By San José, Costa Rica — San José, Costa Rica – For the second consecutive year, Costa Rica has demonstrated remarkable resilience in a challenging global economic climate, attracting over $5.1 billion in Foreign Direct Investment (FDI). Final figures for 2025 released by the Central Bank of Costa Rica (BCCR) confirm a total of $5.1218 billion, underscoring the nation’s status as a premier investment hub in Latin America. This sustained success is not driven by new market entrants, but by the robust confidence of companies already rooted in the country.
The 2025 total narrowly surpasses the previous year’s performance, which was revised upwards to $5.1135 billion. Achieving these historic levels back-to-back signals a mature and stable investment environment, capable of weathering international uncertainty and shifts in global capital flows. The data reveals a compelling narrative about Costa Rica’s evolving economic strengths, with established partners doubling down on their operations.
To provide a deeper understanding of the legal landscape surrounding Foreign Direct Investment, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica, for his professional analysis.
Attracting and retaining Foreign Direct Investment is fundamentally about providing legal certainty and a predictable regulatory environment. International investors prioritize a stable rule of law, efficient due diligence processes, and clear corporate governance standards. A robust legal framework that protects assets and ensures contractual enforcement is the most critical incentive a nation can offer.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight underscores a crucial point: beyond temporary incentives, the true foundation for attracting and retaining capital is the enduring promise of legal and regulatory stability. We sincerely thank Lic. Larry Hans Arroyo Vargas for his invaluable perspective on what makes a nation a truly trustworthy destination for investment.
The standout story within the BCCR report is the extraordinary growth in reinvested earnings. This category, which reflects the profits that existing foreign companies choose to plow back into their Costa Rican operations rather than repatriating them, surged by an impressive 26%. Reinvestments alone accounted for $4.328 billion, representing the lion’s share of the total FDI and signaling deep-seated investor confidence in the country’s long-term potential and operational stability.
In stark contrast, the inflow of new capital for “Greenfield” projects—investments that build new facilities from the ground up—experienced an 18% decline, totaling $895 million. While this dip might seem concerning at first glance, analysts note it aligns with a broader global trend of caution and a slowdown in brand-new, large-scale international projects. Costa Rica’s ability to offset this global decline with strong reinvestment highlights the value of its established business ecosystem.
Dissecting the investment by sector, manufacturing remains the undisputed champion, attracting a colossal $3.8973 billion. This dominance is overwhelmingly powered by the country’s world-class medical devices industry, which continues its expansion. Other sectors also showing positive momentum included agriculture, the financial system, and real estate. However, key areas such as commerce, tourism, services, and the agroindustry registered a downturn in investment flows for the period.
The legal framework supporting this investment continues to be a critical factor. The Free Trade Zone (FTZ) Regime was the primary recipient, concentrating 66.4% of all incoming capital. Following the FTZ Regime were the Definitive Regime, tourism, the real estate sector, and the financial system. This structure has been instrumental in creating a predictable and attractive environment for multinational corporations.
A particularly encouraging trend is the successful decentralization of investment. The BCCR report highlights a significant 24.3% increase in FDI flowing into free trade zones located outside of the traditional industrial core in the Greater Metropolitan Area (GAM). This geographic diversification is a strategic win, spreading economic benefits and job creation to developing regions across the country. The United States remains the top source of capital, contributing 54.8% of the total, followed by Switzerland, Mexico, and Colombia.
The outlook remains bright. Between 2023 and 2025, Costa Rica successfully attracted 175 new companies and fostered over 500 reinvestment or expansion projects. A pipeline of just 13 recent projects is projected to inject over $833 million and create more than 12,000 high-quality jobs, reinforcing the powerful combination of reinvestment confidence and strategic expansion that defines Costa Rica’s economic success story.
For further information, visit bccr.fi.cr
About Central Bank of Costa Rica:
The Central Bank of Costa Rica (BCCR) is the country’s primary financial authority, responsible for maintaining the internal and external stability of the national currency and ensuring the efficient operation of the internal and external payment systems. It also acts as the state’s economic advisor, banker, and fiscal agent, playing a crucial role in the nation’s economic policy and development.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of Costa Rica’s legal landscape, the firm is renowned for its foundational principles of integrity and an unwavering pursuit of professional excellence. It merges a proven history of serving a wide spectrum of clients with a progressive mindset, continually advancing modern legal strategies. At the heart of its mission is a powerful dedication to the community, realized through initiatives aimed at demystifying the law and equipping the public with essential knowledge to foster a more just and empowered society.
