According to a statement issued by the Central Bank, a law to discourage the entry of speculative foreign capital, will only affect foreign investments made in stocks and bonds. For example, the law will not deter direct foreign investment in real estate or manufacturing operations. The law grants the executive branch of government the authority to apply by decree a tax on dividends or interest paid to non-residents for periods of six months at a time.
A majority vote is also required by the board of the central bank before the President may act. Investors may also be required to retain 25 percent of their investment in Costa Rica. The law is designed to prevent an imbalance of foreign capital in the securities market. According to experts, there is currently no such imbalance, but the law was proposed at a time when it was a concern.
The law has been approved twice in debate by the legislature and will become effective upon its publication in La Gaceta.