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Many people have never been to Costa Rica and the South
Pacific area, so it's natural to want to know what to expect
on a visit there. We have compiled some useful information
that will soon have you feeling right at home!
Access to Costa Rica from the United States is available from
numerous cities offering direct flights, including: Los Angeles,
Phoenix, Houston, Atlanta, Miami, Newark and New York City.
Costa
Rica is recognized as one of the safest and most stable
countries in the world. The current peace in Costa
Rica can be traced back to 1899 with what is considered
the country’s first truly free elections. That began
a trend that continues through today with the exception
of two lapses: 1917 – 1919 and in 1948 (over a disputed
election) Costa Rica was one of the original 51 charter
countries to join the United Nations in 1945 and in 1949
signed a new constitution. The Constitution of 1949 is one
of the most important documents to the country and to foreigners
buying property in Costa Rica. The
Constitution of 1949 abolished the country’s military,
established a nationwide healthcare system and guaranteed
foreigners all of the same rights as its citizens –
including the ability to own title to property. The ability
to own fully titled property is a great advantage to foreigners
compared to other country’s, such as Mexico, where
leases and trusts are used for foreigners and no ownership
of title is allowed.
The current 3.8 million population of Costa Rica is unlike many of their Central American neighbors. Present-day Costa Ricans are largely of European rather than mestizo descent; Spain was the primary country of origin. Their population is highly educated with literacy rates reaching 96% and enjoys one of the healthiest lifestyles in the world, with a life expectancy of 77 years. Few of the native Indians survived European contact; the indigenous population today numbers about 29,000 or less than 1% of the population. The majority of the population lives in the country’s capital city of San Jose. San Jose, and the surrounding area’s population, holds 2.8 million of the country’s 3.8 million people. Costa Rica’s infrastructure allows travelers the ability to easily travel from one end of the country to the other end. However, the Costanera Highway, which follows the entire Pacific coast, is now just being completed. The last remaining area to be paved is a 25 mile stretch from Quepos to Dominical that is being built as of this writing. Once this highway is completed access along the country’s entire Pacific coast will be a seamless paved highway. Flying to Costa Rica is very convenient from most cities in the United States with either direct flights or only one layover, to either San Jose or Liberia. Costa Rica has two international airports; San Jose (the country’s capital), and in Liberia, in the north of Costa Rica. San Jose International Airport (airport code SJO) had long been the only international airport that was served by most United States airlines and many worldwide carriers including: American Airlines, Northwest Airlines, Continental Airlines, United Airlines, Delta Airlines, TACA Airlines, America West, Mexicana, Iberia Airlines, KLM, and Virgin Atlantic.Within the last decade, Liberia International Airport has opened accepts flights from around the United States and the world, and is located in the capitol of Guanacaste, the Northern Pacific region of Costa Rica. Liberia International Airport is fast becoming the airport of choice for those travelers only interested in the sunny beaches of Guanacaste and also the new all inclusive area of Papagayo Gulf. Because of this airport property values have increased dramatically in recent years in the Northern Pacific coast region. The southern region has many regional airports which allow travelers to fly in to the region without having to drive over the mountainous terrain of the central part of the country. In March 2006, the Costa Rican government publicly announced the building of a new southern region international airport. The government’s goal is have the airport up and running by the end of 2012. It is expected that property in the Southern Pacific zone will increase in value, similar to what happened in the North, once the airport is open. Since the announcement, property values have already increased. 3.
Financial Landscape of Costa Rica •
Intel Corporation •
Hewlett Packard Trax is increasing their presence to carry out work in software testing and data entry with the new operation supporting clients such as Apple Computer, EMC, CompUSA, Chevron Texaco, and Ford Motor Company. • Proctor & Gamble Employs nearly 1,000 people in its administrative center for the Western HemisphereAdditionally, Dole and Chiquita have large banana operations in Costa Rica. Though agriculture remains the basis of the national economy, tourism has earned more than the export crop during the last few years and the tourism industry continues to grow, providing employment opportunities and stimulating new construction and home sales. About a quarter of Costa Rica's workers are engaged in farming or ranching with coffee historically being the country's most important crop, and Costa Rica continues to produce some of the finest coffee in the world. Bananas are the second most important export crop, with vast plantations covering parts of the Caribbean lowlands. There is also significant land dedicated to the cultivation of pineapples, sugar, oranges, hardwoods and ornamental plants, as well as raising cattle for beef and dairy products. Manufacturing, which employs about a fifth of the labor force, and is growing rapidly, and industry's contribution to GDP overtook agriculture over the course of the 1990s, led by foreign investment in Costa Rica's free trade zone. The leading manufactured products include cement, clothing, computer chips, cosmetics, fertilizer, furniture, machinery, medicines, processed foods, and textiles. Its leading exports include bananas, beef, coffee, computer chips, and sugar. Its chief imports include petroleum, chemicals, and manufactured goods. Costa Rica also belongs to the Central American Common Market, an economic union that was formed to stimulate trade among its members. The United States and Costa Rica have a history of close and friendly relations based on respect for democratic government, human freedoms, free trade, and other shared values. The country consistently supports the U.S. in international issues, especially in the areas of democracy and human rights. Law enforcement cooperation, particularly efforts to stem the flow of illegal drugs to the U.S., has been exemplary. The United States is Costa Rica's most important trading partner and accounts for over half of Costa Rica's exports, imports, and tourism. In addition, the United States accounts for more than two-thirds of its foreign investment. The two countries share growing concerns for the environment and want to preserve Costa Rica's important tropical resources and prevent environmental degradation. In 2003, two-way trade exceeded $6 billion between the United States and Costa Rica. Upwards of 20,000 private American citizens, including many retirees, reside in the country and in any given week there are more than 30,000 American citizens visiting Costa Rica. Citizens from Canada and the United States can stay for 90 days without a visa when visiting Costa Rica. CAFTA’s goal is to establish a U.S.-Central American Free Trade Agreement (FTA) that will expand and make reciprocal the market access for goods, services and agricultural products that the U.S. Congress has unilaterally granted to these six countries over the past 20 years. Countries involved with CAFTA are: United States, Costa Rica, Dominic Republic, El Salvador, Guatemala, Honduras and Nicaragua. CAFTA would do following between the U.S. and the six Central American and Caribbean countries:
The Unites States ratified CAFTA in the summer of 2005. Costa
Rica has not yet ratified it, but President Arias is pushing
for Costa Rica to ratify the agreement by the end of 2006.
6.
Banks and Money 7.
Political Conditions Dr. Oscar Arias is Founder of the Arias Foundation for Peace and Human Progress and a spokesperson for the causes of worldwide peace and disarmament. He was educated at the University of Costa Rica and the University of Essex, England. In 1978 he earned a seat in the Costa Rican Congress. In 1981 he became Secretary-General of the National Liberation Party in 1981. This led to his first term as President of Costa Rica from 1986 – 1990. Assuming office at a time of regional discord, Arias worked throughout his Presidency to promote peace throughout Central America. In 1987, Dr. Arias developed the Arias Peace Plan to halt regional conflict. This culminated in the signing of the Esquipulas II Accords which helped establish a firm and lasting peace in Central America. In 1987 he was awarded the Nobel Peace Prize. Using the award money from the Nobel Prize, he established the Arias Foundation for Peace and Human Progress. This foundation promotes gender equality, the strengthening of civil society in Central America and demilitarization and conflict resolution throughout the world. Dr.
Oscar Arias Sánchez 8.
Foreign Relations 9.
Communications 10.
Natural Resources There are over 900 species of trees, 850 species of birds and 10% of the world’s butterfly species currently in Costa Rica. At the present time, Costa Rica counts 80 protected areas (approximately 25% of the whole territory): 20 National Parks, 9 Wildlife Refugees, 13 Biological Reservations, 12 Forest Reservations and 25 Protected Zones. Additionally, Costa Rica has numerous protected areas offshore that have world class diving destinations (coral reefs, caves, etc). Four species of monkeys, macaws, whales, dolphins and other animals are routinely seen on the Pacific coast of Costa Rica. One of the reasons for the great diversity of wildlife and fauna is due to the great diversity in landscapes throughout the country. Costa Rica has hundreds of miles of beaches on the Pacific Ocean and Atlantic Ocean, 11,000 ft mountain peaks, lush primary jungles, dry desserts in the North and beautiful river valleys. Tourism
and ecotourism have become the most important elements of
Costa Rica’s economy. Many businesses and local economies
are related to tourism and offer visitors the opportunity
to participate in many activities including: 11.
Energy 12.
Healthcare Hospitals In the South Pacific region a new 80,000 ft2 hospital is currently under construction near the city of Cortes, which will replace an older, smaller hospital in the area. This new hospital is scheduled for completion in July 2007 and will be the newest and most modern hospital in the country. Many Costa Rican doctors have been trained in Europe, Canada or the United States. Also, most speak English. The cost for medical services is much less in Costa Rica than the United States. As an example of costs: One night in hospital (adjustable bed, cable TV, phone, and nursing) ranges from approximately $120 - $200/day. Pharmacies Dental Cosmetic
Surgery 13.
Real Estate Financial Structure of Costa Rica The cost of building is also much less than that in the United States. Good quality (by U.S. standards) construction is available starting at approximately $65 per square foot. Development
along the Pacific coast of Costa Rica is continuing to push
South, due to increasing land prices in the North- and Central-Pacific
regions. The majority of property that will be sold is in
the South Pacific coast of Costa Rica which has had tremendous
growth over the past several years. South Pacific Region of Costa Rica: The South Pacific coast of Costa Rica is largely undeveloped due to the, historically, lack of infrastructure and access. In recent years hundreds of kilometers of roads have been built and the Costanera Highway is being completed that will connect the southern parts of Costa Rica to the Northern Region. The only remaining section to be paved is the 30km stretch from Quepos to Dominical. Within the last five years, the federal government has instituted several large scale projects in the South Pacific region in anticipation of the future growth that lies ahead. For example, they have funded:
14.
Is a new international airport being built in the southern
zone? This will greatly increase the access to the area. 15.
How much are property taxes? 16. How do I insure my property? In Costa Rica there is only one insurance company, Instituto Nacional de Seguro (INS). INS is a government approved monopoly that is the only company that is allowed to sell insurance (life, auto, home). Therefore, one does not need to spend anytime comparing rates as everyone pays the same. Each region has insurance brokers that must be involved with every insurance transaction (set up, file a claim). Paradise Brokers can help facilitate this process. We recommend that all of our clients maximize their insurance coverage to protect their assets, their liability and themselves from unforeseen events. An all inclusive policy can be purchased that covers the following in the Pacific region:
Put another way, home insurance will cost $258 per year for every $100,000 of home value (not including the land). Theft insurance can be another 1.4% for the items that are listed to be protected. An updated list of items must be given to the INS agent and it can take up to three weeks to get Theft insurance. 17.
What liability insurance should I carry? |
