (new specialization area) Launched in 2006. Current results: 273 students graduated in 2009. Over 300 additional graduates expected every year. INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  21. 21. Academic Collaboration Technical English Program for Service Centers Computer Engineering Service Center Executive (newspecialization area) Technical High Schools (secondary) Bilingual Accounting: New specialization area started in 2009. 40 students currently enrolled. INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  22. 22. Academic Collaboration Technical English Program for Service Centers Computer Technical High Schools Engineering (secondary)  Bilingual Information Technologies (new specialization area) Service Center Focus areas: programming, network, Executive (new and technical support.specialization area) Implementation in 2010: 40 students enrolled. Bilingual Accounting (new specialization area) INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  23. 23. Academic Collaboration Technical English Adobe Flash – training Program for program (101) Service Centers Launched in 2008. Current results: first 100 graduates and direct hires by avVenta (Interactive Agency with operations Computer in Costa Rica). Engineering 150 additional graduates expected every year to meet the rest of the industry demand. Service Center Bilingual Information Executive (new Technologies (newspecialization area) specialization area) Bilingual Accounting (new specialization area) INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  24. 24. Academic Collaboration  Tools for Success Technical English Program for Service Centers English scholarships for  Adobe Flash technical high school students training program from low income families (101) Current results: Computer 2010: 304 follow-up scholarships, 180 new Engineering scholarships Service Center Bilingual Information Executive (new Technologies (newspecialization area) specialization area) Bilingual Accounting (new specialization area) INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  25. 25. Stable employer-employees environment: “Asociación Solidarista” Cooperation in labor-employer relations  Employer-sponsored workers’ association: Score operates as a credit union, providing multiple benefits to the employees, who can participate 5,6 Costa Rica voluntarily Germany 5,3United States 4,9  Both employer and employees contribute to the Colombia 4,6 fund  They are not sector-wide bargaining instances, Panama 4,5 Mexico 4,3 unlike American unions Spain 4,0  97% of the companies in the private sector Labor-employer relations in the country are: have the “Asociación Solidarista”. This high 1 = Generally confrontational 7= Generally cooperative level of participation is a particular tendency in Costa Rica Costa Rica ranks 12th, Germany ranks 18th, United States ranks 33th, Colombia ranks 46th, Panama ranks 59th, Mexico ranks 74th, and  There are some similarities to a 401(k) Spain ranks 103th retirement plan, without the stock optionsSource: World Economic Forum.The Global Competitiveness Report 2010 - 2011 INVESTING IN COSTA RICA / QUALIFIED WORKFORCE
  26. 26. Costa Rica is just a few hours away from North America... Flight Time City Flight Frequency (hrs:min)Atlanta, GA Daily 4:15Charlotte, NC Daily 4:10Chicago, IL Once a week 6:50Dallas, TX Daily 4:20Denver, CO Daily 5:10Fort Lauderdale, FL Daily 3:00 Juan Santamaría Intl. Airport:Houston, TX Daily 3:35 124 daily flights in July, 2010Los Angeles, CA Daily 5:50 Daniel Oduber Intl. Airport :Miami, FL Daily 2:50 10 daily flights in July, 2010New York, NY Daily 5:05Newark, NJ Daily 5:15Orlando, FL Daily 3:15Philadelphia, PA Once a week 5:00Phoenix, AZ Once a week 5:25Toronto, Canada Daily 6:00Source: Directorate General of Civil Aviation, July 2010 INVESTING IN COSTA RICA / STRATEGIC LOCATION
  27. 27. ...and there is also access to the rest of the world Flight Time City Flight Frequency (hrs:min)Bogota, Colombia Daily 2:10Buenos Aires, Argentina Three times a week 8:00Caracas, Venezuela Daily 2:50Frankfurt, Germany Once a week 13:00Guatemala, Guatemala Daily 1:30La Havana, Cuba Daily 2:25Lima, Peru Daily 3:45Madrid, Spain Daily 10:25 Juan Santamaría Intl. Airport: 124 daily flights in July, 2010Managua, Nicaragua Daily 1:00Mexico DF, Mexico Daily 3:00 Daniel Oduber Intl. Airport :Panama, Panama Daily 1:15 10 daily flights in July, 2010Quito, Ecuador Daily 2:10San Pedro Sula, Daily 1:35HondurasSan Salvador, Daily 1:20El SalvadorSantiago, Chile Daily 8:50Santo Domingo, Four times a week 2:50Dominican RepublicTegucigalpa, Honduras Daily 1:55 Source: Directorate General of Civil Aviation, July 2010 INVESTING IN COSTA RICA / STRATEGIC LOCATION
  28. 28. Shipping rates from Costa Rica are very competitive Cost of shipping 1x40 container to United States $7.000 $6.000 $5.000 $4.000 $3.000 $2.000 $1.000 $0 Costa Rica Mexico Brazil China 2007 2008 2009 2010Note: Rates of international ocean freight from Latin America to US are East Coastbased and from China to US are West Coast based.Source: Expeditors, 2010INVESTING IN COSTA RICA / STRATEGIC LOCATION
  29. 29. Your company will have exceptional access to the world’s greatest markets Market access: 2.3 billion people, more than 68% of CANADA EUROPEAN worldwide GDP UNITED STATES UNION CHINA DOMINICAN ASIA MEXICO REPUBLIC Free Trade CENTRAL AMERICA CARICOM SINGAPORE Agreements: 90% of PANAMA Costa Rican export of goods CHILE Investment Promotion and Protection Duty free access Agreements with 15 Preferential access through the GSP countries INVESTING IN COSTA RICA / STRATEGIC LOCATION
  30. 30. Costa Rica ranks 2nd among Latin American countries in the Enabling Trade Index Enabling Trade Index Singapore 6.06 Chile 5.06United States 5.03 Malaysia 4.71 “Costa Rica is an example of best Costa Rica 4.45 practices in market access, thanks to China 4.32 El Salvador 4.16 moderate non-tariff measures and Panama 4.12 relatively simple tariff structure.” Mexico 4.04 Honduras 3.98 (World Economic Forum, 2010) India 3.81 Colombia 3.72 Argentina 3.64 (1-7) score, where 7 is the highest scoreSource: World Economic Forum. Global EnablingTrade Report, 2010 INVESTING IN COSTA RICA / STRATEGIC LOCATION
  31. 31. GDP per capita growth portrays a widespread perception of economic prosperity 7.000 GDP per capita is one of 6.909 the highest in Latin 6.500 6.706 6.498 America 6.000 5.997 5.500 GDP per capita in US$ in US$/inhabitant 2009 was almost three 5.000 5.208 times as much as it was 4.500 4.682 in 1991 4.427 4.000 4.235 4.058 4.095 4.137 GDP per capita will reach 3.500 more than US$7,000 in 3.000 2011 (S&P, June 2009) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e Poverty has been Source: BCCR reduced 50% in the last e: Estimate 25 years INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
  32. 32. We have a strong and world renowned tradition of peace and stability Political Stability (Latin American ranking) Uruguay 1 Army abolished in 1948 Chile 2 Costa Rica 3 Panama 4 Over 120 years of democracy El Salvador 5 Argentina 6 Brazil 7 Honduras 8 Presidential system Nicaragua 9 Guatemala 10 Mexico 11 3 independent powers Paraguay 12 Ecuador 13 Peru 14 Bolivia 154 year-term with possibility Venezuela 16of reelection Colombia 17 FOTO: GLORIA CALDERÓN Source: Worldwide Governance Indicators, World Bank. 2009 INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
  33. 33. Our democracy is recognized by international indicators Democracy Index (Position) Sweden 1 Finland 6 Canada 11 Ireland 12 United States 18 Czech Republic 19 Uruguay 23 Costa Rica 27 Chile 32 India 35 Brazil 41 Mexico 55 Argentina 56 Colombia 60 El Salvador 67 Malaysia 68 FOTO: GLORIA CALDERÓN Philippines 77 Singapore 82Source: Democracy Index 2008 (Next update 2011). The Economist INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
  34. 34. San José ranks among the top ten cities inLatin America for business It comprises the following dimensions:  Social & Political Framework  Economic Framework & Monterrey, Mexico: 11th dynamism  Services to Companies Mexico City, Mexico: 3rd San Jose, Costa Rica: 8th  Infrastructure & Physical Panama City, Panama: 6th Connectivity Bogota, Colombia: 7th  Human Capital Lima, Peru: 9th Brasilia, Brazil: 12th  Environmental Sustainability Santiago, Chile: 1st  Brand Power Rio de Janeiro, Brazil: 4th Sao Paulo, Brazil: 2nd Montevideo, Uruguay: 10th Source: Urban Competitiveness Index, Buenos Aires, Argentina: 5th América Economía. 2010 Source: United Nations, 2008INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
  35. 35. ...and Costa Rica is the safest country in Latin America Costa Rica ranks 1st in the Latin Security Index Costa Rica 2 Chile 2 Uruguay 2 Panama 3 Argentina 3 Dominican Republic 3 Ecuador 3 Peru 3 Paraguay 3 Nicaragua 3 Bolivia 4 Colombia 4 Brazil 4 Guatemala 4 Mexico 4 El Salvador 4 Honduras 4 Venezuela 5 (1-5) score, where 1 is the best score possible, 5 the worst Source: Latin Business Chronicle (FTI Consulting), 2010.Note: This index measures the countries’ insecurity based on homicide rates as well as other factorsaffecting corporate security, and the safety of foreign business executives INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
  36. 36. Foreigners have equal rights andobligations Prevalence of foreign ownership Score Uruguay 6,1 Chile 6,0 Canada 5,8 Foreigners have no limits to Ireland 5,8 Panama 5,7 property handling and they Costa Rica 5,6 Mexico 5,6 can conduct business Spain 5,4 Argentina activities freely Germany 5,3 5,3 El Salvador 5,3 United States 5,1 Malaysia 4,9 Thailand 4,8 Free capital movement, no Brazil 4,6 India 4,6 foreign exchange controls Colombia 4,5 Philippines 4,4 Foreign ownership of companies in the country is: 1=rare and limited 7=prevalent and encouraged Source: World Economic Forum. The Global Competitiveness Report 2010 - 2011 INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
  37. 37. Costa Rica ranks 2nd in IPRI in Latin America;protection of intellectual property is a priority International Property Rights Index (IPRI) It is guaranteed by the National Latin American Ranking Constitution Chile 34 Costa Rica 50 Uruguay 51 Panama 56 Brazil 64 Colombia 68 El Salvador 71 Mexico 73 Honduras 78 Dominican Republic 85 Argentina 87 Peru 88 Guatemala 90 Ecuador 106 Nicaragua 117 Paraguay 118 Bolivia 119 Venezuela 123 Source: Property Rights Alliance 2010 INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
  38. 38. Costa Rica ranks 2nd in IPRI in Latin America;protection of intellectual property is a priority International Property Rights Index (IPRI) It is guaranteed by the National Latin American Ranking Constitution Chile 34 Costa Rica 50 Uruguay 51 Modern protection mechanisms Panama 56 Brazil 64 Colombia 68 meet international standards El Salvador 71 Mexico 73 – IPR protections – WTO & bilateral FTAs Honduras 78 – CAFTA’s IP chapter further enhances Dominican Republic 85 Argentina 87 Costa Rica’s Intellectual Property Rights Peru 88 – Enforcement of IPR: civil, administrative, Guatemala 90 Ecuador 106 and criminal proceedings Nicaragua 117 – Supported by more than 15 international Paraguay 118 treaties and 6 national laws Bolivia 119 Venezuela 123 Source: Property Rights Alliance 2010 INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
  39. 39. Costa Rica ranks 2nd in IPRI in Latin America;protection of intellectual property is a priority International Property Rights Index (IPRI) It is guaranteed by the National Latin American Ranking Constitution Chile 34 Costa Rica 50 Uruguay 51 Modern protection mechanisms Panama 56 Brazil 64 Colombia 68 meet international standards El Salvador 71 Mexico 73 Honduras 78 Protected areas include Dominican Republic Argentina 85 87 – Copyrights Peru 88 – Trade Marks Guatemala 90 Ecuador 106 – Encrypted Program-Carrying Satellite Signals Nicaragua 117 – Industrial Designs Paraguay 118 – Patents Bolivia 119 – Geographical Indications Venezuela 123 Source: Property Rights Alliance 2010 INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
  40. 40. Costa Rica ranks 2nd in IPRI in Latin America;protection of intellectual property is a priority International Property Rights Index (IPRI) It is guaranteed by the National Latin American Ranking Constitution Chile 34 Costa Rica 50 Uruguay 51 Modern protection mechanisms Panama 56 Brazil 64 Colombia 68 meet international standards El Salvador 71 Mexico 73 Honduras 78 Protected areas include Dominican Republic Argentina 85 87 Peru 88 Guatemala 90 IPRI measures 3 core components Ecuador Nicaragua 106 117 – Legal and Political Environment Paraguay 118 Bolivia 119 – Physical Property Rights Venezuela 123 – Intellectual Property Rights Source: Property Rights Alliance 2010 INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
  41. 41. Paying taxes in Costa Rica Costa Rica taxes/others Statutory Free Trade Zone Regime Free Zone holiday for full / partial income tax exemption for 8 / 4 Corporate income tax 30% years * with the possibility of renewing this exemption period multiple times upon reinvestment Varies depending Custom duties on imports/exports 100% exemption on product Remittances abroad tax 15% 100% exemption Sales tax 13% 100% exemption on local purchase of goods/services Stamp duty 1% 100% exemption Property taxes 0.25% 100% exemption for a 10 year period Property transfer tax 1.5% 100% exemption for a 10 year period Municipal patent license 0.3% 100% exemption for a 10 year period Withholding tax on royalties, fees, dividends up to 25% 100% exemption Tax on interest income 8% 100% exemption Limitation on expats in country None All Costa Rican residents and non-residents working within the Costa Rican Tax on expats Territory under a labor relationship are subject to withholdings and social security contributions. Personal income tax goes up to 15%. Job creation and training grants Free customized technical training available through INAManufacturing:* If the company establishes its operation in a less developed area the full / partial income tax exemption period increases to 12 / 6 years with the possibility of renewing this exemption period multiple times upon reinvestment.* Minimum level of employment (100 workers) and minimum required investment in fixed assets (US$10,000,000) to be completed in 8 years.Services:* Minimum required investment in fixed assets: US$150,000 (inside free trade industrial park) and US$2,000,000 (outside free trade industrial park) to be completed in 36 months. Required investment in less developed areas decreases to US$100,000 and US$500,000 respectively.* At least 50% of services must be exported. INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
  42. 42. There are several industrial parks and business centers located in the Greater Metropolitan AreaDistance from San José International Airport (SJO) is specified for each park. INVESTING IN COSTA RICA / EXCELLENT BUSINESS CLIMATE
  43. 43. Costa Rica offers a solid utilitiesinfrastructure... Electricity - 95% of electricity is generated from renewable sources (hydroelectric, geothermal, biomass, and wind) - Competitive electricity rates (US$ / kWh) Period Rate Peak Period 0.07 – 0.11 Valley Period 0.036 – 0.044 Night Period 0.025 – 0.035 Peak Period: 10:01 AM – 12:30 PM, 05:31 PM – 08:00 PM Valley Period: 06:01 AM – 10:00 AM, 12:31 PM – 05:30 PM Night Period: 08:01 PM – 6:00 AM Source: ARESEP, April 2010 INVESTING IN COSTA RICA / QUALITY INFRASTRUCTURE
  44. 44. Electricity availability is assured Quality of electricity supply Score Country’s current capacity to be doubled Germany 6,8 in 2016 (up to 4,018 MW) Canada United States 6,6 6,2 Ireland 6,2 Chile 6,0 Private production of electricity will Spain 5,9 Uruguay 5,8 increase in more than 250 MW during Costa Rica 5,7 the next three years Croatia Panama 5,4 5,3 China 5,3 Colombia 5,2 Several industrial parks have El Salvador 5,1 Brazil 5,1 redundancy through the connection to a Mexico 3,9 second electrical substation within the Argentina Philippines 3,4 3,8 national interconnected system India 3,1 Quality of electricity supply is: 1 = worse than in most other countries 7= meets the highest standards in the world Source: World Economic Forum. The Global Competitiveness Report 2010 - 2011 INVESTING IN COSTA RICA / QUALITY INFRASTRUCTURE
  45. 45. Costa Rica offers a solid utilities infrastructure...Telecommunications: Redundant fiber optic submarine cables (Maya & Arcos; Pacific Global Crossing) Satellite and terrestrial microwave network in place to meet demand in fixed, mobile and Internet services New multinational players are expected to enter the market in 2010, providing private networks, Internet and mobile phone servicesAbundant water supply: Industrial parks for manufacturing facilities can provide more than 350,000 gallons of water per day INVESTING IN COSTA RICA / QUALITY INFRASTRUCTURE
  46. 46. Public infrastructure concessions move in a positive direction Juan Santamaria International Airport was remodeled in 2008. New improvements are under way Caldera Highway connects the GMA with the Pacific Port . Recently inaugurated Ongoing plans to remodel the Limon and Moin ports (Atlantic Coast) Source: Ministry of Public Infrastructure and Transportation and National Council for Public Concessions, June 2010 INVESTING IN COSTA RICA / QUALITY INFRASTRUCTURE
  47. 47. Costa Rica has ports in the Caribbeanand Pacific coasts Port Limon – Moin -2009: 748,029 TEUS Juan Santamaría - Ranks 15 in Latin International Airport America by volume 160 km 78 km (99.4 miles) (48.1 miles) Port Caldera -2009: 127,658 TEUS - Ranks 38 in Latin America by volume TEU: Twenty foot equivalent unit Source: Latin America’s Top 50 Ports Report, 2010. Latin Business Chronicle based on data from ECLACINVESTING IN COSTA RICA / QUALITY INFRASTRUCTURE
  48. 48. San José ranks fourth in quality of lifein Latin America City / Country Rank Vancouver, Canada 1 Minneapolis, US 41 San Francisco, US 52 New York, US 56 Buenos Aires, Argentina 61 The country’s capital maintains a Santiago, Chile 64 leadership over its competitors, Montevideo, Uruguay 66 such as China, Brazil, Panama, San Juan, Puerto Rico 67 Mexico, India, and Colombia San Jose, Costa Rica 72 Shangai, China 83 Sao Paulo, Brazil 92 Panama City, Panama 98 Source: The Economist Intelligence Unit, 2010 Mexico City, Mexico 105 New Delhi, India 113 Bogota, Colombia 121INVESTING IN COSTA RICA / QUALITY OF LIFE
  49. 49. Costa Rica has a strong commitment with environmental protection Environmental Performance Index Iceland 93,5 Switzerland 89,1 Costa Rica 86,4 86 Costa Rica ranks 3th in the Sweden Colombia 76,8 world in environmental 73,3 Chile 73,2 performance Germany Panama 71,4 Mexico 67,3 Malaysia 65United States 63,5 (0-100) score, being 100 the perfect score. Source: Yale and Columbia Universities, Environmental Performance Index 2010 INVESTING IN COSTA RICA / QUALITY OF LIFE
  50. 50. Great Potential 5th Global Services Location in America Global Services Locations Index, 2009, AT Kearney Costa Rica: A Central American success story in competitivenessT Global Competitiveness Report 2008-2009, World Economic Forum 1st High-Tech exporter of Latin America World Development Indicators 2010, World Bank 4th High-Tech exporter of the world World Development Indicators 2010, World Bank 2nd Best Country of Latin America Variables measured: Education, Health, Quality of Life, Economic Dynamism, and Political Environment. Ranking of the Worlds Best Countries 2010, Newsweek. INVESTING IN COSTA RICA / GREAT POTENTIAL
  51. 51. Great PotentialBiggest Foreign Direct Investments in Costa Rica are High Tech and MedicalSupplies companies (INTEL and St. Jude Medical) Aeronautic (Tico Electronics)High potential on alternative energy technology . Solar Panels and eolic turbinesparts , organic fertilizersCertified buildings under (LEED) program is one of the most widely used systems inthe world for measuring the environmental impact of a building project, along withthe buildings operational performance. The US Green Building Council (USGBC) isan international organization dedicated to developing and refining green buildingtechniques and performance.Biotecnology, clean technology, renewbable energy, entertaiment are sectors for thenew FDI ‘s step.Ad Astra, Electrically-powered plasma rockets could cut travel times for missionsacross the solar system. One concept championed by Chang-Diaz involves a 39-daymission to Mars, but it assumes leaps in nuclear energy production in space. INVESTING IN COSTA RICA
  52. 52. Why Costa Rica? Currently, more than 200 multinational companies areoperating in Costa Rica Exceptionally talented and bilingual young workforce. Onaverage 95% of the employees in multinational companies arelocal Preferential access platform to 1/3 of the world’s population,and 2/3 of the worldwide GDP. 90% of goods exported throughFree Trade Agreements INVESTING IN COSTA RICA / GREAT POTENTIAL
  53. 53. Why Costa Rica? Excellent business climate based on a renowned democratictradition, economic & political stability Solid infrastructure. 95% of energy is renewable. Redundanttelecommunications access Quality of life in Costa Rica is high. Safest country in LatinAmerica, and one of the top 3 environmental performers of theworld INVESTING IN COSTA RICA / GREAT POTENTIAL
  54. 54. Contact Us CINDE Costa Rica Toll free number from US: 1-866-577-4783 invest@cinde.org Ph: (506) 2201-2800 Fax: (506) 2201-2867 gcampos@embacr.nlEmbassy of Costa Rica to Ph: (070) 354 0780 Fax: (070) 358 4754 The Netherlands www.cinde.org INVESTING IN COSTA RICA / CINDE / CONTACT
  55. 55. Thank You !INVESTING IN COSTA RICA

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