REAL Exclusive Magazine

Go Global – Focus on Costa Rica

By Pat Tan

Costa Rica’s location at the heart of the Central American isthmus, the country’s varied landscape, mild climate, emphasis on ecology and its friendly people have made this small country a hot spot for investment, retirement and vacation.

Bordered by Nicaragua to the north and Panama to the south/southeast, Costa Rica benefits from over 800 miles of coastline set on the Caribbean Sea and the North Pacific Ocean. Almost 20,000 square miles in area, the landscape is dominated by Cerro Chirripó, the fifth highest peak in Central America. Endless beaches, dramatic mountain views and an unspoiled environment of lush vegetation and abundant wildlife are just some of the things that draw visitors back time and time again.

More than one quarter of Costa Rica’s land is designated as national park, biological reserve, wildlife refuge, or some other category of protected area – the largest percentage of any country in the world. While the country has only 0.1% of the earth’s land mass, it contains 5% of the world’s Biodiversity” and in 2007 the government stated that they want Costa Rica to be the first country to become carbon neutral by 2021. These initiatives have led to Costa Rica being recognized as a pioneer in ecotourism.

The 2008 Travel and Tourism Competitiveness Report ranked Costa Rica first among Latin American countries. The index is a measurement of factors that make it attractive to develop business in the travel and tourism industry, rather than a measure of a country’s attractiveness as a tourist destination. The index evaluates three areas: a country’s regulatory framework; its business environment and infrastructure; and its human, cultural, and natural resources. This accolade will certainly increase the attraction of Costa Rica to overseas investors.

Firmly on the international map, Costa Rica is served by direct flights from Spain, Netherlands, Germany, U.K., Canada, as well as many major U.S. cities. 1.9 million foreigners visited the country in 2007, making it the most visited nation in Central America. The $1.9 billion-a-year tourism industry makes a major contribution to the country’s economy. Agriculture still plays a major role in the economy, and government tax incentives have been successful in attracting overseas investments in high tech companies, pharmaceutical and consumer products.

Foreign investment in Costa Rican real estate has been on the rise, supported by the growing numbers of Americans, Canadians and Europeans making Costa Rica their retirement home, or purchasing a vacation home there. Foreigners purchasing property have the same rights as Costa Ricans. The legal system is not the same as that in USA, and investors would do well to work with a local Costa Rican tax advisor and attorney. Choosing the right real estate professional is also key to a successful transaction. One who has experience in Costa Rica AND understands the U.S. real estate system would be a particular asset in bridging the communications gap. An American REALTOR® who has chosen to specialize in the Costa Rica market would be particularly valuable as the investor will benefit from the REALTOR’s® direct experience of the market, ability to introduce other professionals with a proven track record and working knowledge of the various projects and developments that are available.

BIO

Patricia Tan was born in England, and moved to Sarasota in 1997. Her career in international sales and marketing has afforded her the opportunity to live and work in many countries around the world, including Australia, Hong Kong, Singapore, Malaysia, Indonesia, Germany, France, Belgium, Netherlands and the United Kingdom. Patricia spent five years as a Director of an American real estate franchise in England in 1990s, when American real estate companies were just entering the European market.

Patricia has earned the REALTOR® designations of Certified International Property Specialist (CIPS), Graduate REALTOR® Institute (GRI), and Transnational Referral Certification (TRC). She has served as Chairperson of Sarasota Association of REALTORS®’ International Council, and serves on Florida Association of REALTORS®’ International Operations Committee. She currently works as International Sales Director for Prudential Palms Realty in Sarasota, where her focus is to bring international buyers to the local market. In 2008 she organized and took part in marketing trips to Canada, Asia and Europe, to promote Florida’s Gulf Coast and the Sarasota area in particular. Pat may be reached at 941-487-5107 or patriciatan@prudentialpalmsrealty.com. www.patriciatan.com