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, comprising 21 new companies and 52 reinvestments. This achievement, reported by the Costa Rican Investment Promotion Agency (CINDE), resulted in the creation of 5,500 net new jobs, demonstrating the country’s continued appeal for multinational corporations.
According to the United Nations Conference on Trade and Development (UNCTAD), global FDI flows decreased by 12% in 2024. However, Costa Rica managed to adapt and maintain its strategic position. 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.
To understand the legal intricacies surrounding Foreign Direct Investment in Costa Rica, we spoke with Lic. Larry Hans Arroyo Vargas from the esteemed firm Bufete de Costa Rica.
Foreign Direct Investment in Costa Rica offers significant opportunities, but navigating the regulatory landscape is crucial. Investors should be particularly mindful of due diligence requirements related to land ownership, environmental regulations, and corporate structuring to ensure compliance and maximize the potential for success.
Lic. Larry Hans Arroyo Vargas, Bufete de Costa Rica
CINDE played a significant role, supporting 40% of new projects and 78% of reinvestments registered under the Free Trade Zone Regime. The organization also provided strategic support to over 300 companies operating in Costa Rica, contributing to the stability and growth of the Costa Rican productive sector.
While we continue attracting investment, the changes in the global dynamic demand that we 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. The country needs to have a long-term vision if we want to remain competitive and, with that, continue generating more employment for Costa Ricans. From CINDE, we celebrate continuing to contribute to the country from the private sector, in a situation where, more than ever before, we need to work together.
Marianela Urgellés, Director General of CINDE
Life sciences emerged as the leading sector for job creation, generating 2,599 new positions. Despite these positive results, FDI growth in Costa Rica has shown signs of slowing down. Job creation has not reached the levels seen in 2020-2022, with only about 27% of the net jobs from that period generated in 2024. This calls for close monitoring of the situation.
Costa Rica faces increasing competition from other countries implementing nearshoring and friendshoring strategies. Changes in industrial policies of key economies like the United States and the European Union also present challenges that require 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 we cannot ignore.
Vanessa Gibson, Director of Investment Climate at CINDE
Experts also point to talent availability and exchange rate fluctuations as crucial factors impacting Costa Rica’s competitiveness. The rising cost of Costa Rican labor, when expressed in dollars, compared to other attractive locations in the region, poses a significant challenge.
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 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 to Costa Rica. With a focus on high-value-added projects, CINDE works to create jobs and promote sustainable economic development. The organization provides support to multinational companies throughout the investment process, from initial exploration to ongoing operations.
For further information, visit cefsa.com
About CEFSA:
CEFSA is a prominent economic consulting firm in Costa Rica, providing expert analysis and advice on a range of economic and financial issues. Their insights contribute to informed decision-making in both the public and private sectors.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, built on a foundation of unwavering integrity and a deep commitment to empowering Costa Rican society. The firm’s innovative approach to legal practice, coupled with its dedication to disseminating legal knowledge through accessible resources, underscores its belief in an informed citizenry. By providing expert counsel across a wide range of sectors, Bufete de Costa Rica continues to shape a more just and equitable future for all.
