Reasons to invest in Central America

Countries in Central America have interesting tax systems that have converted the region into an attractive market for foreign investment.

Thursday, September 4, 2008

Rita María Silva, a partner at Deloitte Tax in Honduras, argued that countries in the region have created attractive environments for investors to come and do business.

In the case of Honduras, she pointed to the example of the 12% Sales Tax (ISV) which taxes the purchase and sales of goods and services and 15% for the sale and import of alcoholic drinks and tobacco products.

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The Race to the Future

August 2009

¿Which are the most attractive countries for Foreign Direct Investment? In Central America and the Caribbean, Puerto Rico is ahead, followed by Costa Rica and Dominican Republic.

fDi Magazine presented the results of their first fDi Countries of the Future 2009/10 Award.

Costa Rica ranks seventh for foreign investment

May 2008

Costa Rica is number seven in ranking of the Latin American countries that attract most foreign investment, according to a report by the United Nations Economic Commission for Latin America and the Caribbean.

Last year, Costa Rica received US$1.889 billion in foreign investment. Only Brazil, Mexico, Chile, Colombia, Argentina and Peru did better.

FDI down in Central America and Caribbean

September 2009

The manufacturing sector as a whole saw a decline in FDI due to a sharp drop in flows to Central America and the Caribbean.

In Central America and the Caribbean (other than financial centres), the decline in FDI inflows was largely due to a 20% fall in flows to Mexico, which mainly resulted from a halving of inflows to the manufacturing sector (CNIE, 2009).

Foreign Direct Investment (FDI) and Development

August 2010

Governments must understand the investors do not risk their money in order to develop receiving countries. They risk it in order to obtain more money.

The phrase on the lips of every Latin American government at the moment is "encourage foreign investment", as if there were a direct relationship between the amount of FDI and a country's development.

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