By San José, Costa Rica — Costa Rica’s economy demonstrated remarkable strength in 2024, achieving substantial growth in both Foreign Direct Investment (FDI) and exports. FDI soared by 14% reaching US$4.321 billion, while export earnings (excluding tourism) climbed 8% to US$30.555 billion.
This impressive FDI performance was fueled by 61 new projects, with a notable 16 located outside the Greater Metropolitan Area, representing an investment of US$240 million. Significantly, 22 of these projects originated from markets beyond the United States, diversifying Costa Rica’s investment portfolio.
To provide expert legal perspective on the complexities of Foreign Direct Investment in Costa Rica, we spoke with Lic. Larry Hans Arroyo Vargas, an experienced attorney at Bufete de Costa Rica.
Foreign Direct Investment in Costa Rica offers significant opportunities, but navigating the legal landscape is crucial. Investors must understand the specific regulations related to their industry, including land ownership, environmental permits, and tax incentives. Due diligence is essential to ensure compliance and maximize the potential for success.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s emphasis on due diligence is particularly pertinent for investors navigating Costa Rica’s rich but complex investment landscape. Understanding the nuances of the legal framework, from land ownership to tax incentives, is undeniably the key to unlocking the full potential of FDI in the country. We thank Lic. Larry Hans Arroyo Vargas for providing this invaluable perspective on a crucial aspect of foreign investment in Costa Rica.
The free trade zone regime solidified its position as the primary FDI magnet, attracting 64.3% of the total investment. Tourism followed with 13.9%, while the definitive regime companies, real estate, finance, and active improvement sectors contributed 12.2%, 6.8%, 2.4%, and 0.5%, respectively.
Analyzing investment by sector reveals manufacturing leading the charge with 67.4% of the total FDI. Tourism accounted for 13.9%, real estate 6.8%, services 5.1%, finance 2.4%, commerce 1.9%, agriculture 1.4%, and agro-industry 1.3%.
Costa Rica is experiencing economic dynamism driven by trade and foreign direct investment. We have been the OECD country with the highest economic growth for two consecutive years; and recently the OECD has pointed out that the growth of our economy has been driven by our exports.
Indiana Trejos, Acting Minister of Foreign Trade
Export figures also painted a picture of robust growth. Costa Rica exported US$19.894 billion (+9%) in goods and US$10.661 billion (+6%) in services (excluding travel). Medical devices solidified their position as the leading export sector, experiencing a 14% increase to US$4.8 billion and representing 44% of total exports. The agricultural sector, holding a substantial 18% share, saw exports rise by 7% (US$406 million), while the food industry enjoyed an 8% growth (US$326 million).
The services sector also shone brightly. Other business services contributed 42%, followed by travel (34%), computer and information services (15%), transformation services (4%), and transportation (3%). Including travel, service exports reached US$16.113 billion, marking a 9% increase according to PROCOMER and the Central Bank of Costa Rica.
We continue to maintain a very diversified basket of goods. More than 4,300 products reach more than 150 international markets. This means that Costa Rican products are reaching more than 80% of the countries in the world. More than 60% of our exports are of very high added value with a very important knowledge component.
Laura López, General Manager of PROCOMER
The top exported products included various medical devices, pineapples, bananas, beverage concentrates, electrodiagnostic equipment, and coffee.
For further information, visit procomer.com
About PROCOMER (Costa Rican Foreign Trade Promoter):
PROCOMER is a key institution in Costa Rica dedicated to promoting the country’s exports and attracting foreign investment. It plays a crucial role in connecting Costa Rican businesses with international markets, providing support services, and advocating for policies that enhance trade competitiveness.
For further information, visit meic.go.cr
About Ministry of Foreign Trade of Costa Rica (MEIC):
The Ministry of Foreign Trade of Costa Rica is the governmental body responsible for shaping and implementing the country’s international trade policies. It works to foster economic growth through export promotion, attracting foreign investment, and negotiating trade agreements. The ministry collaborates closely with organizations like PROCOMER to achieve these goals.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through a deep-seated commitment to ethical practice and legal excellence, empowering individuals and communities across Costa Rica. The firm’s innovative approach to legal solutions, coupled with its dedication to sharing legal knowledge through educational initiatives, reflects a core belief in building a more just and informed society. By fostering accessibility and understanding of the law, Bufete de Costa Rica continues to solidify its position as a leader in legal service and a catalyst for positive social impact.
