Costa Rica - Lateinamerika Verein eV

March 2014. All Rights Reserved. The facts of this report are believed to be correct at the time of publication. Please note that the contents
delivered are based on information gathered in good faith from both public and proprietary sources. As such, CINDE’s Department of Research
can accept no liability whatsoever for loss or damage arising as a result of the use of this report, either in its published or online format.
CINDE
Costa Rica Investment Promotion Agency
• Private, non-profit, non-political organization, founded in 1982
• Declared of public interest by the Costa Rican Government in
1984
• Active promotion of foreign investment, local support, and
post-establishment services
• Extensive experience in strategic sectors such as Life
Sciences,
Advanced
Manufacturing,
Services,
Clean
Technologies-Renewable Energy, and Projects
CINDE’s Services
• Assistance during the site
selection process
• Meet the investor’s information
needs: meetings with government
organizations, universities, and
key service providers
• CINDE’s service providers
directory: list of key providers
such as attorneys, accountants,
industrial and office parks,
environmental advisers, banks,
among others
• Specialized support geared to
new operational expansion
projects or promoting product
diversification
Costa Rica’s value proposition
• Proven Track Record
• Qualified Work Force
• Strategic Location
• Excellent Business Climate
• Quality Infrastructure
• Quality of Life
Let’s talk about success stories
In the last 10 years our country has seen a
consistent growth in its foreign direct investment...
• FDI inflows have grown an
average of 13.3% every year
since 2002.
• FDI inflows have financed
more than 90% of the
current account deficit in the
last decade.
2,5
2013e: US$ 2.3
billion
2,0
US$ Billions
• In 2013, FDI represented
4.6% of GDP and FDI per
capita reached US$488.
Costa Rica ranks among the
top countries in Latin
America in both indexes.
Costa Rica: Total FDI
1,5
1,0
0,5
0,0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: CINDE based on data from BCCR, 2014
Note: Estimated by BCCR
e
Costa Rica has also experienced a consistent
growth in its exports of goods and services
Costa Rica: Total Exports of Goods and
Services
• Exports of goods and
services have grown at
an average annual rate
of 8.5% since 2002:
• In 2013, exports and
imports of goods and
services represented
75.5% of GDP
18
16.9
14
12.9
12
13.8
13.7
12.3
11.2
9.6
10
8
17.5
15.3
16
US$ Billions
– Exports of goods: 7.3%
– Exports of services: 11.1%
20
8.1
8.5
2003
2004
7.2
6
4
2
0
2002
2005
2006
2007
Goods
2008
2009
2010
2011
Services
Source: CINDE, BCCR, and PROCOMER, 2014
2012
2013
…and a diversification of its exported products
• Costa Rica exports 4,457
different products to 155
destination countries
Source: CINDE based on data from BCCR and PROCOMER
Projects
The dynamism of these sectors is evident with the
growth that companies have shown...
Life Sciences
Advanced
Manufacturing
47
48
30
2000
2012
57
The number of
companies in
this sector is
60% higher than
in 2000
2013
51
8
2000
Services
2012
15
The number of
companies in
this sector is
2,267% higher
than in 2000
121
6
2012
2013
Projects
142
2000
The number of
companies in
this sector is
613% higher
than in 2000
2013
Source: CINDE, 2014
Note: a/ Data not available for project sector in 2000
8
2012
2013
The number of
companies in
this sector is
88% higher than
in 2012
Also with the employment level evolution...
Life Sciences
Advanced
Manufacturing
16.257
17.285
17.164
15.633
The employment in
this sector is 4
times higher than in
2000
4.500
The employment
in this sector is
12 times higher
than in 2000
1.500
2000
2012
2013
2000
Services
42.148
46.465
645
The employment in
this sector is 44
times higher than
in 2000
2012
2013
Projects a/
1.061
2000
2012
The employment
in this sector is 2
times higher than
in 2012
398
2013
Source: CINDE, 2014
Note: a/ Data not available for project sector in 2000
2012
2013
Contact Centers
*Year of establishment in Costa Rica
ACE Global
Aegis Communications
Amadeus
Amazon
Carlson Wagonlit
Client Services
Concentrix
Convergys
Credits World
CSS
Dell Costa Rica
Encore
Fujitsu
HandsOn Venture
Hewlett Packard (ITO)
IBM
Language Line
Mind Valley
Motif
Pacific Interpreters
Qualfon
Startek
SYKES
Tech Data
Teleperformance
Teletech
The Elephant Group
United Collection Bureau
UPS Supply Chain
Van Ru
Back Office
2008
2006
1997
2008
2013
2011
2009
2010
2009
2012
2002
2011
2006
2012
2004
2009
2002
2012
2010
2006
2004
2009
1999
2007
2010
2006
2013
2006
2004
2005
Amba Research
Auxis
Bank of America
BPO International
Ecco Health
Equifax
Experian Marketing Services
First Data
Hewlett Packard (BPO)
IBM (HR/IT)
Infosys
Konrad
Lightstorm
LL Bean
McKinsey & Co. Support
Services
Pacific West
Project Resources Group CR
Trax Technologies
West Dermatology
WNS
2006
2010
2008
2005
2011
1995
2008
2007
2004
2004
2013
2013
2008
1998
2009
2000
2008
2004
2010
2009
Shared Services
*Year of establishment in Costa Rica
Aliaxis
2010
Amway
2010
APL
2005
Baxter Americas
2005
Bridgestone
2011
British American Tobacco 2007
Chiquita Brands
2003
Citi Business Services
2008
Curtiss Wright
2010
DHL
2005
Dole SS
2005
Emerson SS
2009
Ernst & Young
2011
Fiserv
2004
GlaxoSmithKline
1990
Hellmann Logistic
2007
Intel SS
2005
Inter-American Development
Bank(IDB)
2009
Kimberly-Clark
2013
Lion Resources (Publicis) 2008
National Instruments
2010
Oracle
2007
Pfizer
2013
Procter & Gamble GBS
1999
Roche
1985
Thomson Reuters
2011
Walmart GSS
2011
Western Union
1998
World Vision
2013
Zoetis
2013
Digital Technologies
4Thought Marketing
AGS
Akamai
Avionyx
Bodybuilding
Cognizant Technologies
Coltboy
Crowley
Fiserv
Global Insurance
Technology
IBM
Informatech
Intellego
Intertec
IT Convergence
JD Soft
Kareo
Log(n)
Ridge Run
Round Box Media
Rule Financial
Slim Soft
Softtek
Syniverse
TradeStation
Via Information Tools
Vizalizer
VMware
2009
2012
2012
2005
2011
2013
2013
2013
2004
2007
2012
2010
2012
2003
2013
2002
2013
2013
2006
2006
2013
2006
2010
2013
2012
2004
2012
2012
Engineering & Design
Entertainment & Media
Accenture
Costa Rica Production
FindaSense
Kareo
Magma Studios
Paprika
Pop Digital
Possible
Skim Group
The Hangar Interactive
(Critical Mass)
2005
2009
2013
2013
2011
2011
2010
2006
2013
2008
Regional Headquarters
ATL
Bayer
Overseas Logistics
Operations
PolyOne
Thermo Fisher Scientific
VMware
*Year of establishment in Costa Rica
2013
1978
2012
2012
2011
2012
AEC
Align Technologies
Emerson
Gensler
Holland Roofing
HP Networking
Intel EDC
L&T Infotech
National Instruments
NC Tech
Santos CMI (Posco)
Smartworks
Wright Medical
2010
2001
2008
2007
2002
2009
2011
2013
2010
2013
2012
2010
2010
*Year of establishment in Costa Rica
*Year of establishment in Costa Rica
*Year of establishment in Costa Rica
Contract Manufacturers
Suppliers
Helix Medical
NDC
Precision Concepts
SMC Ltd.
Tekniplex
TEGRA Medical
Vention Medical
AdvancedCath
Applied Medical Precision
Cincotek
G.Rau
International Precision Molds
Kelpac Medical
MedConx
Merrill’s Packaging
Micro Technologies
Microbiological Compliance
Lab
National Building Maintenance
Neometrics
Nelipak
Oberg Industries
Okay Industries
Penn United
Precision Wire Components
Prent
Specialty Coating Systems
Veridiam Medical
2011
2010
1991
2011
2013
2010
2004
Sterilization
Sterigenics
Synergy Health AST
2010
2008
Others
Amoena
Proquinal
*Year of establishment in Costa Rica
1996
2004
2013
2012
2012
2012
2006
2001
2007
2010
1999
2012
2013
2012
2005
2002
2012
2007
2008
2012
2006
2005
Food Industry
Sensient
Frutilight
PaniFresh
Light Manufacturing
2009
2013
2014
Medical Services
Projects
Clinica Zahha
GLC Health
*Year of establishment in Costa Rica
2011
2012
Greif
Rawlings
Euroconcretos
Proquinal
Relaxtech
ADS Mexicana
Gualapack
Racewear Manufacturing
Organizacion Corona
Bekaert
Kimberly Clark
1994
1995
2004
2004
2011
2012
2012
2012
2013
2014
2014
Our people make the difference a/
AGE STRUCTURE BY GENDER
(thousands)
• Population as of July 2013:
– 4.7 million
– 34% of the population is 15 to 34 years old
– GDP per capita PPP, 2013: US$12,874
80 +
71 - 80
51 - 70
• Labor force 2013: 2.21 million
36 - 50
– Female labor force (% total labor force):
39.4%
– Unemployment, 2013: 8.5%
15 - 35
0 - 14
(1,000)
1,000 (750)
750 (500)
500 (250)
250
00
250
250
500
500
750 1,000
1,000
750
Notes:
a/:
Data for 2010-13 comes from a new
National Survey. This survey has a different
methodology than the previous years surveys,
making the results not directly comparable.
• Universal Health Care and Education
System
– Pillars of the national stability:
• Health: 10.9% of GDP
• Education: 7.1% of GDP
Labor pool will likely reach 2.5 million
people in 2017
Labor Pool (Million people)
2.3 - 2.4
2,02
2,06
2,12
2,05
2,15
2,18
2,21
Gross participation rate will increase from 47% in 2013
to 52% in 2017
Source: CINDE based on data from the National Statistics Institute
Note: 2014 – 2017: Forecast
2.4 - 2.5
Our human capital is ranked 35th, the highest in Latin
America
Human Capital Index
Latin American Rank
Costa Rica
1
2
Chile
Panama
3
Uruguay
4
Brazil
5
6
7
8
Mexico
Ecuador
Argentina
Colombia
9
10
Peru
Guatemala
El Salvador
Nicaragua
Dominican Republic
Paraguay
Bolivia
Honduras
Venezuela
11
12
13
14
15
16
17
18
The good performance of Costa Rica is based on:
•
Strong tradition of ensuring adequate levels of health
and well-being (ranked 30th)
•
High levels of education (ranked 39th )
•
Provide opportunities to its employees (ranked 28th).
Source: World Economic Forum. The Human Capital Report 2013.
Costa Rica is considered one of the countries
with the highest human development worldwide
Human Development Index
United States
0,937
Canada
0,911
Chile
0,819
Argentina
0,811
Panama
0,78
Mexico
0,775
Costa Rica
0,773
Malaysia
0,769
Peru
0,741
Brazil
Colombia
0,730
0,719
Dominican Republic
0,702
China
0,699
Paraguay
Philippines
0,669
0,654
The HDI combines normalized measures of life expectancy, literacy,
educational attainment, and GDP per capita for countries worldwide
Source: United Nations. Human Development Report 2013
Our educational system is ranked 20th, the highest in
Latin America
Quality of the Educational System
Rank
Ireland
Canada
Malaysia
Costa Rica
United States
India
Philippines
China
Chile
Panama
Spain
Thailand
Colombia
Argentina
El Salvador
Mexico
Uruguay
Brazil
Peru
Adult Literacy Rate
Rate (%)
5
10
19
20
25
33
40
54
74
75
77
78
86
104
109
119
120
121
134
Source: World Economic Forum.
The Global Competitiveness Report 2013 - 2014
Canada
Ireland
United States
Chile
Uruguay
Argentina
Spain
Costa Rica
Philippines
China
Panama
Thailand
Colombia
Malaysia
Mexico
Brazil
Peru
Dominican Republic
El Salvador
India
99,0
99,0
99,0
98,6
98,1
97,8
97,7
96,2
95,4
94,3
94,1
93,5
93,4
93,1
93,1
90,3
89,6
89,5
84,5
62,8
Source: United Nations.
Human Development Report 2013
Education is free and mandatory since 1870
Elementary/
Primary
• Begins at kindergarten
Secondary
(High School)
In public education, there are
two systems:
Tertiary
(University and
Community College)
• Includes two-year technical
degrees
• Total of 6 grades
– Academic Curricula: 5 years
th
th
• Students usually graduate at (7 to 11 grades), students
usually graduate at age 17
age 12
• More than 90% of
institutions are public
Source: Ministry of Public Education
– Technical Curricula: 6 years
(7th to 12th grades)
specializing and graduating
with a technical degree,
students usually graduate at
age 18
• 4-year bachelor’s degree
programs
• Master’s PhD,
Specialization programs
Technical High Schools
• 128 institutions
• More than 77,000 students enrolled
Technical High-School Graduates
(thousands)
6.5 - 6.8
5,2
5,7
5,9
5,3
5,7
5,4
5.9
5.9 - 6.2
• 56 different specialties in 3 areas of
expertise (services, industrial, and
agribusiness)
• 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:
Source: CINDE based on data from Ministry of Public Education
Note: 2013-2017 Forecast
Accounting, Banking & Finance, Computer
Programming, Electromechanics,
Electronics, Graphic Design, Industrial
Electronics, Industrial Maintenance,
Logistics and Distribution, Network
Informatics, Precision Mechanics,
Production and Quality Control, Software
Development Informatics, among others
Universities
• Total of 60: 5 public, 55 private
• Public Universities:
–
–
–
–
–
University Graduates
Universidad de Costa Rica
Instituto Tecnologico de Costa Rica
Universidad Nacional
Universidad Estatal a Distancia
Universidad Tecnica Nacional
(thousands)
62 - 68
53 - 57
45
• Private Universities:
–
–
–
–
–
–
–
–
–
38
32
ULACIT
Universidad Creativa de Costa Rica
Universidad Fidelitas
Universidad Hispanoamericana
Universidad Internacional de las
Americas
Universidad Latina
Universidad Veritas
Universidad CENFOTEC
UCIMED, UNIBE (Specialized in Medical
and Life Sciences)
• INCAE: #1 Business School in Latin
America (America Economia, 2013)
48
40
34
Source: CINDE based on data from CONARE & Universities’ Registry
Departments
Note: 2013-2017 Forecast
Breakdown of university graduates yearly a/
• Total University Graduates in 2012: 44,575
Education
20%
•
Others; 3.153
Economics & Business
Administration
23%
PhD; 75
Social Sciences
13%
> 4 years college
37,151
Master Degree; 4.196
Others
9%
Health Sciences
12%
Engineering
6%
Source: CONARE, 2013
Note: Percentage from total of graduates
a/ Last available 2012.
70% of total
diplomas
granted are
from private
universities
Strong academic background in public universities
• Universidad de Costa Rica (UCR): Established in 1940. Largest university in the country
– 7 campuses and 37,600 active students
– Approximately 4,500 diplomas granted every year in 365 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 Tecnologico de Costa Rica (TEC): Established in 1972
– 4 campuses and 8,000 active students
– Approximately 1,500 diplomas granted every year in 23 different careers, including: Biotechnology,
Business, Industrial Maintenance, Electromechanical, Electronic, Computer, and Environmental
Engineering
• Universidad Nacional (UNA): Established in 1973
– 3 campuses and around 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 Tecnica 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
32,019 people trained in Technical areas
by INA yearly a/
• Main areas:
– Industry: Electronics, Material
Technology, Metal Mechanics, Plastics
Specialized
Technician
2.9%
– Graphic Industry: Design, Multimedia,
printing
Others
3.2%
Technician
25.6%
Qualified
Worker
68.3%
– Trade and Services: Business
Administration, Informatics &
Communications, Marketing, among
others
• 60 facilities nationwide
• Training services: Standard (2 years
technical degree), tailor made programs (upon
company’s request), complementary courses
for accreditation
Source: CINDE based on data from National Training
Institute, 2013.
Notes: a/ Last available 2012.
• INA works side by side with the industrial
sector developing new programs and
reviewing the existing ones
Now we are taking actions to speak to the
world...
Government Commitment
English is promoted at every
level of the educational
system, both at private and
public institutions
Costa Rica Multilingual
A comprehensive
program to become a
bilingual country by 2017
Second phase:
Portuguese and
Mandarin
INA
Free language
training offered to
promote language
capabilities
nationwide.
Language
capabilities
Universities and Private
Language Institutes
Language courses offered
nationwide: English,
French, Italian, Mandarin,
German, Portuguese,
among others
Strategic allies
CINDE – Academia –
Private Sector
English improvement
programs, such as
Tools for Success
An educational system evolving to meet the market
demands
Year 2005
2012
• 85% of Primary School students
attend English lessons
70.5% of Primary School students
• The coverage increased 45%
attended English lessons
• English lesson had an important
increase in areas outside the
Greater Metropolitan Area.
Symbology
English Program mode in Primary School
●Distance Learning
●Presence Learning
Source: Estado de la Nación, UCR, PRODUS and ETS, 2013
Costa Rica ranks:
• First in Latin America in TOEIC test (694
points)
• Second in Latin America en TOEFL iBT
(93 points)
Academic Collaboration
Technical English
Program for Service
Centers
Developed by INA and
contact center companies in
2005.
Current results: more than
870 graduated in 2011, and
1,125 enrolled in 2012.
1,000 additional graduates
expected every year.
Academic Collaboration
Technical English
Program for Service
Centers
Computer Engineering – new
career
Developed by the Instituto
Tecnologico 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 2012.
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: Over 1,100
graduates since 2008.
More than 1,800 students
enrolled in 2012.
Academic Collaboration
Technical English
Program for Service
Centers
Computer
Engineering
Service Center
Executive (new
specialization area)
Technical High Schools
(secondary)
• Bilingual Accounting: New
specialization area started in
2009. More than 50 graduates
expected for 2012.
Academic Collaboration
Technical English
Program for Service
Centers
Technical High Schools
(secondary)
Computer
Engineering
• Bilingual Information
Technologies (new
specialization area)
Focus areas: programming,
network, and technical support.
Service Center
Executive (new
specialization area)
Implementation in 2010
Bilingual Accounting
(new specialization
area)
Academic Collaboration
Adobe Flash-training
program (101)
Technical English
Program for Service
Centers
Launched in 2008
Current results: first 100
graduates and direct hires by
avVenta (Interactive Agency
with operations in Costa Rica).
150 additional graduates
expected every year to meet
the rest of the industry
demand.
Computer
Engineering
Service Center
Executive (new
specialization area)
Bilingual Information
Technologies (new
specialization area)
Bilingual Accounting
(new specialization
area)
Academic Collaboration
Technical English
Program for Service
Centers
Computer
Engineering
Tools for Success
English scholarships for
technical high school students
from low income families
Current results:
2012: More than 1,000 total
scholarships granted (4
generations).
Service Center
Executive (new
specialization area)
Adobe Flash
training program
(101)
Bilingual Information
Technologies (new
specialization area)
Bilingual Accounting
(new specialization
area)
Stable employer-employees environment:
“Asociacion Solidarista”
Cooperation in labor-employer
relations
Rank
Costa Rica
14
Germany
18
Canada
31
United States
42
Chile
43
Mexico
44
Colombia
56
Panama
59
Ecuador
70
Peru
81
Brazil
87
Spain
107
Argentina
140
Costa Rica ranks 1st in Latin America
Source: World Economic Forum.
The Global Competitiveness Report 2013 - 2014
• Employer-sponsored workers’
association: operates as a credit union,
providing multiple benefits to the
employees, who can participate
voluntarily
• Both employer and employees
contribute to the fund
• They are not sector-wide bargaining
instances, unlike American unions
• 97% of the companies in the private
sector have the “Asociacion
Solidarista”. This high level of
participation is a particular tendency in
Costa Rica
• There are some similarities to a 401(k)
retirement plan, without the stock
options
The Talent Place (TTP)
•
TTP is an innovative web platform
that works as a link between
interns from technical high
schools, universities and other
technical institutions, and the
companies looking for the best
talent.
•
The platform www.thetalentplace.cr was launched end November 2013, and to date,
34 renowned companies have registered, belonging to different sectors like services,
advanced manufacturing and medical devices.
•
During its first month, 200 students registered to the platform and 10 interns were
hired by companies from areas like IT, Electric engineering, Electro mechanics and
Industrial engineering.
•
Other areas of opportunity were internships are offered are: Marketing, Research and
Development, Accounting, International Business, Mobile Systems, Technical
Support, Software Development and Social Media, among others.
Costa Rica is just a few hours away from
North America…
City
Flight Frequency
Flight Time
(hrs:min)
Atlanta, GA
Charlotte, NC
Chicago, IL
Dallas, TX
Denver, CO
Fort Lauderdale, FL
Houston, TX
Los Angeles, CA
Miami, FL
Minneapolis, IA
New York, NY
Newark, NJ
Orlando, FL
Phoenix, AZ
Daily
Twice a week
Once a week
Daily
Once a week
Daily
Daily
Daily
Daily
Once a week
Daily
Daily
Daily
Once a week
4:15
4:05
5:15
4:20
5:10
3:00
3:35
5:50
2:50
5:36
4:45
5:15
3:15
5:25
Washington, D.C.
Once a week
4:36
Montreal, Canada
Once a week
5:30
Toronto, Canada
Daily
5:25
SJO is the 4th best airport in Latin America & the Caribbean
ASQ Top Performers 2012
Juan Santamaria Intl. Airport (SJO):
123 daily flights in February, 2014
Daniel Oduber Intl. Airport (LIR):
24 daily flights in February, 2014
Source: Directorate General of Civil Aviation, 2014.
...and there is also access to the rest of the world
Flight
Frequency
Daily
Daily
Twice a week
Flight Time
(hrs:min)
2:10
2:50
13:00
Guatemala, Guatemala
Daily
1:30
Lima, Peru
Madrid, Spain
Managua, Nicaragua
Mexico DF, Mexico
Panama, Panama
San Pedro Sula,
Honduras
San Salvador, El
Salvador
Santiago, Chile
Daily
Daily
Daily
Daily
Daily
3:45
10:25
1:00
3:00
1:15
Daily
1:35
Daily
1:20
Daily
8:50
Twice a week
2:50
City
Bogota, Colombia
Caracas, Venezuela
Frankfurt, Germany
Santo Domingo,
Dominican Republic
Cancun, Mexico
David, Panama
Tegucigalpa, Honduras
Four times a
week
Three times a
week
Daily
Juan Santamaria Intl. Airport (SJO):
123 daily flights in February, 2014
Daniel Oduber Intl. Airport (LIR):
24 daily flights in February, 2014
4:05
0:50
1:55
Source: Directorate General of Civil Aviation, 2014.
International Logistics to ship high-tech goods from
Costa Rica
South America
North America
Europe and Asia
Ports of discharge:
Ports of discharge:
Ports of discharge:

United States: Baltimore,
Charleston, Jacksonville, Long
Beach, Los Angeles, New York,
Norfolk, Oakland, Philadelphia,
Savannah, Seattle


Germany: Bremerhaven,
Hamburg


Colombia: Buenaventura
Netherlands: Amsterdam,
Rotterdam, Vlissingen
Mexico: Altamira, Ensenada,
Manzanillo, Progreso, Veracruz

Chile: Iquique, San Antonio,
Valparaiso

China: Shenzhen, Shanghai

Panama: Manzanillo

Transit time: 7 – 25 days port
to port (depends on specific
destination)
5 carriers serving both ports
weekly: departing once a week
(every Friday)
Shipping cost (40’ std):
US$2,100 – US$3,300
Brazil: Rio de Janeiro, Rio
Grande, Santos, Victoria,
Salvador
Transit time: 4 – 25 days port
to port (depends on specific
destination)
3 carriers serving both ports
weekly: departing 6 times a
week
Shipping cost (40’ std):
US$2,000 – US$3,500
Source: CINDE based on data from PROCOMER, Expeditors, and DHL, 2014
Transit time: 14 – 38 days port
to port (depends on specific
destination)
5 carriers serving both ports
weekly: departing 4 times a
week
Shipping cost (40’ std):
US$1,400 – US$3,100
Your company will have exceptional
access to the world’s greatest markets
a/
• Market access: 2.5 billion
people and 66% of
worldwide GDP
EFTA
EUROPEAN
UNION
CANADA
UNITED STATES
MEXICO
• 86% of exports of goods
covered by FTAs
• Investment Promotion
and Protection
Agreements with 14
countries
CENTRAL AMERICA
PANAMA
DOMINICAN
REPUBLIC
CARICOM
COLOMBIA
PERU
CHILE
Preferential access
Note: a/: European Free Trade Association
CHINA
SINGAPORE
Costa Rica ranks 3rd among Latin American
countries in the Enabling Trade Index
Enabling Trade Index
Score
Singapore
6,14
Canada
5,22
Chile
5,12
United States
4,90
Malaysia
4,90
Qatar
4,74
Costa Rica
4,41
China
4,22
Panama
4,16
Mexico
4,08
El Salvador
3,99
Honduras
3,89
Brazil
3,79
Colombia
3,78
Argentina
India
3,68
3,55
(1-7) score, where 7 is the highest score
Source: World Economic Forum. Global Enabling Trade Report, 2012
“Costa Rica is an example of best
practices in market access, thanks
to moderate tariffs and a relatively
simple tariff structure.”
World Economic Forum, 2012
GDP per capita (PPP) growth portrays a widespread
perception of economic prosperity
16.000
14.998
14.376
• GDP per capita PPP
has grown 80% since
2000
• Poverty has been
reduced 46% in the
last 25 years
13.805
14.000
12.545
12.874
13.285
11.861
12.000
US$ / inhabitant
• GDP per capita PPP is
one of the highest in
Latin America
11.267
10.424
10.701
10.473
10.000
8.000
6.000
4.000
2.000
0
Source: CINDE based on data from IMF, October 2013.
We have a strong and world renowned tradition
of peace, democracy, and stability
Political Stability
Democracy Index
Latin American Ranking
Latin American Ranking
Uruguay
1
Costa Rica
2
Chile
3
Brazil
4
Panama
5
Mexico
6
Argentina
7
Colombia
• Army abolished in
1948
9
El Salvador
10
Peru
11
Paraguay
12
Guatemala
13
Honduras
14
Bolivia
15
Ecuador
16
Nicaragua
17
18
Source: The Economist.
Democracy Index 2012
1
Costa Rica
2
Chile
3
Dominican Republic
4
El Salvador
5
• Over 120 years of
democracy
Argentina
6
Brazil
7
Panama
8
Dominican Republic
Venezuela
Uruguay
• Presidential system
• 3 independent powers
• 4 year-term with
possibility of
reelection
8
Nicaragua
9
Honduras
10
Bolivia
11
Ecuador
12
Guatemala
13
Mexico
14
Paraguay
15
Peru
16
Venezuela
Colombia
17
18
Source: World Bank. The Worldwide
Governance Indicators 2013
San Jose is one of the most competitive cities
in Latin America for business
It comprises the following
dimensions:
• Social & political framework
• Economic framework &
Monterrey, Mexico: 13th
dynamism
Mexico City, Mexico: 3rd
• Services to companies and
their executives
San Jose, Costa Rica: 10th
Panama City, Panama: 4th
Bogota, Colombia: 7th
• Infrastructure & physical
Lima, Peru: 8th
Santiago, Chile: 2nd
connectivity
Rio de Janeiro, Brazil: 6th
Sao Paulo, Brazil:
1st
• Human capital
• Environmental sustainability
Valparaiso, Chile: 9th
Buenos Aires, Argentina: 5th
• Brand power
Source: CINDE based on data from America Economia,
Urban Competitiveness Index 2013
...and Costa Rica is the safest country
in Latin America
Costa Rica ranks 1st in the Latin Security Index
Costa Rica
Chile
Uruguay
Panama
Argentina
Nicaragua
Ecuador
Peru
Paraguay
Dominican Rep.
Colombia
Bolivia
Brazil
El Salvador
Mexico
Guatemala
Honduras
Venezuela
2
2
2
3
3
3
3
3
3
3
4
4
4
4
5
5
5
5
(1 – 5) score, where 1 is the best score possible, 5 the worst
Source: Latin Business Chronicle (FTI Consulting), 2013
Note: This index measures the countries’ insecurity based on homicide rates as well as other factors affecting
corporate security, and the safety of foreign business executives
Costa Rica ranks 1st in Latin America in the
Country Brand Index
Country Brand Index
Latin American Ranking
Costa Rica
1
Brazil
2
Argentina
3
Chile
4
Peru
5
Mexico
6
Uruguay
7
Dominican Republic
8
Panama
9
Ecuador
10
Colombia
11
Venezuela
12
Bolivia
13
Guatemala
14
Honduras
15
Paraguay
16
Nicaragua
17
El Salvador
18
Source: Future Brand. Country Brand Index 2012-2013.
The Country Brand Index is
an annual study that
examines and ranks country
brands, based on Future
Brand's proprietary research
methodology.
Costa Rica has the greatest potential for innovation in Latin
America
Pillar 12: Innovation
Rank
United States
7
Ireland
20
Canada
21
China
32
Costa Rica
35
Panama
36
India
41
Chile
43
Brazil
55
Mexico
61
Colombia
74
Uruguay
82
Argentina
104
Peru
113
Source: World Economic Forum.
The Global Competitiveness Report 2013-2014
• Costa Rica ranks 1st in Latin
America in innovation according
to the World Economic Forum
• The Index takes into account
variables such as:
– Capacity for innovation
– Quality of scientific research
institutions
– Company spending on research
and development (R&D)
– University-industry collaboration
in R&D
– Government procurement of
advanced technology products,
among others
Foreigners have equal rights and obligations
Prevalence of foreign ownership
Score
• Foreigners have no limits to
property handling and they
can
conduct
business
activities freely
• Free capital movement, no
foreign exchange controls
Ireland
Panama
Canada
Chile
Uruguay
Costa Rica
Mexico
Peru
Germany
Malaysia
United States
Spain
Philippines
Thailand
Argentina
Brazil
Colombia
India
5,9
5,7
5,6
5,6
5,6
5,5
5,3
5,2
5,1
5,1
5
5
4,8
4,7
4,6
4,5
4,4
4,3
Foreign ownership of companies in the country is:
1=rare and limited
7=prevalent and encouraged
Source: World Economic Forum.
The Global Competitiveness Report 2013 - 2014
Costa Rica ranks 3rd in IPRI in Latin America;
protection of intellectual property is a priority
• It is guaranteed by the National Constitution
International Property Rights Index
(IPRI)
Latin American Ranking
• Modern protection mechanisms meet
international standards
• Protected areas include
–
–
–
–
–
–
Copyrights
Trade Marks
Encrypted Program-Carrying Satellite Signals
Industrial Designs
Patents
Geographical Indications
• IPRI measures 3 core components
– Legal and Political Environment
– Physical Property Rights
– Intellectual Property Rights
Chile
Uruguay
Costa Rica
Panama
Brazil
Mexico
Colombia
Peru
El Salvador
Honduras
Guatemala
Bolivia
Argentina
Dominican Republic
Ecuador
Nicaragua
Paraguay
Venezuela
1
2
3
4
4
6
6
8
9
9
11
11
13
13
13
16
17
18
Source: Property Rights Alliance 2013
Paying taxes
in Costa
Paying
taxesRica
in Costa Rica
Costa Rica taxes/others
Corporate income tax
Custom duties on
imports/exports
Sales tax
Stamp duty
Property taxes
Property transfer tax
Municipal patent license
Withholding tax on royalties,
fees, dividends
Tax on interest income
Statutory
30%
Free Trade Zone Regime
Free Zone holiday for full / partial income tax exemption
for 8 / 4 years* with the possibility of renewing this
exemption period multiple times upon reinvestment
Varies depending on product 100% exemption
13%
1%
0.25%
1.5%
0.3%
100% exemption on local purchase of goods/services
100% exemption
100% exemption for a 10 year period
100% exemption for a 10 year period
100% exemption for a 10 year period
up to 25%
100% exemption
8%
100% exemption
None
Limitation on expats in country
Tax on expats
All Costa Rican residents and non-residents working within the Costa Rican 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 INA
Manufacturing:
* 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.
The country’s Free Trade Zone Regime provides
tax incentives
Free Trade Zone Regime: Main Requirements
Main requirements
Minimum export level
(a)
Manufacturing firms under Law 7210
75%
Belong to a strategic sector
Not required
Minimum employment level
Not required
Minimum required investment (1)
US$150,000
• Minimum export level is mandatory. Manufacturing firms in FZR are registered under (a)
classification. This classification will be granted until 2015 (or later if WTO renewal extension
is approved)
• A manufacturing firm in FZR under (a) classification may switch to (f) classification (Law
8794) to enjoy new/additional incentives
• (1) US$150,000 in fixed assets within FZ Park or US$2,000,000 outside FZ Park
Free Trade Zone Regime: Main Requirements
Main requirements (1)
Minimum export level
Belong to a strategic sector (2)
Minimum employment level
Minimum required investment
•
(f)
Manufacturing firms under Law 8794
Small / mid scale projects
Large scale projects
Not required
Not required
Yes
Yes
Not required
100
US$150,000 (3)
US$10,000,000 (4)
Other administrative requirements to be fulfilled (international mobility of investment, not a taxpayer in Costa Rica)
(1) For projects in Greater Metropolitan Area (GMA). See details for projects outside GMA. See details for a significant supplier.
(2) For example: Advanced Manufacturing and Life Sciences projects, R&D activities, Innovation projects.
See details for strategic sectors.
(3) US$150,000 in fixed assets within FZ Park or US$2,000,000 outside FZ Park
(4) Investment in depreciable fixed assets (land is not included). Company must comply with an investment plan to be accomplished
between 1 and 8 years; which could be reached at any time during the 8 year period. Upon completion, PROCOMER will verify the $10MM
investment in fixed assets according to its value in books for the current fiscal year. Additionally, once the company has complied with the
investment plan, the company must maintain the fixed assets which were part of the plan. Substitution of the fixed assets is permitted only if
the new depreciable assets have the same value in books as the fixed asset to be replaced when the investment plan was completed.
Free Trade Zone Regime: Main Incentives
Period of
Time
(a) Law 7210
(f) Law 8794
Small / mid scale
projects*
(f) Law 8794
Large scale
projects*
8 years
0%
6%
0%
4 years
15%
15%
15%
Income tax credit
No limit
Not available
10%
10%
Income tax deferral
No limit
Not available
Not available
Up to 10 years
Income Tax Incentives
Income tax
(statutory income tax = 30%)
Period of
Time
(a) Law 7210
(f) Law 8794
Small / mid scale
projects
(f) Law 8794
Large scale
projects
Import duties
No limit
100% exemption
100% exemption
100% exemption
Excise taxes
No limit
100% exemption
100% exemption
100% exemption
Remittances repatriation tax
No limit
100% exemption
100% exemption
100% exemption
Other Incentives
* Additional 8-year renewal may be granted if significant reinvestment is made (Article 20 bis)
Free Trade Zone Regime: Other Considerations
• PROCOMER a/ Monthly Fee for Manufacturing Companies:
Industrial Building b/
(m2)
Inside Industrial Park
(US$ / m2)
Outside Industrial Park
(US$ / m2)
0 - 5,000
0.25
0.50
5,001 - 7,500
0.20
0.40
7,501 - 10,000
0.15
0.30
10,001 or more
0.125
0.25
• Environmental Guarantee Deposit: 1% of the total investment
• PROCOMER Guarantee Deposit: Minimum US$5,000
Notes:
a/: The Costa Rican Foreign Trade Corporation.
b/: Industrial building does not include areas for rest rooms, locker rooms, cafeteria, parking lots,
among others.
c/: Metric Conversion: 1 m2 = 10.76 ft2
Services Sector
Free Trade Zone: A tax-free regime
Fiscal Incentives
Period of Time
Tax
Income tax
(statutory income tax = 30%)
8 years*
0%*
4 years
15%
Remittances repatriation tax
No limit
0%
Local sales tax (13%)
No limit
0%
Import, export, excise taxes
No limit
0%
Requirements
Fixed assets investment of US $150,000 within FTZ
Park or $2,000,000 outside FTZ Park
Time Frame
Within the first 3 years of operation
• Additional 8-year renewal may be granted if significant reinvestment is made (Article 20 bis)
• Export requirement: At least 50% of the services must be exported
Services Sector
Free Trade Zone: Other considerations
Export requirement
At least 50% of the services must be
exported
PROCOMER a/ monthly fee
0.30% of the total monthly sales
(in US$)b/
Environmental Guarantee Deposit
1% of the total investment
PROCOMER Guarantee Deposit
Minimum US$5,000
Notes:
a/:
b/:
The Costa Rican Foreign Trade Corporation.
In any case the PROCOMER monthly fee minimum is US$200
There are several industrial parks and business
centers located around the country
Costa Rica offers a solid utilities infrastructure...
•
Electricity
– More than 90% of electricity is generated
from renewable sources (hydroelectric,
geothermal, biomass, and wind)
– Competitive electricity rates – Mid-tension
(US$ / kWh)
Period
Rate
Peak
Valley
Night
0.10 - 0.14
0.05 - 0.06
0.03 - 0.05
Peak Period: 10:01 to 12:30 and 17:31 to 20:00
Valley Period: 6:01 to 10:00 and 12:31 to 17:30
Night Period: 20:01 to 6:00
Source: Official Gazette No 246, December 2013
Note: Exchange rate: 1US$ = 506.02 colones
Electricity availability is assured
Quality of electricity supply
Score
• Country’s currently installed capacity
(2,736 MW) will be increased in more
than 57% by 2020 (up to 4,300 MW)
• Private production of electricity will
increase in more than 250 MW during
the next three years
• Several
industrial
parks
have
redundancy through the connection to a
second electrical substation within the
national interconnected system
Ireland
Spain
United States
Germany
Uruguay
Costa Rica
Panama
Thailand
Colombia
Chile
China
Peru
Brazil
Mexico
Philippines
India
Argentina
6,5
6,4
6,2
6,1
5,6
5,6
5,4
5,2
5,2
5,2
5,1
4,9
4,8
4,7
4,0
3,2
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 2013 - 2014
Costa Rica offers a solid utilities infrastructure...
Telecommunications:
• Redundant fiber optic submarine cables (Maya, Arcos, and Pacific Global
Crossing)
• Satellite and terrestrial microwave network in place to meet demand in fixed,
mobile, and Internet services
• Currently, more than 100 companies are authorized by the Regulatory
Authority (SUTEL) to offer services in telecommunication
Industrial parks provide abundant water
Public infrastructure concessions
are improving roadways and ports
• Juan Santamaria
International Airport won
“the Best Improvement
Award” in Latin America
& the Caribbean
(ASQ Top Performers 2010)
• Caldera Highway
connects the GMA with
Port Caldera.
Inaugurated in Jan, 2010
• Ongoing plans to
remodel the Limon and
Moin ports
(Atlantic Coast)
Source: Ministry of Public Infrastructure and Transportation,
National Council for Public Concessions, 2012
Costa Rica has ports in the Caribbean and the
Pacific coasts
Port Limon & Moin
•1,045,215 TEUS
•Ranks 11th in Latin
America by volume
•Distance from San Jose:
153 km (95 miles)
San Jose
Port Caldera
•184,315 TEUS
•Ranks 39th in Latin
America by volume
•Distance from San
Jose: 78 km (48 miles)
TEU: Twenty foot equivalent unit
Source: Container Port Movements Ranking, ECLAC 2012
Costa Rica leads social progress in Latin America
Social Progress Index
Rank
Canada
4
United States
6
Japan
8
Costa Rica
12
Chile
14
Argentina
15
Brazil
18
Colombia
21
Dominican Republic
21
Peru
24
Mexico
25
Phillipines
26
Paraguay
27
China
32
India
“Social progress is the capacity of a society to
meet the basic human needs of its citizens,
establish the building blocks that allow citizens
and communities to enhance and sustain the
quality of their lives, and create the conditions
for all individuals to reach their full potential.”
43
Source: Social Progress Imperative. Social Progress Index, 2013
Social
Progress
Index
Basic Human
Needs
Foundations
of Wellbeing
Opportunity
Costa Rica has high standards of quality of life
•
San Jose ranks fourth in quality of
life in Latin America. The country’s
capital maintains a leadership over its
competitors, such as Brazil, Panama,
Mexico, India, and Colombia
(The Economist Intelligence Unit. August 2013)
•
Since 2009, ranks 1st in The Happy
Planet Index (New Economic Foundation.
The Happy Planet Index 2012)
•
Top 5 of the best places to retire
abroad (TopRetirements.com, 2013)
Costa Rica is leader in gender equality in Latin
America
Gender Inequality Index
Overall ranking
Costa Rica
62
Chile
66
Uruguay
69
Argentina
71
Mexico
72
Peru
73
• The index takes into account 5 pillars
in gender equality:
El Salvador
82
Ecuador
83
Brazil
85
–
–
–
–
Maternal mortality ratio
Adolescent fertility rate
Seats in national parliament
Population with at least secondary
education
– Labor force participation rate
Colombia
88
Nicaragua
89
Venezuela
93
Paraguay
95
Bolivia
97
Honduras
100
Panama
108
Dominican Republic
109
Guatemala
Source: Human Development Report, 2013
114
Health care infrastructure accomplish international
standards
Best Hospitals and Clinics
Latin American Ranking
Hospital Israelita Albert Einstein (Brazil)
1
Clinica Alemana (Chile)
2
Hospital Universitario Austral (Argentina)
3
Fundacion Valle de Lili (Colombia)
4
Hospital Samaritano (Brazil)
5
Hospital Clinica Biblica (Costa Rica)
9
Hospital Pablo Tobon Uribe (Colombia)
12
Policlinica Metropolitana (Venezuela)
13
Medica Sur (Mexico)
16
Clinica Angloamericana (Peru)
Hospital Alberto Hurtado (Chile)
Source: America Economia, December 2013
• 3 accredited hospitals by Joint
Commission International
–
–
–
Hospital Clinica Biblica
Hospital CIMA
Hospital La Catolica
10
Hospital Aleman (Argentina)
Hospital San Rafael de Alajuela (Costa Rica)
• Hospital Clinica Biblica ranks among the
top ten Best Hospitals and Clinics in
Latin America.
21
44
45
• 6 accredited medical clinics by
American Association for Accreditation of
Ambulatory Surgical Facilities
–
–
–
–
–
–
Clinica Cirugia Plastica Pino
Clinica Odontologica Feinzaig
Clinica Oftalmologica 20/20
Clinica Unibe
New Smile Dental Group
Prisma
Costa Rica: Presenting opportunities for
multinational companies to drive global efficiencies
across multiple sectors and business units
Connecting Business
Central Gate is a promotion strategy helping foreign
companies find the right partner for their BPO and ITO
projects in Costa Rica.
• There are currently 35 outsourcing vendors part of this service provider list. All
Central Gate vendors have experience catering to international clients.
• The areas of services represented include: Contact Center, Back Office,
Software Development, IT Support & Engineering, Digital Production, and Legal
Process Services.
• 40% are locally owned and operated vendors. This list also includes worldrenowned service providers such as IBM and HP.
• Central Gate is a corporate member of the International Association of
Outsourcing Professionals (IAOP), to promote industry best practices and
certification programs.
Other Initiatives:
•
Specialized event in the Life Sciences Sector that
brought together over 300 representatives from medical
device manufacturers, suppliers, service providers,
consulting firms, contractors, etc.
•
The event agenda included discussion sessions, track
sessions, conferences and panels, and also site visits to
production plants of medical device companies.
•
The 2013 edition gathered more than 400
representatives from leading companies in the industry.
The exhibition floor held more than 50 booths
showcasing the newest and most innovative products.
Eight medical device manufacturers collaborated with
plant tours.
•
For more information on its 2014 edition please contact
bpiza@cinde.org
Life Sciences Forum
April 7-9, 2014
Great Potential
1st High-Tech exporter of industrial products in Latin America,
4th worldwide
CINDE based on data from the World Development Indicators 2013, World Bank
1st Country for future FDI in Central America and the Caribbean
Financial Times: FDI Intelligence, 2013
1st Outsourcing City of Latin America (San Jose)
Top 100 Outsourcing Destinations 2014, Tholons
The top choice among Latin America countries for establishing
a Global Business Services Center
The Hackett Group, 2013
Top seven City for future FDI in Latin America (San Jose)
Financial Times: FDI Intelligence, 2013
Great Potential
1st High-Tech exporter of industrial products in Latin America,
4th worldwide
CINDE based on data from the World Development Indicators 2013, World Bank
1st Country for future FDI in Central America and the Caribbean
Financial Times: FDI Intelligence, 2013
1st Outsourcing City of Latin America (San Jose)
Top 100 Outsourcing Destinations 2014, Tholons
The top choice among Latin America countries for establishing
a Global Business Services Center
The Hackett Group, 2013
Top seven City for future FDI in Latin America (San Jose)
Financial Times: FDI Intelligence, 2013
Why Costa Rica?
• Currently, more than 250 high tech multinational companies are
operating in Costa Rica
• Exceptionally talented and bilingual young workforce. On
average 95% of the employees in multinational companies are
local
• Preferential access platform to 1/3 of the world’s population,
and 2/3 of the worldwide GDP. 87% of exports of goods
covered by FTAs
Why Costa Rica?
• Excellent business climate based on a renowned democratic
tradition, economic and political stability
• Solid infrastructure. More than 90% of energy is renewable.
Redundant telecommunications access
• Quality of life in Costa Rica is high. Safest country in Latin
America.
Contact Us
CINDE Costa Rica Toll free number from US: 1-877-992-4633
invest@cinde.org
Ph: (506) 2201-2800 Fax: (506) 2201-2867
cindeny@cinde.org
CINDE New York Ph: (212) 984-0631 Fax: (212) 220-6499
www.cinde.org
Thank You!
Let’s talk about success stories
INTEL Manufacturing
INTEL SS
Leader in the microprocessor and
semiconductor markets
Start-up operations: 2005
Employees: 1,000
Services delivered: HR, F&A, IT
support, purchasing, customer support,
marketing, and software development
Languages: English, Spanish,
Portuguese, French, German, Mandarin
and Malay
Facts: Intel centralized its Engineering
Development Center for design, testing,
development and software validation
Start-up operations: 1997
Employees: 1,800
Products exported: Microprocessors
Exports Destination: Worldwide
Industrial Building: 76,004 m2 / 818,100 ft2
Facts: Intel is the #1 exporter of Costa Rica.
All processors for servers worldwide are
manufactures in Costa Rica
Let’s talk about success stories
SYKES
A global leader in providing customer contact
management solutions and services in the
business process outsourcing (BPO)
Start-up operations: 1998
Employees: 3,500
Services delivered: Outsourcing operation that
offers customer care and technical support
Facts: Sykes is a pioneer company in the service
sector in Costa Rica. After 13 years operating in
the country, the company has consolidated its
presence through 3 different facilities.
Let’s talk about success stories
Accenture
A digital production and interactive marketing
services agency
Start-up operations: 2005
Employees: 800
Services delivered: Digital Production:
Outsourcing Operations for Multimedia, Web
Design, and Animation and conceptualization
campaigns
Facts: Accenture Costa Rica became the
Digital Production Center of Excellence in
Central America.
Let’s talk about success stories
VITEC
Start-up operations: 1986
Employees: 185
Products exported: Tripods and Center Ball
Head
Exports Destination: United States, Germany,
and England
Industrial Building: 3,678 m2 / 39,589 ft2
Facts: They stared with light assembly and
throughout the years they have brought more
complex operations and now at this facility they
manufacture for their three main brands: Oconnor,
Sachtler, and Vinten. Currently 50% of
components are sourced locally.
Let’s talk about success stories
TRIMPOT
Start-up operations: 1979
Employees: 646
Products exported: Electronic & Electrical
Components for Industrial, Automotive, and
Medical use
Exports Destination: United States, Europe,
and Asia
Industrial Building: 14,610 m2 / 157,260 ft2
Facts: TRIMPOT manufactures in Costa Rica
7 of their 10 top selling potentiometers.
Let’s talk about success stories
EXPERIAN
A global leader in providing information, analytical
tools and marketing services to organizations and
consumers
Start-up operations: 2008
Employees: 450
Services delivered: Data mining/processing,
Software Development, IT Helpdesk, IT Security
Administration
Languages: English and Spanish
Let’s talk about success stories
BAXTER AMERICAS
BAXTER
Start-up operations: 1987
Employees: 1,250
Products exported: IV Sets, Feeding Sets
& Accessories
Exports destination: United States
Industrial Building: 16,435 m2 / 176,904 ft2
Facts: Baxter is the pioneer company of
the MD sector, growing every year into
higher value-added products. The CR plant
has won two international prizes (Shingo
and Patterson Awards). It has in-house EBeam sterilization.
A global medical products and services
company with expertise in medical devices,
pharmaceuticals and biotechnology
Start-up operations: 2005
Employees: 206
Services delivered: Finance and Accounting
for the Americas
Languages: English and Spanish
Facts: Baxter Americas is centralizing financial
operations for Brazil and Mexico.
Let’s talk about success stories
P&G
The world's top maker of household products
courts market share and billion-dollar names
Start-up operations: 1999 (GBS) / 2008 (BTC)
/ 2013 (Regional Supply Chain Planning)
Employees: 1,500
Services delivered: Finance and Accounting,
ITO and Business Transformation Center,
Regional Supply Chain Planning Center for
Latin America
Languages: English, Portuguese, and Spanish
Facts: P&G Business Transformation Center
centralized Information Decision Services in
Costa Rica. As of 2013, it was announced that
the company will be hiring 500 new employees
in areas related to engineering, logistics, and
customs, and investing US$5 million
Let’s talk about success stories
HEWLETT-PACKARD
The world’s largest technology company, HP brings together
a portfolio that spans printing, personal computing, software,
services and IT infrastructure
Start-up operations: 2004
Employees: 6,544
Services delivered: Finance and Accounting, Technical
Support & IT Infrastructure and HP Networking: the first R&D
center established out of the US in charge of Chip design for
Ethernet equipment, design of embedded software for
wireless equipment and design of the last generation of
chipsets.
Software & Hardware Testing
Languages: English, Spanish, Portuguese, French, Italian,
and German
Facts: HP is the second largest private employer in Costa
Rica centralizing BPO, ITO, and KPO functions
Let’s talk about success stories
HOSPIRA
Start-up operations: 1999
Employees: 2,200
Products exported: IV Sets, Components &
Accessories, and Electromechanical Infusion
Pumps
Exports destination: America, Africa, Asia,
Australia, and Europe
Industrial Building: 61,057 m2 / 657,212 ft2
Facts: Hospira ranks #2 in the country's main
exporters, and #1 in the industry. It consolidated
most of the procurement locally.
Let’s talk about success stories
BOSTON SCIENTIFIC – CR2 Coyol
BOSTON SCIENTIFIC – CR1 Heredia
Start-up operations: 2004
Employees: 537
Products exported: Class II and III
cardiovascular devices
Exports destination: United States
Industrial Building: 10,033m2 / 107,994 ft2
Facts: BSci is one of the fastest growing
companies. It retrofitted the initial plant for new
transfers
Start-up operations: 2009
Employees: 1,776
Products exported: Minimally invasive devices for
Endoscopy and Urology applications (biopsy
forceps, polypectomy snares, stents)
Exports destination: United States
Industrial Building: 31,866 m2 / 342,002 ft2
Facts: It manufactures 100% of the snares in CR,
and about 90% of the biopsy forceps. BSci CR2 is
the first LEED certified company in Latin America.
Let’s talk about success stories
WESTERN UNION
A leader in global money transfer and payment
services
Start-up operations: 1998
Employees: 934
Service provided: Finance and Accounting
Shared Services, Global Telecommunications
Networking, Software Development, Contact
Center, Technical Support, Agent Service Support
and Talent Management
Languages: English, Spanish, German, French,
Portuguese, Italian, Mandarin, Cantonese,
Russian and Persian
Facts: Western Union Costa Rica became the
global service center of excellent for the
Corporation servicing the Americas, Europe,
Middle East and Africa.
Let’s talk about success stories
HOLOGIC
Start-up operations: 2004
Employees: 520
Products exported: Diagnostic Devices for Women’s
Healthcare. Its star device -the NovaSure- is
manufactured only in CR.
Exports destination: United States
Industrial Building: 14,647 m2 / 157,659 ft2
Clean room area: 2,550 m2 / 27,450 ft2 for Class 7 &
8 Clean Room
Facts: Hologic started as Novacept with an
outsourcing project in year 2000. The company has
expanded in size and complexity of products.
Let’s talk about success stories
ST. JUDE MEDICAL
Start-up operations: 2010
Employees: 920
Products to export: 7 in production/export mode
including biological tissue heart valves,
pressurewire, renal denervation catheters, and
vascular sealer. 6 more products to be introduced
during 2013-2014.
Exports destination: Europe and USA
Industrial Building: 20,000 m2 / 215,280 ft2 –
Clean Room area: 6,000 m2 / 64,583 ft2 for Class
7 & 8 Clean Room
Facts: The CR facility will be the first multi
divisional plant for St. Jude Corp. There will be a
Global Physician Training Center implemented.
Let’s talk about success stories
IBM
World’s top provider of computer products and
services
Start-up operations: 2004
Employees: 1,600
Services delivered: BPO, Human Resources,
CRM, Marketing, and Customer Service Functions
Languages: English, Spanish, French, and
Portuguese
Facts: IBM delivers services to over 30
multinational clients from Costa Rica.
IBM Global Delivery Services Center
for Information Technology
Start-up operations: 2012
Employees: 1,000 by 2014
Services delivered: Global IT, Cloud Computing,
Database Management, Storage & Security, ERP
Support, Project Management, Business Analytics,
Server Management
Languages: English, Spanish, French, and
Portuguese
Facts: The operation in Costa Rica will service
IBM Fortune 500 clients
Let’s talk about success stories
ARTHROCARE
Start-up operations: 2002
Employees: 1,100
Products exported: Coblation-based devices for
specialties including arthroscopy; spine and
neurology, and ENT.
Exports destination: United States and Europe
Industrial Building: 4,430 m2 / 47,684 ft2
Clean Room area: 1,080 m2 / 11,625 ft2 for Class
7 Clean Room
Facts: The Costa Rican plant is their sole
manufacturing facility. It also has a small services
operation in-house.
Let’s talk about success stories
EMERSON ELECTRIC
A global leader in bringing technology and
engineering to provide innovative solutions for
industrial, commercial, and consumer markets
through its network power, process management,
industrial automation, climate technologies, and
tools and storage businesses.
Start-up operations: 2008 Engineering Center/
2009: Shared Service for F&A
Employees: 640
Services delivered: Process Engineering
Services, Finance and Accounting
Languages: Spanish, Portuguese and English
Facts: Only two years after opening its first
operation in Costa Rica, Emerson inaugurated its
shared services operation center.
Let’s talk about success stories
ALLERGAN
Start-up operations: 1999
Employees: 608
Product exported: : Breast aesthetics (#2 in the
global market leadership) and obesity intervention
devices (ranks #1 in the gastric banding leadership
with 70% of market share).
Exports destination: United States, Europe, Asia
Pacific, and Australia
Industrial Building: 13,200 m2 / 142,083 ft2
Facts: It consolidated the manufacturing of breast
implants in CR, including shell fabrication- Class III
FDA regulated. It is the second largest MD exporter.
Free Trade Zone Regime (outside GMA)
Main Requirements
Main requirements
Minimum export level
(a)
Manufacturing firms under Law 7210
75%
Belong to a strategic sector
Not required
Minimum employment level
Not required
Minimum required investment (1)
US$100,000
• GMA stands for Greater Metropolitan Area
• Minimum export level is mandatory. Manufacturing firms in FZR are registered under (a)
classification. This classification will be granted until 2015 (or later if WTO renewal extension
is approved)
• A manufacturing firm in FZR under (a) classification may switch to (f) classification (Law
8794) to enjoy new/additional incentives
• (1) US$100,000 in fixed assets within FZ Park or US$500,000 outside FZ Park
Free Trade Zone Regime (outside GMA)
Main Requirements
Main requirements
(f)
Manufacturing firms under Law 8794
Small scale
projects
Mid scale
projects
Large
projects
Minimum export level
Not required
Not required
Not required
Belong to a strategic sector (1)
Not required
Yes
Not required
Minimum employment level
Not required
100
100
Minimum required investment (2)
US$100,000
US$100,000
US$10,000,000 (3)
• Other administrative requirements to be fulfilled (international mobility of investment, not a taxpayer in Costa Rica)
• (1)For example: Advanced Manufacturing and Life Sciences projects, R&D activities, Innovation projects
• (2) US$100,000 in fixed assets within FZ Park or US$500,000 outside FZ Park
• (3) Investment in depreciable fixed assets (land is not included). Company must comply with an investment plan to be accomplished
between 1 and 8 years; which could be reached at any time during the 8 year period. Upon completion, PROCOMER will verify the
$10MM investment in fixed assets according to its value in books for the current fiscal year. Additionally, once the company has complied
with the investment plan, the company must maintain the fixed assets which were part of the plan. Substitution of the fixed assets is
permitted only if the new depreciable assets have the same value in books as the fixed asset to be replaced when the investment plan
was completed.
Free Trade Zone Regime (outside GMA)
Main Incentives
(a) Law 7210
(f) Law 8794
Small scale
projects*
(f) Law 8794
Large /mid scale
projects*
6 years
0%
0%
0%
6 years
0%
5%
0%
6 years
15%
15%
15%
Income tax credit
No limit
Not available
10%
10%
Income tax deferral
No limit
Not available
Up to 10 years
Up to 10 years
Income Tax Incentives
Income tax
(statutory income tax = 30%)
Period of
Time
* Additional 12-year renewal may be granted if significant reinvestment is made
(Article 20 bis)
Free Trade Zone Regime (outside GMA)
Main Incentives
(a) Law 7210
(f) Law 8794
Small scale
projects*
(f) Law 8794
Large /mid scale
projects*
No limit
100% exemption
100% exemption
100% exemption
Excise taxes
No limit
100% exemption
100% exemption
100% exemption
Remittances repatriation tax
No limit
100% exemption
100% exemption
100% exemption
Period of
Time
Import duties
Other Incentives
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Significant Suppliers in Free Trade Zone Regime:
Main Requirements
Main requirements
(f)
Significant Supplier under Law 8794
GMA
Outside GMA
Minimum export level
Not required
Not required
Belong to a strategic sector (1)
Not required
Not required
Minimum employment level
Not required
Not required
US$150,000 (2)
US$100,000 (3)
40%
40%
Minimum required investment
Minimum sales level to companies established in FTZ
• GMA stands for Greater Metropolitan Area
(1) For example: Advanced Manufacturing and Life Sciences projects, R&D activities,
Innovation projects
(2) US$150,000 in fixed assets within FZ Park or US$2,000,000 outside FZ Park
(3) US$100,000 in fixed assets within FZ Park or US$500,000 outside FZ Park
Free Trade Zone Regime (GMA): Main Incentives
Period of Time
(f) Law 8794
Small / mid scale projects*
(f) Law 8794
Large scale projects*
8 years*
6%
0%
4 years
15%
15%
Income tax credit
No limit
10%
10%
Income tax deferral
No limit
Not available
Up to 10 years
Period of Time
(f) Law 8794
Small / mid scale projects
(f) Law 8794
Large scale projects
Import duties
No limit
100% exemption
100% exemption
Excise taxes
No limit
100% exemption
100% exemption
Remittances repatriation tax
No limit
100% exemption
100% exemption
Income Tax Incentives
Income tax
(statutory income tax = 30%)
Other Incentives
* Additional 8-year renewal may be granted if significant reinvestment is made (Article 20 bis)
Free Trade Zone Regime (Outside GMA): Main
Incentives
Period of
Time
(f) Law 8794
Small scale projects*
(f) Law 8794
Large /mid scale projects*
6 years*
0%
0%
6 years*
5%
0%
6 years
15%
15%
Income tax credit
No limit
10%
10%
Income tax deferral
No limit
Up to 10 years
Up to 10 years
Income Tax Incentives
Income tax
(statutory income tax = 30%)
* Additional 12-year renewal may be granted if significant reinvestment is made (Article 20 bis)
Free Trade Zone Regime (outside GMA)
Main Incentives
Period of
Time
(f) Law 8794
Small scale projects
(f) Law 8794
Large /mid scale projects
Import duties
No limit
100% exemption
100% exemption
Excise taxes
No limit
100% exemption
100% exemption
Remittances repatriation tax
No limit
100% exemption
100% exemption
Other Incentives
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Projects that meet any of the following conditions belong
to a strategic sector(1):
1.
Projects in which the company under the Regime employs annually an
average of at least 200 workers, duly reported in the payroll, as of the
date of start up of productive operations, according to what is established
in the executive agreement to grant the Regime.
2.
Projects included in one of the following industries:
a)
Advance electronics (such as: computer and printing equipment,
microprocessors, communications equipment, integrated circuits,
cathode tubes, advanced connectors, digital audio and video)
b)
Advanced electrical components
c)
Devices, equipment, implants and medical supplies (including
orthopedics, orthodontics, dental and optometry) and their highly
specialized containers and packaging
d)
Automotive (devices and supplies)
Projects that meet any of the following conditions belong
to a strategic sector(2):
e)
High precision machined parts and components
f)
Aerospace and aeronautics
g)
Pharmaceutical and biotechnology industry
h)
Renewable energies (such as: photovoltaic and solar cells, polymer
batteries or other advanced materials, fuel batteries, parts and
components of wind and/or hydroelectric turbines)
i)
Automation and flexible manufacturing systems (such as:
computerized process control equipment, process instrumentation,
robotic equipment, mechanical equipment for computerized
numerical control)
Projects that meet any of the following conditions belong
to a strategic sector(3):
j)
Advanced materials (such as: polymers or biopolymers, super
conductors, fine or advanced ceramics, high resistance compounds,
pigments, nanoparticles and their formulas)
3.
Projects in which the company under the Regime allots at least the
equivalent of 0.5% of its sales to research and development expenses
at its local operation.
4.
Projects in which the company under the Regime has at least one of
the following certifications at its local operation:
a)
ISO 14001 (14004) or its equivalent.
b)
LEED or equivalent
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