½ûÂþÌìÌÃ

You cannot which can take 4-5 years.


While a potential employer can apply for a work visa, this will only be issued if there are no Costa Ricans able to fill this particular position, and there are many who have been trained in the beauty and spa industry.
You can rent a salon, but will be required to hire staff to do the actual work.

Hi Rosangeli,

A new topic has been created from you post for better visibility on the Costa Rica forum.

Regards,

David.

Foreigners cannot work in Costa Rica without a special permit.  You could open a business but I must warn you that 75% of all Gringo owned businesses fail.  First step is to get yourself into Costa Rica legally "but that takes a lot of guaranteed monthly income" to be a rentista, I think it's about $2,500 per month.  My suggestion to you is....
Come down here for 90 days, which is the maximum allowed by law.  Check out the situation here to see if it's for you.
I find it funny when Gringos say they want to work down here, as the wages are about $4. to $5. per hour.  You could work an eight hour day just to earn enough to buy a large bag of rice.  I am serious, if you are not into eating black beans and white rice for every meal "you better bring lots of cash", the groceries down here cost the same as in the US.

Lapalmaman48 wrote:

I find it funny when Gringos say they want to work down here, as the wages are about $4. to $5. per hour.  You could work an eight hour day just to earn enough to buy a large bag of rice.  I am serious, if you are not into eating black beans and white rice for every meal "you better bring lots of cash", the groceries down here cost the same as in the US.

I disagree with this statement. I would amend it to:
SOME groceries down here cost the same as in the U.S.
Many fruits and veges and other foods are much cheaper in Costa Rica. It all depends on what you buy and where you buy it.

The other answers in this thread I agree with however. You won't be able to open a business in Costa Rica without being a legal resident first which takes a a year or two and then you'll have other red tape to deal with. And yes the wages are low. You need to have some income coming in from elsewhere to live well in Costa Rica. OR get a job with an American company where you can get higher pay depending on what job you can get.

Opening a business can work and does work for some. I don't know what the percentage of failure is. Kind of like in the U.S.. you have to really know what you are doing, have the right business in the right location and run it just right.

The reported business failure rate in Costa Rica was announced at 75%.  If you borrow money in Costa Rica (to say purchase a store front), you are looking at 7.8% with Scotiabank with high front end fees.  The loan application also requires a blood test and anal exam, "no I'm not kidding".  The best thing is to operate an on line business based in the US or Canada, or come down here and be a unlicensed real estate agent "and sell homes for double what they are worth".  Do not invest a cent in opening a business in Costa Rica, come down for a three month stay and do some investigating.

There´s negative people all around the world just like this guy. Stay away from this kind of  frustrated people and you will be successful where ever you go.

Rosangeli,

Contrary to most of the comments posted in this thread, there is a special category for people who have a business. So, you can open a business, obtain all the required licenses and apply for the special category.

There are a significant number of ways by which a foreigner can work in Costa Rica.

Regards,

Rafael Valverde

You must watch this Youtube video for the absolute truth about starting a business in Costa Rica.

This poor sucker had to finally declare bankruptcy and left the country.

Lapalmaman48 wrote:

You must watch this Youtube video for the absolute truth about starting a business in Costa Rica.

I encourage people to follow their dreams and I believe if you want it bad enough you can do it.

I'm not sure of all the ins and outs about starting a business but I did find this info at the Associate of Residents of Costa Rica:
INVESTOR RESIDENCY
"    Investment of US$200,000 in a business or property.
    Must remain in country at least 6 months per year.
    Can claim spouse and dependants under 18 years of age.
    Income allowed from the project.
    Can own a company and receive dividends."

I would recommend that you speak with a good residency attorney about your plan and how feasible it is.

I actually think the first video recommended above is a very good one so that you see what you could be up against. I think it's a little on the negative side but it's stuff you need to be aware of. It's better to go into something wide eyed as opposed to thinking it's going to be easy and there are no obstacles or problems. Because yes in  Costa Rica bureaucracy makes it hard to get things done and their system is no system at all sometimes, or a broken system.

By the way it's not that different here in the USA.

I believe that in the USA it is said that 1 out of TEN businesses fail. The main difference is that here when you make an  appointment for something to be installed there's a pretty good chance the appointment will be kept. Whereas in  Costa Rica there is a very good chance it will not be kept.

I think it's smart to know what obstacles you may encounter so you can be ready for them.

The 2nd video is more a case of the guy just DOING EVERYTHING WRONG.

1) he came down to  Costa Rica on a whim without living there first or studying it
2) he did not have much money to afford to lose
3) he did not speak Spanish
4) when he first saw problems he kept plowing forward in spite of the warning signals
5) he did not do any research at all about what is involved in starting a business in Costa Rica

I don't think the guy would be too offended if I say his ignorance was a big part of the problem, that it was dumb of him not to do a bunch of research before starting or taking over a business.

The guy in this 2nd video from above says that each employee ends up owning your company over time, due to social security. I have never heard this before and it doesn't sound like it is the way he says it is. I'd be curious if Outlier might shed some light on what the guy says in this video about employees eventually owning one's company via the social security system. It doesn't sound legit to me the way the guy says it.

All in all I think the first video is one to take heed and the 2nd video is an example of exactly what NOT to do.

As the saying goes "Don't gamble unless you can afford to lose", and with an 80% chance of losing this hair dresser lady better have lots of cash to lose.  This failure rate is not just a Gringo thing, many Costa Ricans have moved to the states, came back with decades of savings, and lost everything in a business venture they thought would work for sure.
Being an unlicensed realtor or operating an Internet based business is the only safe way for a Gringo to earn a living in Costa Rica.  In video #2 that restaurant was torched and burned to the ground, that's what can also happen in Costa Rica if your competition calculates that you're stealing some of their customers, or even if you terminate one of your employees.

OMG who is this guy??? You are just so frustrated about your own experience, generalizing the bad decisions you took cause you thought it was going too be easy and not doing proper research. I would ignore this frustrated guy and instead work hard, play smart. This is a great country to do business, butt is like in any other country, you have to work hard, investigate, be aware of the laws, just like all around the world.
Obviously this guy is not smart enough to do business here, but is just him, there are many successful stories that you can learn from, so focus in successful stories and do as they did and take into consideration the obstacles.
By the way, in Costa Rica we don´t have the need to go to the US to make money, that is a big lie, we are doing great here, this is not like Mexico, really..who is this guy??

With all due respect, these other guys do not know what they are talking about. I am an immigration attorney and I am telling you that you can open a business work in it and obtain immigration status without having to invest 200k. There are options out there. However, people only regurgitate the general categories for pensionados, rentistas, investors, parents and spouses. Current immigration regulations offer dozens of categories for people in different situations.
There is only one thing I agree with SamRamon, get a good immigration attorney. I cannot offer you my services as it would contrary to the code of conduct of the ½ûÂþÌìÌÃ. But you will be able to find a decent number of attorneys at the US Consulate website.

Good Luck

Hi All,

I kindly ask you to respect everyone's opinion because everyone does not have the same experience of life in a country.

You should also stick to the original title of a discussion for better orientation for the initiator.

If you want to talk about another topic, I invite you to start a new thread but please do comply with the laws of ½ûÂþÌìÌÃ.

Thank you,

Hasnaa

I think the statistics speak for themselves, I only believe them.  Michael Allen and DeAngelo do more research and interview more expats than anyone in Costa Rica, they provide accurate and truthful information in their videos.
You want to talk this poor woman into investing her money into a long shot business venture "shame on you".
My wife and I get our hair cut at a Tico salon for $5. each.  Do you really think a North American hair dresser could come into Costa Rica and earn a living by opening a beauty salon?  Do you know of any North American barbers who have relocated to Costa Rica and are making a decent living cutting Tico hair?  Costa Rica is on a downward spiral in many ways, even Manuel Antonio park is empty on most days, hotels are also reporting a major drop in business, and nearly 25% of expat homes are up for sale.  In regards to my survival here "which you seemed to be concerned about", I do operate a computer based business for a company in Toronto Canada.  My total investment were two computers valued at about $1,600  I only earn approximately $35,000 per year doing this part time employment, but combined with my pensions it's more than enough.  I love Costa Rica, I'd like to see the economy get better here "mostly for the sake of the Tico people" BUT WE SHOULD NOT LIVE IN DENIAL, and try to encourage people to invest money and open businesses in a country that has a reputation of business failures.

Lapalman48,

I do not know what your problem is, but as Hasnaa says, if you are not going to provide any valuable input, it is better to keep it shut.

I do know expats who have opened hair salons in Costa Rica and are doing well. For instance, my wife gets her hair done at Wendy Hair Studio in Escazú. Wendy is an expat and she seems to be doing fairly well.  Just because you get a cheap haircut, does not mean that everybody does.

I have plenty of clients (foreigners) and know a significant number of expats who have business in Costa Rica and are doing well. Please do not get me wrong, not everybody makes it, regardless whether they are tico or expat, whether it is in Costa Rica and or the US.

In the US 90% of new businesses fail within the first three years. Does that stop new entrepreneurs from popping up everywhere? No, it doesn't. There are businesses that succeed and there are businesses that fail. But because some businesses fail, does not mean that everyone has to fail.

I know an expat who does not have residency yet. However, he works from home providing services to clients from Europe and makes over 100k per year.

Not all stories are bad.

My advice for Rosangeli is: you want to open a hair salon/spa in Costa Rica? Go ahead and do it. You are no different than millions of immigrants who have relocated to the Americas in the past two hundred years pursuing a dream. But be advised, it is not easy.

Regards

First of all in the USA it is said that 9 out of 10 new businesses fail! So if Costa Rica has only 8 out of 10 fail, one is a bit ahead of the game in Costa Rica!

As I said, the key to success in starting a business in Costa Rica is doing your due diligence, just like when you buy property in Costa Rica (OR ANYWHERE ELSE IN THE WORLD).

I think that opening a beauty shop or any other kind of shop may work fine depending on the usual factors:
- good location
- good prices
- good services and/or products
- good reputation
- good management

I did not mean to imply that becoming an investor was the only way to do business in Costa Rica.

But I would love to hear the various options one has in terms of starting a business in Costa Rica if one is a legal resident.

Wendy's Hair Salon has operated here for many years and has built up a steady clientele, and her success is mainly  based on her location and the fact that many expats are living 'nearby'. And speaking from experience, a hairdresser needs regular clients. Years ago, women had their hair done every week, now most go in for coloring or the occasional trim.
Very hard to make a living when paying to rent a suitable location when a Tica operates out of her house... unless they do the same.
Will she be able to get a health permit without a cedula? Possibly not.

Would you jump into the water if 80% of the people who swam at that location were eaten by sharks?
All of us should be bracing ourselves for the fall of the American dollar, and not even considering investing in long shot business ventures in any country. It doesn't matter if we cut hair for a living, work as a corrupt real estate agent in Costa Rica, or as a misguiding lawyer, we are all going to be dramatically affected by the collapse of the US dollar.  Businesses that have been in operation for decades will shut down when the US dollar dies.  The Grand and Toy operation, which has been in business for 132 years (also known as Office Depot) has started shutting down,
it all boils down to "If you can afford to lose then go ahead and gamble" by opening a new business.  If a business failure would be devastating to you "then don't open a new business", it's that simple, there's nothing complicated about it.  The wealthy can gamble and the average person cannot afford the loss.  You people who are guiding this woman into a venture that has an 80% chance of failing are despicable.  You are the type of people who would allow your grandchild to swim at a beach where you knew the waters were polluted.

And you who are painting everything black are doing a disservice to many existing and potential visitors / residents.  If you find the waters so full of sharks why are you still paddling in the pool.  You not only give Costa Rica a bad name you are sure making the rest of us Canadians look bad.  It is fine to give an opinion but when you post such negative "facts and figures" a link to those articles and results may make you sound a bit more credible.

It's very easy to tell someone to gamble with "their money".  The biggest problem that exists in Costa Rica (especially with expats who have taken the gamble to retire here), is that they like to sugar coat everything to justify their decision to move here.  They tell their relatives back home about Toucans, monkeys, the wonderful beaches etc., but they'd never mention that the grocery prices are the same as in North America, that cars are the most expensive in the world, and that we all live behind bars and in gated communities because there is a major theft problem here.  Ooops!  "almost forgot", we'd never tell people back in Canada that elite families actually control the government here and the import taxes are about 80%. 



In the above article the writer indicates that people take the gamble of opening a business in Costa Rica "for all the wrong reasons".  They think more about living in a tropical paradise than they do about the massive amount of red tape and high costs involved with opening a new business.  An unlicensed real estate agent, a lawyer, or a contractor will try to push this woman into coming down here "with hopes of getting some of the money she will most likely lose",  I think this woman should first come down here and rent for three months in the area which she is considering opening a business. I believe that the information in the following video is the absolute truth



It's raining very heavy here today, but I think I'll phone my brother in Canada and tell him it's warm and sunny, and that I'm sitting outside drinking coffee while two Toucans are sitting on the wall beside me.  That's what some expats do here in Costa Rica, they say anything to try to justify being here, it's called "living a life of denial".

I strongly suggest you view the above video, and stop the video to read the text as they only flash it quickly.
Sorry for sounding like a pessimist in the posting I've made in this blog, but I'd hate to see people guide you into
something which might just destroy your life.

While, I definitely do not agree with Lapalmam48 comments, I do think it is wise to live here a while before proceeding to open and operate a business.

Hi all,

I think we are going a bit off topic here.
It might be wise to input personal experiences instead of generalisation.

Thanks
Armand
½ûÂþÌìÌà Team

The videos I provided are testimonies from people who attempted to operate businesses in Costa Rica and have failed, and expat interviews of people who have failed operating a business in Costa Rica.  Those are true experiences.

My advice is if you feel you cannot afford to live how you would wish to, on your pension, savings or dollars transferred from your Costa Rica Rentista account, and to do so, it would require you to a have another supplementary source of income, is to please think very carefully before making a move.

Good advice Cupofcoffee.  I'm heading out to sea for two weeks at 5am tomorrow morning, don't anyone talk about me while I'm gone... LOL   Take care everyone.

@Lapalmaman48   your islamophobic comment on your profile is a clear violation of our terms and conditions.

" the following is strictly forbidden:

Defamation, abuse, harassment, threat, heinous or discriminatory propaganda against human rights, including homophobic or racist propaganda, as well as any other violation of human legal rights, including privacy rights."

-Account closed-

I don't really agree with much of the post that Lapalmaman48 makes, but I see no reason to ban

him.                                                                                                                                                                                                                                                                                                              " islamophobic comment" This is total BS. Censorship is a very tough road to follow. Hope you're proud of yourself  "Julien"

I do believe Julien is referring to what is written on Lapalmaman48's  "profile", not his comments on this topic and I personally aplaud Julien's decision.  Thank you.

Julien wrote:

@Lapalmaman48   your islamophobic comment on your profile is a clear violation of our terms and conditions.

" the following is strictly forbidden:

Defamation, abuse, harassment, threat, heinous or discriminatory propaganda against human rights, including homophobic or racist propaganda, as well as any other violation of human legal rights, including privacy rights."

-Account closed-

Thank you.

And why is it that you personally applaud Juliens action? Did you bother to read Lapalmaman48 profile? I don't agree with his decision at all. All you have to do is look at what Islam is doing to Juliens country. I guess being politically correct is more important. Islam can kiss my white gringo ass.

Thank you for making my point!

Maybe if you could get to the point rather than dancing around the edges with sarcasm, I could understand you. Lapalmaman48 is not a cheerleader for CR as you are, but he does live here unlike you.

What does his place of residence have to do with his applauded banishment?  Anyway, this has gotten way off of topic, I simply stated my opinion as did Stumpy and yourself.  Let's move on.