Living in Costa Rica – Earning a living, making a life.

In my world of advising people about shipping, I often find myself in the role of advisor about many other things related to moving to Costa Rica. I feel like I have a pretty good handle on what I do know about and what I don’t, and try to offer advice accordingly.

Because I’m in the shipping business, I occasionally get inquiries about folks who want to ship something other than their own personal household goods. Recently I’d emailed with someone who was wondering about importing cars to resell.

Here’s what I had to say to him:

Okay, it’s technically possible to bring in vehicles and sell them for a profit, but I will tell you frankly that the several folks we’ve known who tried this all gave up in despair eventually.

There are a couple of immediate problems. One, it’s pretty “cash intensive” since you (obviously) have to front the funds to buy the cars, then pay the shipping, duty, advertising, carrying costs, etc.

The biggest problem, though, is that while there is a market here for good, solid, quality cars from North America, when you go to sell them you’re fighting against the “traditional” used car here.

The classic Tico used car was purchased by a used-car dealer as a junker — literally, an insurance write-off with a salvage title in the U.S. — crammed 4 or even 6 to a container (they’re already smashed, it doesn’t matter) and then “fixed up” here. Even after the repairs, they can be sold for much less than “market value” since they were bought for essentially nothing.

It’s NOT a car any sane person would knowingly choose to buy, but THAT’s what you’re competing against.

So, yes, it can be done. No I don’t recommend it. (And it’s unfortunate, since I think there is a desperate need for solid used cars here, but the realities of the business are more than most folks are prepared to deal with.)

So, this particular client replied with thanks for my frankness, but went on to say he and a buddy were trying to figure out a business to do here. What was my advice, they asked. It’s a not uncommon question, so I’m going to publish here basically what I told them:

I empathize with your position, but I’ll say it’s hard to think of business opportunities that are “obvious” easy money-makers.

I continue to think there are markets here for “specialty” shops that bring in true “gringo” items — both hard goods like furniture and hardware and consumables — specialty food items, “drugstore” type items, “natural living” items, garden items like composters, and so on. More gringos are moving to Costa Rica and want these things, and more Ticos are being exposed to them, as well, and want them.

Should you go that route for some reason, I have some very specific ideas I can pass along. (It’s a “pet” business concept of mine, but I just have never had the investors…) 😉

But there are also obvious issues of import permits, business licenses, employees, and the like. Not something to go into without some really good planning.

In a similar vein, there’s potentially a market for importing some very specific building materials — some of the “cooler” items, like the fully-opening walls of glass (like Lanai doors, or Nana glass walls), or North American furnishings….. But again these are businesses with a substantial start-up investment.

The car thing seems “obvious” but, as I shared, we’ve actually been pretty “close” to a number of these schemes and everyone has bailed out in various states of financial ruin. So MAYBE it could work, but I’d be hugely skeptical.

Most gringo businesses here are service businesses and make a very modest living. Various hospitality options — B&Bs, inns, restaurants, tours, etc. — sometimes do well, but there’s a world of “issues” with all the hiring and tax considerations with them.

You also have to actually know the business in question. The legions of people who think they can live here a year and offer tours, or have never been involved in the hospitality industry and open a Bed and Breakfast… well, you get the picture.

What people often do well with, here, is what is basically an “internet” based business that they could do from anywhere. But, again, there’s sure a lot of “get-rich-quick-scams” in that realm, so I don’t think many folks come here and do well with one of those, but if you already have a viable internet based business, then that can conceivably continue here.

A few folks come and manage a moderate “business” flying under the radar offering their psychology services, acupuncture, interior design, health coaching, or whatever. And certainly folks who do “consulting” or offer professional services where their geography is irrelevant do fine here, as they would anywhere.

And, lastly, it seems there’s some potential market here in the growing awareness of “real food” — organic/free range “meat” (i.e. beef, chicken, pork, BISON, etc.), cheese, true artesan bread, the kinds of “food” that one might find in a North American “health food” or gourmet store and so on…. Again, however, a business fraught with dealing with the various regulatory bodies in a foreign land.

So, possibly some food for thought. No easy and obvious answers, I’m sorry to say. Many (possibly MOST) folks who come down here NEEDING to earn a living (as opposed to getting into a business to keep them busy, or “supplement” their other income) end up going home. It’s simply not an easy thing in a place where you can’t “get a job”.

Not impossible. Not easy. If you’re coming here and need to earn a living — come with your eyes wide open and some good planning under your belt.

Written by VIP Member Arden Brink.

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Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.