Money, economy and currency in Costa Rica

Costa Rican currency

The official Costa Rican currency is the Colón (pl. colones). There are bank notes of 10,000, 5,000, 2,000 and 1,000 colones and coins of 500, 100, 50, 25 and 5 colones. The exchange rate fluctuates within a controlled range, although it is expected that the government’s control over the exchange rate will be gradually relaxed to leave the currency float in the market. The official exchange rate can be seen in the Costa Rica Central Bank web site: http://www.bccr.fi.cr



Banks

There are both state-owned banks (which usually provide the most favorable exchange rates, although service is worse and queues longer) and private sector banks, exchange offices and investment funds. There is only one insurance company, which is a state-owned monopoly.

Bank office hours are usually 9:00 AM to 3:00 PM non-stop, Monday to Friday. Credit cards are accepted in big cities and tourist spots. Dollars are also often accepted, except high-denomination notes. Traveler cheques can be exchanged in the banks showing the passport.

You don’t need to be a resident to open a bank account, although it is the policy of most banks to require so. Banks are subject to antilaundering money laws which require to verify the origin of the money in transactions above $10,000. There is nevertheless a bank secrecy law that forbids governments an other institutions to access customers’ identities without a judicial warrant. This has made of Costa Rica one of the countries preferred by investors to put their money away from unwanted eyes.

Economy

Agriculture is still the main pillar of the Costa Rican economy, and it is well known that Costa Rica produces one of the best coffees in the world. The second most important crop is banana, and also important are pineapple, sugarcane, oranges, rice and ornamental flowers.

The services, particularly tourism, are becoming increasingly important. This is one of the country’s greatest successes, as it has been managed in such a way that favors the conservation of biodiversity.

Costa Rica’s main customer is the United States. The country’s investment-friendly legislation, with unrestricted repatriation of profits, has allowed the set up of manufacturing industries in several sectors, including electronics, with Intel at the head of it.


Most usual forms of incorporating a company are Sociedad Anónima, or Sociedad de Responsabilidad Limitada, although the limitations of the later one make it less usual.

At least 90% of the company’s staff must be formed by Costa Ricans, and at least 85% of the wages must go to them.