Costa Rica: Country and Foreign Investment
Import of Foreign Capital
There are no significant barriers to foreign investment and there are no restrictions on the repatriation of profits other than the deduction of withholding taxes which Costa Rica is in any event considering abolishing.
Restrictions are placed on foreign investment in the state owned monopolies of telecommunications, alcohol distilleries, insurance, newspapers, radio, television broadcasting, electricity and petroleum refining in all of which industries foreign participation is either forbidden or alternatively required to be part of a joint venture with a Costa Rican majority shareholding partner.
Beachfront development concessions also require local participation with the requirement that 50% of the capital must come from nationals and that foreigners wishing to be joint partners must have resided in Costa Rica for at least 5 years.
Although there are no exchange controls as such in Costa Rica, currency received by resident corporations or individuals has to be sold through a Costa Rican bank; and capital imported for investment purposes needs to be 'registered' in order to ensure eventual problem-free repatriation. Enterprises taking advantage of one or other of the investment incentive regimes described below are free of these restrictions to a greater or lesser extent.