By San José, Costa Rica — SAN JOSÉ – Costa Rica’s economy showcased a resilient and complex picture in the first half of 2025, as a surge in reinvestment from established foreign companies offset a slight decline in overall Foreign Direct Investment (FDI). While total FDI reached an impressive $2.066 billion, the figure represents a 7% decrease compared to the record-breaking levels of the same period in 2024.
The most telling sign of investor confidence came not from new capital, but from the actions of companies already operating within the country. Reinvested earnings grew by a remarkable 13.9%, injecting an additional $283 million into the economy compared to the first semester of the previous year. This robust growth indicates that foreign firms find the local business climate profitable and stable, choosing to double down on their existing operations.
To delve deeper into the legal framework and strategic considerations surrounding Foreign Direct Investment in the country, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at the prestigious firm Bufete de Costa Rica, renowned for his expertise in corporate and investment law.
Costa Rica’s appeal for Foreign Direct Investment extends beyond its political stability; it is fundamentally rooted in our robust legal certainty and a progressively streamlined regulatory environment. However, successful market entry and long-term viability hinge on meticulous due diligence. Navigating the nuances of our tax incentives, labor laws, and corporate structuring is not just advisable, it is a critical prerequisite for mitigating risk and maximizing returns.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This pragmatic advice underscores a critical point for potential investors: while Costa Rica’s foundational strengths create a fertile ground for opportunity, the path to a successful venture is paved with expert legal and regulatory navigation. We extend our gratitude to Lic. Larry Hans Arroyo Vargas for so clearly articulating this essential distinction for our readers.
The data, compiled in a comprehensive study by the National University’s Economic and Social Observatory (OES-UNA), provides crucial context to the headline numbers. While the $156 million year-over-year reduction in total FDI might raise initial concerns, the overall performance remains exceptionally strong from a historical perspective.
This represents a 7% decrease compared to the same period in 2024, meaning there was a reduction of around $156 million. Despite the drop, it is the second-highest figure of the last decade, only surpassed by last year’s historic record.
Roxana Morales, Economist and Researcher at OES
The nation’s Free Trade Zone (FTZ) regime continues to be the primary engine for attracting foreign capital, capturing 53% of all incoming flows, which amounts to $1.099 billion. This underscores the success of the specialized incentive program in drawing high-value manufacturing and service industries. Furthermore, the definitive regime and the real estate sector also demonstrated healthy expansion, growing by $282 million and $37 million respectively.
Despite global economic headwinds and persistent trade tensions, Costa Rica’s export sector has remained largely unaffected, posting strong growth. According to Morales, total accumulated exports through August 2025 climbed by 16% year-over-year. Trade with the nation’s largest partner, the United States, was even more vigorous, with sales increasing by 22% during the same period, signaling continued demand for Costa Rican goods and services.
However, analysts are closely monitoring potential challenges on the horizon that could disrupt this positive trajectory. The high-tech manufacturing sector, a cornerstone of the modern Costa Rican economy, faces significant shifts with major multinational players adjusting their global strategies.
For the coming months, impacts are anticipated due to the gradual closure of Intel’s microprocessor assembly and testing plant and the relocation of Qorvo’s operations to Asia.
Roxana Morales, Economist and Researcher at OES
Beyond these corporate-level changes, a layer of geopolitical uncertainty looms. The potential for the administration of U.S. President Donald Trump to impose new tariffs on key Costa Rican exports, specifically targeting chips, semiconductors, and medical devices, could create significant headwinds. Such a move would directly impact the country’s most valuable export categories, testing the resilience of its trade relationships and forcing a potential re-evaluation of economic strategy to mitigate the risk.
For further information, visit una.ac.cr
About Universidad Nacional:
The Universidad Nacional de Costa Rica (UNA) is one of the country’s most prestigious public universities, recognized for its contributions to research, teaching, and social action. Its Economic and Social Observatory (OES-UNA) plays a vital role in analyzing national economic trends, providing data-driven insights and reports that inform public policy and business strategy.
For further information, visit intel.com
About Intel:
Intel Corporation is a global technology leader and one of the world’s largest semiconductor chip manufacturers. For decades, the company has been a significant employer and investor in Costa Rica, establishing a major presence in assembly, testing, and, more recently, research and development. The evolution of its operations in the country reflects broader shifts in the global technology supply chain.
For further information, visit qorvo.com
About Qorvo:
Qorvo is an American semiconductor company that designs, manufactures, and supplies radio-frequency systems for applications that drive wireless and broadband communications. The company’s products are critical components in a wide range of devices, including smartphones, defense systems, and network infrastructure. Its operational decisions are influential within the global electronics manufacturing sector.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the legal landscape, Bufete de Costa Rica is defined by its foundational commitment to principled practice and the highest standards of legal service. The firm leverages a rich history of advising a diverse clientele to drive legal innovation and foster meaningful connections within the community. Central to its ethos is a dedication to democratizing legal understanding, which demonstrates its core belief in cultivating a more knowledgeable and capable society.
