Business Practices in Costa Rica

Business, like language, varies from country to country. From common practices to appropriate communication techniques, there various nuances to take into consideration when working with someone from another area. In some countries, like Japan, silence is valued over constant conversation. In others, like Germany, punctuality is preferred over flexibility. When it comes to how business practices in Costa Rica differ from those in the United States, there’s a lot to consider.

Costa Rica and the United States have growing populations with even faster-growing interests in web-based work and software development. Because of this mutual interest, Costa Rica is quickly becoming a go-to for U.S. companies needing nearshore software development. Due to this growing interest centered around international business, it is important to understand how the two countries differ.

Seven Important business practices to remember when working with Costa Ricans

1. Costa Ricans are flexible with their appointment times

Costa Ricans are not known for being the strictest of people when it comes to punctuality. Due to their more relaxed approach to time management, they’re not going to be overly offended if the appointment doesn’t start right on time. Although Latin Americans typically prioritize a work-life balance, they also have a strong work ethic that guarantees they’ll deliver on the expectations set by your company.

Although, Costa Ricans are more flexible with their time, Latin Americans who work with external partners know that punctuality is important to U.S. based teams.

2. Reminders of meetings are recommended

This differentiation between Costa Ricans and Americans stems from the Costa Rican pura vida lifestyle and their flexibility with time. Due to their busy lifestyles, Costa Rican business partners need reminders of pre-scheduled meetings. It is recommended to send calendar invites at least a week before the meeting.

3. Put an emphasis on small talk

While businesspeople in the United States often get straight to the point, Costa Ricans like to take their time. It’s important to emphasize small talk during business meetings with Costa Ricans. Speaking on topics like the weather, general news, or the latest sports scores are completely acceptable and welcome.

4. Networking is highly important

Compared to the United States, Costa Rica’s population is small. With only 5 million people in the country, networking plays a huge role in business growth. It’s important to get out there and discuss current business ventures and possible future business endeavors with the community. The small, tight-knit community can open up partnerships and opportunities with fellow businesspeople that may have gone unnoticed without networking. Due to the closeness of the Costa Rican community, and the importance of networking, you can expect Costa Ricans to always be respectful and polite.

5. Business attire is preferred in professional settings

Costa Rica’s beautiful beaches and lush jungles may lead you to think that casual attire is acceptable throughout the country. In reality, the opposite is true in a business setting. Despite their laid-back lifestyles, Costa Ricans still hold looking professional in high regard. Men are often found in dress pants paired with long sleeve shirts. Most opt for a jacket over a tie, unlike businessmen in the United States.

Women’s wardrobe choices can vary from business suits to more fanciful dresses, with plenty of accessories, depending on the event.

Learn more about Blue Zones and Costa Rica

6. Titles are important

Titles play an important role to Costa Ricans, especially those with professional or political titles. While professional titles are important to businesspeople in the United States, too, the titles of Costa Ricans differ greatly. Costa Rican men use their father’s and mother’s names in correspondence but only use their father’s names when introducing themselves. While businesspeople in the United States often have one surname and are okay with being called by their first name, in Costa Rica one must be invited to refer to the other by their first name. It is sometimes seen as rude to call a Costa Rican by their first name without being asked to do so.

7. Negotiations will take time

Business decisions are expected to take longer in Costa Rica than in the United States. This is because business decisions are made between all involved parties within the business which means there is a lot of bureaucracy to navigate. Additionally, because of the close community of networkers, business decisions and negotiations are often made over dinner, in a more relaxed environment, which can stretch out the process.

While Costa Rica is not on the other side of the world, business culture in Costa Rica is quite different when compared to the United States. With the more relaxed approach to time management and decision-making, Costa Ricans do business at a slower pace. The close-knit community throughout the country means that there is a personal level to the business. In comparison, there is often a strict line between business and personal life in the United States. Despite the differences, partnerships between businesses in the United States and Costa Rica continue to thrive in web-based work and software development.

If you are planning to start a nearshore partnership with Costa Rica, contact us using this form.

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