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Hi, I am a Canadian and I, along with my wife and a business partner are looking at moving to Costa Rica and starting a business. Are there any Canadians on this forum with similar experiences that would to share them privately with me? Forgive me if this seems like a very broad question but I do not want to limit my opportunity to learn.
If you are interested in chatting via email or telephone please give me notice here and I will get a hold of you privately so as not to pollute this board.
This is a Discussion Forum open to more than 7,000 VIP Members of WeLoveCostaRica.com and discussing starting a business will not ‘pollute’ the board, it will help people to understand what they can and can not do…
Scott Oliver
WeLoveCostaRica.comSorry Scott, just didn’t want to bother you with the potential of somebody offering legal advice or advice that could perhaps violate in some way the forum policies.
Rick from Vancouver here. Helping my daughter and her Costa Rican husband get a tourist business going. I wouldn’t say I’m anywhere near an expert in doing business in Costa Rica. Have Canadian business experience though.
Nice to meet you
What is your business and work experience in Canada? Most businesses are build around supplying a human “want.” Note that I did not say a “need.” People buy what they want and not what they need.
Also, we all make our buying decisions based on emotion rather than logic. I am an engineer by education and would like to think of myself as a logical person, but I know that most of my buying decisions are based on emotion rather than logic and on want rather than what I need.
I don’t need to go to Costa Rica, but I will be visiting there during the months of Sept. and Oct. because I “want” to.
I am saying all of this to say that what works great in Canada will probably work great in Costa Rica. What do you enjoy? What could you look forward to doing every morning?
One last point. Read Timothy Ferriss’s book, “The 4-Hour Work Week.” When I asked for the book at my local book store, the guy behind the counter said, “Would that be in the fiction or the humor section?”
Just my to cents worth.
Jerry Minchey
Hey Rick, thanks for the reply.
Can you please zip me a quick email to jzielinski@unitedcommunities.com
Hi Jerry, thanks for the reply.
My work experience is predominantly in real estate. I am extremely passionate about it as well. I am (and have been) a financial analyst for real estate companies. My primary focus has been on analyzing financial factors, negotiating and facilitating large scale real estate transactions. I have managed the sale or purchase (oh behalf of my firm) about $750MM worth of real estate over the past 5 years. I know I could take my skills down to CR and employ them there but real estate is a capital intensive business and we have a maximum of $400,000 of seed capital. Also, we are both looking for new challenges. My partner runs a flooring company here in Canada (for the past 10 years) and has an abundance of hands on business skills.
There doesn’t seem to be the tourist business tax incentives in CR that are in place in Panama. I am assuming that this is a product of the already present tourism boom in CR. I have been researching the costs associated with starting up business in CR. The legal costs do not seem material.
Clearly CR is a “want” environment as opposed to a “need”.
Jerry, please also email me if you could at jzielinski@unitedcommunities.com
Thanks,
Jarrett Zielinski
It depends upon what you’re looking to do here.
If you are looking to get rich, it seems that you might have a lot of work ahead of you. But, if you are looking to take that 400k and use it to create a business that will allow you to live here with minimal expenses and have most of your costs covered by the business that’s another story- We have a BnB that we put a little more than that into, but it is producing plenty of money to cover all of our expenses and allowing us to put quite a bit away. It won’t make us rich, but it is a steady business.
I think the same can be said for many businesses here, including real estate, tourism etc. I know a ton of young people working in real estate, while they are not clearing 100k/year they are definitely living comfortably.
If you are looking to make the move here permanently maybe you chould consider working with a real estate company, and using some of that capital to buy a house that needs work.
Working in real estate might help you find properties and potential projects that you might not have found otherwise-
Just my $0.02 – email me (remove the spaces) theorchidlodge @ yahoo.com – if you have any specific questions about opening a business or my opinion on permits and the like 😉
If you are serious about moving or doing business in Costa Rica you should first and foremost plan on learning the local language and the Latin culture.
Most expats have become accustomed to things such as promptness and efficiency. That’s our baggage from our industrial and technology driven world. The expectation that these things exist in Costa Rica is our problem not the Tico’s. If you’re expecting things to be the same as in your home country then you’re bound to get disappointed. A move to another country allows you to start over with a new life and experience a new culture in a new environment.
After 15 years here, I still have to remind myself; “If I don’t expect much, I won’t get disappointed” Then I step back, take a second look at the situation that is beginning to frustrate me and remind myself where I’m at, whom I’m dealing with and why I’m here. Then the situation at hand doesn’t seem so irritating. Expats who do manage to stay for a long time in Costa Rica do so because they possess patience and flexibility.
People who become frustrated here and decide to go back home, don’t do so because they couldn’t find their favorite beverage or a suitable appliance. They leave because they couldn’t adapt to the local culture. The unexpected trials and wide differences in cultural understanding often make the transition much more difficult than expected. New resident’s who can slow down and adjust to Tico time, have a much better chance of making a success of their new lifestyles.
Obtaining residency here usually takes much longer than expected. You need to hire a consultant to get a drivers license. The list of frustrations goes on and on. The bottom line is if you are not able to slow down and adapt to the culture you’re probably going to end up back where you came from.
Culture is embedded in the language, and misunderstandings often arise due to the ways in which people of distinct cultures express and understand language content. North Americans are very direct. In Costa Rica, the Ticos don’t say things up front. It’s part of their culture and is considered bad manners. Therefore if you don’t understand the culture you get frustrated and some folks become angry and this offends the Ticos.
Misinterpretations therefore arise because Costa Ricans view expats as “rude” while North Americans find Costa Ricans to be “indirect” or even “dishonest.” Many expats feel that they have had to learn to decode what their Costa Rican associates and friends are really trying to say. It is not that Costa Rican’s lie more, it is that they are trying to save face.
Costa Ricans don’t want to disappoint you. If they don’t know the answer, they say to themselves ‘I don’t know but I want to give my best guess.’ You have to learn to listen carefully and read between the lines. A simple word like “Ya” can mean “it’s already done”, “I’m doing it right now”, or “I’ll get to it soon
We’ve all faced new challenges in Costa Rica and those of us who have been able to acclimate enjoy the benefits. The country’s strong democratic tradition, innovative environmental programs, museums, cultural activities, and cheaper living costs continue to make Costa Rica a popular destination spot, particularly for tourists and retirees.The option to live a lifestyle similar to that in a large North American city is here if you want it. Just check out the selection and pricing in any of the major shopping malls or at Mas or Menos or Auto Mercado supermarkets. Most products that are imported here from another country incur duties. These duties are built into the price you pay at the cashier. If you want to live and consume the same products available in Canada, they are available here but not cheap. Perhaps if the new free trade agreement becomes a reality, this will change. I prefer the old days before there were shopping malls filled with international retailers and Hooters. I don’t miss any of what these new franchises have to offer. I patronize typical Costa Rican businesses and my budget is much more affordable.
It’s nice to have options and that’s a new philosophy I recommend. Plans tie you down. Options offer freedom. You don’t irritate someone because you exercised an option. But there are many times when plans did not materialize as expected and someone gets irritated. Keep your options open and your plans to a minimum. Live like the Tico’s, adopt their attitude and adapt to their culture. You’ll probably live longer and happier! Pura Vida!
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