By San José, Costa Rica — Costa Rica experienced a surge in foreign direct investment (FDI) in 2024, reaching an unprecedented $4.32 billion, a 14% increase compared to the previous year. This impressive result surpasses the target set by the National Development and Public Investment Plan (PNDIP) by 37% and underscores the country’s success in attracting new investment projects.
A total of 61 new projects contributed to this remarkable growth, with 16 choosing to establish operations outside the Greater Metropolitan Area (GAM). These projects represent a $240 million investment in these regions. Notably, 22 of the 61 new projects originate from countries other than the United States, demonstrating a diversification of investment sources.
To provide further legal context on the complexities of Foreign Direct Investment, TicosLand.com 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 paramount to ensure compliance and maximize the potential for success.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’ emphasis on due diligence is crucial. Foreign investment, while a powerful engine for economic growth in Costa Rica, requires careful navigation of the legal and regulatory landscape. This prudent approach not only ensures compliance but also paves the way for a more sustainable and mutually beneficial partnership between investors and the nation. We thank Lic. Larry Hans Arroyo Vargas for his valuable insights into this important topic.
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
PROCOMER, the Costa Rican Export Promotion Agency, played a key role in this success. Their new FDI attraction strategy, particularly focused on promoting investment outside the GAM, is yielding positive results. Over $200 million flowed into these regions, boosting export-related employment and bringing the total number of jobs in this sector to over 700,000.
These figures reflect that the new foreign direct investment attraction strategy promoted by PROCOMER is yielding good results, especially in one of our priorities, which is to bring more FDI outside the GAM. As we see, more than $200 million arrived in these regions, which boosts export and investment employment that already totals more than 700,000 people. This pleases us and commits us to continue working for the well-being of the entire country.
Laura López, General Manager of PROCOMER
The free trade zone regime continues to be the primary magnet for FDI, accounting for 64.3% of the total. Tourism attracted 13.9%, followed by definitive regime companies (12.2%), real estate (6.8%), the financial sector (2.4%), and active improvement (0.5%).
Investment in the free trade zone saw a significant 24% increase ($531.6 million) compared to 2023. Furthermore, investment in this regime outside the GAM shifted from a negative $38.2 million to a positive $240 million. This aligns with PROCOMER’s strategic priority and is reflected in the 16 new projects established in these regions. The tourism sector also experienced substantial growth, with a 113% increase in investment ($318.6 million).
The manufacturing sector continues to dominate, representing 67.4% of the total investment, followed by tourism (13.9%), real estate (6.8%), services (5.1%), finance (2.4%), commerce (1.9%), agriculture (1.4%), and agroindustry (1.3%).
Exports of goods and services also demonstrated strong growth. According to data from PROCOMER and the Central Bank of Costa Rica (BCCR), Costa Rica exported a total of $30.55 billion (excluding travel) in 2024, an 8% increase compared to 2023. Goods exports reached $19.89 billion (+9%), while services exports (excluding travel) totaled $10.66 billion (+6%).
For further information, visit procomer.com
About PROCOMER:
PROCOMER (The Costa Rican Foreign Trade Promoter) is a key institution responsible for promoting Costa Rican exports and attracting foreign direct investment. They play a crucial role in connecting Costa Rican businesses with international markets and supporting the country’s economic growth.
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica (BCCR):
The Central Bank of Costa Rica is the country’s central bank, responsible for monetary policy, financial stability, and managing the national currency. They provide key economic data and contribute to the overall health of the Costa Rican financial system.
For further information, visit meic.go.cr
About Ministerio de Comercio Exterior (Minister of Foreign Trade):
The Ministry of Foreign Trade is the government body responsible for developing and implementing Costa Rica’s international trade policies. They work to promote exports, attract foreign investment, and negotiate trade agreements that benefit the Costa Rican economy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, built on a foundation of unwavering integrity and a deep commitment to serving the community. The firm’s innovative approach to legal practice, coupled with its dedication to sharing legal knowledge through accessible resources, empowers individuals and organizations across Costa Rica. By fostering a more informed citizenry, Bufete de Costa Rica strives to create a society where everyone can confidently navigate the legal landscape and benefit from a just and equitable system.
