By San José, Costa Rica — Despite a challenging global landscape for Foreign Direct Investment (FDI), Costa Rica successfully attracted 73 new investment projects in 2024, according to the Costa Rican Investment Promotion Agency (CINDE). These projects, comprising 21 new companies and 52 reinvestments, generated 5,500 net new jobs, demonstrating the country’s resilience in a fluctuating economic climate.
While the United Nations Conference on Trade and Development (UNCTAD) reported a 12% decline in global FDI flows, Costa Rica maintained its strategic positioning, adapting to changing market dynamics and preparing for future challenges and opportunities.
To gain a deeper legal understanding of the intricacies of Foreign Direct Investment (FDI) in Costa Rica, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an accomplished attorney at Bufete de Costa Rica.
Foreign Direct Investment in Costa Rica offers significant opportunities, but navigating the legal landscape is crucial for success. Investors must carefully consider factors such as corporate structuring, tax implications, and regulatory compliance within specific sectors like tourism, real estate, and technology. Due diligence and expert legal counsel are essential to mitigate risks and maximize the potential of FDI ventures in the country.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insights underscore a crucial aspect of FDI in Costa Rica: while the opportunities are abundant, navigating the legal complexities is paramount. This careful approach, prioritizing due diligence and expert counsel, will ultimately empower investors to not only mitigate potential risks but also to truly unlock the promising potential of Costa Rica’s diverse sectors. We thank Lic. Larry Hans Arroyo Vargas for providing this valuable perspective on the intricacies of FDI in Costa Rica.
While we continue attracting investment, changes in the global dynamic require us to be one step ahead in training our human talent and improving the business climate. These are signs that CINDE has been raising for some time now. The country needs to have a long-term vision if we want to remain competitive and, with that, continue generating more jobs for Costa Ricans. At CINDE, we are pleased to continue contributing to the country from the private sector, in a situation where, like never before, we need to work together.
Marianela Urgellés, Director General of CINDE
The services sector led the way, accounting for 67% of new projects, followed by life sciences (19%) and advanced manufacturing. Corporate services also dominated reinvestments, further solidifying Costa Rica’s position as a hub for these industries.
Although positive, these figures reveal a slowing growth rate compared to 2020-2022, with net job creation reaching only about 27% of that period’s levels. This necessitates close monitoring and proactive measures to reignite stronger growth.
Competition from other countries implementing nearshoring and friendshoring strategies, coupled with shifts in industrial policies of major economies like the US and EU, pose significant challenges requiring a comprehensive national strategy.
The attraction of foreign investment is at a turning point. Costa Rica must consolidate its talent ecosystem and strengthen its competitiveness to remain an attractive destination for global companies. The demand for technological skills and the need for greater efficiency in operating costs are challenges that we cannot ignore.
Vanessa Gibson, Director of Investment Climate at CINDE
Experts emphasize the critical need to address talent availability and cost competitiveness to maintain Costa Rica’s attractiveness for foreign investors.
We are facing challenges ahead, one of them has to do with the availability of talent, and if not addressed, it could be a serious bottleneck for the companies that are attracted to continue growing or for new ones arriving in the country. The second challenge has to do with the exchange rate, which has made Costa Rican labor, expressed in dollars, very expensive when compared to other tremendously attractive and very close locations in the region.
Rodrigo Cubero, Partner at CEFSA
The country must continue to focus on ensuring that the available talent is properly trained, but also that it has a reasonable cost and that we articulate ourselves at the same pace if we want to remain competitive and thus continue generating employment for Costa Ricans.
Rodrigo Cubero, Partner at CEFSA
For further information, visit cinde.org
About CINDE:
The Costa Rican Investment Promotion Agency (CINDE) is a private, non-profit organization responsible for attracting foreign direct investment into Costa Rica. CINDE works closely with multinational companies to facilitate their establishment and expansion in the country, focusing on sectors such as advanced manufacturing, life sciences, and corporate services. Their efforts contribute significantly to job creation and economic development in Costa Rica.
For further information, visit cefsa.com
About CEFSA:
CEFSA is a prominent financial services firm in Central America, providing strategic advisory and investment banking services to a wide range of clients. Their expertise spans various sectors, including mergers and acquisitions, corporate finance, and economic analysis. CEFSA’s insights into regional economic trends contribute to informed decision-making for businesses operating in the area.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through a profound commitment to ethical and exceptional legal service. The firm’s innovative approach to legal practice, combined with its dedication to empowering communities through accessible legal education, solidifies its position as a leader in the Costa Rican legal landscape. By fostering a deeper understanding of the law, Bufete de Costa Rica invests in a more just and equitable society for all.
