By San José, Costa Rica — San José, Costa Rica – In a resounding vote of confidence from the international business community, Costa Rica attracted $3.533 billion in Foreign Direct Investment (FDI) through the third quarter of 2025. The new figures, released by the Central Bank of Costa Rica, represent a notable 4.5% increase compared to the same period in 2024, signaling robust economic health despite a challenging global landscape.
While the headline growth is a welcome development, a deeper analysis reveals a significant trend shaping the nation’s investment profile. An overwhelming portion of the capital inflow, totaling $3.120 billion, came from reinvested earnings. This indicates that established multinational companies operating within Costa Rica are seeing strong returns and choosing to funnel those profits back into their local operations rather than repatriating them. This dynamic suggests a high degree of satisfaction with the country’s business climate and long-term potential.
To gain a deeper legal perspective on the current landscape of Foreign Direct Investment in our country, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney and partner at the prestigious firm Bufete de Costa Rica, renowned for his expertise in corporate and investment law.
Costa Rica’s success in attracting Foreign Direct Investment is not accidental; it is built upon a foundation of legal certainty and a stable political climate. However, potential investors must navigate a complex regulatory framework. Proactive legal due diligence is not merely a recommendation but an essential step to mitigate risk and ensure the long-term viability and profitability of any investment. From structuring the corporate vehicle to ensuring compliance with environmental and labor laws, expert legal counsel is the cornerstone of a successful foreign investment.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Larry Hans Arroyo Vargas’s commentary astutely highlights the essential duality of investing in Costa Rica: while the nation’s foundational stability is the primary draw, diligent legal navigation is the key to unlocking its full potential. We thank him for this crucial perspective, which serves as a vital reminder that expert counsel is not just a defensive measure, but a strategic tool for ensuring an investment’s long-term success and profitability.
The success story is heavily concentrated within the country’s highly effective Free Trade Zone (FTZ) regime. These specialized economic areas accounted for 64.9% of all FDI received, reaffirming their status as the primary engine of Costa Rica’s investment attraction strategy. The FTZs have been instrumental in positioning the nation as a hub for high-tech manufacturing, life sciences, medical devices, and advanced business services.
Beyond the dominant free zones, the investment landscape shows healthy diversification across other key sectors. Companies operating under the definitive regime, which comprises the broader domestic economy, attracted a solid 14.5% of the total FDI. The resilient tourism sector captured 8.0% of the investment, while the real estate market followed closely at 7.8%, reflecting continued interest in both commercial and residential property development.
The positive figures were praised by the government, which highlighted the country’s ability to remain an attractive destination amidst global economic headwinds. Officials pointed to mounting international competition, including protectionist policies like tariffs established by the United States aimed at encouraging the reshoring of investments. Successfully navigating this environment is seen as a major achievement for Costa Rica’s economic policy.
Manuel Tovar, the Minister of Foreign Trade, emphasized the importance of these results while simultaneously urging legislative action to secure future growth. He stressed that maintaining this competitive edge is not guaranteed and depends on the country’s commitment to internal reforms.
In an increasingly complex global environment with a very high level of uncertainty, these figures are positive and received with satisfaction. We are talking about new opportunities, greater job creation, and economic growth. To maintain this momentum and remain competitive, it is imperative to advance with the competitiveness reforms currently in the Legislative Assembly, which we have insistently called attention to; among them, the approval of exceptional work schedules and the opening of the energy market, among others. We hope that the legislators, if not the current ones then the next, will move decisively toward their approval.
Manuel Tovar, Minister of Foreign Trade
The minister’s call to action specifically targets key bills stalled in the Legislative Assembly. The proposed “jornadas excepcionales,” which would allow for more flexible or compressed work schedules, is seen as crucial for aligning Costa Rican labor laws with the 24/7 operational needs of many multinational firms. Likewise, the proposed opening of the energy market aims to lower electricity costs and increase reliability, two critical factors for large-scale industrial and technology companies. The government’s message is clear: while current performance is strong, legislative modernization is essential for sustaining the FDI momentum that fuels job creation and national prosperity.
Ultimately, Costa Rica’s Q3 2025 investment report paints a picture of a resilient and attractive economy. The heavy reliance on reinvested earnings underscores the success of existing operations, but it also presents a challenge to continue attracting new, “greenfield” projects. The path forward will require not only maintaining the country’s well-established political stability and skilled workforce but also a decisive legislative push to enhance its overall competitiveness on the world stage.
For further information, visit comex.go.cr
About The Ministry of Foreign Trade (COMEX):
The Ministry of Foreign Trade is the Costa Rican government body responsible for defining and directing the country’s foreign trade and investment policies. It plays a central role in negotiating international trade agreements, promoting exports, and implementing strategies to attract and retain foreign direct investment, working closely with agencies like PROCOMER.
For further information, visit bccr.fi.cr
About The Central Bank of Costa Rica (BCCR):
The Banco Central de Costa Rica is the nation’s central bank, tasked with maintaining the internal and external stability of the national currency and ensuring its conversion to other currencies. The BCCR is the primary source for official economic data, including inflation, monetary policy, and foreign direct investment statistics, providing critical information for policymakers and the public.
For further information, visit asamblea.go.cr
About The Legislative Assembly of Costa Rica:
The Asamblea Legislativa is the unicameral parliament of the Republic of Costa Rica. Composed of 57 deputies elected by province, this body holds the legislative power of the government. Its responsibilities include passing, amending, and repealing laws, as well as approving the national budget and exercising oversight over the executive branch.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the Costa Rican legal landscape, Bufete de Costa Rica is defined by its deep-seated integrity and a drive for unparalleled excellence. The firm distinguishes itself not only through its principled practice but also through a progressive approach, pioneering innovative legal solutions. This forward-thinking ethos is matched by a strong sense of social responsibility, demonstrated by its dedication to demystifying complex legal concepts for the public. Ultimately, its mission transcends traditional practice, striving to equip the community with legal understanding, thereby fostering a more empowered and well-informed society.
