The Latin American Lawyer September 2018 LATAM MAGAZINE SEPT18 | Page 25

Special report: Central America
San Jose’s the
way
Costa Rica’s skilled labour
force, as well as the
tax incentives it offers
businesses, mean it is widely
viewed as the best country in
Latin America in which to do
business – however, antitrust
and tax work in Guatemala,
as well as manufacturing and
tourism-related matters in
the Dominican Republic and
Honduras are also on the
increase
Costa Rica has been one of the
major recipients of foreign direct
investment (FDI) in Central
America in recent years. Figures
released by the Central Bank of
Costa Rica show FDI totalled
$3 billion in 2017, a 50 per cent
increase on the previous year.
Meanwhile, in the World Bank’s
2018 ‘Doing Business’ report,
Costa Rica – whose capital city
San Jose has a population of
around 300,000 – maintained its
position in 61st place in a listing
of 190 economies ranked in terms
of ease of doing business.
Considering the tax incentives
being offered by Costa Rica,
in addition to its political and
economic stability and skilled
labour force, it comes as no
surprise that international
businesses are flocking to
establish Central American
operations in the country. This
is a trend that is generating
significant growth opportunities
for law firms. A recent survey
conducted by The Latin
Jaime M. Senior Fernández,
Headrick Rizik Álvarez Fernández
www.iberianlawyer.com/latin-america
American Lawyer showed that
73 per cent of the lawyers based
in countries (except the US)
that are signatories to the DR-
CAFTA agreement (a free trade
agreement between the United
States and Costa Rica, Dominican
Republic, El Salvador, Guatemala,
Honduras and Nicaragua) believe
that, of those countries, it is Costa
Rica that offers the best growth
opportunities for law firms. This
indicates a substantial growth in
confidence – only 43 per cent said
Costa Rica was the top location in
last year’s survey.
Carolina Flores, Costa
Rica managing partner at
Arias, says the country is a
competitive market offering
good opportunities for growth.
She adds that one of the main
contributory factors has been the
establishment of free trade zones,
which generate jobs and attract
more investment in the high-
technology, manufacturing and
service sectors.
Infrastructure needs
However, though Costa Rica is
proving to be the star attraction,
there is a broad range of
opportunities for law firms in the
wider Central America region,
says David Gutierrez, Madrid
-based partner at C osta Rica-
headquartered BLP Abogados.
“The region has a rapidly growing
population of 42 million, who
need more food and energy
production, as well as schools and
hospitals,” he explains. “Central
America also needs infrastructure
to support regional commerce –
not only roads, bridges, ports and
Ignacio Andrade, Sfera Digital
airports, but also technology and
logistics to increase export/import
capabilities.”
Given the potential markets
for legal services across Central
America, a significant proportion
of law firms are looking to expand
foreign operations. A total of
September 2018 • THE LATIN AMERICAN LAWYER • 23
>>