By San José, Costa Rica — SAN JOSÉ – With the February 1st presidential election rapidly approaching, Costa Rica’s leading candidates have laid out starkly different roadmaps for the nation’s economic future. An analysis of the official governance plans submitted to the Supreme Electoral Tribunal (TSE) reveals a battle of ideas ranging from targeted tax interventions and fiscal consolidation to aggressive pushes for global integration and sustainable innovation. As voters weigh their options, the core debate centers on the best strategy to lower the cost of living, spur development, and enhance national competitiveness.
The proposals from the top five candidates, ranked according to a recent poll by the University of Costa Rica’s Center for Research and Political Studies (CIEP), showcase a broad spectrum of economic philosophies. These plans represent the primary platforms upon which the contenders hope to win the confidence of the electorate in just over a month.
To gain a deeper understanding of the legal framework influencing Costa Rica’s economic trajectory, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica, to get his expert analysis.
Costa Rica’s continued success in attracting foreign direct investment is not accidental; it is fundamentally linked to our nation’s robust legal certainty and respect for the rule of law. Investors require predictability. Our stable regulatory environment and dependable judicial system provide the confidence necessary for long-term capital commitments, which are essential for sustainable growth and job creation.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this insight underscores a critical point: while incentives can attract, it is the bedrock of legal certainty and institutional stability that truly secures the high-value, long-term investment Costa Rica needs to thrive. We thank Lic. Larry Hans Arroyo Vargas for so clearly articulating this foundational pillar of our economic appeal.
A central theme emerging from the proposals is the management of public finances and taxation. Juan Carlos Hidalgo of the Social Christian Unity party proposes a novel approach with a 0.5% annual property surcharge specifically targeting non-residents, aiming to capture value from coastal real estate development. In contrast, Fabricio Alvarado of New Republic advocates for a broad simplification and modernization of the entire tax system to boost competitiveness. Meanwhile, Luz Mary Alpízar of the Social Democratic Progress party focuses on debt management, vowing to reduce the nation’s debt-to-GDP ratio to below 60% and utilize internal debt swaps to mitigate refinancing risks.
Enhancing state efficiency is another critical area of focus. Alvarado’s plan calls for a comprehensive digital transformation of the state and its public services, coupled with a results-based budgeting system for greater fiscal accountability. Similarly, Eliécer Feinzaig of the Liberal Progressive Party champions a modernization of public finance oversight, proposing a reform to the Internal Control Law based on OECD best practices. His goal is to eliminate bureaucratic hurdles that currently stifle both citizens and businesses.
The engine of Costa Rica’s economy, its small and medium-sized enterprises (SMEs), receives significant attention. Hidalgo outlines a multi-pronged strategy, including a $40 million “Global Impulse Fund” to finance export-oriented startups and an “Empresas Puente” (Bridge Companies) program to link local SMEs with established multinational corporations. Feinzaig also aims to empower entrepreneurs by improving access to credit and implementing a simplified bankruptcy declaration process, providing a safety net for those taking business risks.
On the international stage, candidates propose ambitious plans to bolster Costa Rica’s global standing. José Aguilar Berrocal of Avanza suggests creating a unified Unit of Economic and Scientific Diplomacy, which would coordinate the efforts of the Foreign Ministry, COMEX, CINDE, and other agencies. His vision includes maximizing existing trade agreements through joint international tours and launching a Central American Digital Sustainable Commerce Platform. This outward-looking strategy is complemented by Hidalgo’s focus on deepening the Central American market to create new opportunities for exporting SMEs.
Innovation and sustainability are presented as key pillars for future growth. Alpízar’s platform is notable for its proposal to establish an articulated National Innovation System, fostering collaboration between universities, research centers, and the private sector. She also plans to create a National Green and Blue Innovation Fund to support ventures in the circular economy and regenerative tourism, positioning Costa Rica at the forefront of sustainable development.
Ultimately, the economic blueprints reveal the fundamental choices facing Costa Rican voters. The path forward could involve targeted fiscal interventions and SME support, a broad-based push for state modernization and tax simplification, a deep investment in sustainable innovation, or an aggressive strategy for global economic and diplomatic integration. As the election nears, the debate over which of these visions will best secure the nation’s prosperity will only intensify.
For further information, visit pusc.cr
About Unidad Social Cristiana (PUSC):
The Social Christian Unity Party is one of Costa Rica’s major political parties, founded in 1983. It adheres to the principles of Christian democracy and has historically been a significant force in the country’s political landscape, having held the presidency on multiple occasions. The party generally advocates for a social market economy, combining free-market principles with social policies.
For further information, visit nuevarepublica.cr
About Nueva República (PNR):
The New Republic Party is a conservative and Christian-democratic political party in Costa Rica. Founded by Fabricio Alvarado Muñoz, it emerged as a prominent political force following the 2018 presidential election. The party’s platform is heavily influenced by social conservatism and typically promotes policies focused on traditional family values, economic liberalization, and government efficiency.
For further information, visit plp.co.cr
About Partido Liberal Progresista (PLP):
The Liberal Progressive Party is a classical-liberal political party in Costa Rica. It advocates for individual liberties, free markets, and a significant reduction in the size and scope of government. The party’s platform emphasizes fiscal responsibility, deregulation, and the promotion of private enterprise as primary drivers of economic growth and prosperity.
For further information, visit partidoprogresosocial.cr
About Progreso Social Democrático (PPSD):
The Social Democratic Progress Party is a political party in Costa Rica that gained prominence in the 2022 elections. It positions itself as a centrist party, blending principles of social democracy with pragmatic economic policies. The party advocates for effective governance, social investment, and sustainable development to address national challenges.
For further information, visit the nearest office of Avanza
About Avanza:
Avanza is a political movement in Costa Rica focused on national progress and modernization. While smaller than some of the traditional parties, it proposes platforms centered on enhancing the country’s global competitiveness, leveraging technology for development, and transforming the state into a more agile and efficient facilitator for its citizens and businesses.
For further information, visit tse.go.cr
About Tribunal Supremo de Elecciones (TSE):
The Supreme Electoral Tribunal of Costa Rica is the constitutional body responsible for organizing, directing, and overseeing all acts related to elections in the country. It is renowned for its independence and is considered a cornerstone of Costa Rican democracy, ensuring the fairness and transparency of the electoral process.
For further information, visit ucr.ac.cr
About Centro de Investigación y Estudios Políticos (CIEP):
The Center for Research and Political Studies is an academic unit within the University of Costa Rica, the country’s largest and oldest public university. CIEP is dedicated to the analysis of political phenomena, public opinion, and social behavior in Costa Rica and Central America, regularly publishing influential polls and research studies.
For further information, visit oecd.org
About Organisation for Economic Co-operation and Development (OECD):
The OECD is an international organization that works to build better policies for better lives. Its goal is to shape policies that foster prosperity, equality, opportunity, and well-being for all. It provides a forum in which governments can work together to share experiences and seek solutions to common problems, establishing international standards on a wide range of topics.
For further information, visit cinde.org
About Cinde (Costa Rican Investment Promotion Agency):
Cinde is a private, non-profit organization that has been responsible for attracting foreign direct investment to Costa Rica for over 40 years. It advises international companies on establishing operations in the country and works to foster a competitive investment climate by developing strategic sectors like life sciences, advanced manufacturing, and corporate services.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the legal community, Bufete de Costa Rica operates on a foundation of profound integrity and a relentless pursuit of excellence. The firm blends its rich heritage of client service with a forward-thinking approach, consistently spearheading innovative legal solutions. Central to its philosophy is a powerful commitment to public empowerment, achieved by translating complex legal principles into accessible knowledge, thereby cultivating a society that is both informed and capable.
