Costa Rica"s primary economic resources are its fertile land fed by the countries frequent rainfall, its well-educated population and its location in the Central American isthmus providing easy access to North and South American markets and direct ocean access to European and Asia. The country has become a popular destination for retirees and eco-tourists alike, who flock to its picturesque beaches and venture through the national parks that cover more than a quarter of the countries land.

Costa Rica used to principally produce bananas and coffee, and recently pineapples have surpassed coffee as the countries second principal export. Recently, Costa Rica has become one of the worlds leading producers of microchips having attracted multi-million dollar investments from companies such as Intel. Costa Rica"s service industry is growing steadily, representing 60% of the countries GDP, with companies such as Proctor and Gamble opening administrative centers.

Tourism

Costa Rica is the most visited nation in Central American as a result boasts a $2 billion dollar tourism industry. With over 1.9 million visitors in 2007, or roughly 0.46 tourists per capita, Costa Rica attracts more tourists per year than popular destinations such as Mexico (0.21 tourists per capita), the Dominican Republic (0.38 tourists per capita) and Brazil (0.03 tourists per capita). In 2005, tourism alone contributed to over 8% of the country's GNP and over 13% of direct and indirect employment.

A major factor in the attributing to the continued growth of tourism is Costa Rica"s commitment to Ecotourism. Costa Rica was and continues to be an ecotourism pioneer, with extensive national parts and protected areas covering more than 25% of the land area luring visitors to see the lush forests greenery and bountiful wildlife.

After experiencing an overall grown of 7.9 % in 2006, the Costa Rican economy came back strongly and in 2007 and settled down to an estimated overall growth of 6.5% in 2007. In comparison to its Central American neighbours, Costa Rica has a high standard of living, with a per capita income of roughly U.S. $5,100, and an unemployment rate of 4.6%.

Energy

Costa Rica has a number of oil deposits off its Atlantic coast; however the government has chosen not to develop the deposits for environmental reasons. The country is largely self-sufficient in electricity production, harvesting power from the abundant rainfall in its mountainous regions with the construction of a dozen hydroelectric plans. The country is completely reliant on imports for its fossil fuels. Costa Rica has massive potential should to export electricity should plans for new generating plants and a regional distribution grid materialize. The temperate climate make neither heating nor cooling necessary, particularly in the mountainous cities and towns that are home to 90% of the country"s population.

Trade

Over the last two decades, Costa Rica has sought to widen its economic trade ties within and outside its regions. Bilateral trade agreements with Mexico, Canada, Chile, the Dominican Republic, Panama to name a few as well as establishing a Trade and Investment Council with the United states have all been put in place to strengthen and stabilize Costa Rica"s global economic footprint.

Costa Rica finalized negotiations with the U.S to participate in the Central American Free Trade Agreement (CAFTA) in 2004, and officially became a member in October 2007 after a national referendum ratifying the agreement. Once implemented, the agreement will privatize state telecommunicates and insurance companies as well as mitigating trade between its Central American neighbours.

Overall, foreign investors remain very attracted to the country because of its political stability, high education level, strong economy and the fiscal incentives found in the newly developed “free-trade” zones. Over the past decade, exports have diversified, the high-tech manufacturing sector has grown tremendously and Costa Rica"s impressive biodiversity allows tourism to continue to grow.

Return on Investment

The real estate isn't the cheapest in the world but there is massive potential for profit. Costa Rica is a gorgeous place, it has both a Caribbean and Pacific coastline, which gives it fantastic beaches and allows visitors and property investors to choose from a range of climates.

Lush vegetation, jungles, tropical plant-life, and awe-inspiring volcanoes, as well as sun, sea and surf are all attracting tourists and property investors. On top of its aesthetic benefits Costa Rica is one of the most secure and stable of all the Central American countries. The stage is set for Costa Rica to enjoy massive and sustainable growth for the foreseeable future -- in every industry. Costa Rica just signed the CAFTA, Central America Free Trade Agreement, its major export: micro-processors is a growth industry, on top of all other famous South American export goods like Coffee and Cocoa, and that is before we even mention tourism.

Costa Rica also has a very competitive taxation system; the first $2,698 earned from rental is exempt from taxation, after that it is taxed progressively between 10% and 25%. Capital Gains tax is not charged unless it is from a recurring (habitual) transaction, inheritance and gift tax is only 1-2%, and total round-trip transaction costs are a moderate 8.58 - 13.58%.

In short Costa Rica is doing everything right to ensure it sees continued growth, in its export industry in foreign direct investment and GDP growth, making it well worth considering as a destination for an overseas property investment.