Costa Rica to regulate short term investment from abroad

The Central American country has the right qualities to those foreigners who wish to invest in Costa Rica.

Costa Rica is a favorable destination for foreign investment, not only because it is one of the country’s most attractive for foreign investment, the economics conditions and policies allow thousands of Americans and others place their money in the country in search of generating successful and lucrative business.

The Vice-President of the Republic, Luis Liberman said on Tuesday night, officials of the Legislative Assembly to receive a draft law to limit the entrance of capital investments in the short term that have been detected in recent months, since this takes advantage of attractive interest rates on Costa Rica colones.

According to financial authorities in the country, the Central Bank has detected a large amount of dollars entering the country and are aimed at short-term, dollars that are then exchanged colones quickly. Interest rates are much higher than the dollar in their countries of origin.

The bill which is going to be proposed by Liberman, seeks to tax short term investments from abroad to avoid that this situation will continue.

"The increase in short-term capital investments increases the amount of cash in circulation, causing a fall in rates change, increasing requests for loans and the interest of the banks", said Vice-President Liberman, who thinks that it is a measure of stabilization of the country's economy.

Also experts have commented that it is important for people who invest in Costa Rica or applying for loans, to assume this responsibility in colones, since it could affect them the exchange rate.

Costa Rica will remain a destination desired by foreign investors, growth in the real estate market as well as the arrival of franchises in the country in the coming months are emerging.

Posted by Costa Developers