Doing Business in Costa Rica

By Terri Morrison
© Copyright 2004, All Rights Reserved

Even the smallest of US businesses competes in a shrinking global village, where understanding subtle cultural contexts can make or break sales and marketing efforts. This excerpt from the book Kiss, Bow, or Shake Hands: How to Do Business in Sixty Countries, offers insight into doing business in Costa Rica.

Language

  • The official language is Spanish. Creole is also spoken. English is widely understood, especially in urban centers and among the young.

Appointments

  • Costa Ricans are by far the most punctual people in Central America. Since Costa Ricans allow themselves only a limited time for their midday break, be on time for a business lunch.
  • Good times to do business in Costa Rica are February to March and September to November. The rainy season runs from May through November (with rain heaviest on the Caribbean coast), and popular vacation times are December and January and around the Christmas and Easter holidays.

Negotiating

  • Decision makers are readily accessible and also frank and open in discussions. Business takes place on a personal basis in Costa Rica. Decisions are made by consensus of all involved, not just by top officials. This may slow the process down.
  • Women in business will meet with greater acceptance in Costa Rica than in other Latin American countries. Women have even been elected vice president of Costa Rica.
  • Costa Ricans are much more formal and serious than other Latin Americans. Therefore, keep jackets on during business meetings.

Business Entertaining

  • The Costa Rican people enjoy discussing politics, particularly with foreigners. Costa Rica's history of stable democracy provides a good topic for conversation.
  • Most business entertaining takes place in the evening, since lunch is the main meal of the day. Spouses are welcome at business dinners.

Protocol

  • Men will shake hands with other men in greeting; women will often pat each other on the right forearm or shoulder instead.
  • Women who are close friends may hug or kiss each other on the cheek. However, Costa Rican men do not usually hug other men. The hearty male abrazo (backslapping embrace) seen in other Latin American countries is rare.
  • Do not refer to the people as ricans, since this word has a bad connotation. The people of Costa Rica are referred to as ticos.

Gestures

  • Making a fist with the thumb sticking out between the middle and index fingers is obscene. This gesture is known as the "fig."

Gifts

  • Costa Ricans will exchange gifts frequently for all kinds of special occasions. Because of the large number of US citizens in Costa Rica and the lack of import restrictions, US goods are freely available there. If you are invited to a home for dinner, bring flowers, chocolates, scotch, or wine. Do not bring calla lilies; they are associated with funerals.

Dress

  • Business: Men should wear a conservative dark suit. In warmer climates, a jacket is optional. Women should wear a dress or skirt and blouse. Pants are never worn by women.