By San José, Costa Rica — Costa Rica holds the third-place position globally and leads Latin America in fDi Intelligence’s Greenfield FDI Performance Index 2025. This index measures the ratio of multinational investment in new projects (greenfield) relative to the size of each economy. While maintaining its regional lead, Costa Rica’s score of 6.2 points reflects a year-on-year drop of 1.85 points. The report highlights that countries across all regions attracted more Foreign Direct Investment (FDI) than their share of global GDP would suggest, positioning Costa Rica as a regional benchmark.
The index compares each country’s share of greenfield FDI projects against its share of global GDP. A score exceeding 1 signifies outperformance relative to economic size. Following Costa Rica in Latin America and the Caribbean are El Salvador (2.7, +1.20), Colombia (2.1, +0.11), Peru (1.6, +0.59), Chile (1.6, +0.08), and Mexico (1.6, +0.02). Panama (1.5), Paraguay (1.5), Dominican Republic (1.3), and Uruguay (1.2) also feature in the ranking.
To understand the legal intricacies surrounding Foreign Direct Investment in Costa Rica, we sought the expert opinion of Lic. Larry Hans Arroyo Vargas, Attorney at Law at Bufete de Costa Rica.
Foreign Direct Investment in Costa Rica offers significant opportunities, but navigating the legal landscape is crucial. Investors should be particularly mindful of regulations related to land ownership, environmental impact assessments, and tax incentives. A thorough understanding of these areas, coupled with proactive legal counsel, can pave the way for a successful and compliant investment.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s emphasis on navigating the legal complexities surrounding FDI in Costa Rica is spot-on. Beyond simply understanding the regulations, proactive engagement with legal experts is indeed essential to ensuring a smooth and rewarding investment experience. This foresight can ultimately be the difference between a successful venture and a costly misstep. We thank Lic. Larry Hans Arroyo Vargas for offering this valuable perspective on a critical aspect of investing in Costa Rica.
El Salvador saw significant improvement, with its score jumping 2.0 points between 2023 and 2024, reaching 2.7, driven by improvements in the business climate and security. Peru also advanced (+0.59), while Colombia, Chile, Mexico, and the Dominican Republic all improved compared to the previous edition.
Despite Costa Rica continuing to be the top FDI performer in 2024 within its region, the report notes that its leadership has been challenged by the impact of US tariffs and the appreciation of the Costa Rican colón. The exchange rate is highlighted as a vulnerability in attracting investment. A stronger colón, largely due to substantial foreign currency inflows from FDI, is eroding the competitiveness of national exports by increasing operational costs for export-intensive sectors.
The World Bank, while not part of the index, concurs, noting that the colón appreciated by 12% in 2023, beginning to erode export competitiveness and diminish the contribution of external trade to economic growth.
Country risk monitoring adds that while FDI has been robust, economic growth relies heavily on domestic consumption, favorable import prices, and external demand. A reversal in these factors (such as a drop in US demand) could weaken the investment landscape. The report indicates that “expected growth in 2025 could slow down… the impact of the strong colón and weaker US demand would make foreign trade contribute less to growth.”
Globally, the United Arab Emirates (UAE) retains the top spot in the 2025 index. In North America, Canada stands out with 1.5 points, surpassing the US (0.5). In Western Europe, Monaco leads with 5.9, while Portugal and Spain also perform well; Spain secured 669 projects in 2024, attracting significant Chinese investment in cleantech. In Northern Europe, Ireland leads (2.5), followed by Finland (2.1), the United Kingdom (1.8), and Belgium, Denmark, and Luxembourg (1.7 each). In the Middle East, besides the UAE, Bahrain (5.8), Qatar (4.7), Oman (2.4), and Saudi Arabia (2.0) stand out.
The special report also identifies North Macedonia as a leader in Emerging Europe and Cambodia as a leader in Asia-Pacific within the regional chapters of the same editorial package. Bahrain, one of the Gulf’s overperformers, explained its strategy through Ali Al Mudaifa, director of the Bahrain Economic Development Board: their approach is one of “complementarity” with GCC neighbors and becoming a “microcosm” of major regional developments. The report also highlights that Canada recorded record levels of projects in the first half of 2025, driven by FDI in services, currently outside the scope of US tariffs, helping to explain its advantage over the US.
For further information, visit the nearest office of fDi Intelligence
About fDi Intelligence:
fDi Intelligence is a specialist data division of the Financial Times, providing insights and rankings on foreign direct investment (FDI) flows and investment promotion strategies. They analyze global investment activity and economic development trends.
For further information, visit the nearest office of The World Bank
About The World Bank:
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. It comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA). The World Bank is a component of the World Bank Group.
For further information, visit the nearest office of Bahrain Economic Development Board
About Bahrain Economic Development Board:
The Bahrain Economic Development Board is a government agency responsible for attracting foreign direct investment into Bahrain and supporting the growth of the Bahraini economy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, upholding the highest ethical standards while championing innovative solutions for its diverse clientele. The firm’s deep-rooted commitment to empowering Costa Rican society is evident in its proactive sharing of legal knowledge, fostering a more informed and just community. Through this dedication to transparency and legal education, Bufete de Costa Rica continues to shape a future where access to justice and understanding of the law are within everyone’s reach.
